Market Trends of Artificial Lift System Industry
This section covers the major market trends shaping the Artificial Lift System Market according to our research experts:
Electric Submersible Pump (ESP) System to Dominate the Market
- Most of the oil & gas fields operating have been in production for a few decades. They are either mature or at the end of their production life. Global consumption is increasing as the population, urbanization & industrialization are increasing worldwide, especially in developing economies.
- Electric submersible pumps (ESPs) are preferred as the most suitable choices for usage in large oil wells that reached or crossed their peak oil production phase and required further developments to enhance the production rates. This is relatively more prevalent in Middle Eastern countries, where many oilfields are mature and require the employment of artificial lift systems.
- An onshore electric submersible pump is projected to witness decent growth in demand, owing to the increasing number of mature fields in the sector. Growing focus toward heavy oil reservoirs, coupled with the 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 considerable impetus to the submersible pump market on account of widespread investments lined up in oil and gas projects in the coming years. 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 systems in the United States, in the long run.
- Furthermore, Asia-Pacific is one of the fastest-growing markets for ESP. Russia is the primary demand center for the ESPs in the region. The country is working on increasing the production output from established fields, especially in the Siberian region, where a lot of new gas fields are being opened to meet the demand coming from China.
- Hence, Electric submersible pumps are expected to dominate the market due to their flexibility in usage and new innovations in technology.
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North America to Dominate the Market Growth
- North America dominated the global artificial lift systems market in 2021, 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 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 artificial lift systems to improve the productivity of the matured fields. Many of these fields are expected to come from Permian Basin as it has been producing a high amount of oil and gas in the last two decades.
- However, the growing movement against oil and gas in the country due to its large carbon emissions are expected to restrain the market.
- In June 2021, Oil Dynamics GmbH upgraded the two wells for an oilfield operator who decided to renew and enhance pumping equipment at its site near Hannover, Germany. Oil Dynamics upgraded the wells from Progressing Cavity Pumps (PCPs) to Electric Submersible Pumps (ESPs). Investment in Modernization of oil fields are expected to aid the growth of the market.
- Hence, the North American continent is expected to dominate the market due to a large number of matured oil and gas fields and growing demand for energy on the continent.
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