Demand for Artificial Lift Systems and Impact of COVID-19……..



The global artificial lift market size is expected to reach USD 26.5 billion by 2025, expanding at a CAGR of 5.7%, according to a new report by Grand View Research, Inc. The industry is anticipated to gain traction owing to the increasing fossil fuel demand coupled with the rising number of mature reserves, which hold a high volume of crude oil. Furthermore, volatile oil prices are persuading oil companies to decrease the per barrel oil production cost, thereby driving the demand for EOR techniques, such as artificial lift systems, over the forecast period.
Artificial Intelligence (AI), Virtual Reality (VR), and Augmented Reality (AR) solutions are anticipated to substantially contribute while responding to the COVID-19 pandemic and address continuously evolving challenges. The existing situation owing to the outbreak of the epidemic will inspire pharmaceutical vendors and healthcare establishments to improve their R&D investments in AI, acting as a core technology for enabling various initiatives. The insurance industry is expected to confront the pressure associated with cost-efficiency. Usage of AI can help in reducing operating costs, and at the same time, can increase customer satisfaction during the renewal process, claims, and other services. VR/AR can assist in e-learning, for which the demand will surge owing to the closure of many schools and universities. Further, VR/AR can also prove to be a valuable solution in providing remote assistance as it can support in avoiding unnecessary travel. The report will account for Covid19 as a key market contributor.
The robust demand for crude oil and natural gas has led to the depletion of onshore reserves. This has offered offshore deep-water opportunities for several companies, thus catapulting the artificial lift market size. Additionally, technological advancements have encouraged Exploration and Production (E&P) companies to increase the production of crude oil and natural gas in offshore reserves, which is anticipated to further propel demand over the coming years.
Lifting systems are used in offshore applications of deepwater gas lift wells and for subsea production to augment the productivity of wells. Thus, the rising deepwater oil production is anticipated to spur the market growth. Owing to rapid industrialization, conventional sources of oil & gas are depleting at the expense of future energy demands. This has forced companies to meet the end-user demand by focusing on unconventional gas resources. As such, unconventional gas production is considered to act as a key opportunity for players operating in the market.
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The demand for energy is increasing globally. The escalating demand for primary energy in transportation, power generation, and household activities has led to increased oil & gas consumption in major economies across the globe. This has led the producers of oil & gas to dig deeper to meet the increasing energy demands, thus instigating the need for artificial lift. However, the fluctuating oil prices and impacted investments would affect market growth, owing to high equipment and capital costs.
Further key findings from the report suggest:
·         The global artificial lift market exceeded USD 16 million in 2016 and is expected to grow at a CAGR of 5.7% from 2017 to 2025, which is primarily attributed to the increasing oil & gas production coupled with improving production efficiencies at mature fields.
·         Electrical submersible pumps are anticipated to emerge as the largest product segment over the forecast period owing to the rising demand for oil worldwide and exploration of newer onshore as well as offshore reserves.
·         The ever-rising population in Asia Pacific, particularly India and China, is anticipated to fuel the demand for oil & gas, which is further expected to instigate the adoption of artificial lift systems in this region.
·         Key players such as GE Oil & Gas, National Oilwell Varco, Weatherford Plc, Halliburton, Dover Corp., and Schlumberger Limited dominated the market in 2016 with their emphasis on expanding the market presence through mergers and acquisitions.
The global artificial lift systems market size was valued at USD 16.18 billion in 2016. The rise in oil exploration activities is predicted to be a key factor driving the market growth over the forecast period. When the naturally driven reservoir energy is insufficient to push the oil to the surface, artificial lift systems are employed to improve the productivity of the well.
Artificial lifts are mainly used in the oil & gas industry to boost oil production in reservoirs. The market is anticipated to witness substantial growth, which is ascribed to the increase in heavy oil & shale gas production globally. On account of huge shale gas reserves in regions such as Asia Pacific and the Americas, the market is expected to witness a healthy growth over the next few years.
Factors such as attempts to increase production from mature fields are expected to create a huge demand for artificial lift systems in the coming years. A number of existing reservoirs across the globe are still in the mature phase and do not possess the natural pressure to push oil & gas to the surface. Moreover, a large percentage of the world’s oil and gas production is primarily obtained through these mature oil fields. This requires efficient artificial lift systems to optimize production and to offset the influence of natural decline rates of the existing reserves.
With the rising energy demand, the dependence on conventional sources is also increasing. However, the overexploitation of these resources has resulted in their depletion, thereby prompting the oil & gas industry to shift its focus toward developing unconventional resources such as natural gas, shale oil & gas, and tight oil. These factors have resulted in increased exploration of unconventional reserves, which is expected to drive the artificial lift market demand over the forecast period.
Browse Press Release of this report:
https://www.grandviewresearch.com/press-release/global-artificial-lift-systems-market
Grand View Research has segmented the global artificial lift market based on products:
Artificial Lift Product Outlook (Revenue, USD Million; 2014 - 2025)
·         Rod Lifts
·         Electrical Submersible Pumps
·         Progressive Cavity Pumps
·         Gas Lift
·         Hydraulic Pumps
·         Others
About Grand View Research
Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.



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