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July 16, 2019 | Energy & Power
The global Artificial Lift System Market is likely to expand considerably in the coming years, driven by growing worldwide oil consumption. Fortune Business Insights, in a report titled, “Artificial Lift System: Global Market Analysis, Insights, And Forecast, 2018-2026,” states that the market is likely to reach US$ 12,707.4 Mn by 2026. The global artificial lift system market was valued at US$ 8,393.5 Mn in 2018. It will exhibit a moderate CAGR of 5.32% in the forecast period.
The artificial lifts are used for increasing the production of oil from reservoirs, especially in the oil and gas industry. There has been constant economic development in numerous industries namely, aviation, power generation, transportation, and others. All these factors are increasing the demand for hydrocarbon.
This in turn, is expected to drive the growth of the global artificial lift system market during the forecast period. Furthermore, new site discoveries are growing day by day at remote locations as well as at places that are under harsh environmental conditions. Shale gas is the most popular one in the world. It is found in deep underwater and from other difficult sources. Where risks are very high. Thus, renowned companies are planning to make the exploration and drilling processes as efficient as possible, giving rise to demands for artificial lift systems.
A Shift in Offshore Exploration Activities Likely to Boost the Segment
The global artificial lift market is classified on the bases of type, application, and geography. In terms of type, the market is further segmented into gas lift, Electric submersible pump, progressive cavity pump, sucker rod pump, and others. Amongst these, electric submersible pump is the largest revenue segment as they can function smoothly under harsh circumstances. By application, the market is grouped into onshore and offshore locations.
Currently, onshore production and exploration is leading the worldwide oil production. However, there has recently been a drastic shift towards offshore exploration in continents such as, Europe and North America. This has resulted in a rise in the potential for growth in offshore segment. Along with these two regions, Asia Pacific and the Middle East and Africa are conducting offshore explorations that are contributing to the growth of the market.
Increasing Number of Matured Oilfields to Induce Growth in North America
Geographically, the global artificial lift system is divided into Latin America, North America, Europe, the Middle East and Africa, and Asia Pacific. Amongst these, North America currently holds the largest share of the global artificial lift system market. This is mainly because of the large amount of shale gas that is available in this region.
Due to it, production and exploration activities in North America have increased at a fast pace. The key market players in this region are adopting technologically advanced artificial lift system for increasing production activities and reducing risks. These companies have started operating with the aim of maximizing asset value by developing large multi-well facilities through economies of scale. This is likely to cause a rise in the demand for artificial lift system during the forecast period. Additionally, a rise in the number of fully developed oilfields in North America are anticipated to contribute to the growing demand for artificial lift systems for improving the productivity of these developed fields. The U.S.A. in North America accounts for more than 40% of the artificial lifts distributed across the globe. The region is set to witness growth in the forthcoming years due to an increasing drilling and exploration activities taking place there.
Some of the leading companies that are operating in the global artificial lift system market are Dover Corporation, Schlumberger Limited, John Crane, Baker Hughes, Summit ESP, Quick Connector Inc., National Oilwell Varco, Borets International, Flotek Industries, SPOC Automation, Novomet, LLC, Halliburton, among others.
Segmentation of Artificial Lift System Market