GASEOUS AND LIQUID HELIUM MARKET ANALYSIS

The global gaseous and liquid helium market size was valued at US$ 7.05 billion in 2023 and is projected to reach US$ 29.87 billion by 2030 at a CAGR of 22.9% during the forecast period, 2023-2030. The growth of the market is attributed to the increasing demand for helium from various end-use industries such as healthcare, semiconductor and fiber optics, welding, and others.

Helium is a colorless, odorless, non-toxic, non-flammable, and non-corrosive gas. It is the second lightest element in the universe and the lightest element on Earth. Helium is extracted from natural gas wells and is a byproduct of the oil and gas industry.

Helium has a wide range of applications in various industries. In the healthcare industry, helium is used in Magnetic resonance imaging (MRI) machines, cryotherapy, and balloons for medical procedures. In the semiconductor and fiber optics industry, helium is used in the manufacturing of semiconductors and fiber optic cables. In the welding industry, helium is used to weld metals and plastics. Helium is also used in balloons, airships, and weather balloons.

Gaseous and Liquid Helium Market Regional Insights

• Asia Pacific is the largest market for gaseous and liquid helium, which accounted for 40% market share of the global market in 2022. The region is expected to continue to grow at a CAGR of 14% during the forecast period driven by the high growth of end user sectors like electronics and semiconductors, healthcare, and manufacturing, particularly in developing nations like China, Japan, and India.
• North America is the second largest market for gaseous and liquid helium, which accounted for 25% market share of the global market in 2022. The region is expected to grow at a CAGR of 12% during the forecast period, driven by the high adoption of advanced technology and the presence of large players in this region.
• Europe is the third largest market for gaseous and liquid helium, which accounted for 20% market share of the global market in 2022. The region is expected to grow at a CAGR of 10% during the forecast period, driven by the increasing demand for helium in the healthcare and aerospace industries.

Figure 1. Global Gaseous and Liquid Helium Market Share (%), by Region, 2023

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Gaseous and Liquid Helium Market Drivers:

• Industrial Applications: Helium is widely used in various industrial applications, such as cooling superconducting magnets in MRI machines, fiber optics production, semiconductor manufacturing, and welding. These industries are key drivers of the demand for helium.
• Healthcare Sector: The healthcare industry, particularly the use of MRI machines, relies heavily on helium for its cryogenic cooling properties. The increasing prevalence of MRI diagnostics contributes to the demand for helium.
• Space Exploration: Helium is used in various aspects of space exploration including cooling equipment and propelling rockets. The growth of commercial space ventures and government space programs can impact the demand for helium.
• Research and Development: Helium is used in scientific research, particularly in fields such as cryogenics, nuclear research, and materials testing. As scientific research continues to advance, the demand for helium in these areas may increase.

Gaseous and Liquid Helium Market Opportunities

• Advanced Medical Imaging: With the continuous advancement of medical imaging technologies, such as higher-field MRI machines and more sophisticated PET scanners, the demand for helium as a cooling agent for cryogenic systems in these machines could increase. As healthcare facilities aim to provide more accurate and detailed imaging, the need for advanced equipment could drive the helium demand.
• Emerging Electronics and Semiconductors: The electronics industry constantly seeks innovative ways to create faster, smaller, and more powerful devices. Helium's role in cooling during semiconductor manufacturing makes it essential for these processes. As the demand for high-performance electronics grows, so does the opportunity for helium usage in this sector.
• Space Exploration and Research: The space industry continues to expand with both government and private companies investing in space exploration and research. Helium's applications in cooling and propulsion systems for spacecraft and satellite systems offer opportunities for growth in the gaseous and liquid helium market as space missions become more frequent and ambitious.
• Energy Research and Nuclear Fusion: Research into nuclear fusion as a potential clean and nearly limitless energy source requires sophisticated cooling systems, for which helium is crucial. As nuclear fusion research progresses, the demand for helium in this field could increase, presenting a unique opportunity for helium suppliers.

Gaseous and Liquid Helium Market Trends

• Supply and Demand Balance: Helium is a limited natural resource, and maintaining a balance between supply and demand has been a significant trend. The market has experienced periods of supply shortages and imbalances, leading to fluctuations in helium prices. Managing this balance is crucial to ensuring a stable market.
• Focus on Recycling: Due to the scarcity of helium, there has been an increased emphasis on recycling and reusing helium gas. Research and development efforts have been directed toward improving helium recapture and recycling technologies to reduce reliance on new extraction.
• Exploration of New Sources: Exploration and the development of new helium sources have been ongoing to diversify the supply chain and address potential shortages. This includes identifying and extracting helium from previously untapped natural gas fields.
• Sustainable Practices: As environmental concerns continue to grow, there has been a trend toward adopting more sustainable practices in helium extraction, distribution, and usage. Companies are being encouraged to minimize waste, improve efficiency, and consider the long-term environmental impact of their operations.

