|Study Period:||2016 - 2026|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
Need a report that reflects how COVID-19 has impacted this market and its growth?
The helium market size was estimated to be 6,688 million cubic feet in 2020, and the market is projected to register a CAGR of around 4% during the forecast period (2021-2026).
However, due to the COVID-19 outbreak, the aerospace industry took a severe blow, which resulted in the contraction of the aerospace industry in recent times, which negatively affected the growth prospects of helium in aerospace applications. Moreover, aircraft manufacturing companies have also been witnessing a decline in the number of orders compared to previous years, with many aviation companies cutting down on their previous orders. For instance, in July 2020, Avolon canceled its additional 27 Boeing 737 MAX planes order after it already canceled about 75 of the jet orders in April, with the COVID-19 pandemic affecting its operations. Such trends may impact the new orders during the short and medium term as a result of changes in aviation companies’ investment plans. Similarly, the slowing down of R&D activities due to the economic slowdown and lockdowns due to the COVID 19 outbreak has negatively impacted the growth of the electronics and semiconductor industry in the short term, and thereby, the global helium market has been affected adversely.
- In the medium term, increasing consumption of helium in the electronics and semiconductor industry and the growing usage in the healthcare industry are likely to stimulate the market demand. There is a high demand for modern electronic products due to the rapid pace of innovation, the advancement of technology, and R&D activities in the electronics industry. The growth in the number of manufacturing plants and development centers focusing on high-end products is expected to drive the market studied.
- However, on the flip side, the high cost of the extraction process and the stringent government regulations concerning helium use are likely to hinder the growth of the market studied.
- Gas-phase helium dominated the market, and it is also projected to register the highest CAGR during the forecast period.
- The development of efficient storage and transport methods for gases is anticipated to provide numerous opportunities over the forecast period.
- North America dominated the market with the largest consumption, followed by Asia-Pacific and Europe. However, Asia-Pacific is likely to register the highest CAGR through the forecast period.
Scope of the Report
Helium is the second-most abundant element in the universe. Approximately 24% of the galaxy’s elemental mass consists of helium. It is mostly trapped in subterranean natural gas bunkers and is commercially extracted through a method known as fractional distillation. After attaining the required purity, helium is distributed, either in a gas form at normal temperature or in liquid form at a very low temperature. Helium in bulk quantities is usually shipped in unvented, pressurized containers pulled by trucks and tractors for small-scale customers. Whereas, for large-scale customers, helium is transported through pipelines from the closely located processing plants. The helium market is segmented by phase, application, end-user industry, and geography. By phase, the market is segmented into liquid and gas. By application, the market is segmented into breathing mixes, cryogenics, leak detection, pressurizing and purging, welding, controlled atmosphere, and other applications. By end-user industry, the market is segmented into aerospace and aircraft, electronics and semiconductors, nuclear power, healthcare, welding and metal fabrication, and other end-user industries. The report also covers the market size of and forecasts for the helium market in 14 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (million cubic feet).
|Pressurizing and Purging|
|Aerospace and Aircraft|
|Electronics and Semiconductors|
|Welding and Metal Fabrication|
|Other End-user Industries|
Key Market Trends
Healthcare Sector to Dominate the Market
- Helium has a wide range of uses in the healthcare industry. It can reach a temperature of -269° C, making liquid helium the best option for cooling the magnets of MRI machines. Helium is also being used for breathing observation. It is an essential component in treating emphysema, asthma, and other conditions that affect breathing.
- The gas is usually used to treat lung diseases. Oxygen and helium are used together for the treatment of acute and chronic forms of respiratory ailments, as the combination reaches the lungs faster than all the others. There is no substitute for helium in cryogenic helium applications.
- The demand for helium in the healthcare sector is increasing, owing to the rising demand for MRI scans. MRI has also seen growing applications in cancer screening and neurology.
- Geographically, helium finds the largest amount of use in the North American healthcare sector. The United States and Canada spend a major share of their GDP on healthcare. The Medicaid enrollment rate in the United States increased in 2019, owing to the Affordable Care Act and the implementation of continuous Medicaid expansion. Furthermore, the COVID-19 outbreak is expected to contribute to the projected increase in healthcare spending, increasing the demand for the helium market in the forthcoming years.
- Similarly, healthcare has become one of the largest sectors in India due to its strengthening coverage, services, and increasing expenditure by public and private players. Liberalization of government policies has also enabled 100% FDI in the medical devices market, and thus, a number of multi-national companies are looking forward to establishing their manufacturing bases in the country.
- Such factors are likely to increase the demand for helium over the forecast period.
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North America Region to Dominate the Market
- North America accounted for the largest share of the market, with the United States alone consuming a share of 30% of the global market.
