The global artificial lift systems market size is expected to reach USD 9.97 billion by 2029 from USD 7.85 billion in 2024, registering a CAGR of 4.9% from 2024 to 2029.
Artificial lift systems are broadly accepted technology that assists in oil production from oil wells and are used to lower bottom hole pressure (BHP) in the reservoir and support the movement of oil and gas upwards from the well to the surface. The system can extract greater output by increasing production, output, and recovery. Artificial lift systems are used for both onshore and offshore oil production and operate in two mechanisms that include pump-assisted and gas-assisted. The technologies applied in the Artificial lift systems are ESP, hydraulic pumping systems, gas lift, rod pumps, sub-surface pumping, rod-less pumping, continuous belt transportation, and others. The main types of automatic lift systems are electric submersible pumps (ESP), gas lifts, rod lifts, PCPs, and others. At the same time, electric submersible pumps (ESP) are widely used and referred to as multi-stage centrifugal pumps to lift high volumes of liquids from oil wells.
Furthermore, the growing number of oil fields, both old and new oil wells, need Artificial lift systems for crude oil extraction from oil wells to the surface, which is driving the market growth. In addition, an increase in oil explorations and heavy investments in offshore oil and gas production is driving the Artificial lift systems market. Furthermore, Heavy oil production in countries such as Iran, China, Canada, Venezuela, Mexico, and Columbia require Artificial lift systems technologies for production. This accelerates the growth of the artificial lift systems market during the forecast period. Even growing demand for oil and gas in developing countries for consumption, power generation, aviation, and other purposes is responsible for market expansion.
New advanced technologies for Artificial lift systems will render a huge opportunity for market growth during the forecast period. The work area of the oil and gas industry is very challenging and dangerous. Thus, many oil and gas production companies are opting for automation and digitalization of challenging work. Further, to meet the rising demand for oil and gas, the companies are developing advanced lift systems for high-volume oil fields. These lucrative opportunities will positively impact market growth.
The fluctuating oil and gas oil prices are hampering the growth of the global artificial lift systems market. The fluctuation in prices impacts the exploration and processing activities of the oil and gas industry. The uncertainty in prices hampers companies' capital expenditure and affects oil and gas companies' long-term plans of production. This results in the decline of the Artificial lift systems market. In addition, the supply and demand of oil and gas production and stringent government regulations for operations can impede the growth of the market. Moreover, the challenging work area can also negatively impact the Artificial lift systems market.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 to 2029 |
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Base Year |
2023 |
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Forecast Period |
2024 to 2029 |
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CAGR |
5.6% |
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Segments Covered |
By Type, Application, Mechanism, Well Type and Region |
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Various Analyses Covered |
Global, Regional and country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
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Regions Covered |
North America, Europe, Asia Pacific, Latin America, Middle East, and Africa |
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Market Leaders Profiled |
Tenaris, Quick Connecter, Dover Artificial Lift, Baker Hughes, Halliburton Company, Kudu Industries, Flotek Industries, Inc., Weatherford International, Schlumberger Ltd, among others. |
Based on lift type, the electric submersible pumps segment held 33.4% of the global market share in 2023 and the domination of the segment is expected to continue during the forecast period. The electrical submersible pumps (ESP) segment is broadly used in the oil and gas industry to assist crude oil in reaching the surface and is referred to as a multi-stage centrifugal pump used to lift high volumes of liquids from oil wells. ESPs are also suitable for matured and new oil wells and helps enhance the production rate recovery of the well and is propelling the growth of the ESP segment in the global market.
The gas lift segment captured 24.7% of the global market share in 2023 and is expected at a prominent CAGR during the forecast period. Factors such as rise in unconventional oil and gas production that drive the demand for gas lift systems for efficient reservoir pressure maintenance, increase in shale gas exploration, cost-effective production and flexibility in reservoir management are driving the growth of the gas lift segment in the global market.
Based on application, the offshore segment dominated the market in 2023 and is expected to hold the leading share of the worldwide market during the forecast period. The growth of the offshore segment is majorly attributed to the rise in upstream activities in deep water, increase in investments in offshore oil & gas production and the presence of advanced technologies such as electrical submersible pumps (ESP) and Progressing cavity pumps (PCP) for offshore exploration and production.
Based on mechanism, the pump assisted segment is anticipated to account for the major share of the global market during the forecast period. The pump-assisted mechanism is the most broadly used mechanism in the oil and gas industry. The increasing adoption of pumps such as electrical submersible pumps (ESP) and Progressing cavity pumps (PCP) for offshore and onshore exploration and production is assisting the market expansion.
Based on well type, the horizontal segment is expected to hold the largest share of the global market during the forecast period. Large discoveries of shale reserves in the North American region and the best suitable well type for production purposes have driven the rise of horizontal well types.
North America led the market in 2023 and is anticipated to record the largest share of the global market during the forecast period. The North American region has rising upstream activities in matured and new oil wells, which is primarily propelling the regional market growth. Furthermore, oil and gas companies in countries such as Canada and U.S. are opting for automation and digitalization in challenging work areas of industry. Moreover, the increase in demand for oil in the North American region, technological advancements in hydraulic fracturing, mature oil fields and the need for enhanced oil recovery are further driving the North American artificial lift systems market. The majority of the share of the North American market was accounted by the U.S. in 2023, which stood at 70.8%.
Europe is a prominent regional market for artificial lift systems and held for a substantial share of the global market in 2023. The growth of the European market is primarily attributed by factors such as aging oil fields and the need for efficient production boosting the adoption of artificial lift systems in the North Sea region.
The Asia-Pacific region is estimated to witness the highest CAGR in the global market during the forecast period owing to the expanding oil and gas exploration activities in countries like China and Indonesia driving the demand for artificial lift systems. Rising energy demand, investment in unconventional resources, and technological advancements in ESP and PCP systems are further fueling the growth rate of the APAC market.
Some of the notable companies in the global artificial lift systems market are Weatherford, Schlumberger Ltd., Baker Hughes, Dover Corporation, Borets International, National Oilwell Varco, Halliburton, Summit ESP, LLC., John Crane, SPOC Automation, Flotek Industries and Quick Connector, Inc.
By Lift Type
By Application
By Mechanism
By Well Type
By Region
Frequently Asked Questions
The Artificial lift systems are expected to reach USD 9.97 billion by 2029.
The North American region has the largest share of the Artificial lift systems market.
Weatherford, Schlumberger Ltd., Baker Hughes, Dover Corporation, Borets International, National Oilwell Varco, Halliburton, and Summit ESP, LLC are the key players in the market.
The market is expected to register at a CAGR of 4.9 % during the forecast period 2024-2029.
Heavy adoption of automation in the oil and gas industry, increase in investments, rise in consumption of oil in developing countries, heavy production, and a growing number of oil fields are driving factors for market growth.
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