Global Artificial Lift Market Trends

Global Artificial Lift Market Overview:

Artificial Lift Market Size was valued at USD 7.2 billion in 2023. The Artificial Lift market industry is projected to grow from USD 7.61 Billion in 2024 to USD 11.2 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.96% during the forecast period (2024 - 2032). The increase in demand for energy, along with industrialization, urbanization, and an increase in population, are the key market drivers promoting market growth.

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Artificial Lift Market Trends

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  Growing Massive population is driving the market growth

  
  

Market CAGR for the artificial lift market is driven by the rising number of obese people. Artificial lift is a way used to reduce the producing bottom hole pressure (BHP) on the formation to get a high production rate from the well. It supports oil & gas to move upward when the natural drive (primary recovery) is not good enough to push the oil to the surface. 

Oil companies in North America working on Shale Plays, such as Whiting Petroleum Corp, had either announced plans to restructure due to a sharp decline in rises due to COVID-19 or declared bankruptcy. In 2021, mature fields accounted for a  percentage of the world's oil and gas production. These mature fields need a pumping system, that is, the artificial lift system.

Additionally, most of the older fields and the new fields need an artificial lift of some form for production, which is why all the major companies are regularly adopting artificial lifts in almost all the wells. As more fields are explored, these fields are expected to provide major opportunities for the artificial lift system market. 

The requirement for improved recovery rates, a growing number of wells that need increasing demand for energy, pressure support for extraction, & technological advancements and petrochemicals, that are enabling companies to economically extract oil from challenging areas are some of the factors driving the growth of the artificial lifts system market.

Further, the number of existing reservoirs worldwide are in the mature phase and don’t possess the natural pressure to push gas & oil to the surface. Moreover, a large percentage of the world’s gas and oil production is initially obtained through these mature oil fields. This needs efficient artificial lift systems to optimize production and offset the impact of natural decline rates on the existing reserves. 

With the Increasing energy demand, the dependence on conventional sources is also rising. However, the overexploitation of these resources has depleted them, thereby prompting the oil & gas industry to shift its focus toward growing unconventional resources such as shale oil, natural gas,& gas, and tight oil. These factors resulted in an increased exploration of unconventional reserves, which is expected to drive the Artificial Lift market revenue demand over the forecast period.

Artificial Lift Market Segment Insights:

Artificial Lift Mechanism Insights

The Artificial Lift market segmentation, based on mechanism, includes gas-assisted and pump-assisted. The pump-assisted segment dominated the market during the forecast period which further consists of dynamic displacement and positive displacement pumps. The growth of this segment is due to the rising adoption of progressive cavity pumps and electric submersible pumps. The technological advancements will further add to this segment's growth.

Figure 1: Artificial Lift Market, by Mechanism, 2022 & 2032 (USD billion)

Source: MRFR Database, Secondary Research, Primary Research, and Analyst Review

Artificial Lift Type Insights

The Artificial Lift market segmentation, based on type, includes ESP, PCP, Gas Lift, Rod Lift, and others. The rod lift segment generated the most income owing to increasing onshore applications. A-rod lift is the standard type of artificial lift method that uses a pump jack at the surface to work as an artificial lift solution. For bringing oil & gas to the surface piping and equipment, these pump jacks use sucker rod string and pump, which pressurize the well downhole. Powered by electricity or gas and is also known as a beam pump.

However, Electric submersible pumps (ESPs) are preferred as the most suitable choices for usage in large oil wells that reached or crossed their peak oil production phase and require further developments to enhance the production rates.

Artificial Lift Application Insights

The Artificial Lift market segmentation, based on Application, includes offshore and onshore applications. The offshore segment generated the most income owing to an increase in upstream activities pertaining to the deep-water and ultra-deep-water fields.

Artificial Lift Regional Insights

By region, the study states market insights into North America, Europe, Asia-Pacific, and Rest of the World. The North American Artificial Lift market area will dominate this market, owing to an increase in unconventional oil & gas resources like tight oil, shale, and gas resources and growth in demand for artificial lift operations in mature and aging oil wells in this Region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Artificial Lift Market Share By Region 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe's Artificial Lift market accounts for the second-largest market share due to the increasing number of mature fields and volatile price changes, creating attractive conditions for company development. Further, the German Artificial Lift market held the largest market share, and the UK Artificial Lift market was the fastest-growing market in the European Region.

The Asia-Pacific Artificial Lift Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to an increase in the production output from established fields, especially in the Siberian Region. Moreover, China’s Artificial Lift market held the largest market share, and the Indian Artificial Lift market was the fastest-growing market in the Asia-Pacific region.

For instance, in June 2021, Oil Dynamics GmbH upgraded the two wells for an oilfield operator who decided to renew and enhance pumping equipment at its site near Hannover, Germany. Investment in the Modernization of oil fields is expected to aid the growth of the market.

Artificial Lift Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Artificial Lift market grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contract-based agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Artificial Lift industry must offer low-cost items.

Manufacturing locally to minimize operational costs is one of the key business strategies used by manufacturers in the Artificial Lift industry to benefit clients and grow the market sector. In recent years, the Artificial Lift industry has provided some of the most significant advantages to this market. 

Major players in the Artificial Lift market, including GE Oil and Gas (US), John Crane Group (US), Baker Hughes Company (US), Apergy (US), Borets International (Russia), Schlumberger (US), Haliburton (US), and others, are attempting to increase market demand by investing in research and development operations.

GE Oil and Gas started the petroleum industry in 1994 with the acquisition of Italian Company Nuovo Pignone (previously owned by ENI S.p.A.). In the year 2002, the division acquired Bently Nevada, a condition monitoring Instrumentation Company that provides services for sensors, systems, and monitoring machinery vibration. 

The Company is an oil and gas extraction company that provides oil and gas exploration and production services and also offers its products services around the world. The Company also designed and manufactured surface and subsea drilling and production systems, equipment for floating production platforms, gas compressors, gas turbines, turboexpanders, high-pressure reactors, and industrial electricity generation.

Founded in 1917 and headquartered in Chicago, Illinois, John Crane is one of the world’s leading providers of engineered technology. With more than 5,000 employees across 200 sites, they supply and service the products used by customers in process industries for their mission-critical operations—many of which involve extremely challenging conditions. The Company designs, manufactures, and engineers mission-critical flow control solutions for increased efficiency, emission reductions, and energy transformation.

 Key Companies in the Artificial Lift market include

• GE Oil and Gas (US)


• John Crane Group (US)


• Baker Hughes Company (US)


• Apergy (US)


• Borets International (Russia)


• Schlumberger (US)


• Haliburton (US)


• Dover Corporation (US)


• AccessESP (US)


• Novomet (Russia)


• National Oil Well Varco Inc. (US)


• Weatherford (US)


• OILSERV (UAE)


• JJ Tech (US)


• Flotek Industries Inc. (US)


• Schlumberger (US)


• cairn Oil & Gas


• Alkhorayeh Petroleum Services (P) Limited

Artificial Lift Industry Developments

January 2022:Unbridled ESP Systems, a subsidiary of ChampionX, brought High Rise series pumps for lessening carbon emissions during ESP operations. This product is used in unconventional well-completion operations.

November 2021:Halliburton signed a Memorandum of Understanding with Cairn Gas & Oil. Under this agreement, both companies will jointly develop new technologies to help Cairn Oil & Gas to achieve its target of increasing recoverable reserve to 300 mmboe from 30 mmboe.

October 2021:Baker Hughes launched a regional hub of oilfield services (OFS) located in King Salman Energy Park (SPARK). The new facility will support ongoing customer activities for three Oilfield Services product lines, ensuring high-quality service delivery and positioning BHGE for future growth in the Region.

In November 2022: Halliburton Company announced a successful installation of the industry's first single trip, electro-hydraulic wet connect in deepwater for Petrobras in Brazil. The Halliburton Fuzion® EH electro-hydraulic downhole wet-mate connector helps increase well recovery factors by maintaining integrity of Halliburton's SmartWell® completion systems throughout the well's lifecycle.

In February 2024, ChampionX Corp, a technology and services company in the oil fields industry, bought Artificial Lift Performance Limited (ALP), which is a provider of analytics aimed at improving oil and gas production performance.

As an example, in October 2023, AIQ, Halliburton, in collaboration with ADNOC, announced the efficient development of the RoboWell technology, an Autonomous Well Control system enabled with AI, and deployed it across NEB Abu Dhabi, UAE. Such data enable significantly improved and adaptive functioning of the artificial lift systems, leading to optimal production rates and reduced non-productive time. This is additionally enhancing the artificial lift system market revenue.

Further, in August 2022, Baker Hughes declared the purchase of AccessESP, a prominent supplier of innovative technologies for artificial lift solutions. In fact, these are meant to further change the dynamics of operations in the oil and gas industry by significantly minimizing the operational cost and the time to the operators.

To give an example, in June 2021 Oil Dynamics GmbH refurbished two wells on behalf of an oil field operator in Germany who sought to update and upgrade the pumping systems at his site in Niedersachsen. Oil Dynamics redesigned the completions of the wells from Progressive Cavity Pumps (PCP’s) to Electric Submersible Pumps (ESP’s). There is a general optimism that investment in the modernization of oil fields will drive growth in the industry.

Artificial Lift Market Segmentation:

Artificial Lift Mechanism Outlook

Artificial Lift Type Outlook

• ESP


• PCP


• Gas Lift


• Rod Lift


• Others

Artificial Lift Application Outlook

• Offshore


• Onshore

Artificial Lift Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America