Artificial Lift Market by Type (ESP, PCP, Rod Lift, Gas Lift), Mechanism (Pump Assisted (Positive Displacement, Dynamic Displacement), Gas Assisted), Well Type (Horizontal, Vertical), Application (Onshore, Offshore) and Region - Global Forecast to 2028
[270 Pages Report] The global artificial lift market is estimated to grow from USD 7.3 billion in 2023 to USD 9.0 billion by 2028; it is expected to record a CAGR of 4.4% during the forecast period. Advancements in upstream activities concerning unconventional oil & gas reserves, the growing requirement to maximize the production potential of mature fields, and a rise in heavy oil production are leading to a surge in demand for artificial lift services.
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Artificial Lift Market Dynamics
Driver: Growing requirement to maximize the production potential of mature fields
As per Halliburton's survey, a prominent figure in the artificial lift market, approximately 70.0% of the global oil & gas production arises from mature fields, many of which are in secondary or tertiary production phases. Gas holds an average recovery factor of 70.0%, while oil stands at 35.0%. These recovery rates might dwindle due to geological attributes, resource constraints, or inefficiencies in outdated technologies. Mature fields witness declining production post-initial recovery efforts or after tapping into easily accessible hydrocarbons. Despite this, mature fields remain a valuable resource, projected to meet future energy demands. The prime issues include uneconomical oil production and technological limits in recovery. With new fields depleting swiftly due to heightened production, mature field numbers have surged. The potential for recovery remains substantial, notably with 80.0% of reserves in the Middle East and North Africa, 43.0% in Asia Pacific, and 24.0% in Latin America. Major oil & gas firms are directing their efforts toward innovative methods for exploiting untapped reserves in mature fields, surpassing the need for new wells and their high costs. Their focus lies in enhancing recovery and extending the life of these fields beyond natural levels. Artificial lift stands as a crucial element in this endeavor, boosting recovery and prolonging the life of mature fields.
Restraint: Decreasing CAPEX of oilfield operators and upstream service providers
The demand for artificial lift is intricately tied to oil and natural gas companies' exploration, development, and production undertakings, as well as their capital expenditures. Variations in oil and gas prices have a direct impact on these activities, influenced by supply and demand shifts, governmental regulations, weather, and more. Companies might cut or delay major spending due to long-term expectations of low prices, especially as many substantial projects span extended periods. Sustained low crude oil prices, or the anticipation thereof, could impede the artificial lift market's growth. This growth is notably swayed by reductions in capital spending by oilfield operators and service providers, potentially leading to diminished demand for artificial lift systems.
Opportunities: New oilfield discoveries to promote production activities
Companies within the oil and gas sector are directing efforts towards exploration, driven by the challenges posed by existing fields that struggle to yield hydrocarbons economically and may eventually need abandonment. Significant discoveries have been made both onshore and offshore, with the BP Statistical Review of 2020 indicating a vast reserve potential of ~1,733.9 billion barrels of oil by the end of 2019. This trend is anticipated to escalate upstream activities, thereby propelling demand for artificial lift solutions. Prominent players have recently unveiled a series of discoveries. Notable examples include Talos Energy's Zama field find in Mexico's offshore Block 7 in 2017 and ExxonMobil's billion-barrel discoveries in Guyana in 2018. Such breakthroughs, like Gazprom's Arctic gas discovery and Wintershall Dea's North Sea oil find, demonstrate the industry's vigor in uncovering valuable resources. These discoveries pave the way for substantial, long-term growth opportunities within the artificial lift market.
Challenges: Transition toward adoption of renewable energy sources
The global push to decrease carbon emissions and adopt eco-friendly energy alternatives has spurred the uptake of clean and sustainable sources. Economies are increasingly turning to renewables like solar, onshore and offshore wind, biomass, hydroelectric, and geothermal power for energy generation. Escalated by rapid industrialization and urbanization, the renewable sector is now the fastest-growing globally, witnessing heightened funding for numerous projects. As the need for cleaner energy rises and renewable technologies advance, a surge in project initiations is expected. Notable examples include China's Wudongde Hydropower Station and the UK's Hornsea Project 2, demonstrating substantial clean energy capacity.
