Rare Gas Market Size, Share, Growth & Industry Trends [2031]

Report Description

The Global Rare Gas Market size was valued at USD 3.26 Billion in 2022 and is expected to surpass USD 5.06 Billion by 2031, expanding at a CAGR of 5% during the forecast period, 2023 – 2031. The growth of the market is attributed to rapid urbanization, increasing demand for consumer goods, and the growing need for electronics and automotive industries across the globe is expected to boost the rare gas market during the forecast period.

Rare gases, also known as noble gases or inert gases, are a group of six gases that make up a class of chemical elements possessing similar properties. Helium (He), argon (Ar), neon (Ne), krypton (Kr), radon (Rn), and xenon (Xe) are the six rare gases that are found in small amounts in the atmosphere. These gases are colorless, odorless, and with low chemical reactivity under standard conditions. They are called inert gases, as they are very unreactive.

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These gases were first discovered by the end of the nineteenth century. The discovery of helium is credited to Pierre Janssen in 1868. While observing a total solar eclipse from India, Janssen observed an unobserved line in the solar spectrum, which he named helium after the Greek word helios meaning sun. The rest of the gases were discovered by William Ramsay and Lord Rayleigh.

These noble gases or rare gases are placed in a vertical column on the extreme right of the periodic table. These gases are placed in a group together to reflect that these gases share similar properties. They are tasteless, colorless, and odorless. These gases exist as individual atoms. These lack chemical reactivity. The low reactivity of these gases depends upon the arrangement of electrons in atoms.

This factor makes rare gases very stable and unreactive. These gases are found in small quantities in minerals found on Earth. However, they are plenty in quantity in the atmosphere of Earth. Rare gases are mainly obtained from liquid air commercially. Helium is obtained commercially through natural gas wells.

Nobel gases or rare gases are used in several applications across several industries. Helium gas is used in balloon aircraft and blimps, due to its low density and reactivity. It is non-flammable, which makes it a popular choice for gas-filled aircraft. Helium has a low boiling point, which makes it suitable for research and development activities. Helium is used in many such applications. Neon gas is used for neon signs. Argon is used in bulbs to prolong product life, as it is non-reactive to hot metal strings. This gas is used in welding and other metallurgical applications as well.

COVID-19 and Ukraine-Russia war Impact

The COVID-19 pandemic situation impacted positively the global rare gas market. The use of rare gases increased in the healthcare sector, due to growing cases of hospitalization during the pandemic. Several patients suffered from lung damage due to the COVID-19 virus, which propelled the demand for respiratory support systems across the globe. This boosted the demand for rare gases in the healthcare sector.

Several companies are setting up additional rare gas manufacturing facilities to increase the production of rare gases to meet the wide demand for them. The demand for rare gas in other industries such as electronics, manufacturing, and others decreased during the pandemic situation, owing to the lockdown, social distancing policies, and other stringent pandemic restrictions. The lockdown, restrictions, and regulations halted the manufacturing process and shut down several manufacturing facilities across the globe. The disruption of the supply chain in several industries affected the global rare gas market negatively during the pandemic situation.

Ukraine is one of the top exporters of rare gases such as krypton, neon, and xenon around the world. Ukraine fulfills 70% of the world's neon demands and 40% of the krypton demands alone. Unfortunately, the war between Ukraine and Russia has adversely affected the supply chain of rare gases as two major Ukrainian air-separation firms, Ingas LLC and Cryoin Engineering Ltd. had to shut down their operations due to the ongoing Russian invasion.

Rare Gas Market Dynamics

The research report presents a complete market overview by providing detailed information about the current market trends, existing drivers, growth opportunities and potentials, and emerging challenges. The global rare gas market report has up-to-date insights about market dynamics and market scenarios that can shape the overall market performance and output during the forecast period, 2022 to 2030.

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Major Trends:

• The wide adoption of rare gases in the lighting industry is one of the key market trends

Rare gases like krypton are highly used in the commercial and residential lighting sector for gas discharge tubes in illuminated billboards, halogen bulbs, energy-saving bulbs, and others is expected to spur the sales of the rare gas market during the forecast period.

Key Drivers:

• Increasing adoption of rare gases for several applications in the healthcare sector boosts the global rare gas market growth

Rising demand for rare gases such as argon, helium, and other gases for numerous applications in the healthcare sector is expected to fuel the rare gas market growth during the forecast period. Rare gases are used for several applications such as anesthesia, drug nebulization, ventilators, colonoscopy, and others in the healthcare sector, which drives the demand for these gases.

