Onshore Artificial Lift Market – Trends Forecast Till 2030

Market Snapshot

Market Overview

The global Onshore Artificial Lift Market size was estimated at USD 10.7 billion in 2023 and is projected to reach USD 20.2 billion in 2030 at a CAGR of 7.2% during the forecast period 2024-2030.

The Onshore Artificial Lift Market plays a crucial role in enhancing oil and gas production by reducing bottom hole pressure (BHP) to achieve higher extraction rates from wells. This method becomes necessary when natural reservoir pressure declines, impacting the ability to efficiently extract resources through primary recovery methods alone. The market's growth is driven by several key factors, including technological advancements, increasing demand for energy and petrochemicals, and the development of unconventional oil and gas resources.

Technological innovations in artificial lift systems have significantly improved efficiency and sustainability in oil and gas production. These advancements include the use of electric submersible pumps (ESPs), rod lift systems, gas lift systems, and progressing cavity pumps (PCPs). ESPs, for instance, are preferred for large wells that have passed their peak production phase, offering efficient oil recovery from deeper reservoirs. These technologies help optimize production rates and extend the lifespan of mature oil fields, which continue to account for a significant portion of global oil and gas production.

The COVID-19 pandemic had a profound impact on the Onshore Artificial Lift Market, particularly in regions heavily reliant on shale plays like North America. Companies such as Whiting Petroleum Corp faced financial restructuring or bankruptcy due to plummeting oil prices and reduced demand. However, as economies recover and energy demands rebound, the market is expected to regain momentum, driven by ongoing investments in enhancing production capabilities.

Mature oil fields, lacking natural reservoir pressure, require efficient artificial lift systems to maintain production rates. This necessity, combined with the exploration of new fields, provides substantial opportunities for market growth. Companies are increasingly adopting artificial lift solutions across both older and newer wells to maximize recovery rates and meet escalating global energy demands.

Furthermore, the shift towards unconventional oil and gas resources—such as shale oil, tight oil, and natural gas—reflects the industry's response to dwindling conventional reserves. The exploration and extraction of these unconventional resources require advanced artificial lift technologies capable of economically accessing resources from challenging geological formations.

Government initiatives promoting energy independence and sustainability further bolster market dynamics. Initiatives like the Swachh Bharat Abhiyan in India and similar efforts in other regions underscore the importance of efficient waste management and resource utilization, indirectly supporting the demand for artificial lift systems.

Looking ahead, the Onshore Artificial Lift Market is poised for significant growth, driven by ongoing technological advancements, increasing exploration activities in unconventional reserves, and global efforts towards energy security. However, challenges such as the adoption of smart water flooding and other improved oil recovery (IOR) technologies could potentially hinder growth by altering traditional production methods. Nonetheless, the market remains resilient, poised to leverage innovations and regulatory support to sustainably meet global energy demands in the coming years.

Delvens Industry Expert's Standpoint

The Onshore Artificial Lift Market is currently experiencing significant growth driven by increasing exploration activities aimed at tapping into unconventional oil and gas reserves. With conventional reserves depleting, there's a heightened focus on technologies like hydraulic fracturing and horizontal drilling to access resources such as shale gas and tight oil. This shift is driving the demand for advanced artificial lift systems tailored to optimize production from these challenging geological formations.

Technological advancements play a crucial role in enhancing the performance of artificial lift systems, enabling predictive maintenance and improving overall efficiency. The integration of intelligent systems, or smart lift systems, further enhances operational capabilities by reducing downtime and optimizing reservoir management. This trend towards intelligent systems is expected to continue, driven by the industry's ongoing quest for efficiency and cost-effectiveness.

Looking ahead, the Onshore Artificial Lift Market is poised for continued growth as upstream activities escalate in response to substantial discoveries and reserve potentials. Recent discoveries, including significant finds in Mexico's Zama field and ExxonMobil's discoveries in Guyana, underscore the industry's capability to uncover valuable resources, thus paving the way for long-term growth opportunities within the artificial lift market. As the industry evolves, innovations in technology and increasing adoption of smart lift systems are set to shape the future landscape of artificial lift solutions, supporting sustained growth and resilience in the global oil and gas sector.

Market Portfolio

Key Findings

• On the basis of Mechanism, In the Onshore Artificial Lift market, segmentation by mechanism includes gas-assisted and pump-assisted systems. The pump-assisted segment led the market, driven by dynamic displacement and positive displacement pumps. This growth is fueled by increasing adoption of progressive cavity pumps and electric submersible pumps. Continued technological advancements are expected to further bolster growth in this segment, enhancing efficiency and performance across artificial lift systems.

• On the basis of Type, In the Onshore Artificial Lift market, segmentation by type includes ESP, PCP, Gas Lift, Rod Lift, and others. The rod lift segment has shown significant revenue growth, driven by increasing applications in onshore oil and gas extraction. Rod lift, also known as beam pumping, employs a pump jack at the surface to lift oil and gas through a sucker rod string and pump. This method, powered by electricity or gas, remains a standard artificial lift solution for surface piping and equipment. Meanwhile, Electric Submersible Pumps (ESPs) are favored for large oil wells post-peak production phases, requiring ongoing advancements to boost production rates.

• The market is also divided into various regions such as North America, Europe, Asia-Pacific, South America, and Middle East and Africa. The North American held the largest Onshore Artificial Lift Market share driven by the rise in unconventional oil and gas resources such as tight oil, shale, and gas, alongside growing demand for artificial lift in mature wells.

Regional Analysis

North America to Dominate the Market

• North America dominated the global onshore artificial lift systems market in 2022, driven by significant shale discoveries and increased exploration and production activities in the region. Market players are focusing on developing larger multi-well facilities, employing advanced artificial lift technologies to enhance production, thereby boosting demand for these systems. The region benefits from extensive technological availability and fossil fuel reserves, driving market growth. Moreover, substantial investments in the upstream sector and a renewed emphasis on mature oil fields, particularly in the prolific Permian Basin, are expected to propel the market further. However, the market faces challenges from increasing environmental concerns and opposition to oil and gas due to carbon emissions, potentially restraining growth.

Competitive Landscape

• SLB
• Halliburton
• Weatherford
• Levare
• General Electric
• NOV Inc.
• JJ Tech
• Aker Solutions
• Novomet
• BCP Group
• Occidental Petroleum Corporation
• Canadian Advanced ESP
• Alkhorayef Petroleum
• ELKAM ArtEfficial Lift
• PetroLift Systems, Inc.
• Rimera Group

Recent Developments

• In November 2022, Halliburton Company has successfully deployed the industry's inaugural single-trip electro-hydraulic wet connect in deepwater operations for Petrobras in Brazil. The Halliburton Fuzion® EH electro-hydraulic downhole wet-mate connector enhances well recovery rates by ensuring the integrity of Halliburton's SmartWell® completion systems throughout the well's operational lifespan.

• In January 2022, Unbridled ESP Systems, a subsidiary of ChampionX, introduced the High Rise series pumps designed to reduce carbon emissions during ESP operations in unconventional well completions.

Reasons to Acquire

• Increase your understanding of the market for identifying the most suitable strategies and decisions based on sales or revenue fluctuations in terms of volume and value, distribution chain analysis, market trends, and factors.
• Gain authentic and granular data access for the Onshore Artificial Lift Market to understand the trends and the factors involved in changing market situations.
• Qualitative and quantitative data utilization to discover arrays of future growth from the market trends of leaders to market visionaries and then recognize the significant areas to compete in the future.
• In-depth analysis of the changing trends of the market by visualizing the historic and forecast year growth patterns.

Report Scope