Helium Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Helium Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The helium market size was estimated to be more than 6,500 million cubic feet in 2021, and the market is projected to register a CAGR of around 4% during the forecast period (2022-2027).

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.

Key Highlights

• 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 drive the market demand.
• 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.

Key Market TrendsHealthcare 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.
• Geographically, helium finds the largest amount of use in the North American healthcare sector. United States spend a major share of their GDP on healthcare. Acccording to the National Health Expenditure Accounts (NHEA), United States healthcare spending grew 9.7 percent in 2020, reaching USD 4.1 trillion or USD 12,530 per person. The healthcare spending accounted for 19.7 percent of the nation's Gross Domestic Product (GDP).
• 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.

North America Region to Dominate the Market

• North America accounted for the largest share of the market, with United States alone consuming a share of 30% of the global market.
• According to ZVEI, the electronics market in United States stood at EUR 617 bilion in 2019 and is forecasted to increase at a rate of 9% in 2021 and 5% in 2022 after a marginal decrease of 1% in 2020.
• Furthermore, United States has the largest aerospace industry in the world. Acccorfing to Federal Aviation Administration (FAA), in United States, the commercial fleet is forecast to increase to 8,756 in 2041, an average annual growth rate of 2% per year. Additionally, the total general aviation fleet accounted for 204,980 aircrafts in 2020 and is expected to increase to 208,790 units by 2041. This is likely to increase the usage of market studued 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, United States is one of the leaders in MRI, second only to Japan, both in terms of availability and utilization.
• Such aforementioned factors are expected to increase the demand for helium during the forecast period.

Competitive Landscape

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 (not in any particular order) Air Liquide, Linde PLC, Matheson Tri-Gas Inc., Iwatani Corporation, and Messer Group, among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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