Countries such as Canada, the US, India, and the UAE are proactively investing in renewables, further propelling the shift. While governmental investments drive this transition, they might concurrently lead to reduced activities in upstream, midstream, and downstream sectors. This evolving landscape could impact market players to some extent.
Artificial lift Market Ecosystem
In this market, prominent companies stand out as well-established and financially stable providers of artificial lift products and services. With years of experience, these companies boast a diverse product portfolio, cutting-edge technologies, and robust global sales and marketing networks. Their proven track record in the industry positions them as reliable and trusted partners for customers seeking artificial lift solutions. These companies have demonstrated their ability to adapt to market dynamics and consistently deliver high-quality products and services, making them leaders in meeting the demands of the oil and gas sector. Prominent companies in this market include SLB (US), Baker Hughes Company (US), Halliburton (US), Weatherford (US), and ChampionX (US).
The electric submersible pumps segment, by type, is expected to be the second-largest market during the forecast period.
This report segments the artificial lift market based on type into different types: electric submersible pumps, progressive cavity pumps, gas lift systems, rod lift systems, and others. The electric submersible pumps segment is expected to be the second-largest market during the forecast period. ESPs are a reliable and efficient artificial lift method for lifting moderate-to-large volumes of fluids from wellbores. The volumes range from as low as 150 B/D to as much as 150,000 B/D. ESPs are multistage dynamic displacement centrifugal pumps. Such pumps are typically used when well depths range from 1,000 to 5,000 ft. ESP systems are the most rapidly expanding type of artificial lift-pumping technology.
By application, offshore is expected to be the fastest growing during the forecast period.
This report segments the artificial lift market based on application into two segments: onshore and offshore. The offshore segment is expected to be the fastest growing during the forecast period. Artificial lift methods such as hydraulic pumping, gas lift, ESP, and PCP are most prominently used in offshore oil wells. Companies have been exploring offshore locations for oil & gas production because offshore have huge untapped reserves. Offshore activities require advanced technologies to make offshore well conditions safer. Thus, the offshore market is a more capital-intensive segment as compared to onshore.
“North America: The largest in the artificial lift market.”
North America is expected to be the largest region in the artificial lift market between 2023–2028, followed by Europe and Asia Pacific. North America has been leading the market. The regional artificial lift market is experiencing growth due to the presence of leading solution providers like SLB (US), Halliburton (US), Baker Hughes Company (US), Weatherford (US), and ChampionX (US). Notably, Tenaris invested around USD 5 million in August 2023 to enhance rod lift production, catering to North America's expanding market. Major oilfield operators, including Chevron (US), Anadarko Petroleum (US), BP plc (UK), Shell (Netherlands), ConocoPhillips (US), and ExxonMobil Corporation (US), also contribute to the market's development by creating opportunities for artificial lift projects.
Key Market Players
The market is dominated by a few major players that have a wide regional presence. The major players in the artificial lift market include SLB (US), Baker Hughes Company (US), Halliburton (US), Weatherford (US), and ChampionX (US). Between 2018 and 2023, Strategies such as new product launches, contracts, agreements, acquisitions, and expansions are followed by these companies to capture a larger share of the market.
