LONDON--(BUSINESS WIRE)--Technavio’s latest chemicals and materials industry report covers the present scenario and growth prospects of the global helium market for the period 2016-2020. To calculate the market size, the report considers the revenue generated through the sales of helium in various applications. Various distribution modes for the gas were considered while arriving at the market size.
In this report, Technavio’s industrial gases research experts announce their key market highlights for the global remote market. Their findings include:
Demand from MRI systems expected increase
Demand for MRI systems was estimated to be USD 5 billion in 2014 and is expected to grow at a CAGR of 7% by 2020. Helium is predominantly used in MRI (magnetic resonance imaging), NMR machines, and nuclear reactors as a coolant. MRI machines function by generating an intense magnetic field through a superconducting magnet and a series of current-carrying coils.
“Helium is used in MRI machines to cool the low-temperature superconducting materials and magnets to temperatures close to absolute zero, in order to achieve zero electrical resistance, which results in the creation of powerful magnetic fields,” said Technavio industrial gas expert analyst Ardhendu Ghosh. “A continuous demand for superconductivity in the areas of medical research, transport, energy transmission, and storage is leading to a demand for MRI systems,” Ardhendu added.
USA, Qatar, and Russia are the largest producers of helium
The global helium market is highly oligopolic in nature and is often characterized by very limited production of helium combined with huge price volatility and perennial shortages. This acts as the biggest factor for the global helium market having so few being big players.
The US Helium Conservation Act of 1925 has played a significant role in the US becoming the largest producer and supplier of helium. The US Federal Helium Reserve currently caters to approximately 25%-30% of the global helium demand. Qatar and especially Russia are the other two big players in the global market and both have plans to ramp up helium production in the near future.
Russia is looking to become the world's largest helium producer through its East Siberian Gas Program, intending to tap into the enormous gas reserves of Irkutsk and Yakutia. Despite the increased helium production efforts, Technavio research analysts believe delayed development of natural gas fields and tensions in the Middle East will pose supply concerns and lead to price volatility. This will ultimately lead to demand growing faster than production.
Helium market growing fastest in healthcare sector
The volume of helium consumed in healthcare applications was just over 2 billion scf (square cubic feet) in 2015 and is expected to grow at a CAGR of 7% through 2020. This growth is being fueled mostly by North America, a key manufacturing region for medical and scientific equipment, including NMR machines that consume significant amounts of noble gases. Sales of these NMR machines are expected to grow more than 7% year on year through 2020 due to a rising demand from the healthcare and federal research and biotech sectors.
Top vendors covered in this report:
- Air Liquide
- Messer Group
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- Global Neon Gas Market 2015-2019
- Global Noble Gas Market 2015-2019
- Global Hydrogen Peroxide Market 2015-2019
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Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
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