Artificial Rod Lift Market size is projected to grow at around 6.2% CAGR during the forecast period i.e., between 2024-2036.
The growth of the market can be attributed to the increasing application of artificial rod lift in oil drilling, combined with the increasing number of new exploration fields across the globe. The rod lifts are designed to be inserted inside the tubing of a well to gather fluids from underneath. It is used to collect oil and other fluids, and lift them to the surface, which is why, it is ideal for application in oil wells. The increasing use of artificial lift systems in various end-user industries, is estimated to boost the market growth. The growing demand for crude oil and petroleum products, has raised the need for oil extraction, which is estimated to boost the market growth. However, COVID-19 had a severe impact on the oil & gas industry, resulting in a massive decline in oil demand in 2020, which is expected to recover over the upcoming years. According to the data by the International Energy Agency, the global oil demand declined by 8.6 million barrel per day in 2020. This is expected to rebound, by registering an increase of 5.4 million barrel per day in 2021, and by 8.5 million barrel per day in 2022. Further, by the end of 2022, the demand for oil is projected to surpass the pre-Covid levels. Moreover, increasing investment by major companies for oil drilling in offshore as well as onshore reservoir, is estimated to boost the market growth.
Growth Drivers
Challenges
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2023 |
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Forecast Year |
2024–2036 |
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CAGR |
6.2% |
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Regional Scope |
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The market is segmented by end-user industry into oil & gas, mining, and others, out of which, the oil & gas segment is anticipated to hold the largest share in the global artificial rod lift market over the forecast period on account of increasing application of artificial rod lift in oil extraction from reservoirs. According to the U.S. Energy Information Administration (EIA) the global consumption of oil is estimated to be 92.2 million barrels per day in 2020. Increasing investment in the oil & gas industry is also estimated to boost the segment growth in the upcoming years.
Our in-depth analysis of the global market includes the following segments:
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Application |
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End-User Industry |
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On the basis of geographical analysis, the global artificial rod lift market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. The market in the North America industry is estimated to account for largest revenue share by 2036, owing to increasing oil production, led by presence of large oil reserves in the region. Canada is the 4th largest producer and exporter of oil, globally, and holds over 10% of the world’s share for oil wells.
The market in Middle East and Africa region is estimated to witness noteworthy growth over the forecast period on the back of presence of large number of oil reserves, and increasing international trade of crude oil. The increasing demand for crude oil for exportation is estimated to boost the market growth in the region.
June, 2021: NOV Inc. announced its joint venture with Schlumberger to accelerate the adoption of automated drilling solutions in the oil and gas industry.
Author Credits: Dhruv Bhatia
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