The industrial high on Helium - IDTechEx forecasts the demand for Helium to double by 2035

Author: Dr Shababa Selim, Technology Analyst at IDTechEx

Helium is a finite resource that plays a critical role across several industries including medical imaging, thermal management systems for batteries, aerospace engineering, chemicals and pharmaceuticals, semiconductor manufacturing, fiber optics, particle physics, scientific balloons, and many more. Helium’s high thermal conductivity, chemical inertness, and cryogenic properties uniquely lend themselves to applications with limited or no available alternatives in some cases. Specifically in industries where there are no viable alternatives to helium, higher prices are likely to push companies to consider conservation strategies and invest in reclamation technologies. In spite of this, IDTechEx’s new report, “Helium Market 2025-2035: Applications, Alternatives, and Reclamation”, forecasts the demand for helium to nearly double by 2035.

Owing to helium’s key role in energy transition (e.g., electric vehicles and batteries), digital transformation (electronics, AI, telecoms, etc.), and space exploration, it is classified as a critical mineral by governmental bodies, e.g., the EU and Canada. Notwithstanding its importance, the lack of production diversification and geopolitical strains render the helium market susceptible to chronic supply shortages and price volatility.

Key production sources and applications of helium. Source: IDTechEx

Helium in the manufacturing industry

Helium is widely used in manufacturing processes due to its cooling and inert properties. It is essential for thermal management during semiconductor production and for fiber optics and is a crucial component for quality control processes such as the leak testing of parts, including HVAC equipment, fuel tanks, battery packs, and aerospace components. It is also key for welding processes in producing numerous parts, including electrical and automotive components. In particular, advancing semiconductor manufacturing processes towards smaller nodes (critical for AI, autonomous vehicles, etc.) will also increase the semiconductor industry’s reliance on helium, with no currently viable alternatives.

IDTechEx’s report critically examines how these industries are navigating chronic helium supply challenges. Through interviews with key players, e.g., manufacturers of reclamation technologies such as Telstar and Nextrom, the report highlights trends and market activity in helium conservation (e.g., investing in reclamation technologies) and adoption of helium substitutes where possible.

Helium as a cryogen

With a normal boiling point of 4.2K, helium is the only liquid reaching temperatures close to absolute zero (0K). Therefore, it is critical for superconducting devices such as MRI and NMR machines in medical and chemical industries, particle accelerators such as the Large Hadron Collider, and some nuclear fusion reactors. For quantum computing, several qubit modalities require cooling between 10mK and 4K in some aspects of the initialization, manipulation, and readout chain. To access mK (1mK = 0.001K) temperatures, the use of helium within cryostats is currently essential.

In recent decades, MRI scanners have been the leading application of helium by end-use. However, improvements in hardware (e.g., sealed-for-life designs), software (e.g., AI, deep learning), and material developments (e.g., metamaterials, high-temperature superconductors) are heralding a success story in reducing helium requirements. IDTechEx’s “Helium Market 2025-2035: Applications, Alternatives, and Reclamation” report critically analyses the technological advances driving emerging trends in helium demand for MRI, NMR, quantum computing, and more.

Helium in the aerospace industry

Helium plays a significant role in many aspects of the aerospace industry. It is used as an inert gas to purge hydrogen systems, pressurize ground and flight fluid systems, leak-test components, and acts as a shielding gas during precision welding. It is also used as a cryogen to cool components.

Over the last five years, the frequency of orbital launches has surged, with commercial entities becoming increasingly pivotal to the industry's expansion. This growth underscores the critical role of helium, further cementing its status as an indispensable resource within the sector. IDTechEx’s report provides a 10-year forecast detailing the anticipated demand for helium within the aerospace sector.

Trends in helium production

Although helium production capacity is expected to increase if Qatar and Russia ramp up production, this does not necessarily guarantee a disruption-free helium supply moving forward, considering geopolitical tensions in regions where helium is largely produced.

A growing number of small independent players are exploring primary/green helium from geological reserves where it is present in non-hydrocarbon gases.  Nonetheless, elucidating the prospects for production capacity in the medium and long term requires extensive data and validation. These projects are leveraging low-capex separation systems, e.g., membrane and PSA technologies, to upgrade and purify helium at well sites or local processing facilities. Informed by insights gleaned from providers of helium separation technologies, e.g., UGS and Generon, IDTechEx’s report comprehensively compares the merits and challenges of helium separation and purification technologies.

Forecast of growth for helium demand. Source: IDTechEx

IDTechEx’s outlook

Historically, helium pricing has been low, which has rendered it economically unfeasible to drive the innovations, explorations, and adoption of helium reclamation technologies. However, helium supply security is encumbered by geopolitical tensions and multifactorial contributions that affect the market. Specifically in industries where there are no viable alternatives to helium, higher prices are likely to push companies to consider conservation strategies and invest in reclamation technologies.

IDTechEx’s new report, “Helium Market 2025-2035: Applications, Alternatives, and Reclamation”, provides key market insights into the production and supply of helium, major applications, outlooks, and trends in how industries are adapting to cope with chronic supply challenges with helium conservation methods (e.g., reclamation technologies) or adopting substitutes where possible. Despite conservation strategies and substitutions, IDTechEx forecasts the demand for helium will nearly double from 2024 to 2035.

To find out more about this new IDTechEx report, including downloadable sample pages, please see www.IDTechEx.com/HeliumMarket.

For the full portfolio of advanced materials and critical minerals market research available from IDTechEx, please visit www.IDTechEx.com/Research/AM.

Upcoming free-to-attend webinar

How Chronic Supply Challenges Are Reshaping Helium Use in Key Industries 

Dr Shababa Selim, Technology Analyst at IDTechEx and author of this article, will be presenting a free-to-attend webinar on the topic on Tuesday 24th September 2024 - How Chronic Supply Challenges Are Reshaping Helium Use in Key Industries.

The webinar will provide:

• An overview of global helium production and supply

• Impact of supply challenges on different industries e.g. semiconductors and fiber optics manufacturing, cryogenics, and several others.

• Technological advances to reduce helium consumption (e.g. MRI and NMR)

• Trends in the adoption of substitutes or reclamation systems

• Outlook for global helium production capacity and demand

We will be holding exactly the same webinar three times in one day. Please click here to register for the session most convenient for you.

If you are unable to make the date, please register anyway to receive the links to the on-demand recording (available for a limited time) and webinar slides as soon as they are available.