Electric Submersible Pump (ESP) in Oil and Gas Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Application (Onshore, offshore), By Operation (Single Stage, Multistage), By Region, By Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 7.81 Billion
CAGR (2026-2031)	7.88%
Fastest Growing Segment	Multistage
Largest Market	North America
Market Size (2031)	USD 12.31 Billion

Market Overview

The Global Electric Submersible Pump (ESP) in Oil and Gas Market will grow from USD 7.81 Billion in 2025 to USD 12.31 Billion by 2031 at a 7.88% CAGR. The Electric Submersible Pump (ESP) is a specialized multistage centrifugal pump system installed downhole to lift moderate to high volumes of fluids from wellbores to the surface. The primary driver supporting this market is the critical necessity to enhance recovery rates from aging mature fields combined with the operational demand for efficient high-volume extraction in deepwater and unconventional reservoirs. These factors represent fundamental infrastructural requirements to sustain global energy output against natural pressure decline, distinguishing them from transient technological trends.

This reliance on ESP technology is evident in recent industry technical focus and development priorities. According to the Society of Petroleum Engineers, in 2024, 64% of technical submissions regarding artificial lift at major industry conferences focused specifically on Electric Submersible Pumps, underscoring the sector's preference for this method over alternatives. However, a significant challenge impeding broader market expansion remains the high operational expenditure associated with pump failures and complex well interventions, particularly in harsh environments containing abrasive solids or high gas-to-oil ratios.

Key Market Drivers

The revitalization of mature and depleted oil reservoirs acts as a primary market driver, necessitating high-volume artificial lift systems to mitigate natural pressure declines. As primary recovery concludes, operators must deploy these pumps to maintain economic viability, particularly in legacy fields where fluid lifting capability is required to handle increasing water cuts. A clear example of this trend occurred in Brazil, where large-scale interventions are being utilized to extend asset life. According to Baker Hughes, April 2024, in the 'First Quarter 2024 Results', the company secured a contract from Petrobras to deploy electrical submersible pumps across 450 wells in the Bahia-Terra cluster. Such revitalization projects demonstrate how ESPs are essential for sustaining output from established reservoirs that would otherwise face steep decline rates.

The expansion of unconventional shale developments creates substantial demand for submersible pumping technologies. These reservoirs experience rapid initial declines and high water volumes, requiring lift solutions that can manage variable flow rates and abrasive solids. Consequently, operators in key basins like the Permian rely on ESPs to stabilize long-term production. According to the U.S. Energy Information Administration, October 2024, in the 'Drilling Productivity Report', oil production in the Permian region was projected to reach approximately 6.5 million barrels per day, creating extensive infrastructure requirements. This operational intensity is reflected in the financial performance of major equipment providers. According to SLB, October 2024, in the 'Third Quarter 2024 Earnings Release', Production Systems revenue reached USD 3.1 billion, driven largely by artificial lift sales. This revenue growth underscores the technology's vital role in maximizing recovery from unconventional formations.

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Key Market Challenges

The primary challenge impeding the expansion of the Global Electric Submersible Pump (ESP) market is the high operational expenditure resulting from frequent pump failures and the subsequent need for complex, costly well interventions. In harsh extraction environments characterized by abrasive solids or high gas-to-oil ratios, ESP systems are prone to mechanical stress and gas locking, which significantly shortens their operational run life. This reliability issue creates a severe economic barrier for operators, as the financial burden of unplanned downtime and the requirement for heavy workover rigs to retrieve downhole equipment often outweigh the initial capital efficiency of the system. Consequently, upstream companies are frequently deterred from deploying ESPs in marginal or technically challenging assets where profit margins cannot absorb these unpredictable maintenance costs.

This operational instability limits the market's addressable footprint by forcing operators to favor less volume-efficient but more robust alternatives. The severity of this reliability challenge is quantifiable through recent industry performance standards. According to the Society of Petroleum Engineers, in 2024, the global top-quartile benchmark for ESP failure indices was recorded at 10.8%. This statistic indicates that even the most efficient operations anticipate a significant failure frequency, suggesting that the broader industry average is considerably higher. Such elevated failure rates directly correlate to increased lifting costs per barrel, causing financial uncertainty that hampers the widespread adoption of ESP technology in cost-sensitive unconventional reservoirs.

Key Market Trends

The adoption of Permanent Magnet Motor (PMM) technology is replacing induction motors with systems offering superior power density and efficiency. PMMs utilize rare-earth magnets to eliminate excitation losses, significantly reducing heat generation and enabling operation in slimmer wellbores. This upgrade directly reduces the energy intensity of artificial lift while improving reliability in thermal reservoirs. The economic benefit is clear; according to Baker Hughes, March 2024, in the 'Integrated production solution doubled production, cut monthly electric costs in half in Permian wells' case study, the deployment of Magnefficient PMM technology saved an operator approximately USD 4,000 per month in electricity costs alone.