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Report Metric |
Details |
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Market size available for years |
2017–2028 |
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Base year considered |
2022 |
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Forecast period |
2023–2028 |
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Forecast units |
Value (USD Million/Billion) |
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Segments Covered |
Artificial lift market by Type, Mechanism, Well Type, Application, and Region. |
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Geographies covered |
Asia Pacific, North America, Europe, South America, and Middle East & Africa. |
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Companies covered |
SLB (US), Baker Hughes Company (US), Halliburton (US), NOV Inc. (US), Weatherford (US), ChampionX (US), Levare (UAE), DistributionNow (US), LUFKIN (US), Tenaris (Luxembourg), JJ Tech (US), OilSERV (UAE), Novomet (Russia), Cairn Oil and Gas (India), Alkhorayef Petroleum (Saudi Arabia), Rimera Group (Russia), Penguin Petroleum Services (P) Limited (India), Valiant Artificial Lift Solutions (US), Endurance Lift Solutions (US), National Energy Services Reunited Corp. (US), Liberty Lift Solutions LLC (US), Geolis (Mexico), Lift Well International (US) |
This research report categorizes the market based on type, mechanism, application, well type, and region.
On the basis of type, the artificial lift market has been segmented as follows:
- Rod Lift Systems
- Electric Submersible Pumps
- Progressive Cavity Pumps
- Gas Lift Systems
- Others
On the basis of mechanism, the market has been segmented as follows:
-
Pump Assisted
- Positive Displacement
- Dynamic Displacement
- Gas Assisted
On the basis of application, the market has been segmented as follows:
- Onshore
- Offshore
On the basis of well type, the market has been segmented as follows:
- Horizontal
- Vertical
On the basis of region, the market has been segmented as follows:
- North America
- Europe
- Asia Pacific
- South America
- Middle East & Africa
Recent Developments
- In November 2022, Halliburton deployed the first single trip, electro-hydraulic wet connects in deepwater for Petrobras in Brazil. The Halliburton Fuzion EH electro-hydraulic downhole wet-mate connector contributes to higher well recovery factors by ensuring the integrity of Halliburton's SmartWell completion technologies throughout the well's lifecycle.
- In July 2022, Baker Hughes Company acquired AccessESP, one of the leading providers of technological solutions used in ESP systems. This acquisition will broaden the artificial lift portfolio of Baker Hughes Company and improve its position globally.
- In April 2022, Weatherford was awarded two five-year artificial lift contracts by Tatweer Petroleum in Bahrain to supply, install, and service beam pumping units and downhole pumps.
- In December 2021, LUFKIN acquired the US Rod and Patriot Pump. US Rod is an API-licensed manufacturer and distributor of artificial lift items such as sucker rods, rod guides, couplings, pony rods, stabilizers, and sinker bars. This acquisition would enhance the product portfolio of LUFKIN and position the company higher in North America in terms of artificial lift technologies.
Frequently Asked Questions (FAQ):
What is the current size of the artificial lift market?
The current market size of the artificial lift market is 7.3 billion in 2023.
What are the major drivers for the artificial lift market?
Growing requirements to maximize the production potential of mature fields will be major drivers for the artificial lift market.
Which is the largest region during the forecasted period in the artificial lift market?
North America is expected to dominate the artificial lift market between 2023–2028, followed by Europe and Asia Pacific.
Which is the largest segment, by type, during the forecasted period in the artificial lift market?
The rod lift systems segment is expected to be the largest market during the forecast period, owing to the rising demand for oil on a global scale, supported by increased transportation activity and industrial development.
Which is the fastest segment, by application, during the forecasted period in the artificial lift market?
Offshore is expected to be the fastest market during the forecast period. Maturing shallow oilfields is attributed to driving the market of artificial lifts for offshore applications in the forecasted period.
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The study involved major activities in estimating the current size of the artificial lift market. Exhaustive secondary research was done to collect information on the peer and parent markets. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the total market size. Thereafter, market breakdown and data triangulation were used to estimate the market size of the segments and subsegments.
Secondary Research
This research study on the artificial lift market involved the use of extensive secondary sources, directories, and databases, such as Hoover’s, Bloomberg, Factiva, IRENA, International Energy Agency, and Statista Industry Journal, to collect and identify information useful for a technical, market-oriented, and commercial study of the market. The other secondary sources included annual reports, press releases & investor presentations of companies, white papers, certified publications, articles by recognized authors, manufacturer associations, trade directories, and databases.
