ID: MRFR/E&P/0455-HCR | 100 Pages | Published By Priya Nagrale on March 2023
Artificial Lift Market is projected to be worth USD 10 Billion, registering a CAGR of 5.63% during the forecast period
The Artificial Lift Industry is evaluated to grow at a substantial CAGR of 5.63% during forecast period 2022-2030.
Artificial lift is a method employed to reduce the bottom hole pressure (BHP) on the development to increase the production rate from the well. A positive-displacement downhole pump, such as a modern progressive cavity pump (PCP), can be used to reduce the running pressure at the pump intake. A downhole centrifugal pump can also be used for the same, which could be a part of an electrical submersible pump (ESP) system. A reduced bottom hole moving pressure and a higher flow rate can be achieved with gas lift, in which the thickness of the fluid in the tubes is lowered with an increase in gas to lift the fluids. The artificial lift can generate flow from a well in which no flow is occurring or enhance the flow from a well to generate at a higher rate. Many oil wells will be helpful for the requirement of artificial lift at some time in the life of the field, as well as several gas wells benefit from an artificial lift to take liquids off the formation so gas can move at a higher rate.
An increase in demand for energy and industrialization and a rise in population and urbanization boost the growth of the artificial lift industry.Therefore, the Artificial Lift Market Value is expected to increase in the forthcoming years. Basically, artificial lift is an effective method that is used for increasing pressure in oil wells. Hence, they are used for lifting the oil to the surface for both new and mature oil wells. Furthermore, artificial lifts help boost productivity and increase the ROI by reducing lifting costs.
Hence, the artificial lift can also generate and enhance the flow from a well at a higher rate. Also, they are used for gas wells to separate liquids from the formation. Thus, it helps in moving the gas at a higher rate. The Middle East and Africa are expected to provide significant Artificial Lift Market Opportunities in the forthcoming years.
The COVID-19 disease majorly affected the Artificial Lift Industry from 2020 to 2021. The activities at the business reservoirs were reduced, which led to the fluctuation in the price of crude oils. Along with that, the global market Demand heavily affected other several industries. Hence, the declining demand for gas and oil, mainly from China, caused a massive financial disruption during the pandemic period.
There are various drivers, such as the rising production of heavy oil and shale gas. Therefore, the market is expected to achieve significant growth in the forecast period. Along with that, the immense presence of several gas and oil reserves will also drive the Artificial Lift Industry in the upcoming years.
However, several restraints are still evaluated to hamper the global market Revenue. Thus, the low availability of significant skilled professionals is expected to restrain the market growth in the studied forecast period. Along with that, stagnant prices of oils can also have a negative effect on market growth.
Furthermore, the artificial system is used in many gas and oil wells. As a result, they help in increasing productivity and reducing operational costs. Due to this reason, several companies are using artificial lifts for increasing their return on investments. Along with that, other types of artificial lifts, such as gas lifts, cavity pumps, etc., are expected to open several new Artificial Lift Industry Opportunities.
However, the fluctuations in oil prices can be a challenging factor for the Artificial Lift Market Growth. Also, the pandemic has heavily affected the market growth, which is expected to grow gradually. Hence, key players are also providing the significant boost needed for the market.
The Compound Annual Growth Rate (CAGR) of the market is projected to reach around 5.63%. Hence, the Artificial Lift Market Forecast suggests that it will achieve a significant market value in the upcoming years. Apart from the US, countries like Mexico, Saudi Arabia, Venezuela, Brazil, Russia, etc., also produce oil. However, the Middle East and Africa region comprise a large number of oil reservoirs.
Additionally, the redevelopment of several mature oilfields across significant countries is expected to enhance the Artificial Lift Market Trends. Furthermore, the new discoveries for offshore gas and oil across several countries are further expected to boost the value chain.
The market Size is divided into different segments such as Mechanism, Application, Type, and Region. On the basis of type, the market is divided into PCP, ESP, Gas Lift, and Others. The others sub-segment comprises hydraulic pumping and plunger lift. It is projected that the segment of rod-lift will dominate the market in the studied forecast period.
On the basis of Application, the Artificial Lift Industry is segmented into Offshore and Onshore. However, the offshore segment is evaluated to grow at the fastest CAGR during the forecast period.
Thirdly, on the basis of mechanism, the Artificial Lift Industry is segmented into Gas Assisted and Pump Assisted. Furthermore, the growth of pump assisted market segment is anticipated to expand due to the increasing investments.
On the basis of region, the Artificial Lift Industry is divided into Europe, Asia-Pacific, North America, South America, and the Middle East and Africa. According to the Artificial Lift Market Analysis, the North American region is evaluated to hold the most significant Artificial Lift Market Share in the studied forecast period. The high shale gas production, mainly in the US, is a favourable factor for significant growth.
Apart from that, the Middle East and Africa are also expected to grow at a lucrative CAGR in the upcoming years. Thus, the immense presence of several mature oil fields is one of the crucial factors due to significant growth.
The Artificial Lift Market is fragmented, with several renowned critical players from across the world. These key players apply various tactics to increase their customer base and business portfolio. Therefore, some of the Artificial Lift Market Key Players are listed below.
The overview of the Artificial Lift Market Forecast is as follows.
The Artificial Lift Market Report covers essential information about the market dynamics. It highlights information such as market drivers, opportunities, key players, etc. Furthermore, the information provided in this report is collected from several primary and secondary sources.
|Market Size||2030: Significant Value|
|CAGR||5.63% CAGR (2022-2030)|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Type, Mechanism, Application|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Halliburton (US), Schlumberger (US), Weatherford (US), GE Oil & Gas (US), National Oilwell Varco, Inc. (US), Borets International Limited (UAE), Dover Corporation (US), Flotek Industries, Inc. (US), JJ Tech (US), John Crane Group (US), and AccessESP (US), and OILSERV (UAE)|
|Key Market Opportunities||Growing faster with the market share|
|Key Market Drivers||
The market will record 5.63% CAGR.
Halliburton (US), Schlumberger (US), Weatherford (US), GE Oil & Gas (US), National Oilwell Varco, Inc. (US), Borets International Limited (UAE), Dover Corporation (US), Flotek Industries, Inc. (US), JJ Tech (US), John Crane Group (US), and AccessESP (US), and OILSERV (UAE), and others are top key players within the industry.
The countries such as Canada, Venezuela, Saudi Arabia, U.S., Mexico, Brazil, Russia, and China are the active heavy oil producing countries.
North America is expected to hold the largest share during the forecast period
The key drivers of artificial lift market are rising shale gas production, growing heavy oil production, and presence of large number of oil & gas reserves.