Helium Market to Touch Valuation of $6.59 Billion By 2028 | Price Volatility and Shortage to Remain a Key Challenges | SkyQuest Technology
Global helium market was valued at USD 4.67 billion in 2021, and it is expected to reach a value of USD 6.59 billion by 2028, at a CAGR of more than 5% over the forecast period (2022–2028).
Westford, USA, Nov. 18, 2022 (GLOBE NEWSWIRE) — Helium is one of the rarest elements on earth. The demand for helium has prompted helium production companies to explore new sources of helium, including extracting helium from gas fields. Helium production companies are also looking into a new way to produce helium: by using nuclear fusion. If this method can be perfected, it could revolutionize the industry and create a lot more jobs.
Helium has traditionally been utilized by researchers and scientists as a safe, inert gas that does not react with other elements in the global helium market. However, there is growing demand for helium for use in industrial applications such as welding, cutting and processing metals, and printing. The main use of helium today is in the manufacturing of balloons. A balloon is filled with air and helium, and when the balloon is inflated, the pressure from the helium holds the air inside. This process is used to create a wide variety of products including birthday balloons, raffles prizes and Decoration Day decorations.
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What Drives the Demand for Helium Market?
The demand for helium has increased due to new technologies that are requiring more efficient ways of manufacturing products. For example, 3D printing uses materials that can be difficult to produce using traditional methods such as casting or forging. In order to print with thermoplastic polyurethane (TPU) material, manufacturers need an energy-dense material like nitrogen gas which is not feasible using standard balloon inflation techniques. By utilizing helium in conjunction with TPUs, manufacturers in the global helium market are able to print high-quality products without having to sacrifice weight or fabric strength.
The demand for helium has rapidly grown because its unique properties make it an essential player in various industries. Helium is used to isolate noble gases such as argon and neon, making them more accessible for use in technology and pharmaceuticals. Additionally, helium has a number of medical applications, including methods of inhalation that help patients with difficult breathing conditions breathe more easily.
As the world increasingly relies on helium for these reasons and more, production will continue to increase. Consequently, supplies of this valuable resource may become constrained over time. The competition to secure adequate supplies will only exacerbate this situation due to the increasing cost of helium.
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Price Volatility and Shortage to Remain a Key Challenges for Helium Market
Global helium market is currently witnessing increased demand as new applications are developed for the gas. This increased demand will continue to support prices and growth through 2028. By then, the market is estimated to reach $6.59 billion. One of the main drivers behind this demand is the growing medical and industrial sectors, which are both interested in using helium as a fuel because of its high energy content and negligible environmental impact. These groups will continue to be key drivers of the market through 2028.
However, some challenges are expected in the near future, including price volatility and shortage issues related to helium production. The perceived scarcity has led some companies to explore alternative sources for helium, such as fracking gas, but this could have unintended consequences that would drive up costs further. While these challenges will affect the industry over the next few years, they should not have a significant negative impact on overall growth.
The helium market faces several challenges as prices for the gas continue to fluctuate, with shortages predicted in the coming years. A decade-long price slump has left inventories depleted, and producers are still trying to find an equilibrium price for helium that will cover production costs without driving up supplies. In 2021, the average helium spot price was $64,900 MT, down from a high of $66,200 MT in 2016. Historical volatility in prices makes long-term planning difficult and weakens business cases for new projects. The problem is exacerbated by technological advancements that allow producers to produce more helium using less gas. This trend in the global helium market is expected to continue as emerging technologies like liquefied natural gas (LNG) exploit lower carbon dioxide prices and push down costs for manufacturing and storing helium, thereby displacing it from markets used traditionally for the resource.
Despite these challenges, some companies are optimistic about Helium’s future. A consortium of investors led by BBVA Capital Partners recently announced plans to build Europe’s largest production facility capable of producing 2 million metric tons annually of liquefied natural gas (LNG)-grade helium starting in 2020.
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Potential Opportunities for Helium Market in Energy Sector
Helium is a relatively new resource and its use is increasing as the world transitions to sustainable energy. Helium has many potential uses, including as a propellant in satellites, airbags, and industrial gas turbines. There is also growing interest in using helium for medical applications such as MRI machines and surgical tools. The helium industry is growing rapidly and there are many opportunities for businesses to get involved.
The telecommunications and technology industries are two other widely-accepted markets for the helium market. While it’s not as popular as oil or copper right now, demand is expected to surge in the coming years as we move closer to artificial intelligence and machine learning becoming mainstream. This means that companies such as Amazon and Google will be heavily reliant on Helium 3 to power their products and services.
The current medical helium market usage is $850 million per year. GIA predicts that this market will reach $1.7 billion by 2025. The production of helium needs large amounts of natural gas and oil, which has led to concerns about its environmental impact. There is some research underway into finding alternative sources of energy that would not have these drawbacks, but for now it looks like helium production will continue to rely on fossil fuels.
Top Players in Global Helium Market
- Linde Plc. (Ireland)
- Axcel Gases (India)
- Taiyo Nippon Sanso Corporation (Japan)
- Air Products and Chemicals, Inc. (US)
- Messer Group (Germany)
- Weil Group (US)
- Iwatani Corporation (India)
- Matheson Tri-Gas Inc. (US)
- The Southern Gas Limited (India)
- Ellenbarrie Industrial Gases (India)
- US Gas (US)
- Air Liquide (France)
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