Artificial Lift System Market Forecasts to 2028 – Global Analysis By Type (Rod lift, Electrical Submersible Pump (ESP), Progressive Cavity Pump (PCP), Gas Lift, Plunger Lift, Hydraulic Pumps, Pressurized Water Reactor (PWR), Jet pump), Well Type (Horizont

Artificial Lift System Market Forecasts to 2028 – Global Analysis By Type (Rod lift, Electrical Submersible Pump (ESP), Progressive Cavity Pump (PCP), Gas Lift, Plunger Lift, Hydraulic Pumps, Pressurized Water Reactor (PWR), Jet pump), Well Type (Horizontal, Vertical), Component (Pump Jack, Pump, Sucker rod, Motor, Cable, Separator), Mechanism (Gas Assisted, Pump Assisted), Application (Onshore, Offshore) and Geography

According to Stratistics MRC, the Global Artificial Lift System Market is accounted for $6.9 billion in 2022 and is expected to reach $10.2 billion by 2028 growing at a CAGR of 6.8% during the forecast period. The application of technology to boost or sustain output from a hydrocarbon resource is known as artificial lift. It is utilised to boost a well's oil and gas flow to the surface. This may be accomplished in a number of ways, including mechanical lift using pumps, gas lift utilising water injections into the reservoir, and thermal lift using heat to vaporise liquid hydrocarbons and force them out of the well.

According to the International Energy Association, in 2019, global oil consumption was estimated at 4.4 mb/d, and global oil consumption is projected to reach 104.1 mb/d by 2026.

Market Dynamics:

Driver:

Increasing Demand for oil exploration reserves

The artificial lift can be used to create flow from a well that isn't currently pumping or to speed up an already-flowing well. At some time during their lifespan, many oil wells and certain gas wells need artificial lift to get liquids out of the formation and speed up gas flow. Market growth for artificial lift systems is anticipated in response to escalating energy consumption, industrialisation, population growth, and urbanisation. Reliance on conventional energy sources decreases as energy use rises. This resource has been depleted as a result of overexploitation of natural resources. For oil explorations from reserves, the requirement for sophisticated artificial lift systems has developed for these reasons, and this demand is expected to fuel the artificial lift market demand during the course of the projection period.

Restraint:

Decreasing CAPEX of oilfield operators and upstream service providers

The main contributors to artificial lift demand are capital investments made by oil and gas companies as well as upstream exploration, development, and production activities. The changes in oil and petrol prices have an effect on these activities. Along with supply and demand, other elements that affect the price of oil and gas include weather patterns, natural disasters, and governmental rules and laws governing upstream exploration and production (E&P) operations. Due to the fact that many large-scale development projects are launched for a lengthy duration, the oil and gas firms may cut or postpone big expenditures based on the perception of long-term low oil and natural gas prices.

Opportunity:

Increasing Demand for Crude Oil

The demand for oil is rising due to urbanisation and rising global population. The market is expanding as a result of expanding advancements in various oil-producing nations, including Saudi Arabia, Kuwait, and Egypt, among others. Additionally, electrical submersible pumps are becoming more and more popular because of their versatility and availability in all high-production nations. As nations concentrate on oil a reservoir, which is fueling the expansion of the artificial lifts industry, they are perfect for oil wells because they can handle a wide variety of flow rates and particularly high downhole temperatures. Additionally, during the anticipated period, onshore exploration and production will promote the expansion of the artificial lift market by assisting with global oil output.

Threat:

Volatility of crude oil prices

Crude oil prices are typically determined by the market. Supply-demand situations and geopolitical circumstances, notably in the Middle East and the United States, are what most influence them. Consequently, crude oil prices are unstable. The upstream investment is significantly impacted by this. The price of crude oil dropped after the middle of 2014, which reduced investment in the industry. The need for artificial lift systems is negatively impacted by this. As a result, it is anticipated that the volatility of crude oil prices may hinder the artificial lift systems business in the near future.