Gaseous and Liquid Helium Market Restraints

• Limited Supply: Helium is a finite resource, primarily extracted from natural gas fields. The availability of helium is limited, and its extraction is often a byproduct of natural gas production. This limited supply can lead to supply shortages and contribute to market volatility.
• Geographic Concentration of Production: The majority of the world's helium production comes from a small number of key sources. This geographic concentration can make the market susceptible to disruptions caused by geopolitical factors, regulatory changes, or production issues in these specific regions.
• Infrastructure Challenges: Helium is often produced in remote areas, and the infrastructure required to transport and distribute it can be complex and costly to develop. Limited transportation options and infrastructure constraints can impact the efficient distribution of helium.
• Price Volatility: The supply-demand balance for helium can be sensitive to market dynamics, leading to price volatility. Sudden shifts in supply, demand, or external factors can cause significant price fluctuations, making it challenging for industries that rely heavily on helium for their operations.

Analyst’s Views

The gaseous and liquid helium market is expected to experience steady growth in the coming years driven by the increased demand from the aerospace and defense industries. Helium finds widespread application in cryogenic applications and as a lifting gas in airships and balloons. Its unique properties make it irreplaceable for various applications. Meanwhile, constraints in helium supply may act as a restraint to the market's growth trajectory.

The Asia Pacific region, especially China, is projected to be the fastest growing market for helium owing to exponential growth in the manufacturing sector. Countries like India are also expanding their semiconductor and electronics industries rapidly, offering opportunities for helium suppliers. North America, dominated by the U.S., which currently leads the global helium demand mainly due to its extensive healthcare and aeronautics sectors. Europe is another major consumer market, though its growth may be slightly slower than Asian countries.

On the demand side, increasing superconducting technology adoption in MRI machines and particle accelerators will boost helium consumption. Cloud computing and data center expansion is another avenue where helium-based cryogenic cooling finds application. On the supply side, new exploration projects and gas field production ramp ups could alleviate the tight helium supply situation and meet the growing commercial needs. Government initiatives are also underway in various markets to address helium reserve management on an urgent basis.

Recent Developments

New product launches

• Linde is a global multinational chemical company founded in Germany, announced the launch of its new High Purity Helium (HPHe) product line, which is designed for use in a variety of high-tech applications including semiconductor manufacturing, fiber optics, and cryogenics. The HPHe product line offers a purity of 99.999%, which is significantly higher than the purity of standard helium products.
• Air Liquide is a world leader in gases, technologies and services for Industry and health, launched its new Liquid Helium (LHe) delivery system, which is designed to improve the efficiency and safety of LHe deliveries. The new system uses a self-contained, cryogenically insulated container that can be transported without the need for external cooling. This makes it easier and safer to transport LHe to customers, and it also reduces the risk of leaks.
• Praxair is an American worldwide industrial gases company, announced the launch of its new Helium Leak Detector (HLD), which is designed to detect even the smallest helium leaks. The HLD uses a mass spectrometer to measure the concentration of helium in the air, and it can detect leaks as small as 0.1 parts per million. This makes it ideal for use in a variety of applications including semiconductor manufacturing, cryogenics, and aerospace.

Acquisition and partnerships

• In 2021, Gulf Cryogenics acquired Heliene for US$1.51 billion. This acquisition gave Gulf Cryogenics a significant presence in the gaseous and liquid helium market.
• In 2020, Messer Group acquired Air Products' helium business for US$1.13 billion. This acquisition gave Messer a major foothold in the gaseous and liquid helium market.

Figure 2. Global Gaseous and Liquid Helium Market Share (%), by Region, 2023

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Top Companies in the Gaseous and Liquid Helium Market

• Air Products and Chemicals, Inc.
• Linde plc
• Praxair, Inc. (now part of Linde)
• Air Liquide S.A.
• Gazprom
• RasGas (now part of Qatar Petroleum)
• ExxonMobil Corporation
• Matheson Tri-Gas, Inc.
• Iwatani Corporation
• Messer Group GmbH

Definition: The gaseous and liquid helium market refers to the global industry involving the extraction, production, distribution, and utilization of both gaseous and liquid forms of helium, a vital element used in various industries for its unique cryogenic and inert properties.