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The Artificial Lift Systems Market size of the market is forecast to increase by USD 4.10 billion, at a CAGR of 6.76% between 2022 and 2027. The market's growth hinges on various factors, including the escalating demand for oil and natural gas, heightened production needs in mature fields, and the upsurge in production operations in deepwater, ultra-deep offshore, and heavy oil sectors. As global energy consumption rises, particularly in emerging economies, there is a corresponding increase in the need for fossil fuels, driving the demand for exploration and production activities. Additionally, advancements in drilling technologies and techniques enable more efficient extraction from mature fields, prolonging their productive lifespan. Moreover, the exploration and development of challenging environments, such as deepwater and heavy oil reservoirs, present new opportunities for market expansion.
Market Forecast 2023-2027
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The market plays a crucial role in optimizing production from vertical wells by facilitating the extraction of fluids (oil, gas). It caters to various applications, including heavy oil and shale gas production, utilizing techniques like Electrical Submersible Pumps (ESP). With advancements like web based monitoring, operators can enhance efficiency during the drilling process and heavy oil production, ensuring optimal performance. Moreover, the market is witnessing a shift towards sustainable practices with the integration of renewable energy sources such as solar energy, wind energy, biomass energy, and hydroelectric power to power artificial fostering environmental stewardship in artificial lift services.
Further, this report extensively covers market segmentation by type (ESP systems, RLP systems, PCP systems, and others), end-user (onshore oil gas industry, and offshore oil gas industry), and geography ( North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The ESP systems segment will account for a major share of the market's growth during the forecast period. There is an increasing preference for ESP systems across key oil-producing countries such as Saudi Arabia, Russia, Canada, Nigeria, and Iraq. One of the main advantages of this system is that it can be applied in both onshore and offshore oil and gas fields.
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The ESP systems segment was valued at USD 4.11 billion in 2017. One of the main reasons end-user industries prefer the ESP systems over other systems is that t these systems can extract an extremely high volume of oil per day from wells as deep as 16,000 feet. Hence, there is increasing adoption of ESP systems is increasing in mature fields due to its several benefits. This increasing adoption across end-user industries and factors such as low lifting costs for high volumes, resulting in both onshore and offshore fields is expected to drive the growth of this segment which in turn will drive market growth during the forecast period.
Based on end-user, the market has been segmented into the onshore oil gas industry and offshore oil gas industry. There is an increasing demand for the onshore market due to the increasing prices across the world. Factors such as an increased focus on onshore activities, exploration of sedimentary basins, improvement in production by drilling deep in wells, and the future exploration of unconventional oil and gas such as shale gas and tight oil. are expected to drive the growth of this market. Additionally, other significant developments such as new oil and gas fields in African countries such as the Niger Delta, Central Africa, and the southern part of Africa have increased investments in oil and gas production, which will, in turn, contribute to the growth of the market. Hence such factors are expected to drive the growth of this segment which in turn will drive market growth during the forecast period.
North America is estimated to contribute 55% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. There is increasing growth of the market in North America due to its rising adoption and use in both onshore and offshore oil and gas industries.
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Factors such as the rapidly growing manufacturing of components such as pumps, motors, controllers, and sucker rods will drive the growth of the artificial lift systems market in the region. Another significant factor that is driving the steady demand for artificial lift systems, is the domination of the shale gas industry and the competitiveness of the market in the region. Artificial lift and real-time monitoring services will improve the growth of the domestic installation and maintenance market for artificial lift systems from product and service providers in North American countries. Hence, such factors are expected to drive the market growth in the region during the forecast period.
The market is pivotal in enhancing hydrocarbon recovery by managing reservoir pressure and optimizing the production of oil and gas fluids. Utilizing methods such as rod lift, electric submersible pumps (ESPs), and gas lift, it facilitates production from both conventional sources and unconventional resources like heavy oil and shale gas reserves. With the advent of web-based monitoring and automated services, operators can efficiently monitor and control operations, improving reservoir energy utilization and increasing production rates. Moreover, the industry is exploring renewable energy sources like solar, wind, biomass, hydroelectric, and geothermal power to power artificial lift systems, aligning with sustainability goals. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
Due to industrial and household activities, there is a growing energy demand and is significantly high in developing economies. Factors such as transportation needs and a rapid increase in the global population is significantly driving the energy demand from these countries.
For instance, several developing countries, such as India, China, Mexico, and Brazil, are heavily relying on oil and gas resources, in turn providing ample opportunities for companies that manufacture and deliver artificial lift systems. Also, there is a growing demand for producing from onshore and offshore mature fields. One of the major reasons for the increased demand from developing nations such as India, China, Malaysia, and Brazil is due to the volatile nature of oil and gas prices. Hence, such factors are expected to drive market growth during the forecast period.
Due to factors such as strict government regulations in Europe, several companies are forced to switch to non-conventional or renewable energy sources and the trend is on the rise significantly. Additionally, the fluctuating nature of crude oil prices is also significantly driving the transition to non-conventional or renewable energy sources across Europe.
For instance, the rise in production due to fracking technology to gain shale resources in the US has resulted in maximum production from OPEC. Moreover, companies are beginning to focus more on long-term investments in renewable energy rather than on short-term fossil resources. Hence, this transition in European oil and gas companies like Statoil, owing to less return on investments, is not providing new opportunities for the artificial lift systems market except for those that prevail for a longer time. Thus, such factors are expected to drive market growth during the forecast period.
Due to the rise in competition, companies are required to develop pumps with superior quality depending on the oil and gas fields and increase productivity using modern techniques. Some of the key components which constitute the high investments include pumps, sensors, and artificial lifts,
Further, one of the key specifications of this component is that they are corrosive-resistant materials. For instance, pumps are made in such a way that there is no oil and gas leakage, as it can cause a fire. As a result, the cost of these components will be high leading to higher initial investment. Hence such factors are expected to hinder market growth during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is witnessing significant growth due to the increasing demand for efficient crude oil extraction from various sources, including conventional reservoirs and shale oil and gas formations. With the rise in horizontal wells and shale gas exploration, there's a growing need for advanced lifting technologies to optimize production. Companies like Patriot Pump are leading the way with innovative solutions such as cavity pumps, Gas lift systems, and Rod lift systems. These systems play a crucial role in enhancing petroleum production while minimizing environmental impact.
Further, as commercial activities and industrial development continue to expand, the demand for reliable artificial lift systems is expected to surge, driving further infrastructure development in the sector. Further, petroleum products have long dominated the energy sector, but there's a growing emphasis on clean energy alternatives. Components like rod guides, couplings, pony rods, stabilizers, and sinker bars are essential in the oil and gas industry for drilling and extraction operations.
Market Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.76% |
Market growth 2023-2027 |
USD 4.10 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.26 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 55% |
Key countries |
US, Canada, China, Japan, and Spain |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Baker Hughes Co., ChampionX Corp., General Petroleum Holdings Pty Ltd., Gulf Coast Pump and Supply, Halliburton Co., JJ Tech, Levare International, Liberty Lift Solutions LLC, NOV Inc., Novomet Group, NOW Inc., OiLSERV, PCM Artificial Lift Solutions, Premium Artificial Lift Systems Ltd, Rockwell Automation Inc., Schlumberger Ltd., SSI Artificial Lift, Torqueflow-Sydex Ltd., Valiant Artificial Lift Solutions LLC, and Weatherford International Plc |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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