Insights & Trends in the Global Helium Market
This newsletter brings the latest trends, developments, and insights from the global helium market. As a critical resource with diverse applications, helium is experiencing a surge in demand across various sectors, including healthcare, aerospace, and technology.
The global helium market was valued at USD 3,630.9 million in 2023 and is projected to reach USD 9,774.0 million by 2040, expanding at a CAGR of 6.1% during the forecast period.
Growing Demand in the Healthcare Sector
The increasing demand for helium gas in the healthcare sector is attributed to its unique characteristics, including high thermal conductivity, chemical inertness, and cryogenic properties. Helium is essential for MRI technology, as it ensures effective cooling for optical instruments. For instance, hospitals are investing in new MRI machines, leading to a significant uptick in helium consumption. It plays a crucial role in the medical field by providing coolant for lasers used in surgical procedures and being integrated into various diagnostic and monitoring equipment.
The demand for helium in healthcare remains strong. Furthermore, the rising number of MRI installations globally contributes to this demand, as helium is the only substance capable of cooling superconducting magnets to the extremely low temperatures necessary for MRI scanners to function.
Developments in Space Exploration
Space exploration is a major driver of the helium market, as it is required for pressurizing the fuel tanks of rockets and spacecraft. During rocket launches, helium is utilized to separate hot gases from extremely cold liquid fuels. Its unique properties make helium the only gas suitable for pressurizing the liquid fuels that propel rockets, as well as for use in balloons and airships with various atmospheric applications. This demand for helium in space exploration and related activities continues to drive the market.
Challenges: Limited Supply of Helium
Limited helium supplies are anticipated to hinder the market during the forecast period. As helium becomes increasingly scarce, the imbalance between supply and demand is likely to drive prices higher. A significant price surge discourages small businesses or those operating on tight budgets from purchasing helium, leading to a decrease in overall market consumption. According to the US International Trade Commission, four notable global helium shortages have occurred in the past twenty years. Notably, the Saudi blockade of Qatar in June 2017 reduced global supplies by 30%, setting the stage for a third shortage that resulted in a 10% to 15% deficit. The situation deteriorated in the summer of 2019 when maintenance outages at ExxonMobil’s helium plant in Wyoming and another plant in Algeria temporarily expanded the deficit to around 40%.
Technological Advancements & Investments
Helium is a fundamental component of technological progress and is crucial in various fields, including healthcare and aerospace. The demand for helium is expected to increase, fueled by global trends in energy, digitalization, and space exploration. The helium market is on the brink of significant transformation. The growth of cloud computing and data centers is driving the need for helium in cooling applications. Furthermore, advancements in helium cooling technology are becoming prevalent, offering energy-efficient solutions. The semiconductor industry is continually evolving, with cutting-edge manufacturing processes necessitating precise environmental control. Helium is vital for creating the inert atmosphere required for semiconductor production, resulting in heightened demand as the industry expands.
Investment in chip manufacturing is creating significant prospects in the helium market, driven by growing demand for semiconductors and advances in manufacturing technology.
The Science and CHIPS Act invests USD 13 billion in semiconductor R&D, which will drive innovation for decades to come and help ensure that the US maintains its technological leadership. These factors are encouraging companies to expand their manufacturing capacity, which further boosts the demand for helium.
Recent Developments
Here are some notable recent developments in the helium market:
o?? In January 2023, Iwatani Corporation’s, wholly-owned subsidiary Iwatani Corporation of America, acquired Aspen Air US, LLC based in Montana, US. Aspen Air US, LLC is a manufacturer and distributor of bulk liquid industrial gases in the US. This acquisition marks the entry of Iwatani Corporation in the US industrial gas sector.
o?? In December 2022, AIR LIQUIDE signed an agreement to divest its business in Trinidad and Tobago to Massy Gas Products Holding Ltd. (MGPHL). Approximately 30 employees of this business are integrated within the latter during the divestiture.
o?? In July 2022, Linde plc announced a long-term agreement to supply high-purity industrial gases to PT Freeport Indonesia, a key mining company in Indonesia.
As we move forward, the global helium market is poised to benefit from continued technological advancements, a strong emphasis on sustainability, and strategic partnerships. The increasing investment in innovative solutions, particularly in sectors such as healthcare and aerospace, will further drive the market's growth, ensuring that helium remains integral to modern applications. While challenges such as limited supply and geopolitical factors persist, the industry's adaptability and commitment to research and development will play a crucial role in overcoming these obstacles.