Artificial Lift Market Size, Analysis, Share & Forecast 2031

Report Description

The Global Artificial Lift Market size was valued at USD 10.48 Billion in 2022 and is expected to surpass USD 20.01 Billion by 2031, expanding at a CAGR of 7.45% during the forecast period, 2023 – 2031. The market growth is attributed to rapid industrialization and increasing demand for energy across the globe.

An artificial lift is referred to as a process of increasing the flow of fluids by artificial means. Artificial lifts are used to increase pressure in oil reservoirs to bring oil to the surface. Reserves such as mature reserves do not possess strong natural drive energy to push oil to the surface. In such cases, artificial lifts are employed to provide the necessary push to increase oil production and recovery from those reserves.

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The requirements and adoption of artificial lifts depend upon the available natural pressure of particular regions. For instance, around 96% of the oil well in the US require artificial lifts. Around 50% of oil wells across the globe require artificial lifts to aid the oil extraction process. Oil wells or reservoirs do not require artificial lifts from the start. However, the need for these techniques becomes necessary over time.

Artificial lifts are used to increase oil production, boost reservoir pressure, and extend the production life of oil wells. There are several types of artificial lifts that are used for oil extraction, such as gas lift, electric submersible pump lift, rod lift, progressive cavity pump lift, jet pump lift, reciprocating rod lift, and others.

A particular type of artificial lift is chosen based on desired production rate, depth of the well, fluid characteristics, surface constraints, reservoir pressure, production flexibility, fluid characteristics, and others.

COVID-19 Impact on Artificial Lift Market

COVID-19 had an adverse effect on the oil & gas industry, which in turn affected the global artificial lift market negatively. The lockdown, social distancing policies, travel restrictions, and other pandemic-related regulations resulted in a decline in demand for oil and gas.

The pandemic led to the unavailability of labor, a shutdown of several oil & gas reserves, the bankruptcy of several corporations, and disruption in the supply chain, which decreased the demand for artificial lifts across the globe. However, the relaxation of the pandemic-related restrictions is expected to boost the growth of the global market in the coming years.

Artificial Lift Market Dynamics

The research report presents a complete overview by providing detailed information about the current market trends, existing drivers, growth opportunities and potentials, and emerging challenges. The global artificial lift market report has up-to-date insights about market dynamics and market scenarios that can shape the overall market performance and output during the forecast period, 2022 to 2030.

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What are the Major Trends in the global artificial lift Market?

The overexploitation of conventional resources for extracting oil and gas has led to the depletion of those resources. The oil and gas industry is increasingly shifting toward developing unconventional resources for extraction activities. Growing exploration of unconventional resources such as tight oil, natural gas, and shale oil & gas is one of the key trends in the global artificial lift market.

Which Factors are Driving the Demand for an artificial lift?

Rapid industrialization has resulted in the expansion of several industries such as manufacturing, transportation, telecommunication, and others across the globe. The growth of these industries boosts the demand for energy, which in turn propels the demand for artificial lifts for the extraction of oil and gas. Rapid urbanization, growing population, and rising expenditure on infrastructure spur the demand for energy production across the globe, which drives the artificial lift market.

High demand and production of heavy crude oil are expected to boost the demand for artificial lifts across the globe. There are a significant number of heavy oil reserves in countries such as China, Canada, Colombia, Mexico, and Venezuela. Artificial lifts such as progressive cavity pump lifts are commonly used to extract heavy oil. Increasing heavy oil production propels the growth of the global market.

Artificial lifts are usually used to extract oil and gas from mature oil reserves. Mature fields do not have natural pressure that pushes oil and gas to the surface. Increasing usage of mature oil fields for oil and gas production in recent years fuels the growth of the global artificial lift market.

Which Factors are Limiting the Growth of the global artificial lift Market?

Increasing adoption of smart water flooding and other IOR technologies is anticipated to hinder the growth of the global market. These alternatives are considered more cost-effective and environmentally friendly than artificial lifts. These technologies are easily implemented in most oil reserves. Growing demand for smart water flooding and other technologies poses growth challenges to the global market.

What are the Growth Opportunities in the global artificial lift Market?