• Continuous growth in the electrical sector drives the global rare gas market growth

The rapid growth of the electrical sector and the rising demand for semiconductors to generate a variety of goods are the major factors propelling the rare gas market expansion in the coming years. Helium is used as a carrier gas for chemicals that are used in the semiconductor manufacturing process, due to its non-reactivity. Krypton and Argon gases are used during the sputter deposition process. Increased usage of rare gases in the electrical sector is projected to drive the global market during the forecast period.

Existing Challenges:

• High cost of transportation and storage for rare gas hampers the market growth

Rare gases need special arrangements when storing and transporting them from one place to another. A given procedure needs to be followed to avoid any leaks while storing and transporting rare gases. The high cost associated with the storing process and transportation care of rare gases hinders the market growth.

Emerging Opportunities:

• Increasing government-backed investments and technological advancement offer significant opportunities for the market players

There are continuous research and development activities being carried out regarding rare gases and their applications in several industries. An increasing number of favorable government policies and investments in such research and development activities offer growth opportunities to market players across the globe. Continuous technological advancements and increasing adoption of rare gases in various industries propose opportunities to grow to market players.

Scope of Rare Gas Market Report

The report on the global rare gas market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Rare Gas Market Segment Insights

Helium segment to expand at a robust growth rate

Based on types, the global rare gas market is divided into Argon, Krypton, Neon, Xenon, Helium, and Others. The helium segment is expected to expand at a robust growth rate during the forecast period, owing to the increasing demand for helium in the medical and healthcare industry. The helium gas coupled with oxygen is used to treat various kinds of diseases, such as asthma, emphysema, and other respiratory diseases. This factor boosts the helium segment growth.

The argon segment is anticipated to hold a key share of the market in the coming years, due to its effective uses in various applications. For example, argon is used as a surgical instrument in the medical sector. The Argon Plasma Coagulation (APC) is a technique, which uses high-frequency stimulation of argon plasma to prevent bleeding which occurs through coagulation in surgical places. This is a key factor fueling the argon segment growth.

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Cylinder segment holds a key account share

Based on supply modes, the global rare gas market is segregated into cylinders, bulk & micro bulk, tanks, and on-site. The cylinder segment is projected to hold a key account share during the forecast period, owing to the increasing usage of cylinders to carry rare gases in them. Sales of cylinders used in containing rare gas are anticipated to increase by 5.4% CAGR in the coming years. For example, a growing number of manufacturers are packaging helium gas in cylinders for applications in the healthcare, electronics, and automotive sectors. These are the key factors boosting the cylinder segment growth.

The tank segment is anticipated to expand at a significant pace in the coming years, due to the capacity of tanks to transport large quantities of rare gas over long distances. Tanks are usually filled with compressed or liquified gas, which aids in avoiding any leaks and proper transportation. This factor facilitates the expansion of the tank segment.

The healthcare segment is projected to register a considerable CAGR

On the basis of applications, the global rare gas market is segregated into healthcare, manufacturing, electronics, laser, lighting, and others. The healthcare segment is projected to register a considerable CAGR during the forecast period, owing to the high use of rare gases in the medical field which aids to boost the sales of rare gas.

The lighting segment is anticipated to account for a major market share during the forecast period, due to the increasing usage of rare gases such as krypton in the lighting sector. The krypton gas extensively being used in the construction and infrastructure sector, owing to its effective insulation and energy efficiency. Advertising signs, lamps, bulbs, and others use rare gases in the production process. These factors spur the lighting segment growth.

The Asia Pacific expected to dominate the market

In terms of regions, the global rare gas market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market in Asia Pacific is expected to dominate the market during the forecast period, owing to increasing demand for rare gases in construction, aerospace, healthcare, and other industries in the region. In China, the rising investment in the development of nuclear fusion power plants is anticipated to fuel the rare gas market growth.

The gradually ongoing expansion in the lighting sectors and medical sectors in countries such as India, China, Japan, South Korea, and others is expected to boost the sales of argon gas and neon gas in Asia Pacific. These are the key factors driving the rare gas market in the region.

The market of North America is anticipated to expand at a rapid pace during the forecast period, due to the surging application of helium gas and argon gas in the medical and healthcare sector in the region. Low Consumer Price Index (CPI) in the US compared to other countries, continuous technological developments, and rapid urbanization in the region are the key factors driving the market in North America.

The market in Europe is estimated to register growth during the forecast period, owing to increasing research and development activities regarding rare gases in the region. Growing cases of cancer and the rising usage of MRI and NMR instruments that employ helium in cooling in the region fuel the rare gas market growth in Europe.

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