Artificial Lift Market Size, Share, Growth, Analysis

[270 Pages Report] The global artificial lift market is estimated to grow from USD 7.3 billion in 2023 to USD 9.0 billion by 2028; it is expected to record a CAGR of 4.4% during the forecast period. Advancements in upstream activities concerning unconventional oil & gas reserves, the growing requirement to maximize the production potential of mature fields, and a rise in heavy oil production are leading to a surge in demand for artificial lift services.

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Artificial Lift Market Dynamics

Driver: Growing requirement to maximize the production potential of mature fields

As per Halliburton's survey, a prominent figure in the artificial lift market, approximately 70.0% of the global oil & gas production arises from mature fields, many of which are in secondary or tertiary production phases. Gas holds an average recovery factor of 70.0%, while oil stands at 35.0%. These recovery rates might dwindle due to geological attributes, resource constraints, or inefficiencies in outdated technologies. Mature fields witness declining production post-initial recovery efforts or after tapping into easily accessible hydrocarbons. Despite this, mature fields remain a valuable resource, projected to meet future energy demands. The prime issues include uneconomical oil production and technological limits in recovery. With new fields depleting swiftly due to heightened production, mature field numbers have surged. The potential for recovery remains substantial, notably with 80.0% of reserves in the Middle East and North Africa, 43.0% in Asia Pacific, and 24.0% in Latin America. Major oil & gas firms are directing their efforts toward innovative methods for exploiting untapped reserves in mature fields, surpassing the need for new wells and their high costs. Their focus lies in enhancing recovery and extending the life of these fields beyond natural levels. Artificial lift stands as a crucial element in this endeavor, boosting recovery and prolonging the life of mature fields.

Restraint: Decreasing CAPEX of oilfield operators and upstream service providers

The demand for artificial lift is intricately tied to oil and natural gas companies' exploration, development, and production undertakings, as well as their capital expenditures. Variations in oil and gas prices have a direct impact on these activities, influenced by supply and demand shifts, governmental regulations, weather, and more. Companies might cut or delay major spending due to long-term expectations of low prices, especially as many substantial projects span extended periods. Sustained low crude oil prices, or the anticipation thereof, could impede the artificial lift market's growth. This growth is notably swayed by reductions in capital spending by oilfield operators and service providers, potentially leading to diminished demand for artificial lift systems market.

Opportunities: New oilfield discoveries to promote production activities

Companies within the oil and gas sector are directing efforts towards exploration, driven by the challenges posed by existing fields that struggle to yield hydrocarbons economically and may eventually need abandonment. Significant discoveries have been made both onshore and offshore, with the BP Statistical Review of 2020 indicating a vast reserve potential of ~1,733.9 billion barrels of oil by the end of 2019. This trend is anticipated to escalate upstream activities, thereby propelling demand for artificial lift solutions. Prominent players have recently unveiled a series of discoveries. Notable examples include Talos Energy's Zama field find in Mexico's offshore Block 7 in 2017 and ExxonMobil's billion-barrel discoveries in Guyana in 2018. Such breakthroughs, like Gazprom's Arctic gas discovery and Wintershall Dea's North Sea oil find, demonstrate the industry's vigor in uncovering valuable resources. These discoveries pave the way for substantial, long-term growth opportunities within the artificial lift market.

Challenges: Transition toward adoption of renewable energy sources

The global push to decrease carbon emissions and adopt eco-friendly energy alternatives has spurred the uptake of clean and sustainable sources. Economies are increasingly turning to renewables like solar, onshore and offshore wind, biomass, hydroelectric, and geothermal power for energy generation. Escalated by rapid industrialization and urbanization, the renewable sector is now the fastest-growing globally, witnessing heightened funding for numerous projects. As the need for cleaner energy rises and renewable technologies advance, a surge in project initiations is expected. Notable examples include China's Wudongde Hydropower Station and the UK's Hornsea Project 2, demonstrating substantial clean energy capacity.

Countries such as Canada, the US, India, and the UAE are proactively investing in renewables, further propelling the shift. While governmental investments drive this transition, they might concurrently lead to reduced activities in upstream, midstream, and downstream sectors. This evolving landscape could impact market players to some extent.

