Global Artificial Lift Systems Market By Product (Electrical Submersible Pumps, Rod Lifts, Gas Lift, and Others), By Application (Offshore and Onshore), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2022-2032

Artificial Lift Systems Market Overview:

The global artificial lifting systems market was worth USD 22,790.0 million in 2021. With a registered CAGR of 7.1% for the period, 2023 to 2032, the rise in oil exploration is expected to drive market growth.

Artificial lift systems can be used to increase well productivity when the naturally occurring reservoir energy is insufficient.

Global Artificial Lift Systems Market

Product Analysis

Rod lift is one of the oldest types of artificial lift systems that are used to extract crude oils. The segment was responsible for 34.6% of overall revenue in 2021 but is expected to see significant growth over the forecast period. This is due to the many advantages of the rod lift type such as cost-effectiveness, efficiency in the extraction, and high rates of hydrocarbons. Additionally, rod lifts can lift crude oil with high viscosity at high temperatures and incur low operational costs.

In 2021, Electrical Submersible Pumps held the majority of revenue. This segment is expected to see steady growth in the future. These pumps are used to pump fluids from wells that have low bottom hole pressure. Because of their small space requirements, low maintenance, and high efficiency, they are widely used in oil & gas.

They are easy to use and have a simple design that can be used by field workers. They are also able to work in wells that have crooked or deviated pipes. Their low operational cost and high extraction rate will see them increasing in popularity over the next few decades.

Application Analysis

The market was dominated by the offshore segment, which accounted for 82.1% of the global market share in 2021 based on its application. The fastest growth rate for the offshore segment is predicted over the forecast period. The forecast period will see the fastest growth in the offshore sector.

For offshore wells, artificial lift systems include ESP, hydraulic pumping, gas lift, and other methods. Because offshore has large unexplored oil reserves, companies are actively looking to develop offshore oil fields. Because offshore has large unexplored reserves, companies have been looking for areas to develop oil. According to the IEA, between 2019-2040, 2,500-3,000 offshore businesses will be closed down as they near the end of their operational lives. The Gulf of Mexico is home to the North Sea’s most mature shallow field.

Key Market Segments

Product

• Electrical Submersible Pumps
• Rod Lifts
• Gas Lift
• Progressive Cavity Pumps
• Hydraulic Pumps
• Others

Application

• Offshore
• Onshore

Market Dynamics

Artificial lifts are mostly used in the oil & natural gas industry to increase the production of oil in reservoirs. This is due to the global increase in heavy oil and shale gas production. Due to huge shale oil reserves in areas such as the Asia Pacific, and the Americas the market is expected to see healthy growth over the next few years.

In the next few years, artificial lift systems will become more in demand because of factors like attempts to increase production from old fields. Some of the existing reservoirs are still in the mature stage and do not have the natural pressure to push oil and gas to the surface. A large amount of oil and gas produced around the globe comes from these mature oil fields. This is why it is necessary to have efficient artificial lift systems in order to maximize production and counter the natural decline rate of existing reserves.

As the energy demand rises, so does the dependence on existing sources. The overexploitation of these resources has caused their depletion. Therefore, the oil & Gas industry is shifting its focus to developing unconventional resources, such as natural gas and shale. This has resulted in increased exploration for unconventional reserves which is expected to increase artificial lift market demand over this forecast period.

Regional Analysis

The North American market for artificial lift systems is expected to grow rapidly over the forecast period. North America is responsible for 38.2% of the global artificial lifting system market. This is due to advancements in the field of shale oil discovery and the availability of low-pressure wells in the region. In North America, there will be a significant increase in unconventional resources, such as tight oil and shale, which should spur product demand.

The Asia Pacific is predicted to experience huge gains in the future, with a compound annual rate exceeding 5.8%. Factors like rising commercial activity and increased allocation of budgets for infrastructure development are expected to create a healthy market for petroleum products which will lead to the growth of artificial lift systems.

Additionally, increasing populations in China and India are expected to increase energy consumption, which would, in turn, lead to an increase in exploration activities and a rise in regional demand during the forecast period. Due to the high acceptance of wireline services and tools, the African and Middle Eastern artificial lift systems industry should show appealing growth prospects. The rapidly maturing oil fields and continuous extraction will drive the demand for these lift systems over the forecast period.

Key Regions and Countries covered іn thе rероrt:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Spain
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia-Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• MEA
  • GCC
  • South Africa
  • Israel
  • Rest of MEA

Market Share Analysis

The market is extremely consolidated with the market’s top seven companies accounting to a large market share in 2021. Key companies concentrate on R&D to develop effective methods to increase the hydrocarbon extraction rate.

Manufacturers have been forced to invest in product innovation because of intense competition. Baker Hughes created the LEAP adaptive manufacturing system in 2016 for greater oil and natural gas production. It also overcomes technical obstacles associated with unconventional production. This strategy has improved the efficiency and recovery of oil and natural gas, as well as optimized production.

Major players in the industry use advanced technologies like web-based monitoring and automated service to drill into oil fields deep and optimize production. Companies also seek to achieve a competitive advantage by collaborating with and acquiring other companies. Dover Corporation bought Accelerated Companies LLC (a supplier of fluid handling equipment and artificial lifting solutions for oil & natural gas production) in October 2014. It was done to increase its market presence.

Key Market Players

Some of the major industry players

• Dover Corporation
• GE Energy
• Baker Hughes Incorporated
• National Oilwell Varco Inc.
• Halliburton Company LLC.
• Schlumberger Limited
• Weatherford International Ltd.
• Borets
• Cameron
• Other Key Players

For the Artificial Lift Systems Market research study, the following years have been considered to estimate the market size: