Many businesses and organizations rely on compressed helium to operate. In fact, so many, that the global demand for the gas is expected to nearly double over the next decade. Helium is a finite resource; meaning rising demands may cause a significant supply and demand imbalance that could impact the going market rates for this gas.  

In this article, we take a look at the projections, and what they might mean for organizations reliant on this resource.  

Where is helium used?  

If you’re not in the business of using helium, you may just think of balloons and squeaky voices. But the truth is, it’s a critical resource for many industries our society relies on to function. Its expansive list of uses includes: 

• Medical imaging, (e.g., MRIs) 
• Thermal management for batteries 
• Aerospace engineering 
• Chemical and pharmaceutical production  
• Semiconductor manufacturing 
• Fiber optics 
• Welding 
• Other scientific research and pursuits  

According to a report published in IDTechEx, helium’s “high thermal conductivity, chemical inertness, and cryogenic properties uniquely lend itself to its applications with limited or no available alternatives in some cases.” 

The market is rarely steady.  

For such an important resource, it doesn’t command a steady market. Production difficulties often lead to shortages and rising prices. With the global demand for helium skyrocketing from 176 million m3  in 2024 to an estimated 322 million m3 in 2035. In the same time period, the semiconductor market – reliant on helium – is predicted to grow by over 13%. These factors, plus a dwindling supply of the natural resource, means operations reliant on helium can expect costs to soar. 

So, what can you do? 

Given the lack of alternatives, there might not be a lot your business can do but eat the rising costs of helium. Right? Well, yes and no. True, you cannot control the market value of helium. But you can ensure that you’re not being overcharged by your supplier.  

It’s not uncommon for suppliers to hide markups in miscellaneous fees that appear on your invoices. Sometimes, all it takes is a simple call to your vendor to discuss and object to these fees. Likewise, if you’re seeing increases in your helium spending of more than ten percent a year – but no change in volume – it may be worth investigating if you’re paying fair market rates. Especially if you’re signed on to a contract.  

If you’re pressed for time or don’t know where to begin, consider working with a third-party consultant who understands the marketplace, but won’t make recommendations that benefit your vendor more than you.  

In conclusion… 

If projections about the demand for helium are correct, compared to production limitations, prices are going to climb. This might represent a significant added expense for your business, with no alternatives to turn to. However, there are steps you can take to protect your budget from markups and unfair rates.