North America, the market leader for artificial lift system in 2015, is expected to get surpassed by LAMEA by 2022, as oil reserves in Saudi Arabia have reached the maturity stage and companies are implementing enhanced oil recovery techniques to extract oil to commence deep drilling in order increase productivity
Global Artificial Lift System Market stood at US$16.449mn in 2015 and is expected to reach US$34.569mn by 2022, registering a CAGR of 11.4 per cent during 2016 -2022, according to a new report published by Allied Market Research. North America held two-fifth share in the world artificial lift system market in 2015, and is expected to grow at a CAGR of 9.6 per cent during the analysis period.
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Artificial lift system market holds promising growth potential, with crude oil prices fluctuating drastically the oil extraction companies are forced to optimise their spending. The fluctuations in oil prices affected the profitability of the company. Hence, in order to ensure the financial targets in position, the companies are cutting their operation costs, of which drilling is an integral part. Using artificial lifts in order to achieve oil production targets is a cost efficient alternative against the prospect of drilling a new well. The trend of modernising the oil wells with artificial lift systems would grow in the coming year or two as a measure to improve the efficiency of operating companies.
The market for artificial lifts is primarily driven by increased demand of energy sources and maturing oil fields. Other factors that drive the market are increasing deep/ ultra-deep offshore oil production activities. However, some of the restraints associated with its business attractiveness are a higher project cost as compared to conventional systems and a lack of skilled workforces. This results in a limited impact due to the ability of increasing extraction by artificial lift systems. Additionally, rising subsea drilling activities should contribute to artificial lift adoption in a greater sense.
The commonly used technologies in the market are rod lift, ESP, PCP, plunger, gas lift and others. The other technologies include hydraulic lift and foam lift. Among these types, ESPs account for a larger market size by value due to higher operating volume, fair gas handling and motor driven operation which is convenient to install. Its market is expected to reach to about US$9.940mn in size by 2022 growing at CAGR of 6.4 per cent. This rapid growth is supplemented by its excellent corrosion resistance, higher operating tempera, ure and operation based on wells natural energy.
Key findings of Artificial Lift System Market Study are that the plunger lift system market is expected to grow rapidly at a CAGR of 18.4 per cent during 2016-2022. In terms of geography, Asia-Pacific is expected to grow at a highest CAGR of 14.1 per cent during the analysis period. In 2015, the artificial lift system pump segment occupied more than one-fourth share of the market.
In LAMEA, the ESP type segment occupied around two-fifths of the LAMEA market, however, rod lift segment is expected to surpass ESP segment through 2022.
Middle East and Africa constitute for a majority of the oil fields in the world. The countries in this region such as Saudi Arabia, Syria and Brazil hold plenty of oil reserves. With increase in consumption of oil, the discoveries of new reserves are ongoing. The exploration activities in this region are building a conducive environment for the demand of artificial lifts.
