The pump jack market is expected to grow at a CAGR of more than 3% over the forecast period of 2020 - 2025. The major drivers of this market are increasing automation for oil extraction, advancement or innovation in performance in pump jack unit and an increasing number of mature onshore oil fields as onshore oil drilling is more cost-effective as compared to offshore oil drilling. However, the limitation in the offshore application, high maintenance costs and large space footprint and the effect of COVID-19 are some of the factors which are expected to restrain the pump jack market during the forecast period.
- The onshore application is expected to be the largest segment for the pump jack market, during the forecast period.
- The majority of the new fields, as well as the older fields, require an artificial lift of some form for production. Hence, all the major companies are regularly adopting new technology of artificial lift systems in almost all wells. As the number of new exploration fields is increasing, these fields are expected to provide major opportunities for the pump jack market.
- North America has the largest market share by value and is also ascending as key exporter of raw petroleum because of the ongoing improvements of shale oil in the locale which makes it the dominating region in the market during the forecasted period.
Key Market Trends
Onshore Application to Dominate the Market
- The onshore segment has the largest revenue share due to the presence of many mature wells which are more on the land compared to the sea and because of this, the usage of pump jacks is higher in onshore oil drilling.
- The pump jacks are more efficient and cost-effective in their operation, as they are monitored remotely and the regular monitoring of events, sending quick alarms and giving immediate notification through text, phone calls, or an email, in the case of shut down, to resolve the problems quickly by reducing the requirement for humans.
- Onshore fields offer the requisite surface area and well spacing for the installation of pump jacks. Moreover, onshore fields allow for easy maintenance and repair, as they are easily accessible or well connected to monitoring facilities.
- The North American region has a large number of mature onshore wells, where pump jacks can be used to achieve operational efficiency and tap the remaining oil in the wells.
- Therefore, based on the above-mentioned factors, onshore application is expected to dominate in pump jack market over the forecast period.
North America to Dominate the Market
- North America has the largest market share by value in 2019 and is also predicted to dominate the market in the forecasted period. The growth in this region is because of the rising number or redevelopment of mature oil fields which are almost at the end of their economic life and presence of plenty of stripper wells in the United States. Also, the technological advancement in artificial lifting equipment contributes to the growth in this region.
- Moreover, the oil and gas industry in the United States is projected to provide a huge impetus to the submersible pump market on account of widespread investments lined up in oil and gas projects in the coming years. It is expected that around USD 76 billion will be spent on 97 upcoming oil and gas projects in the country between 2019 and 2025.
- The market players operating in the region are planning to develop larger multi-well facilities. For this purpose, the companies are employing artificial lift technologies with the latest techniques to increase production, which is likely to boost the demand for the pump jack market in the region during the forecast period.
- Besides this, a growing number of matured oilfields in the region are likely to add to the demand for the pump jack market to improve the productivity of the matured fields.
The pump jack market is moderately fragmented. Some of the key players in this market include Schlumberger Limited, Halliburton Company, Weatherford International Ltd, National-Oilwell Varco, Inc., and Dover Corp.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support