Artificial lift Market Ecosystem

In this artificial lift system market, prominent companies stand out as well-established and financially stable providers of artificial lift products and services. With years of experience, these companies boast a diverse product portfolio, cutting-edge technologies, and robust global sales and marketing networks. Their proven track record in the industry positions them as reliable and trusted partners for customers seeking artificial lift solutions. These companies have demonstrated their ability to adapt to market dynamics and consistently deliver high-quality products and services, making them leaders in meeting the demands of the oil and gas sector. Prominent companies in this market include SLB (US), Baker Hughes Company (US), Halliburton (US), Weatherford (US), and ChampionX (US).

The electric submersible pumps segment, by type, is expected to be the second-largest market during the forecast period.

This report segments the artificial lift market based on type into different types: electric submersible pumps, progressive cavity pumps, gas lift systems, rod lift systems, and others. The electric submersible pumps segment is expected to be the second-largest market during the forecast period. ESPs are a reliable and efficient artificial lift method for lifting moderate-to-large volumes of fluids from wellbores. The volumes range from as low as 150 B/D to as much as 150,000 B/D. ESPs are multistage dynamic displacement centrifugal pumps. Such pumps are typically used when well depths range from 1,000 to 5,000 ft. ESP systems are the most rapidly expanding type of artificial lift-pumping technology.

By application, offshore is expected to be the fastest growing during the forecast period.

This report segments the artificial lift market based on application into two segments: onshore and offshore. The offshore segment is expected to be the fastest growing during the forecast period. Artificial lift methods such as hydraulic pumping, gas lift, ESP, and PCP are most prominently used in offshore oil wells. Companies have been exploring offshore locations for oil & gas production because offshore have huge untapped reserves. Offshore activities require advanced technologies to make offshore well conditions safer. Thus, the offshore market is a more capital-intensive segment as compared to onshore.

“North America: The largest in the artificial lift market.”

North America is expected to be the largest region in the global artificial lift market between 2023–2028, followed by Europe and Asia Pacific. North America has been leading the market. The regional artificial lift market is experiencing growth due to the presence of leading solution providers like SLB (US), Halliburton (US), Baker Hughes Company (US), Weatherford (US), and ChampionX (US). Notably, Tenaris invested around USD 5 million in August 2023 to enhance rod lift production, catering to North America's expanding market. Major oilfield operators, including Chevron (US), Anadarko Petroleum (US), BP plc (UK), Shell (Netherlands), ConocoPhillips (US), and ExxonMobil Corporation (US), also contribute to the market's development by creating opportunities for artificial lift projects.

Key Market Players

The market is dominated by a few major players that have a wide regional presence. The major players in the artificial lift market include SLB (US), Baker Hughes Company (US), Halliburton (US), Weatherford (US), and ChampionX (US). Between 2018 and 2023, Strategies such as new product launches, contracts, agreements, acquisitions, and expansions are followed by these companies to capture a larger share of the market.

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Scope of the Report

This research report categorizes the market based on type, mechanism, application, well type, and region.

On the basis of type, the artificial lift market has been segmented as follows:

• Rod Lift Systems
• Electric Submersible Pumps
• Progressive Cavity Pumps
• Gas Lift Systems
• Others

On the basis of mechanism, the market has been segmented as follows:

• Pump Assisted
  • Positive Displacement
  • Dynamic Displacement
• Gas Assisted

On the basis of application, the market has been segmented as follows:

• Onshore
• Offshore

On the basis of well type, the market has been segmented as follows:

• Horizontal
• Vertical

On the basis of region, the market has been segmented as follows:

• North America
• Europe
• Asia Pacific
• South America
• Middle East & Africa

Recent Developments

• In November 2022, Halliburton deployed the first single trip, electro-hydraulic wet connects in deepwater for Petrobras in Brazil. The Halliburton Fuzion EH electro-hydraulic downhole wet-mate connector contributes to higher well recovery factors by ensuring the integrity of Halliburton's SmartWell completion technologies throughout the well's lifecycle.
• In July 2022, Baker Hughes Company acquired AccessESP, one of the leading providers of technological solutions used in ESP systems. This acquisition will broaden the artificial lift portfolio of Baker Hughes Company and improve its position globally.
• In April 2022, Weatherford was awarded two five-year artificial lift contracts by Tatweer Petroleum in Bahrain to supply, install, and service beam pumping units and downhole pumps.
• In December 2021, LUFKIN acquired the US Rod and Patriot Pump. US Rod is an API-licensed manufacturer and distributor of artificial lift items such as sucker rods, rod guides, couplings, pony rods, stabilizers, and sinker bars. This acquisition would enhance the product portfolio of LUFKIN and position the company higher in North America in terms of artificial lift technologies.

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