The helium market is expected to grow at a CAGR of 6.7% from 2024 to 2030. The market is predicted to grow significantly due to the rising demand for helium utilization in aerospace, healthcare, deep-sea exploration, automotive, and manufacturing industries. In 2023, North America accounted for the highest proportion of the industry share, with more than 36%. Helium's supercooling property has led to its use in medical equipment such as MRI and NMR machines, particle accelerators, and superconducting materials due to advances in cryogenic technologies. Helium is used in the semiconductor industry to test electrical components and cool circuit boards.
NASA is investing heavily in the R&D of helium to improve the efficiency of GPS-enabled vehicles. For instance, in September 2022, NASA awarded a contract of USD 149 million to Air Products and Chemicals, Linde, and Messer Group. The three leaders would provide helium of 1.4 million liters (liquid) and 87.7 million standard cubic feet of helium (gaseous) to different NASA facilities. It is being used in International Space Station programs.
In the noble gas market, helium dominated with 47% of the overall share in 2023. Technology-wise, it was found that in 2023, more than 80% of gas companies use advanced analytics and robotic process automation and leverage AI/ML technology in their processes. Suppliers actively engage in multiple mergers and acquisitions, capacity expansion, partnerships and collaborations, launch new products, develop new technologies, and invest heavily in R&D to gain competitive advantage.
Order your copy of the Helium Procurement Intelligence Report, 2024 - 2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis
A few examples are:
• In May 2023, it was announced that First Helium Inc. has signed a long-term supply contract with a significant international industrial gas company on a take-or-pay basis. According to the deal, First Helium would sell helium gas produced from its Worsley facility. The agreement is estimated to provide First Helium with a potential revenue stream of up to USD 100 million over the first five years of production, depending on the rate of growth in helium production at Worsley.
• In August 2022, Iwatani Corporation announced a new helium supply agreement with specialty gas company, Helious Specialty Gases (HSG). According to the agreement, Iwatani would provide liquid helium to HSG's transfill facilities in Rajasthan, Gujarat, and Telengana. The latter two of which would be operational post Q2 2022. These facilities can manage a million Nm3 of liquid helium annually, according to HSG.
• In January 2022, A long-term contract for the distribution of ultra-high quality carbon dioxide, helium, and hydrogen to one of the biggest semiconductor producers globally was announced by Air Liquide. To support this contract, Air Liquide aimed to spend up to USD 60 million on the development, ownership, and operation of onsite plants and systems at a new manufacturing facility in Phoenix, Arizona.
• In October 2021, The Bangkok Gas Centre was built from scratch by Iwatani Corporation and opened in November 2021. The Thailand center, which is the second helium base in Southeast Asia after the first station in Malaysia, was the basis for filling industrial gas, mostly helium. In addition to uses like MRI equipment cooling, industries such as semiconductor manufacturing will benefit from increasing the gas's production capacity.
Helium Sourcing Intelligence Highlights
• The global helium market features an oligopolistic landscape with the dominance of five major players. The top five players (Linde, Air Liquide, Air Products, Taiyo Nippon Sanso, and Iwatani) contribute around 80% of the market share.
• The competition is intense as big players such as Linde Plc, Air Products & Chemicals, and Air Liquide are extensively competing with each other to extend their global presence and product portfolio to cater to large global markets.
• The threat of substitutes is low as the alternatives for this category are limited. For instance, in some cases, argon, hydrogen, or nitrogen may be used in place of helium. However, nitrogen is a very poor substitute for helium despite having a low cost. Hydrogen on the other hand is a highly flammable commodity.
• The cost components associated with the production of helium are raw materials/feedstock, manufacturing process and equipment, electricity/energy, transportation/distribution, warehousing and storage, facilities and labor.
• The most preferred countries for sourcing helium are the U.S., Qatar, Algeria, Australia, and China.
List of Key Suppliers in the Helium Category
• Linde Plc
• Nippon Sanso Holdings Corporation
• Messer SE & Co. KGaA
• Air Products and Chemicals, Inc.
• Air Liquide S.A.
• Iwatani Corporation
• STRANDMOLLEN A/S
• Axcel Gases
• Gulf Cryo
• The Southern Gas Limited
• Ellenbarrie Industrial Gases Limited
• Qatargas Operating Company Limited
• Buzwair Industrial Gases Factories
• nexAir, LLC
• Exxon Mobil Corporation
Browse through Grand View Research’s collection of procurement intelligence studies:
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Helium Procurement Intelligence Report Scope
• Helium Category Growth Rate: CAGR of 6.7% from 2024 to 2030
• Pricing Growth Outlook: 15% - 20% (Annually)
• Pricing Models: Volume-based, contract-based pricing model
• Supplier Selection Scope: Cost and pricing, past engagements, productivity, geographical presence
• Supplier Selection Criteria: Application areas served, supply type, production capacity, purity level, type of helium provided, sources of helium, sub-helium brands, operational capabilities, quality measures, technology, certifications, data privacy regulations, and others
• Report Coverage: Revenue forecast, supplier ranking, supplier positioning matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model