Global Helium Demand Outlook

Current demand: ~6.0 billion cubic feet (Bcf) per year

2030 forecast: ~8.5 Bcf/year → CAGR ~5.7%

China alone: Imports ~1.0 Bcf/year

Year-over-year global import growth: ~10%

Demand is rising fast — especially from high-tech sectors like semiconductors, space, MRI, and data storage.

Helium Supply Constraints

Primarily a by-product of natural gas extraction with low helium concentrations (0.04%–0.35%)

Inelastic supply: Can't simply scale up due to lack of primary helium production

Closure of the U.S. Federal Helium Reserve in 2019 worsened tightness

Four global shortages since 2006 = Highly unstable supply chain

Without new primary helium sources (non-hydrocarbon), the market remains vulnerable to future shocks.

Helium Pricing Dynamics

Bulk liquid helium market (2024): ~$2.8 billion

Price per thousand cubic feet (mcf):

2022 China import price: >$450/mcf

20-year price CAGR: ~8%

2006–2022: ~11% annual increase at source

Compared to natural gas: ~100x more expensive per unit

Helium behaves more like a high-tech critical input than a conventional commodity. Prices are decoupled from GDP.

Strategic Implications & Industry Takeaways

1. High-Tech Industries Are Driving the Market

Semiconductors, space launch, data centers, fiber optics, and welding fabrication are increasingly helium-intensive.

These sectors are less price sensitive, which supports inelastic demand even during supply crunches.

2. Need for New Primary Helium Projects

Exploration and development of high-grade, non-hydrocarbon helium reserves will be key to:

Lowering cost

Reducing carbon footprint

Enhancing supply chain security

3. Investment Opportunity

The helium market is becoming a strategic sector, akin to rare earth elements.

Opportunities exist in:

Primary helium exploration

Recycling and recovery tech

On-site helium purification systems