North America Artificial Lift Systems Market Size, Analysis: By Type: Progressive Cavity Pumps (PCP), Electric Submersible Pumps (ESP), Gas Lift Systems, Others; By Mechanism: Pump Assisted, Gas Assisted; By Area of Deployment: Onshore, Offshore; By Well Type; Regional Analysis; Competitive Landscape; 2024-2032

North America Artificial Lift Systems Market Outlook

The North America artificial lift systems market size is projected to grow at a CAGR of 5.60% between 2024 and 2032, to grow significantly by 2032.

Key Takeaways

• Around the world, over 1 million wells use artificial lifts.

• Sucker-rod pumps are a common form of artificial lift, with more than 750,000 lifted wells using this method.

• In the US, about 350,000 wells are lifted by sucker-rod pumps.

• 60 auto gas lift systems have been installed in the Scandinavian sector of the North Sea to boost production by injecting high-pressure gas into fluids from the reservoir.

Artificial lift systems refer to a suite of technologies and methodologies employed in the oil and gas industry to enhance the production of hydrocarbons from wells. These systems are crucial for maintaining or increasing reservoir pressure, optimising flow rates, and extending the productive life of wells. Some of the common types of artificial lift systems are rod pumps, electric submersible pumps, gas lift, and hydraulic pumps.

The North America artificial lift systems market share has increased due to the gradual depletion of conventional oil and gas reserves in the region and artificial lift systems play a pivotal role in maximising recovery from mature fields where natural pressure has declined. Moreover, the economic viability and cost-efficiency of artificial lift systems serve as key drivers of the North America artificial lift systems market growth as operators always seek to maximise production while reducing operational costs.

Additionally, there has been an increased focus on unconventional reservoirs, such as shale oil and gas and artificial lift technologies, such as electric generators, innovations in pump designs and IoT enabled sensors which are essential for extracting hydrocarbons efficiently from these unconventional reservoirs. This is driving the demand for artificial lift systems in North America.

Key Trends and Developments

Shifting focus towards conventional resources, growing preference for electric submersible pumps, and a shift towards integrated lift solutions are driving the market growth

North America Artificial Lift Systems Market Trends

A shift towards integrated lift solutions that combine multiple lift mechanisms is an emerging trend in the market. This approach allows operators to tailor artificial lift strategies to specific well conditions, which enhances overall system performance.

North America artificial lift systems market outlook is expected to be favourable due to the rising application of gas lift systems. The flexibility and adaptability of gas lift systems make them suitable for ageing oil and gas reservoirs. The growing market share of gas lift systems can also be attributed to rapid upstream transformation, which results in a heightened demand for improved operational efficiency to boost production from oil and gas wells.

Further, the adoption of remote monitoring and control capabilities has resulted in North America artificial lift systems market development. This trend is driven by the oil and gas industry's shift towards digitalisation and automation, where modern artificial lift systems are equipped with remote control sensors that allow operators to remotely monitor well performance, identify issues, and minimise the need for on-site interventions.

Market Segmentation

North America Artificial Lift Systems Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Progressive cavity pumps hold a significant market share due to their adaptability to handle heavy and viscous crude oil

As per North America artificial lift systems market analysis, progressive cavity pumps (PCP) systems hold a substantial market share due to their adaptability to handle heavy and viscous crude oil. The design of PCPs, with a rotating metal rotor and a flexible rubber-moulded stator, allows them to handle solids and viscous fluids efficiently. Also, in the oil and gas industry, PCPs are widely utilised throughout the oilfield and can reach significant depths, making them a popular choice for a variety of well conditions. PCPs can be run into deviated and horizontal wells, which are prevalent in North America.

Electric submersible pumps (ESP) are centrifugal pumps that are submerged in a well and connected to a surface power source. ESP are suitable for wells with high flow rates, low viscosity, and low gas content. They have high production capacity, low lifting costs, and easy installation and maintenance.  According to North America artificial lift systems market report, growth of this segment is driven by the increasing demand for high-performance and energy-efficient pumps, especially in deep and offshore wells.