Simultaneously, the integration of AI-driven predictive maintenance models is transforming operational strategies by using real-time data to forecast failures. Operators now employ algorithms that analyze vibration and temperature variances to dynamically adjust pump parameters, avoiding reactive repairs. This proactive approach minimizes the financial impact of unplanned downtime and optimizes asset longevity. The value of this innovation is quantifiable; according to nybl, June 2024, in the 'Enhance Oil Production by Optimizing ESP Operating Parameters Using AI' report, the implementation of liftAI technology demonstrated the capability to extend pump lifespan by up to 20% through advanced failure prediction.

Segmental Insights

The Multistage segment is expected to achieve the fastest expansion within the Global Electric Submersible Pump market due to the rising demand for high-pressure artificial lift solutions in deepwater and unconventional fields. Operators increasingly rely on these pumps because their stacked impeller design allows for the generation of sufficient hydraulic head to transport fluids from significant depths to the surface. This capability is critical for maintaining production levels in maturing wells and challenging geological formations, resulting in a sustained preference for multistage pump configurations over other alternatives in the oil and gas sector.

Regional Insights

North America commands the Global Electric Submersible Pump market, largely due to extensive extraction activities within the United States. This dominance stems from the widespread deployment of artificial lift systems in mature fields and unconventional shale plays, particularly to manage declining reservoir pressure. Reports from the U.S. Energy Information Administration indicate that consistent crude oil output relies heavily on technologies that enhance recovery from existing wells. Therefore, the continuous requirement to optimize production efficiency in onshore assets solidifies the region’s status as the principal market leader.

Recent Developments

• In November 2024, Novomet introduced the ImpalaESP, a specialized electric submersible pump system featuring an extended operating range to address the challenges of rapidly declining inflow in oil wells. This technology was developed to allow operators to utilize a single installation throughout the life of the well, removing the necessity for costly equipment replacements as production levels fluctuated. The system was particularly engineered for complex shale oil fields and reservoirs with low permeability. By reducing axial force and optimizing pump geometry, the company provided a solution that ensured stable operation and enhanced economic returns for operators managing late-stage development fields.
• In June 2024, Baker Hughes was awarded a significant multi-year contract by the State Oil Company of Azerbaijan Republic to deploy its electric submersible pump technology across the nation's oilfields. The collaboration involved the supply of more than 150 ESP units and the implementation of the Leucipa automated field production software to optimize well performance and reduce workovers. Additionally, the agreement included plans to establish a joint center of excellence in Azerbaijan, which would handle the manufacturing, assembly, and maintenance of the ESP systems. This initiative was designed to improve local technical capabilities while supporting the efficient extraction of hydrocarbons from the region's assets.
• In April 2024, SLB launched two advanced artificial lift technologies designed to enhance operational efficiency and reduce carbon emissions for oil and gas operators. The introduction included the Reda Agile compact wide-range electric submersible pump system and the rodless Reda PowerEdge electric submersible progressing cavity pump system. These systems were engineered to operate continuously across a broader range of production conditions than traditional alternatives, helping to eliminate the need for frequent equipment changes. By integrating these pumps with digital surveillance services, the company enabled operators to achieve real-time optimization and faster installation, thereby maximizing recovery from mature and unconventional wells.
• In March 2024, ChampionX Corporation announced a definitive agreement to acquire RMSpumptools Limited, a business unit previously owned by James Fisher and Sons plc, for a net purchase price of approximately £86 million (approximately $110 million). This strategic transaction was intended to expand the company's production and automation portfolio by incorporating highly engineered mechanical and electrical solutions designed for complex artificial lift applications. RMSpumptools is an established provider of wellhead electrical penetrators and subsea connector systems, which are essential components for the reliable operation of electric submersible pumping systems in challenging environments. The acquisition was aimed at strengthening the company's market presence in the Middle East, Latin America, and offshore developments.

Key Market Players

• Schlumberger Limited
• Baker Hughes Company
• Halliburton Energy Services Inc.
• Weatherford International plc
• Levare International Limited
• Novomet
• Grundfos Holding A/S
• Atlas Copco AB
• Sulzer Ltd.
• Flowserve Corporation

By Application	By Operation	By Region
Onshore offshore	Single Stage Multistage	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Electric Submersible Pump (ESP) in Oil and Gas Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Electric Submersible Pump (ESP) in Oil and Gas Market, By Application:

• Onshore
• offshore

• Electric Submersible Pump (ESP) in Oil and Gas Market, By Operation:

• Single Stage
• Multistage

• Electric Submersible Pump (ESP) in Oil and Gas Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE