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The global artificial lift market was valued at $8,010.8 million in 2017, and it is expected to reach $10,883.1 million by 2023, registering a CAGR of 5.3% during the forecast period (2018–2023).
Among all regions, North America is expected to witness the fastest revenue growth during the forecast period. This can be mainly attributed to the increasing preference toward unconventional ways of producing oil and gas, over conventional ways, owing to the decline in the natural pressure of mature fields. In U.S. more than 90% of oil wells require artificial lifts at some point of time, and 90% of the existing wells currently use an artificial lift system.
Fundamentals Governing Artificial Lift Market
The key trend in the artificial lift market is an increase in the oil and gas production from unconventional sources. Due to the rapidly surging global energy demand, the conventional oil and gas sources are depleting at a fast pace, resulting in a shift of focus toward unconventional sources. Such oil and gas reserves require artificial lifting during exploration & production (E&P) activities, for optimum oil production, owing to which the demand for artificial lift will increase in the coming years.
The increasing number of mature oil and gas fields is one of the most prominent factors driving the artificial lift market. Over 70% of the produced oil comes from mature fields that are more than 30 years old, and over time, the reservoir pressure of these mature fields declines. As a result, E&P companies prefer to use artificial lifting techniques in mature wells, for enhanced recovery of oil, to maximize their revenue.
The availability of recoverable shale gas in various parts of the world is expected to create ample opportunities for the players operating in the artificial lift market. Artificial lifting methods are used in horizontal shale gas-producing wells, to lift the accumulated fluids in the well and help in sustaining good performance of the well.
Segmentation Analysis of Artificial Lift Market
The electrical submersible pumps (ESP) category accounted for the largest revenue share in the artificial lift market, on the basis of type, in 2017. This can be ascribed to the tightly contained unit of such devices that keeps the liquid out of the housing and internal components and ensures that the pumps don’t leak or short circuit when submerged; such systems use direct pressure through the pipe, to get the fluid out. This method is more effective than the suction method, because it is able to extract the oil from deeper in the ground.
The pump-assisted category is expected to witness faster growth in the artificial lift market, in terms of value, during the forecast period, with a 5.5% CAGR, on the basis of mechanism. The pump-assisted mechanism is more commonly used over the gas-assisted mechanism, as it increases the bottom-hole pressure of the tube string, in order to lift a sufficient amount of fluid to the surface.
The onshore category held the larger revenue share in the artificial lift market in 2017, based on application. The majority of the aging wells are in onshore oil fields, and onshore drilling is typically less expensive compared to offshore drilling. Owing to this, the demand for artificial lifts is more in onshore wells.
Geographical Analysis of Artificial Lift Market
Globally, North America accounted for the largest revenue share in the artificial lift market, during the historical period(2013–2017), and it is expected to maintain the trend during the forecast period, mainly as a result of the presence of established players. Further, more than 90% of oil wells require artificial lifts, in the U.S., owing to the decline in their natural pressure, over time. Considering the future industry scenario, the U.S. is expected to lead the North American market, generating revenue worth $3,771.0 million in 2023.
Competitive Landscape of Artificial Lift Market
Some major players in the market include Schlumberger N.V., Baker Hughes Co., Dover Corporation, Halliburton Company, Borets International Limited, Weatherford International PLC, National Oilwell Varco Inc., and Flotek Industries Inc.
Recent Strategic Developments of Major Artificial Lift Market Players
In recent years, the players in the global artificial lift market have taken several strategic measures, such as product launches and geographical expansions by acquisition, in order to gain a competitive edge in the industry. For instance, in February 2018, Weatherford International PLC launched a new software for its ForeSite production optimization platform. This platform optimizes the support for reciprocating rod-lift systems, by adding support for gas-lift and ESP systems.
Moreover, in July 2017, Halliburton Company acquired Summit ESP, a supplier of ESP technology and services. With this acquisition, the former company aims to expand globally with its artificial lift portfolio.
Market Size Breakdown by Segment
The Artificial Lift Market report offers comprehensive market segmentation analysis along with market estimation for the period 2013–2023.
Based on Type
Based on Mechanism
Based on Application
Key Questions Addressed in the Report