Covid-19 Impact

The government authorities of different nations have been compelled to establish strict regulations, such social seclusion and lockdown, in order to prevent the transmission of the virus and keep the people safe throughout the pandemic phase due to the unprecedented spike in COVID-19 cases that was detected during the beginning. Because of the pandemic's severe effects, businesses and sectors as diverse as technology, automotive, manufacturing, chemicals, and many more have experienced disruptions in production and sales. Due to a stop in production, a decline in public engagement, and disruptions in supply chain operations, the pandemic had a significant negative influence on the technological development and economic growth of the affected nations. From that point forward, COVID-19 had a significant global influence on artificial lift systems and had a negative impact on their market expansion during the pandemic.

The Electrical Submersible Pumps (ESP) segment is expected to be the largest during the forecast period

The Electrical Submersible Pumps (ESP) segment is estimated to have a lucrative growth. Electric submersible pumps (ESP) are multi-stage centrifugal pumps that are used to extract moderate to large amounts of liquid from wellbores. Electric wires are used to provide the ESP systems within the well with electricity. ESPs are particularly effective in wells with low bottom-hole pressure, a low gas/oil ratio, a low bubble point, a high water cut, or fluids with a low API gravity. They are utilised in onshore and offshore, horizontal and vertical wells. They run on two distinct mechanisms: pump assistance and gas assistance.

The offshore segment is expected to have the highest CAGR during the forecast period

The offshore segment is anticipated to witness the fastest CAGR growth during the forecast period. Offshore oil wells frequently employ a variety of artificial techniques, such as electrical submersible pumps, progressive cavity pumps, rod lifts, and others. Numerous firms are searching for offshore locations for oil production since offshore has enormous untapped potential. Additionally, the North Sea and the Gulf of Mexico are home to the majority of shallow fields. Onshore electric submersible pump demand is predicted to increase because to the industries increasing number of mature fields. Corporate development will probably be boosted by the growing importance of heavy oil reserves and the need for electric submersible pump (ESP) systems in shale reservoirs.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period. Significant potential for corporate growth have been made possible by the development of the Lower-48 blocks, falling oil prices, and increasing penetration of shale deposits. The abundance of mature and ageing wells in addition to the substantial potential in the offshore area will further increase regional industrial demand.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period. Growing numbers of established fields in the area, along with mysterious price swings, have created favourable conditions for company growth. Due to the rising demand for gas, mainly from Eastern Europe, undeveloped subsea sources, mostly in Norway and the UK, are being explored. Despite the strict emission standards in place throughout the area, nations have decided to grant redevelopment licences to E&P corporations due to worries about domestic energy security.

Key players in the market

Some of the key players profiled in the Artificial Lift System Market include Apergy, General Electric Company, Weatherford International Ltd, Borets Company, Schlumberger, Halliburton, Baker Hughes Company, Hitachi, Mitsubishi Heavy Industries Compressor Corporation, Atlas Copco Energas GmbH, Oil Dynamics GmbH and Dover Corporation.

Key Developments:

In November 2021, Halliburton signed an MOU with Cairn Oil & Gas to develop new technologies to help Cairn Oil & Gas achieve its target of increasing recoverable reserve to 300 mmboe from 30 mmboe, which will help Cairn Oil & Gas increase its domestic production of crude oil.

In June 2021, Oil Dynamics GmbH announced upgradation of two wells for a leading oilfield operator based in Hannover, Germany. Oil Dynamics upgraded the wells from Progressing Cavity Pumps (PCPs) to Electric Submersible Pumps (ESPs).

Types Covered:
• Rod lift
• Electrical Submersible Pump (ESP)
• Progressive Cavity Pump (PCP)
• Gas Lift
• Plunger Lift
• Hydraulic Pumps
• Pressurized Water Reactor (PWR)
• Jet pump
• Other Types

Well Types Covered:
• Horizontal
• Vertical

Components Covered:
• Pump Jack
• Pump
• Sucker rod
• Motor
• Cable
• Separator
• Other Components

Mechanisms Covered:
• Gas Assisted
• Pump Assisted

Applications Covered:
• Onshore
• Offshore

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements