Artificial Lift System Market Size, Share, Opportunities, And Trends By Type (Electric Submersible Pumps (ESP), Pressurized Water Reactor (PWR), Gas Lift, Progressive Cavity Pump (PCP), Others), By Application (Onshore, Offshore), And By Geography - Forecasts From 2023 To 2028

The artificial lift system market is projected to show steady growth during the forecast period.

Market Overview:

Artificial lift is a technology used to lower bottom hole pressure (BHP) on the development and boost well productivity. Several gas wells benefit from an artificial lift to remove liquids from the formation so that gas may move at a higher rate, and many oil wells require artificial lifts at some point in the product life cycle.

Over the projection period, the offshore segment is anticipated to grow the fastest. Over the projected period, the offshore sector is anticipated to grow at the fastest rate. Offshore wells frequently use artificial lift systems, which include various techniques like hydraulic pumping, ESP, gas lift, and others. Businesses have been exploring offshore locations for oil extraction since offshore has significant untapped potential. Because of this, the offshore market needs more capital than the onshore market.

Growth factors:

• Advancements in extraction methods are required due to rising energy demand and dwindling resources.

Market growth for artificial lift systems is anticipated in response to escalating energy demand, industrialization, population growth, and urbanization. The total amount of petroleum consumed in the US increased by around 8% between 2020 and 2021. The majority of petroleum products were consumed more in 2021 than in 2020 (Source: eia.gov). Reliance on conventional energy sources decreases as energy use rises. This resource has been depleted as a result of the overexploitation of natural resources. For oil explorations from reserves, the requirement for sophisticated artificial lift systems has developed for these reasons, and this demand is expected to fuel the artificial lift market demand during the projection period.

• The market for electric submersible pumps will expand steadily.

The market for electric submersible pumps (ESP) is anticipated to develop at the fastest rate. Effective fluid removal from wells with low bottom hole pressure is accomplished with the aid of these pumps. They are commonly utilized in the oil and gas sector since they take up little space, require little upkeep, and are more effective. The ideal option for usage in huge oil wells that are at or have passed their peak oil production era is an electric submersible pump (ESP). To satisfy the rising need for energy and deep extraction, governments around the world are making investments in ESPs. For instance, Kuwait Oil Company (KOC) granted a multi-year contract for the delivery, installation, supervision, and maintenance of electric submersible pumping systems in November 2020 to Borets, a world leader in the engineering, manufacturing, sales, and servicing of ESP systems.

• Investment in the offshore sector will open up the market for artificial lift systems.

The past few years have been difficult for the offshore drilling industry. The COVID-19 pandemic in 2020 caused a sharp decline in energy consumption, which coincided with a sharp decline in operators' interest in investing in offshore projects. However, there has recently been fresh hope among drilling contractors for offshore E&P activities since output levels have risen to pre-COVID levels and the oil price is still recovering. Investments are being done worldwide to increase offshore production and meet the increasing demand. For instance, A Brazilian offshore oil and gas block is receiving investment from the state-run ONGC Videsh Ltd (OVL) totalling about $1 billion. OVL controls the remaining stake in the BM Seal-4 block, which is operated by Petrobras with a 75% participation interest. It is anticipated to begin production after 2026 and saw a significant gas discovery in 2019. This investment will open up market share growth opportunities for artificial lift systems.

Key Developments:

• July 2022: Baker Hughes has announced that it is buying AccessESP, a developer of cutting-edge technology for artificial lift solutions. Using standard, lighter-duty intervention tools like wireline, coiled tubing, or well tractors, AccessESP's "GoRigless ESP System" enables an electrical submersible pump (ESP) to be placed and retrieved without the requirement for a rig or the need to draw the good production tubing. These innovations aid in lowering the price of and downtime between ESP replacement workovers, which is crucial in offshore and isolated locations.
• November 2020: A portfolio business of KPS Capital Partners, LP, Lufkin Industries, stated that it had successfully acquired Schlumberger N.V.'s North American Land Rod Lift Business. Despite the exceptional volatility in the energy sector, KPS is dedicated to growing the Lufkin platform for the benefit of customers of Lufkin and Schlumberger's Rod Lift Business.
• August 2020: The sale of the Canada Progressive Cavity Pump Business Line (also known as "Europump") from Halliburton Energy Services, Inc. and its affiliates (collectively, "Halliburton") has been completed by PCM Artificial Lift Solutions Inc. The majority of Europump's personnel, as well as all of its inventory, technology, and equipment, were included in the deal.

COVID-19 Impact:

The pandemic's severe effects on businesses and industries as diverse as technology, automotive, manufacturing, chemicals, and many more have experienced disruptions in production and sales. Due to a stop in production, a decline in public engagement, and disruptions in supply chain operations, the pandemic had a significant negative influence on the technological development and economic growth of the affected nations. From that point forward, COVID-19 had a significant global impact on artificial lift systems and harmed their market expansion during the pandemic. However, as the incidence of COVID declines, the government and businesses are working to stabilize the market to satisfy energy demand.

Artificial lift system market Scope:

Segmentation:

• By Type
  • Electric Submersible Pumps (ESP)
  • Pressurized Water Reactor (PWR)
  • Gas lift
  • Progressive Cavity Pump (PCP)
  • Others
• By Application
  • Onshore
  • Offshore
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Others
  • Middle East and Africa (MEA)
    • Saudi Arabia
    • UAE
    • Isreal
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Indonesia
    • Thailand
    • Taiwan
    • Others