Helium demand to double by 2035, tracking chip production boom, report says
Sept 9 (Reuters) -The global demand for helium is likely to nearly double by 2035, backed mostly by a rise in demand from the semiconductor industry due to the lack of viable alternatives, according to a report by market research firm IDTechEx.
Global demand could exceed 322 million cubic meters by 2035 for the gas used widely in manufacturing due to its cooling and inert properties, said the report, released in August.
WHY IT'S IMPORTANT
The global semiconductor market is expected to grow by 13.1% in 2024, according to World Semiconductor Trade Statistics, amid a strong demand from artificial intelligence applications.
Helium is essential for heat management during semiconductor production and it has no viable alternatives currently.
As the gas is a finite resource, the total global reserves could run out at a much faster rate due to rising demand from industries such as AI, quantum computing, telecoms, aerospace and electric vehicles, according to the report.
CONTEXT
Production of helium, the second lightest element after hydrogen, is expected to rise with Qatar and Russia ramping up their output, the report said. However, there was no guarantee of a disruption-free supply due to geopolitical tensions, the report added.
Air Products APD.N, Linde LIN.O and Air Liquide AIRP.PA and the privately-held Zephyr Solutions are some of the biggest helium-producing companies in the world.
BY THE NUMBERS
Global helium production averaged about 160 million cubic feet between 2019 to 2023, according to the report.
Demand for the gas is likely to rise five-fold in the semiconductor industry, the report said.
Helium is only produced in a handful of countries, with the U.S. and Qatar among the leading players in the industry.
In 2023, the estimated U.S. sales of grade-a helium and gaseous helium was an estimated 2.8 billion cubic feet valued at about $1.1 billion, according to the U.S. geological survey data.
Reporting by Sourasis Bose in Bengaluru; Editing by Janane Venkatraman
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
