AMR's new report, Global artificial lift market - size, industry analysis, trends, opportunities, growth and forecast, 2013-2020, said the global artificial lift market would register a compound annual growth rate of 10.5% during 2014-2020 due to increased adoption resulting from increased demand of energy sources and maturing oil fields.
Falling oil prices that have cut into the profitability of oil extraction and processing companies has forced them to restrain themselves from investing in new projects to meet business targets with fiscal constraints.
The issue is particularly marked offshore as costs are far higher, along with the added environmental risk.
"The only feasible alternative to increase production would be achieved by increasing output efficiency," AMR said.
"Artificial lift is emerging as a solution to this problem, which ensures the maximum efficiency and optimum utilisation of oilfield resources," AMR added.
AMR said rod lifts were the most preferred artificial lift systems due to their cost-effective performance while extracting oil from ultra-deep oil fields.
Plunger lift technology is also gaining an increasing traction in the market due to lower maintenance cost and their ability to operate at sites with mixed proportions of oil and gas.
AMR also forecast the gas lift components, such as valves and mandrels, to experience rapid increase in adoption by 2020 with the increase in adoption of high-performance gas lifts.
"North America drives the market due to the growing need of artificial lifts in order to extract oil from low-pressure oil wells in the region," AMR said.
The report projected rapid market growth for plunger lifts at a compound annual growth rate of 18.2% during forecast period, while rod lift would be the market-driving technology by 2020, contributing more than a third of the overall market revenue.
Asia Pacific would prove to be one of the most lucrative markets in terms of growth, growing at a compound annual growth rate of 13.2% during 2014-2020.
AMR attributes the market growth to the launch of new artificial lift systems along with business offerings such as service management and on-lease sales.
Weatherford has taken a lead in the rent business of artificial lift components.
Companies are also adopting acquisition and partnerships as key strategies to gain a higher market share.
For example, Schlumberger acquired Kudu Industries in May 2014 - an acquisition beneficial for the oilfield services giant, which would improve the supply of pumps, a key component of artificial lift system.
