Artificial Lift System Global Market Report 2024

An artificial lift system is a mechanism reliant on artificial methods designed specifically to extract crude oil or water from production wells. Its primary function involves elevating pressure within the reservoir to facilitate the withdrawal process. The fundamental objective of an artificial lift system is to enhance production, output, and recovery rates, thereby maximizing the overall yield obtained from the wells.

Various types of artificial lift systems exist, including Electric Submersible Pumps (ESP), Progressive Cavity Pumps (PCP), gas lift systems, rod lift mechanisms, among others. Electric Submersible Pumps (ESP) represent a category of multi-stage centrifugal pumps specifically designed to raise substantial volumes of liquids from wellbores. These systems are powered by electric cables delivering the necessary electric power directly to the ESP components situated within the well. ESPs demonstrate remarkable efficacy in wells characterized by low bottom-hole pressure, a diminished gas/oil ratio, a low bubble point, a high water cut, or fluids possessing a low API gravity. Versatile in application, ESPs are employed in both vertical and horizontal wells situated both onshore and offshore. They function via two distinct mechanisms such as pump-assisted and gas-assisted methodologies.

The artificial lift systems market research report is one of a series of new reports from The Business Research Company that provides artificial lift systems market statistics, including artificial lift systems industry global market size, regional shares, competitors with an artificial lift systems market share, detailed artificial lift systems market segments, market trends and opportunities, and any further data you may need to thrive in the artificial lift systems industry. This artificial lift systems market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The artificial lift system market size has grown strongly in recent years. It will grow from $10.47 billion in 2023 to $11.43 billion in 2024 at a compound annual growth rate (CAGR) of 9.2%. Historical growth can be attributed to increased deepwater and offshore exploration, the optimization of well performance, addressing reservoir pressure decline, economic viability, and advancements in downhole monitoring technologies.

The artificial lift system market size is expected to see strong growth in the next few years. It will grow to $16.24 billion in 2028 at a compound annual growth rate (CAGR) of 9.2%. The forecasted growth is driven by the increase in shale oil and gas production, the focus on energy transition and sustainability, offshore development projects, the adoption of electric submersible pumps, and expanding markets in emerging economies. Major trends expected in this period include enhanced oil recovery (EOR) techniques, remote monitoring and automation, plunger lift systems, advancements in sensor technologies, and the integration of IoT and edge computing in the oil and gas sector.

The anticipated surge in oil production is poised to drive the growth of the artificial lift systems market. These systems play a crucial role in enhancing pressure within oil wells, thereby facilitating increased oil movement to the surface. They are particularly essential in production wells where natural drive energy becomes insufficient. Despite possessing the necessary natural pressure during the initial production phases, a decline occurs over time, necessitating the use of artificial lift systems for efficient production. A March 2021 report from the International Energy Agency (IEA) forecasts global oil consumption to reach 104.1 mb/d (thousand barrels per day) by 2026, indicating a 4.4 mb/d increase from 2019 levels. This projection underscores the driving force behind the artificial lift systems market - the escalating demand for enhanced oil production.

The growing demand for shale gas is anticipated to drive the expansion of the artificial lift systems (ALS) market. Shale gas, found in natural gas deposits within shale rock formations underground, often contains both gas and liquids such as condensate and water. Artificial lift systems enable the independent control of gas and liquid production, optimizing flow and preventing issues such as liquid loading that can impede gas production. In October 2023, the Energy Information Administration, a U.S. government agency, reported a significant increase of approximately 1.29 trillion cubic feet in U.S. dry natural gas production in 2022 compared to the previous year. This data underscores how the escalating demand for shale gas is a key driver behind the growth of the artificial lift systems market.

The artificial lift systems market is witnessing a prominent trend in new product development. The global challenges faced in the oil production sector have compelled companies within the artificial lift systems market to innovate and introduce advanced products and services to meet the evolving market demands. These novel products come with various benefits, including innovative design features, enhanced operational capabilities, and potential cost reductions. As an illustration, in February 2021, Wanner International, a UK-based industrial equipment supplier, launched a groundbreaking solution known as the Hydra-Cell jet pump hydraulic artificial lift. This seal-free system, devoid of packing, is designed for mainstream oil and gas production, offering substantial cost savings throughout a well's lifespan. The unique design integrates a seal-less Hydra-Cell Surface Power Fluid Pump with downhole jet pump technology, optimizing production efficiency and lowering maintenance and servicing costs compared to traditional pump technologies. With controllability, high efficiency, and versatility for applications such as conventional oil and gas production, frac fluid unloading, gas well dewatering, and well tests, this solution exemplifies the industry's commitment to advancing technology in artificial lift systems.

