Helium Market Projected to Reach $5.6 Billion by 2025 Driven by Healthcare and Electronics Demand

• The helium market is poised for significant growth, driven by essential applications in semiconductor manufacturing, healthcare, aerospace, and scientific research, with demand projected to reach $7.47 billion by 2029 at a CAGR of 7.4% from 2024.
• Supply constraints, geopolitical tensions, and declining production in key regions like the United States are creating a tight helium market, leading to price volatility and concerns about securing long-term supply.
• Helix Exploration is capitalizing on the U.S. helium supply gap, acquiring processing infrastructure and proving reserves to target production by mid-2024, aiming to benefit from favorable pricing dynamics.
• Georgina Energy is systematically advancing their Australian helium and hydrogen projects, expanding resources, securing approvals, and pursuing farm-in agreements to build a diversified portfolio well-positioned for Asia's growing industrial gas demand.
• Pulsar Helium has established a world-class helium resource at its Topaz project in the U.S. with a 14.5% well concentration, and is aggressively delineating further resources while also pursuing a complementary pure-play helium opportunity in Greenland.

Helium possesses unique properties that make it indispensable across various industries. Its applications span from medical imaging and electronics manufacturing to aerospace and scientific research.

Market Dynamics

Demand Drivers

The surge in helium demand is primarily attributed to its essential role in several high-growth industries:

• Semiconductor Manufacturing: Helium's inert and cooling properties are vital in semiconductor fabrication. With the semiconductor market anticipated to grow by 13.1% in 2024^[2], driven by advancements in artificial intelligence and quantum computing, helium consumption is set to increase correspondingly.
• Healthcare Sector: In medical technology, helium is crucial for operating MRI machines and other diagnostic equipment. The expanding healthcare industry continues to drive demand for helium in medical applications.
• Aerospace and Research: Helium is used in rocket propulsion systems and as a cooling agent in various scientific research applications, underscoring its importance in these advanced fields.

Supply Constrait and Developments

Despite its abundance in the universe, helium is relatively scarce on Earth, primarily extracted as a by-product of natural gas processing. Geopolitical tensions and production challenges in key regions like the United States, Qatar, and Russia have led to supply constraints, contributing to price volatility.

Recognizing the strategic importance of helium, major corporations are making significant investments:

• Reliance Industries: In November 2024, Reliance's U.S. unit acquired a 21% stake in Wavetech Helium for $12 million, aligning with its strategy to expand its low-carbon energy segment.
• U.S. Energy Corp.: In July 2024, U.S. Energy Corp. announced a transformative acquisition targeting helium production, aiming to bolster its position in the energy sector by tapping into the growing demand for helium. ‍
• Lunar Helium-3 Mining: Japan, in collaboration with private companies, is exploring the extraction of Helium-3 from the Moon, a rare isotope with potential as a future energy source. This initiative underscores the strategic importance of helium in future energy solutions.

Market Projections

The helium market is poised for significant growth in the coming years, driven by increasing demand across various industries. In 2025, the market is projected to expand from $5.19 billion in 2024 to $5.62 billion, reflecting a compound annual growth rate (CAGR) of 8.3%.^[1]

This upward trajectory is expected to continue, with the market reaching approximately $7.47 billion by 2029, at a CAGR of 7.4%

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Key Considerations for Investors

Investment Considerations: Investors should be aware of potential supply chain disruptions due to geopolitical tensions and production challenges in key helium-producing regions. Diversifying investments across companies with robust supply chains can mitigate these risks.

Technological Advancements: Advancements in helium extraction and recycling technologies may impact the market. Investing in companies at the forefront of these innovations could offer competitive advantages.

Regulatory Environment: Environmental regulations and policies promoting sustainable practices may influence helium production and consumption. Staying informed about regulatory changes is crucial for making informed investment decisions.

Helix Exploration

Helix Exploration is making strategic moves to address the critical helium supply gap in the USA. With the USA's helium production in significant decline, Helix acquired a helium processing plant at a substantial discount and confirmed reserves with attractive 1.1% helium content at their Rudyard field.

Helix aims to begin production by mid-to-late 2025, well-timed to capitalize on the projected helium shortage. With current prices of $400-500/MCF and historical peaks of $1000/MCF, Helix appears well-positioned to benefit from favorable pricing dynamics by supply constraints and diversified demand. As a domestic producer, Helix supports the strategic objective of reducing foreign dependence.

Georgina Energy

Georgina Energy is advancing their flagship Hussar EP513 and Mt Winter EPA155 helium and hydrogen projects in Australia. Despite weather-related challenges, they are making steady progress on key milestones like environmental approvals, scoping studies, and joint operating agreements.

Georgina's parallel negotiations for farm-in agreements on additional high-potential targets demonstrates a proactive expansionary strategy to build a robust project pipeline. This diverse asset base could appeal to investors seeking exposure to the unfolding growth in helium demand across Asia, a major semiconductor and industrial gas market.

Pulsar Helium

Pulsar Helium stands out as a high-impact developer, with their Topaz project in the USA ranking among the highest-grade helium resources in North America following the 14.5% helium concentration achieved in the recent Jetstream #1 well. This world-class asset fits seamlessly into the narrative around looming supply shortages and the strategic importance of securing new helium sources.

Pulsar's first-mover position in Minnesota and the recent passage of helium-specific legislation in the state bode well for efficient project advancement. The upcoming program to deepen Jetstream #1, drill a step-out well to expand resources, and complete a PEA promises a rich news flow and potential value-unlocking catalysts. Pulsar's complementary position in Greenland adds a frontier dimension and exposes investors to one of the few primary helium plays in Europe. Overall, Pulsar's high-grade resources, aggressive development strategy, and exposure to constrained markets position it as a compelling investment proposition.

The Investment Thesis for Helium

• Diversified Demand: Helium's applications across multiple high-growth industries provide a diversified demand base, reducing dependency on a single sector.
• Supply Constraints: Limited natural reserves and extraction challenges create a supply-demand imbalance, potentially leading to favorable pricing dynamics for producers.
• Strategic Importance: Helium's critical role in advanced technologies and energy solutions underscores its strategic importance, attracting government and corporate investments.

References:

1. The Business Research Company (January 2025). Helium Global Market Report 2025
2. Reuters (September 2024). Helium Demand to Double by 2035, Tracking Chip Production Boom
3. Ramdon.com (August 2024). Current and Emerging Trends in the Helium Gas Market: A Comprehensive Analysis
4. PR Newswire (August 2023). Global Helium Gas Market to Witness Significant Growth, Valued at $2.45 Billion in 2022, Projected to Reach $3.42 Billion by 2030
5. Reuters (November 2024). Reliance's US Unit Buys $12 mln Stake in Helium Explorer Wavetech Helium
6. Future Market Insights (May 2024). Helium Gas Market Outlook from 2024 to 2034