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The helium market size is forecast to increase by USD 1.40 billion at a CAGR of 6.7% between 2023 and 2028. The market is experiencing significant growth, driven by the increasing demand for defense aircraft and government defense expenditure. This trend is fueled by the need for lightweight and efficient materials in aerospace applications. Furthermore, the scientific research sector's reliance on helium as a cooling agent for MRI machines and other applications is another key growth factor. In the space exploration industry, helium is essential for rocket engine testing and fuel. Additionally, helium's role in air-to-air missile guidance systems and surveillance aircraft further boosts market growth.
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Helium, an inert gas with the second-lowest boiling point, has gained significant attention due to its unique properties and widespread applications in various industries. This colorless, odorless, and non-toxic gas is primarily sourced from natural gas reservoirs and is increasingly becoming a valuable resource in the medical, scientific research, and industrial sectors. In the medical industry, helium plays a crucial role in Magnetic Resonance Imaging (MRI) machines. Helium is used to cool the superconducting magnets, which are essential for producing high-quality images during MRI examinations.
Further, beyond the medical industry, helium is also extensively used in the semiconductor industry for various applications, including cryogenic cooling and leak detection. In the aviation industry, helium is used in airships and as a lifting gas for hot air balloons. Helium's unique properties make it an essential component in rocket engine testing, surveillance aircraft, and air-to-air missile guidance systems. The scientific research community also relies heavily on helium for various applications, including cooling superconducting magnets in particle accelerators and cryogenic research. In the field of space exploration, helium is used as a coolant in cryogenic systems and as a propellant in rocket engines.
As the demand for helium continues to grow, it is crucial for industries and researchers to explore alternative sources and optimize their usage to ensure a sustainable and cost-effective supply.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The medical and healthcare segment is estimated to witness significant growth during the forecast period. The medical and healthcare sector holds a substantial share in The market due to its indispensable role in various applications. Notably, helium is a crucial component in Magnetic Resonance Imaging (MRI) machines, ensuring the superconductivity of magnets for producing clear and detailed images. In the healthcare domain, helium is indispensable in x-ray crystallography and numerous applications within the pharmaceutical, biotechnology, and healthcare industries. Moreover, helium gas plays a vital role in medical treatments for breathing disorders such as asthma and emphysema.
By acting as a vehicle for respiration, it facilitates oxygen flow into the alveoli of patients with severe respiratory obstruction. The aging population and the increasing prevalence of lifestyle diseases further fuel the demand for helium in the medical industry. In North America and Europe, countries like the US, Canada, the UK, and Germany are significant consumers of helium in the medical and healthcare sector. The medical market's growth is further driven by the expanding general aviation fleet, which utilizes helium for various purposes, including fuel for engines and cooling systems. Despite the challenges, the medical market is poised for steady growth in the forecast period.
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The medical and healthcare segment was valued at USD 1.20 billion in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The North American market is projected to lead globally by 2023, driven by the presence of significant market players and the increasing utilization of helium in various industries. The medical and healthcare sector is a significant contributor to this trend, with helium's essential role in MRI machines and breathing observation devices for diagnosing lung diseases and respiratory ailments. In the US, the demand for helium is substantial due to its application in aerospace, defense, and healthcare sectors. The aerospace and defense industry's growth, the rising demand for consumer electronics, and increased capital expenditure by healthcare device companies are the primary factors fueling the market's expansion.
Moreover, in the medical field, helium's role in MRI examinations and CT scanners is crucial, as it provides precision and enables clearer images for accurate diagnoses. Chronic and acute respiratory illnesses are common health concerns, leading to a higher demand for helium in respiratory equipment. Overall, the North American the market's growth is expected to continue at a strong pace due to these factors.
The ability of helium to maintain extremely low temperatures makes it an ideal choice for this application. MRI machines are used extensively in the diagnosis and treatment of various conditions, including breathing disorders such as asthma and emphysema, neurological diseases, and pulmonary treatments. The aging population and the rise in lifestyle diseases have led to an increased demand for advanced medical technology and treatments. Helium's role in MRI machines is vital in addressing this need, as these imaging techniques offer accurate and non-invasive diagnostic tools for healthcare professionals. Furthermore, health expenditure continues to rise, making it essential for medical institutions to invest in cost-effective and efficient technologies, such as MRI machines that utilize helium for cooling.
However, the market faces challenges, including the shortage of this noble gas due to its limited availability and increasing demand. The healthcare sector's growing need for helium in medical technology and electronics adds to the demand pressure. The aerospace and scientific research industries' heavy dependence on proper helium gas distribution and handling systems further complicates matters. Despite these challenges, the market's potential for innovation and technological advancements offers significant opportunities for stakeholders.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Growing demand for defense aircraft and government defense expenditure is the key driver of the market. The global defense industry is witnessing a significant expansion, with an increasing number of countries investing in their aircraft fleets. For instance, the United States Department of Defense operates approximately 450 F-35 aircraft and plans to expand this fleet to around 2,500 by the mid-2040s. This trend is driven by rising defense budgets, with the US defense budget for 2021 totaling USD800.67 billion, representing a 2.86% increase from the previous year. Europe's defense budget also saw a growth of over USD 200 billion in 2021, marking a 6% increase compared to 2020.