Primary Research
The artificial lift market comprises several stakeholders, such as artificial lift manufacturers, technology providers, and technical support providers in the supply chain. The demand side of this market is characterized by the rising demand for types of artificial lifts such as rod lift systems, electric submersible pumps, progressive cavity pumps, and gas lift systems. The supply side is characterized by rising demand for contracts from the industrial sector and mergers & acquisitions among big players. Various primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information. Following is the breakdown of primary respondents:
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Market Size Estimation
Both top-down and bottom-up approaches were used to estimate and validate the total size of the artificial lift market. These methods were also used extensively to estimate the size of various subsegments in the market. The research methodology used to estimate the market size includes the following:
- The key players in the industry and market have been identified through extensive secondary research, and their market share has been determined through primary and secondary research.
- The industry’s value chain and market size, in terms of value, have been determined through both primary and secondary research processes.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
Artificial Lift Market Size: Top-Down Approach
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Artificial Lift Market Size: Bottom-Up Approach
Data Triangulation
After arriving at the overall market size from the above estimation process, the total market has been split into several segments and subsegments. Data triangulation and market breakdown processes have been employed to complete the overall market engineering process and arrive at the exact statistics for all the segments and sub-segments, wherever applicable. The data has been triangulated by studying various factors and trends from both the demand- and supply sides. Along with this, the market has been validated using both the top-down and bottom-up approaches.
Market Definition
Artificial lift methods are used to increase the pressure within oil & gas reservoirs to increase crude oil production rates from producing wells. These methods are used when the natural drive energy of the reservoir is not strong enough to push the oil to the surface.
The market for artificial lift is defined as the sum of revenues generated by global companies offering artificial lift solutions, such as rod lift systems, gas lift systems, electric submersible pumps (ESPs), and progressive cavity pumps (PCPs). Artificial lifts can be deployed on horizontal and vertical wells for onshore and offshore applications.
Key Stakeholders
- Artificial Lift Equipment Manufacturers
- Associations (American Petroleum Institute, Canadian Association of Petroleum Producers, and Others)
- Drilling Contractors and Production Planning Consultancies
- Government and Research Organizations
- Institutional Investors
- National and Local Government Organizations
- National Oil Companies (NOCs)
- Oilfield Service Companies
- Private E&P Companies
Objectives of the Study
- To define, describe, segment, and forecast the artificial lift market on the basis of type, mechanism, well type, application, and region, in terms of value
- To describe and forecast the market for five key regions, namely, North America, Europe, Asia Pacific, South America, and the Middle East & Africa, along with their country-level market sizes, in terms of value
- To provide detailed information regarding key drivers, restraints, opportunities, and challenges influencing the market’s growth
- To provide the supply chain analysis, trends/disruptions impacting customers’ businesses, market map, pricing analysis, and regulatory analysis of the artificial lift market
- To analyze opportunities for stakeholders and draw a competitive landscape of the artificial lift market
- To strategically analyze the ecosystem, tariffs and regulations, patent landscape, trade landscape, Porter’s five forces, and case studies pertaining to the market under study
- To benchmark market players using the company evaluation matrix, which analyzes market players on broad categories of business and product strategies adopted by them
- To compare key market players with respect to product specifications and applications
- To strategically profile key players and comprehensively analyze their market rankings and core competencies
- To analyze competitive developments, such as contracts & agreements, investments & expansions, mergers & acquisitions, product launches, partnerships, and joint ventures & collaborations, in the artificial lift market.
Available Customizations:
With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:
Product Analysis
- Product Matrix, which provides a detailed comparison of the product portfolio of each company
Company Information
- Detailed analyses and profiling of additional market players
Generating Response ...
Growth opportunities and latent adjacency in Artificial Lift Market