Helium Investments Gain Momentum as Supply Surge Meets Market Dynamics

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Written by Sharun Anthony for IIR News Intelligence (Sugar Land, Texas)

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Summary

The universe's second lightest element, helium, a non-flammable and noble gas, is witnessing an uptick in global demand fueled by industries like semiconductors, electronics, healthcare and aerospace.

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Helium Investments Gain Momentum

Mainly extracted as a by-product of natural gas from reserves concentrated in countries like the U.S., Russia and Algeria, helium's global supply chain remains fragile.

Geopolitical tensions and economic sanctions affecting natural gas trade or processing facilities (such as the EU ban on Russian helium or Middle East instability disrupting liquefied natural gas (LNG) flows and integrated gas processing plants) often trigger helium shipping disruptions. This tightens the supply chain and amplifies price volatility, even when overall helium production increases. Last year, the helium market began with a tight supply due to constrained output from major producers. However, conditions stabilized by mid-2025 with the introduction of fresh capacity from new entrants.

Prices also shifted consequently from dramatic surges (rising over 400% in mid-2025) to a period of relative stability. As per ChemAnalyst, helium prices showed a moderate uptick by the end of 2025. For instance, average contract helium prices in North America rose by 0.25% quarter over quarter (to US$96,440/ton) in fourth-quarter 2025. With supply covering demand and steady prices forecasted for 2026, the global helium market is likely to have entered what is described as a "rare period of abundance."

Helium's utilization in medical imaging (MRIs), advanced chip manufacturing, wafer processing and leak detection systems in the aerospace industry underpins its vital global consumption. Recent reports show semiconductors have surpassed MRI scanners to become the largest consumer of helium, now accounting for over one fifth of worldwide demand. This change is largely driven by the rising demand for AI-enabled chips (especially across Asia) and declining helium usage in MRIs (earlier requirements of about 1,500 liters per machine excluding periodic refills) due to efficiency gains. Furthermore, emerging next generation technologies such as quantum computing and data center cooling concepts that rely on helium's cryogenic and inert properties, are creating fresh demand pockets for helium.

Industrial Info's Global Market Intelligence (GMI) is tracking 37 active capital spending projects worth around US$6 billion that are geared toward helium extraction and processing.

Owning about 60% of the overall market, Russia leads the way with a total spend pipeline of more than US$3 billion. It is followed by China with an investment of over US$1 billion across 10 projects and the U.S. with US$318 million across 13 projects. Other countries with substantial investments include Tanzania, South Africa and Australia.

With a combined project investment of over US$4 billion, Gazprom PAO (Moscow, Russia), Shi'an Tianxia Investment Development Company Limited (Beijing, China) and Xinjiang Zhongting Hengtong Energy Company Limited are the top three players in the market. They collectively hold a 74% market share. A key project by Gazprom PAO is the 5th production train addition at the Amur Natural Gas and Helium Processing plant in Russia. The company is investing about US$2 billion in the project, which is anticipated to be completed by April. GMI subscribers can view the project report.

More than 61% of the projects are under construction while 26% are in the engineering stages. A majority of these projects are expected to reach completion between March this year and September 2027, while the rest are likely to be completed by December 2028.

Key Takeaways

• Global demand for helium is rising, fueled by industries like semiconductors, electronics, healthcare and aerospace.
• Semiconductors have surpassed MRI scanners to become the largest consumers of helium.
• Industrial Info's Global Market Intelligence (GMI) is tracking 37 active capital spending projects worth around US$6 billion that are geared toward helium extraction and processing.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).