Artificial Lift System Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
The market is segmented by Type (Electric Submersible Pump System, Progressive Cavity Pump System, Rod Lift System, others), and Geography (North America, Asia-Pacific, Europe, South-America, Middle-East and Africa)
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Scope of the Report
Key Market Trends
TABLE OF CONTENTS
2016 - 2026
Fastest Growing Market:
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The market for artificial lift system is expected to grow at a CAGR of more than 4.5 % during the forecast period of 2020 – 2025. Artificial lift is a method used to lower the producing bottom hole pressure (BHP) on the formation to obtain a higher production rate from the well. It supports oil & gas to move upward when the natural drive (primary recovery) is not enough to push the oil to the surface. As of 2018, mature fields account for more than 70% of the world’s oil and gas production. These mature fields need a pumping system, i.e., the artificial lift system. The need for enhanced recovery rates, a growing number of wells that require pressure support for extraction, increasing demand for energy & petrochemicals, and technological advancements that are enabling companies to economically extract oil from challenging areas are some of the factors driving the growth of artificial lifts system market. However, with the advancement in smart water flooding and various IOR technology are expected to hinder the market growth during the forecast period.
An electric submersible pump (ESP) is preferred as the most suitable choice for usage in large oil wells that reached or crossed their peak oil production phase. In addition, the availability of abundant resources, coupled with an increase in investments, is expected to boost the offshore electric submersible pump market. This, in turn, expected to drive the artificial lift market during the forecast period.
The majority of the new fields, as well as the older fields, require an artificial lift of some form for production. Hence, all the major companies are regularly adopting artificial lift in almost all wells. As the number of new exploration fields is increasing, these fields are expected to provide major opportunities for the artificial lift system market.
North America dominated the market across the globe in 2018, with the majority of the demand coming from the United States.
Scope of the Report
The artificial lift system market report include:
Electric Submersible Pump System
Progressive Cavity Pump System
Rod Lift System
Middle-East and Africa
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Key Market Trends
Electric submersible pump (ESP) Expected to Drive the Artificial Lift Systems Market
Most of the oil & gas fields operating have been in production for a few decades. They are either matured or at the end of their production life. The global consumption is increasing as the population, urbanization & industrialization is increasing worldwide especially in developing economies.
ESPs are preferred as the most suitable choices for usage in large oil wells that reached or crossed their peak oil production phase and require further developments to enhance the production rates. This is relatively more prevalent in the Middle Eastern countries where many oilfields are mature and require the employment of artificial lift systems.
Onshore electric submersible pump is projected to witness a decent growth in demand, owing to increasing number of mature fields in the sector. Growing focus toward heavy oil reservoirs, coupled with requirement of ESP systems in shale reservoirs, is further expected to drive the business growth and artificial lift market.
Moreover, the oil and gas industry in the United States is projected to provide a huge impetus to the submersible pump market on account of widespread investments lined up in oil and gas projects in the coming years. It is expected that around USD 76 billion will be spent on 97 upcoming oil and gas projects in the country between 2018 and 2025. Such robust growth in terms of new projects is projected to create a demand for new ESPs and gas lift systems i.e, artificial lift system in the United States, in the long run.
Furthermore, Asia-Pacific is one of the fastest growing market for ESP. China is the major demand center for the ESPs in the region. The country is working on increasing the production output from established fields.
This, in turn, these effort for improved oil recovery (IOR) is expected to support the demand for artificial lift system during the forecast period.
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North America to Dominate the Market Growth
North America dominated the global artificial lift systems market in 2018, owing to the shale discoveries, exploration & production activities have noticeably increased in the region.
The market players operating in the region are planning to develop larger multi-well facilities. For this purpose, the companies are employing artificial lift technologies with the latest techniques to increase production, which is likely to boost the demand for artificial lift systems in the region during the forecast period.
The extensive availability of technologies and fossil fuel reserves are likely to be a major driving factor for the market growth. Adding to this, the surging focus in the region toward mature oil fields in tandem with the humongous investments across the upstream sector will also help propel the artificial lift systems market in the United States.
Besides this, a growing number of matured oilfields in the region are likely to add to the demand for the artificial lift systems to improve the productivity of the matured fields.
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The artificial lift system market is moderately fragmented. Some of the key players in this market include Baker Hughes Co, Dover Artificial Lift, Flotek Industries Inc.,Halliburton, Schlumberger Limited, Weatherford International Ltd., and others.