Semiconductor plants produce power electronics for various applications, including aircraft components. Helium, a natural resource, is a vital component in the production of these power electronics. Its unique properties make it an ideal choice for cooling and insulation in high-performance applications. Moreover, helium is extensively used in diagnostic imaging, such as Magnetic Resonance Imaging (MRI), due to its ability to maintain a stable magnetic field. In the context of space cooperation, helium is used in the production of inert gases for various applications, including the cooling of cryogenic systems.
In conclusion, the growing demand for defense aircraft and the expanding defense budgets are driving the need for advanced technologies and components, such as power electronics and diagnostic imaging systems. Helium, as a natural resource, plays a vital role in the production of these technologies, making it an essential element in the defense industry's growth.
Increasing M&A activities in the global helium market is the upcoming trend in the market. The market is experiencing substantial growth due to the increasing number of mergers and acquisitions (M&A) activities. These strategic moves enable well-established companies to gain access to innovative technologies and new product offerings from smaller players at a lower cost. Successfully executed M&A activities lead to an increase in market share for the acquiring companies. Notable M&A activities in the market include Air Products' acquisition of Air Liquide's industrial gases business in the UAE in April 2022. This acquisition expanded Air Products' regional presence in the UAE and Bahrain, strengthening their sourcing and reliability.
Further, the other significant applications of helium include nuclear power, quantum computing, quantum communication, consumer electronics, cooling systems, advanced gas-cooled reactors, lifting applications, and ion implantation. The low boiling point and buoyant nature of helium make it an essential gas in various industries. Cryogenic technology is used extensively to extract and store helium, making it a vital component in numerous applications.
Heavy dependence on proper helium gas distribution and handling systems is a key challenge affecting the market growth. Helium gas is an indispensable element in various sectors, including medical technology, scientific research, space exploration, national defense, and aerospace. Its unique properties make it a valuable resource for applications such as medical imaging, cryogenics, and cooling in electronics. However, ensuring the safe and high-quality distribution of helium gas is crucial to maintain its effectiveness. For industries like healthcare, stringent standards are necessary to guarantee the purity of helium gas. The gas must be transported in specialized trolleys or cylinders and returned to refilling sites for replenishment.
However, alternatively, pipelines, ships, and trucks can transport helium gas in bulk. Impurities, even in parts per million, can significantly impact the end-user's application. In scientific research, helium's role is evident in space exploration, where it is used as a coolant for cryogenic systems and as a lifting gas for balloons. In the aerospace industry, helium is utilized in rocket engine testing and air-to-air missile guidance systems. National defense applications include the use of helium in the production of advanced materials and in military equipment. The distribution of helium gas must be reliable and efficient to meet the demands of these industries. Ensuring the quality and safety of helium gas is essential to maintaining the integrity of the applications it serves, from medical technology to space exploration.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Air Liquide SA - The company offers helium which plays a critical role in a wide array of applications such as inerting, cooling and welding in electronics, laboratory research, fibre optics, and space sectors.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Helium, a noble gas with the second-lowest boiling point, plays a pivotal role in various industries, including medical, aerospace, electronics, and scientific research. In MRI machines, helium is used for magnet cooling, enabling precise imaging for the diagnosis of breathing disorders such as asthma and emphysema. The aging population and the rise in lifestyle diseases have fueled the growth of the healthcare sector, leading to increased demand for advanced diagnostic imaging technologies like MRI machines and CT scanners. Helium's unique properties make it an essential component in these devices.
Moreover, despite its widespread applications, the global helium supply is facing a shortage due to depleting natural gas reservoirs. As a result, efforts are being made to explore alternative sources and improve the efficiency of helium extraction processes. This shortage has led to increased prices, making it essential for industries to explore alternative solutions and optimize their helium usage. In conclusion, helium is a versatile and essential natural resource with a wide range of applications in various industries, including medical technology, scientific research, and industrial applications. Its unique properties make it an indispensable component in advanced technologies, such as MRI machines and cryogenic systems.
Moreover, the aerospace industry uses helium as a lifting gas for balloons and airships, as a coolant for rocket engines, and in turbine-powered aircraft for cabin pressurization. Additionally, helium is employed in the semiconductor industry for cooling systems, precision instruments, and in the production of semiconductors, flat-panel displays, optical fibers, and other electronic components. In scientific research, helium is used in cryogenics for cooling and in the production of liquid helium and gas helium for deep-sea diving gas, breathing mixtures, and as a coolant in particle accelerators and cryogenic technology. Furthermore, helium is used in welding, leak detection, controlled atmosphere applications, and in the aerospace and defense industry for air-to-air missile guidance and rocket engine testing. The increasing demand for healthcare, electronics, aerospace, and scientific research drives the market, with significant growth expected in the coming years.
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Market Scope |
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Report Coverage |
Details |
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Page number |
163 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.7% |
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Market Growth 2024-2028 |
USD 1.40 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
6.23 |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
North America at 39% |
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Key countries |
US, Canada, China, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Air Liquide SA, Air Products and Chemicals Inc., Air Water Inc., Axcel Gases, Elme Messer L, Exxon Mobil Corp., Gazprom International Ltd., Gulf Cryo Holding CSC, HALO GAS, Iwatani Corp., Linde Plc, Messer SE and Co. KGaA, Mitsubishi Chemical Group Corp., NEXAIR, Polski Koncern Naftowy ORLEN SA, QatarEnergy, RealGaz, RENERGEN, and Weil Group |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market forecast report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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