According to a new report by Allied Market Research entitled, "Global Artificial Lift Market - Size, Industry Analysis, Trends, Opportunities, Growth and Forecast, 2013 - 2020", the global artificial lift market is expected to reach $27.3 billion by 2020, registering a CAGR of 10.5% during 2014-2020. Continuously declining oil prices-hitting a 4-year low-have forced the oil extraction companies to optimize their spending by increasing efficiency. In line with this, the companies are increasingly deploying artificial lifts to increase output from the existing wells. As a result, the artificial lift market is expected to pick pace in next two years.
As a result of geopolitical consequences, oil prices have declined drastically in past one year. The oil prices have reached below the half of the value they had about a year ago, thereby, affecting profitability of oil extraction and processing companies. In an effort to meet business targets with fiscal constraints, companies are restraining themselves from investing in new projects. The only feasible alternative to increase production would be achieved by increasing output efficiency. Artificial lift is emerging as a solution to this problem, which ensures the maximum efficiency and optimum utilization of oilfield resources.