Aging fields and the increasing complexity of wells result in rising structural and other failures. A growing number of oil and gas production companies are focusing on the safety of workers during the extraction process. These companies are adopting digital solutions and automation of processes to avoid any accidents and failures during operations. Wide adoption of digital and automated solutions offers lucrative opportunities to the market players.

Scope of Artificial Lift Market Report

The global artificial lift market research report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have also been included in the report.

Artificial Lift Market Segment Insights

What Key Factors Contribute to the Rapid Expansion of the Electrical Submersible Pump Lift Segment?

According to type, the global artificial lift market is divided into gas lift, electric submersible pump lift, rod lift, progressive cavity pump lift, jet pump lift, reciprocating rod lift, and others. The electric submersible pump (ESP) lift segment is expected to hold a key market share during the forecast period, due to the increasing usage of electric submersible pump lifts in mature oilfields that require further developments.

ESP lifts are considered a more versatile artificial lift solution than the others, which surges their adoption by operators across the globe. ESPs handle high volumes and have a wide range of flow rates. These lifts work efficiently in harsh environmental conditions as well. These are some of the major factors boosting the growth of the electric submersible pump lift segment.

The rod lift segment is anticipated to expand significantly in the coming years, as rod lift is the most used artificial lift system used in extracting crude oil. Rod lifts are cost-effective and efficient alternatives to extract hydrocarbons. These lifts are able to lift heavy and viscous crude oil at high temperatures, which facilitates the rapid expansion of the rod lift segment.

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Why is the Horizontal Segment More Prevalent than the Vertical Segment?

On the basis of well types, the global artificial lift market is bifurcated into vertical and horizontal. The horizontal segment is projected to grow rapidly during the forecast period, owing to the discoveries of large shale reserves in North America.

In horizontal wells, the wells are drilled at angles to stimulate more oil and natural gas than the vertical wells. Hydraulic fracturing in horizontal wells facilitates operators to extract natural gas from previously unproductive zones. Horizontal well techniques are considered cost-effective and environmentally friendly well techniques, which aids in the growth of the horizontal segment.

What are the Main Aspects for Boosting the Gas Assisted Segment?

Based on mechanism, the global artificial lift market is segregated into pump assisted and gas assisted. The gas assisted segment is projected to register a high CAGR during the forecast period, due to the const-effectiveness of the gas-assisted artificial lifts. Gas assisted mechanism is increasingly used in various applications such as oil & gas extraction, mining, and others. It is an extensively used mechanism, which spurs the growth of the segment.

The pump assisted segment is anticipated to expand rapidly in the coming years, owing to growing adoption of progressive cavity pumps and electric submersible pumps across the globe. The surging technological advancements in these pumps propel the growth in the pump assisted segment.

Which Major Factors influence the Substantial Growth of the Offshore Segment?

In terms of application, the global artificial lift market is divided into onshore and offshore. The offshore segment attributed around 83% of the market share in 2021, and it is expected to dominate the global market during the forecast period. The growth of the segment is credited to surging upstream deep-water and ultra-deep-water field activities across the globe.

Several artificial lift types such as electric submersible pumps and progressive cavity pumps are used increasingly to expand offshore oil wells and gas wells. Several offshore unexplored oil and gas reserves offer development opportunities to the oil & gas industry. High demand for oil and energy across the globe drives the demand and growth of the offshore segment.

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Why is North America dominating the Global Artificial Lift Market?

On the basis of region, the global artificial lift market is segmented into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market in North America is expected to register a significant CAGR during the forecast period, owing to increasing upstream activities regarding shale and tight oil & gas resources in the region.

There are several undiscovered aged and matured wells in the region. The enormous potential across the offshore area in the region is expected to drive the artificial lift market in North America. The volatile price changes, surging need for energy in various industries, and rapid technological advancements in North America are expected to spur the growth of the market in the region.

The market in Asia Pacific is anticipated to expand significantly in the coming years, due to rapid industrialization and urbanization in the region. Growing population and energy consumption in countries such as China and India boost the exploration activities of oil and gas reserves in the region. Mature oil fields in the region drive the demand for artificial lifts, which in boosts the growth of the market in Asia Pacific.

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