Prominent companies within the artificial lift systems market are actively investing in the development of innovative products, including the creation of product optimization software, to secure a competitive advantage. Product optimization software constitutes a category of computer programs specifically designed to improve and maximize the efficiency, performance, and overall value of particular products or product ranges. A notable example is ChampionX Artificial Lift, a US-based artificial lift systems company, which unveiled its XSPOC production optimization software, XSPOC 3.2, in May 2022. This software incorporates artificial intelligence (AI) for enhanced autonomous control in oil and gas production. XSPOC 3.2 introduces features catering to uplift and economic opportunities in both rod- and gas-lifted wells, including plunger lift analytics for the swift identification and trending of common plunger lift issues. By harnessing the power of AI and machine learning, XSPOC 3.2 empowers operators to prioritize high-priority wells while ensuring optimal performance across their assets. This strategic integration of technology addresses the challenges associated with resource constraints and the complexities of the oil and gas industry, exemplifying the industry's commitment to staying at the forefront of innovation.

In July 2022, Baker Hughes Company, a leading US-based oilfield services firm, successfully completed the acquisition of AccessESP for an undisclosed sum. This strategic move has significantly bolstered Baker Hughes' artificial lift solutions, integrating cutting-edge technology aimed at lowering intervention costs, mitigating downtime, and enhancing operational efficiency for oil and gas operators. AccessESP, a prominent US-based entity in the oil and energy sector, specializes in delivering advanced technology and services tailored for optimizing oil and gas recovery processes.

Major companies operating in the artificial lift system market report are General Electric Company, Schlumberger Limited, Baker Hughes Co., Halliburton Company LLC, Atlas Copco Energas GmbH, Novomet Inc., Tenaris S.A., Cameron International Corporation, Hitachi Ltd., Dover Corporation, National Oilwell Varco Inc., MAN Energy Solutions, Ebara Corporation, Weatherford International Ltd., ChampionX Corporation, Solar Turbines Incorporated, John Crane Group Limited, Burckhardt Compression Holding AG, Summit ESP, Neuman & Esser Group, Ariel Corporation, Flotek Industries Inc., Mitsubishi Heavy Industries Compressor Corporation, Evolution Oil Tools Inc., Canadian Advanced ESP Inc., JJ Tech Ltd., SPOC Automation Inc., Quick Connector Inc., Sivam SpA, Borets International Ltd.

North America was the largest region in the artificial lift systems market in 2023. The regions covered in the artificial lift system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the artificial lift system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The artificial lift systems market consists of revenues earned by entities by providing lifting services such as sucker-rod (beam) pumping, gas lift and intermittent gas lift, reciprocating and jet hydraulic pumping systems, plunger lift, and others. The market value includes the value of related goods sold by the service provider or included within the service offering. The artificial lift systems market also includes sales of pump jack, plunger lift, high pressure control valve, pipeline, injection tubing, downhole assembly, and positive displace or jet pump, which are used in providing lifting services. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Artificial Lift System Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on artificial lift system market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for artificial lift system ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The artificial lift system market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.

The impact of higher inflation in many countries and the resulting spike in interest rates.

The continued but declining impact of covid 19 on supply chains and consumption patterns.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

Markets Covered:

• 1) By Type: ESP; PCP; Gas Lift; Rod lift; Other Types
• 2) By Mechanism: Pump Assisted; Gas Assisted
• 3) By Application: Onshore; Offshore
• 4) By Well Type: Horizontal; Vertical
• Companies Mentioned: General Electric Company; Schlumberger Limited; Baker Hughes Co.; Halliburton Company LLC; Atlas Copco Energas GmbH
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery format: PDF, Word and Excel Data Dashboard.