Gas Lift System Market Expected to Reach $3.8 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Gas Lift System Market," The gas lift system market was valued at $1.8 billion in 2022, and is estimated to reach $3.8 billion by 2032, growing at a CAGR of 7.6% from 2023 to 2032.

The gas lift system market is a vital component of the oil and gas industry, primarily designed to enhance reservoir pressure and facilitate the extraction of crude oil from subterranean reservoirs. Gas lift systems come into play when the inherent reservoir energy is insufficient to naturally propel the oil to the surface, serving as a critical means to recover additional crude oil from the reservoir.

In the realm of oil and gas operations, the paramount objective of every operator is to strike a balance between reducing both capital expenditure (CAPEX) and operating expenditure (OPEX) while maximizing oil production and minimizing costs.  The gas lift system achieves this by efficiently promoting the upward flow of liquids to the surface within a production oil well, employing mechanical devices like pumps and leveraging high-pressure gas to reduce the weight of the liquid-gas mixture. This method substantially improves the lift efficiency of the well through rate strings.

The rapid gas lift system market growth is underpinned by the ever-increasing global demand for oil and gas resources, driven by accelerating economic growth and increase in global population. The prolific expansion of shale oil production and heightened investments in offshore drilling exploration activities further fuel the momentum of the market, as operators seek to tap into a growing array of mature reserves.  Gas lift system market trends within the sector encompass continuous technical innovations and a remarkable surge in the number of wells drilled.

However, the market progression faces occasional challenges stemming from the inherent volatility in petroleum prices, environmental considerations, and financial uncertainties, all of which require astute industry adaptation and strategic responses.  

The gas lift system market scope is segmented on the basis of lift type, component, application, gas lift type, well type, and region. On the basis of lift type, the market is bifurcated into gas lift, and others. On the basis of component, the market is segmented into mandrels, valves, and packers. On the basis of application, it is bifurcated into onshore and offshore. On the basis of gas lift type, it is bifurcated into continuous flow and intermittent flow. On the basis of well type the market is bifurcated into horizontal and vertical. On the basis of region, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.

Based on region, North America held the highest gas lift system market share in terms of revenue in 2022, accounting for nearly two-fifths of the global gas lift system market size, and is likely to dominate the market forecast.

Furthermore, the Asia-Pacific region is expected to witness the fastest CAGR of 8.36% from 2023 to 2032. The Asia-Pacific region presents significant growth potential in the gas lift system industry. Emerging markets, such as India, China, and Southeast Asian countries, have witnessed rapid industrial growth which provide gas lift system market opportunities for the development.

The global gas lift system market analysis covers in-depth information about the major industry participants. The key players operating and profiled in the report include Baker Hughes Company, ChampionX, Weatherford International plc, Schlumberger Limited, Saudi Arabian Oil Co. (Saudi Aramco), National Oilwell Varco, Inc., Tendeka, Emerson Electric Co., Spoc Automation, Inc., and Tally Energy Services.

These players have adopted different strategies such as new product launches, collaborations, expansion, joint ventures, agreements, and others to increase their market share and maintain dominant shares in different regions. The report is valuable in highlighting business performance, operating segments, product portfolio, and strategic moves of market players to highlight the competitive scenario.

Key Findings Of The Study

• By region, North America accounted for nearly two-thirds of the market share in 2022.
• By lift type, gas lift segment holds the largest market share in 2022.
• By component, valves segment holds nearly half of the market share in 2022.
• By application, the onshore segment accounted for more than two-third of the market share in 2022.
• By gas lift type, the continuous segment accounted for four-fifths of the market share in 2022.
• By well type, the horizontal segment accounted for more than two-third of the market share in 2022.