- The US electronics market is the largest market in the world in terms of size. Furthermore, it is expected to remain the leading market over the forecast period due to the application of advanced technology, an increase in the number of R&D centers, and increasing demand from the consumers.
- There is a significant increase in the number of manufacturing plants and development centers in the United States, primarily due to the focus on developing high-end products. This is expected to boost the demand for helium over the forecast period.
- Moreover, the United States has the largest aerospace industry in the world. According to the Federal Aviation Administration (FAA), the total active general aviation fleet is expected to have a small decline of 0.9% from 212,335 in 2019 to 210,380 aircraft by 2040, owing to unfavorable pilot demographics, availability of much lower-cost alternatives for recreational usage, and overall increasing cost of aircraft ownership. However, the more expensive and sophisticated turbine-powered fleet (including rotorcraft) is likely to increase by 14,640 aircraft, witnessing a growth rate of 1.8% per year, and the turbojet fleet is expected to witness a growth of 2.3% per year between 2019 and 2040. This is likely to increase the usage of helium in the country.
- Additionally, MRI diagnostics is a growing field, both in terms of the number of installed scanners and the number of scans being performed. Based on data by OECD, the United States is one of the leaders in MRI, second only to Japan, both in terms of availability and utilization.
- The Canadian consumer electronics industry experienced growth and grabbed new opportunities in the key product category, as Canadians are valuing new product innovations. With this, the demand for and production of semiconductors are also expected to increase in the country. The revenue of the home appliances market was valued at about USD 1.3 billion in 2018, and it is expected to reach approximately USD 2 billion by 2022. This exciting scenario is quite instrumental in fueling the market demand for helium in electronic applications of the country. The key factor driving the growth of this industry is the improved network connectivity in the country.
- Such aforementioned factors are expected to increase the demand for helium during the forecast period.
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The helium market is highly consolidated, with the top five players accounting for over 75% of the total market. The major players in the market include Air Liquide, Linde PLC, Matheson Tri-Gas Inc., Iwatani Corporation, and Messer Group, among others.
- In June 2019, Renergen raised about AUD 10 million for the Virginia Gas Project. It will fund a feasibility study for the commercialization of the high concentration helium reserves contained in the Virginia Gas project’s prospective sandstone deposit.
- In Mar 2019, Messer acquired the majority of Linde AG’s gas business in North America and Linde and Praxair's business activities in South America.
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1.1 Growing Consumption in the Electronics and Semiconductor Industry
4.1.2 Increasing Use in the Healthcare Industry
4.2.1 Expensive Extraction Process
4.2.2 Stringent Government Regulations Concerning Helium Use
4.2.3 Unfavorable Conditions Arising Due to the Impact of COVID-19
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. MARKET SEGMENTATION (Market Size by Volume)
5.2.1 Breathing Mixes
5.2.3 Leak Detection
5.2.4 Pressurizing and Purging
5.2.6 Controlled Atmosphere
5.2.7 Other Applications
5.3 End-user Industry
5.3.1 Aerospace and Aircraft
5.3.2 Electronics and Semiconductors
5.3.3 Nuclear Power
5.3.5 Welding and Metal Fabrication
5.3.6 Other End-user Industries
5.4.1 Production Analysis
184.108.40.206 United States
220.127.116.11 Other Countries
5.4.2 Consumption Analysis
18.104.22.168.4 South Korea
22.214.171.124.5 Australia & New Zealand
126.96.36.199.6 Rest of Asia-Pacific
188.8.131.52 North America
184.108.40.206.1 United States
220.127.116.11.4 United Kingdom
18.104.22.168.6 Rest of Europe
22.214.171.124 Rest of the World
126.96.36.199.1 South America
188.8.131.52.2 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share (%)**/Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 Air Liquide
6.4.2 Air Products and Chemicals Inc.
6.4.3 Exxon Mobil Corporation
6.4.5 Gulf Cryo
6.4.6 Iwatani Corporation
6.4.7 Linde PLC
6.4.8 Matheson Tri-Gas Inc.
6.4.9 Messer Group GmbH
6.4.10 NexAir LLC
6.4.11 PGNIG SA
6.4.12 Qatargas Operating Company Limited
6.4.14 Weil Group
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Development of Efficient Storage and Transport Methods for Gases
7.2 Huge Reserve of Natural Gas Found in Tanzania
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Frequently Asked Questions
What is the study period of this market?
The Helium Market market is studied from 2016 - 2026.
What is the growth rate of Helium Market?
The Helium Market is growing at a CAGR of <4% over the next 5 years.
Which region has highest growth rate in Helium Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Helium Market?
North America holds highest share in 2020.
Who are the key players in Helium Market?
Air Liquide, Linde Plc, Matheson Tri-Gas Inc., Air Products and Chemicals Inc., Iwatani Corporation are the major companies operating in Helium Market.