Artificial Lift Systems Market Size, Share & Trends Analysis Report By Product (Rod Lifts, Electrical Submersible Pumps), By Region, And Segment Forecasts, 2018 - 2025

Report Overview

The global artificial lift systems market size was valued at USD 16.18 billion in 2016. The rise in oil exploration activities is predicted to be a key factor driving market growth over the forecast period. When the naturally driven reservoir energy is insufficient to push the oil to the surface, artificial lift systems are employed to improve the productivity of the well.

U.S. artificial lift systems market by product, 2014 - 2025 (USD Million)

Artificial lifts are mainly used in the oil & gas industry to boost oil production in reservoirs. The market is anticipated to witness substantial growth, which is ascribed to the increase in heavy oil & shale gas production globally. On account of huge shale gas reserves in regions such as Asia Pacific and the Americas, the market is expected to witness healthy growth over the next few years.

Factors such as attempts to increase production from mature fields are expected to create a huge demand for artificial lift systems in the coming years. A number of existing reservoirs across the globe are still in the mature phase and do not possess the natural pressure to push oil & gas to the surface. Moreover, a large percentage of the world’s oil and gas production is primarily obtained through these mature oil fields. This requires efficient artificial lift systems to optimize production and to offset the influence of natural decline rates of the existing reserves.

With the rising energy demand, the dependence on conventional sources is also increasing. However, the overexploitation of these resources has resulted in their depletion, thereby prompting the oil & gas industry to shift its focus toward developing unconventional resources such as natural gas, shale oil & gas, and tight oil. These factors have resulted in an increased exploration of unconventional reserves, which is expected to drive the artificial lift market demand over the forecast period.

Product Insights

Rod lift is the oldest type of artificial lift systems used to extract the crude oil. The segment held 35% of the overall revenue in 2016 and is expected to witness significant growth over the forecast period. This growth is expected due to several advantages offered by the rod lift type, including cost-effectiveness and efficiency in the extraction of hydrocarbons. Furthermore, rod lifts are capable of lifting heavy viscous crude oil at high temperatures thus incurring low operational expenditures.

China artificial lift systems market by product, 2016 (%)

Electrical Submersible Pumps (ESP) held the majority revenue share in 2016 and the segment is expected to witness healthy growth over the forecast period. These pumps are used to push fluids effectively from wells with low bottom hole pressure. They are widely used in the oil & gas industry due to their low space requirements, minimum maintenance, and higher efficiency.

Moreover, these pumps have a simpler design and can effectively be operated by field workers. They can also work efficiently in wells with crooked or deviated holes. Owing to their low operational costs and high extraction rate, electrical submersible pumps (ESPs) are anticipated to witness increased adoption over the next few years.

Regional Insights

The North American artificial lift systems market is anticipated to witness high growth over the forecast period. This growth is ascribed to the advances in the field of shale gas discovery and the availability of low-pressure oil wells in the region. Additionally, the U.S. is expected to witness high growth in unconventional resources such as shale oil, tight oil, and growing marginal well count, which is anticipated to spur the product demand in North America.

Registering a compound annual growth rate exceeding 6%, Asia Pacific is anticipated to witness enormous gains over the forecast period. Factors such as rising commercial activities and expanded budget allocation on infrastructure development are expected to result in a healthy demand for petroleum products, thereby driving the growth of artificial lift systems in the region.

Furthermore, the ever-rising population in countries such as India and China is expected to fuel the energy requirement, which, in turn, would result in increased exploration activities, thereby elevating the regional demand over the forecast period. Additionally, the Middle Eastern & African artificial lift systems industry is anticipated to exhibit attractive growth prospects owing to the high acceptance of wireline services and tools. Furthermore, the rapidly maturing oil fields due to continuous extraction are expected to catapult the demand for these lift systems over the forecast period.

Artificial Lift Systems Market Share Insights

The market is highly consolidated with the top seven companies accounting for a major market share in 2016. The key industry participants include Baker Hughes Incorporated, Dover Corporation, GE Energy, Halliburton Company, LLC., National Oilwell Varco, Inc., Weatherford International Ltd., and Schlumberger Limited. These companies focus on R&D to provide customized solutions specific to the well site and customer requirements while coming up with effective methods for enhancing the extraction rate of hydrocarbons.

Furthermore, intense competition has led manufacturers to invest in product developments for better serving the requirements of customers. For instance, in 2016, Baker Hughes developed the LEAP adaptive production system for delivering greater oil & natural gas production and overcoming the technical hurdles associated with unconventional production. This strategy has helped in improving the good efficiency, increasing ultimate recovery, and optimizing production.

Major industry players use modern technologies such as web-based monitoring and automated services to drill deep into the oil fields and optimize production. Additionally, the companies aim at attaining a competitive advantage through collaborations and acquisitions. For instance, in October 2014, Dover Corporation acquired Accelerated Companies LLC, a supplier of fluid handling and artificial lift solutions to oil & gas production industries. The acquisition was aimed at strengthening its market presence.

Artificial Lift Systems Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global artificial lift systems market based on products and regions:

• Product Outlook (Revenue, USD Million; 2014 - 2025)

  • Rod Lifts

  • Electrical Submersible Pumps

  • Progressive Cavity Pumps

  • Gas Lift

  • Hydraulic Pumps

  • Others

• Regional Outlook (Revenue, USD Million; 2014 - 2025)

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • Germany

    • Russia

    • Norway

  • Asia Pacific

    • China

    • India

    • Japan

    • Indonesia

    • Malaysia

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa

    • Saudi Arabia

    • UAE

    • Kuwait

    • Iran