Sept 9 (Askume) – Global demand for helium is expected to nearly double by 2035, mainly due to growing demand from the semiconductor industry due to a lack of viable alternatives, according to a report by market research firm IDTechEx.
A report released in August said global demand for the gas, which is widely used in manufacturing, could exceed 322 million cubic metres by 2035 due to the gas’s cooling and inert properties.
Why is this important?
According to World Semiconductor Trade Data, the global semiconductor market is expected to grow by 13.1% by 2024 due to strong demand for artificial intelligence applications.
Helium is critical for thermal management in semiconductor production processes, and currently has no viable alternative.
The report said that because natural gas is a finite resource, total global reserves are likely to be rapidly depleted due to growing demand from industries such as artificial intelligence, quantum computing, telecommunications, aerospace and electric vehicles.
situation
The production of helium, the second-lightest element after hydrogen, is expected to increase as production in Qatar and Russia increases, the report said. However, there is no guarantee that supply will not be disrupted due to geopolitical tensions, the report said.
Air Products (APD.N) , Linde and Air Liquide (AIRP.PA) and privately held Zephyr Solutions are among the world’s largest helium producers.
From a numerical point of view
According to the report, global helium production averaged about 160 million cubic feet between 2019 and 2023.
The report says demand for natural gas from the semiconductor industry could increase fivefold.
Helium is produced in only a few countries, with the United States and Qatar being the leaders in this industry.
US sales of Class A helium and gaseous helium are expected to top 2.8 billion cubic feet by 2023, worth about $1.1 billion, according to data from the US Geological Survey.