Gas lift systems are devices that inject high-pressure gas into the wellbore to reduce the hydrostatic pressure of the fluid column and increase the flow rate. Gas lift systems are suitable for wells with low reservoir pressure, high gas-oil ratio, and high-water cuts. They have low initial and operating costs, high flexibility, and low environmental impact. This segment holds a growing North America artificial lift systems market share due to the increasing adoption of gas lift systems in mature and marginal fields, where conventional methods are not feasible or economical.

Onshore deployment mode has augmented the market growth due to the large number of onshore wells in US and Canada

The onshore deployment segment accounts for the largest share of the artificial lift systems market in North America due to the high number of onshore wells in the region, especially in the US and Canada. The US is the second-largest producer of oil and gas in the world, with more than 900,000 active wells, most of which are onshore. Canada is the fourth-largest producer of oil and gas in the world, with more than 500,000 active wells, mainly located in Alberta and Saskatchewan. Both countries have many mature and unconventional wells that require artificial lift systems to enhance their recovery.

The offshore deployment segment has also contributed to North America artificial lift systems market size, which has been increasing due to the rising exploration and production activities in the offshore regions of the Gulf of Mexico, Alaska, and Newfoundland and Labrador. The offshore wells in these regions are typically deeper and more complex than the onshore wells, requiring more advanced and reliable artificial lift systems to optimise their production.

Competitive Landscape

Leading players are introducing novel technologies of artificial lift systems to expand their portfolio and generate higher revenue.

Other key players in the North America artificial lift systems market include J&J Technical Services, LLC, Weatherford International plc, ChampionX Corporation, LUFKIN Industries, Inc., Valiant Artificial Lift Solutions LLC, and Endurance Lift Solutions, LLC, among others.

North America Artificial Lift Systems Market Analysis by Region

United States dominates the market share being the largest producer of dry natural gas and oil

The United States holds a significant North America artificial lift systems market share, driven by country’s extensive oil and gas exploration activities. This growth is further ascribed to the discovery of shale gas in US and the availability of low-pressure oil wells in the region. The United States is now the world’s largest producer of dry natural gas, with 40% of its supply derived from Marcellus shale play in the Appalachian Basin. The development of shale oil and gas has taken off in the country due to the combination of artificial lift systems, and horizontal drilling. This has significantly increased the country's natural gas reserves and production, reducing its dependence on oil imports from overseas.

Also, the rising commercial activities and investment in geothermal projects are expected to result in a healthy demand for artificial lift systems in the region. For example, Since May 2022, a multi-stage Texas geothermal well project is being drilled on repurposed oil and gas properties. The project will utilise advanced drilling techniques, such as high-deviation tangents, horizontal well trajectories, multi-stage completions, and closed-loop systems. Furthermore, the rapidly maturing oil fields in the country due to continuous extraction are expected to catapult the market size over the forecast period.

Canada is also one of the top oil and gas producers in the world and has many oil sands wells that need artificial lift systems to make them less thick and more fluid. Based on CAPP, around 80% of the oil production and 60% of the gas production in the country use some form of artificial lift. The main factors that drive the Canada artificial lift systems market are the growing oil sands production, the increasing demand for liquefied natural gas (LNG), and the technological advances in artificial lift systems.

Moreover, the North America artificial lift systems market estimates that capital spending in the upstream oil and natural gas sector will go up to USD 40.6 billion in 2024, slightly higher than the estimated actual investment of USD 39 billion in 2023. Furthermore, by 2025, British Columbia is expected to host the nation's first significant liquefied natural gas export facility, which can propel the North America artificial lift systems market growth.

Key Highlights of the Report

*At Expert Market Research, we strive to always give you current and accurate information. The numbers depicted in the description are indicative and may differ from the actual numbers in the final EMR report.