by
Lauren Dubinsky, Senior Reporter | January 26, 2016
The amount of helium consumed from health care applications in 2015 was just over two billion square cubic feet — and a new report from Technavio suggests that number is going to inflate. The analysis forecasts growth at a compound annual growth rate (CAGR) of 7 percent through 2020.
Helium is predominately used in MR systems, nuclear MR systems and nuclear reactors as a coolant — and the business is predominately in the U.S. At exceedingly low temperatures, helium becomes a liquid and facilitates the superconductivity that MR imaging depends on.
In 2014, the MR market was worth $5 billion and, like the helium market, is anticipated to grow at a CAGR of 7 percent by 2020. The market for nuclear MR is expected to grow at an even higher CAGR, which the researchers credit to a greater demand from the health care, federal research and biotech sectors.
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“A continuous demand for superconductivity in the areas of medical research, transport, energy transmission, and storage is leading to a demand for MRI systems,” Ardhendu Ghosh, an industrial gas expert and Technavio analyst said in a statement.
The global helium market is dominated by just a few companies because of the very limited production of helium and the large price volatility and persistent shortages.
The U.S. is the largest producer and supplier of helium, followed by Qatar and Russia, which each have plans to increase helium production in the near future.
Russia aims to become the world's largest helium producer through its East Siberian Gas Program, which is planning on tapping the large gas reserves in Irkutsk and Yakutia.
From 2011 to 2013, the global helium market was in the midst of a severe shortage, but now it's into its second year of oversupply,
according to Gasworld Magazine, a trade publication dedicated to the industrial gas business.
However, research analysts at Technavio believe that the delayed development of natural gas fields and tensions in the Middle East will lead to supply concerns and price volatility. Because of that, they expect the demand may eventually exceed the supply.
