Asia-Pacific Artificial Lift Systems Market - Growth, Trends, and Forecast (2020 - 2025)

The Asia-Pacific artificial lift market is expected to register a CAGR of more than 5% over the forecast period, 2020-2025. The ever-rising population in countries such as India and China are fuelling the requirement of the oil and gas in this region. Along with the increasing population, efforts to improve the living standards and urbanization are driving the demand for energy. This tremendous demand for oil is outpacing the addition of new reserves. The number and size of discoveries of reserves are also decreasing. This has resulted in an increased focus on enhancing productivity and the efficiency of old reservoirs. Artificial lifts are gaining importance in order to explore oil from the mature oil reservoirs. However, with the advancement in smart water flooding and various IOR technology are expected to hinder the market growth during the forecast period.

• An electric submersible pump (ESP) is preferred as the most suitable choice for usage in large oil wells that reached or crossed their peak oil production phase. In addition, the availability of abundant resources, coupled with an increase in investments, is expected to boost the offshore electric submersible pump market.
• The majority of the new fields, as well as the older fields, require an artificial lift of some form for production. Hence, all the major companies are regularly adopting artificial lift in almost all wells. As the number of new exploration fields is increasing, these fields are expected to provide major opportunities for the artificial lift system market.
• China exhibits growth in artificial lift system by extraction of oil in this region has increased so the market is also growing at a rapid pace.

Key Market Trends

Electric Submersible Pump (ESP) to Dominate the Market

Most of the oil and gas fields operating have been in production for a few decades. They are either matured or at the end of their production life.

• 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.
• Electrical Submersible Pumps (ESP) held the majority revenue share in 2018 and the segment is expected to witness healthy growth over the forecast period. These pumps are used to push fluids effectively from wells with low bottom hole pressure. They are widely used in the oil & gas industry due to their low space requirements, minimum maintenance, and higher efficiency.
• Moreover, these pumps have a simpler design and can effectively be operated by field workers. They can also work efficiently in wells with crooked or deviated holes. Owing to their low operational costs and high extraction rate, electrical submersible pumps (ESPs) are anticipated to witness increased adoption over the next few years.

China to Dominate the Market

China is the largest importer of oil in the world. It is because of having the largest population in the world and the rapidly growing economy. The extraction of oil in this region has increased so the market for artificial lift systems is also growing at a rapid pace.

• Artificial lift is a process used on oil wells to increase pressure within the reservoir and encourage oil to the surface. When the natural drive energy of the reservoir is not strong enough to push the oil to the surface, artificial lift is employed to recover more production.
• This growth is expected due to several advantages offered by the rod lift type, including cost-effectiveness and efficiency in the extraction of hydrocarbons. Furthermore, rod lifts are capable of lifting heavy viscous crude oil at high temperatures thus incurring low operational expenditures.
• A progressing cavity pump (PCP) is a positive displacement pump and is considered to be one of the artificial lift methods. It is a screw-type pump that provides a force for fluids to travel through the pump.

Competitive Landscape

The Asia-Pacific artificial lift systems market is partially consolidated. Some of the key players operating in this market include Baker Hughes Co, National-Oilwell Varco, Halliburton Company, Novomet, and Apergy Corp.

Reasons to Purchase this report:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support