Rare Gas Market Trends

Growth Drivers

• Advances in additive manufacturing: The advances in additive manufacturing or 3D printing are a significant growth driver. Rare gases such as argon and nitrogen are used as shielding gases in the 3D printing of metal parts, preventing oxidation and ensuring the production of high-quality metal components. For instance, in October 2024, TriMech announced a partnership with One Click Metal to bring user-friendly metal 3D printing to cater to businesses in North America and the Bold series uses the inert gas supply of nitrogen or argon.
  
  The increasing adoption of 3D printing in various industries such as healthcare, and automation is boosting the demand for rare gases. For instance, in May 2024, BMW Group announced the expansion in the use of 3D-printed, customized robot grippers. Additionally, rare gas suppliers are poised to benefit due to long-term opportunities in the 3D printing industry.
• Rising adoption of advanced imaging in healthcare: The surge of advanced imaging in the healthcare sector fuels demands for rare gases such as xenon and helium. The application of xenon in anesthesia and helium as a cryogenic cooling agent in MRI is positioned to create a steady demand for suppliers. The surging demand for liquid helium has pushed producers to increase production benefiting the global rare gas market. For instance, in August 2024, Renergen announced the start of commercial production of liquid helium at its production plant in South Africa.
  
  The healthcare sector’s reliance on neuroimaging and MRI is growing, and the surge is correlated with an increase in demand for rare gases. As the diagnostic imaging sector in healthcare experiences a profit surge, the requirement for high-purity rare gases will increase.
• Expansion of semiconductor and electronics manufacturing: The surge in the growth of semiconductors and electronics manufacturing benefits the global rare gas market by creating a sustained demand. Rare gases such as neon and argon are vital in lithography systems and etching. The global trends indicate semiconductor nodes to have become smaller and more precise, boosting demands for pure-rare gases. Additionally, surging demands for the use of neon gas in excimer laser for photolithography to create microchip patterns create a stable demand for rare gases. For instance, in December 2023, EFC Gases and Advanced Materials launched a neon gas recycling system qualified by Cymer for use with its excimer lasers.

Challenges

• High costs of production and extraction: The separation of rare gases is an energy-intensive and specialized process. This can lead to high costs in production. An increase in capital and operation costs in production can increase prices. Higher costs can also make it difficult for industries to build an affordable supply chain. Environmental concerns about greenhouse gas emissions during the extraction and purification of rare gases can affect the market’s growth. Rare gas producers can face stringent environmental regulations to comply with emission standards, which can drive operations costs.
• Geopolitical tensions leading to supply chain vulnerabilities: Geopolitical tensions can disrupt global supply chains, driving prices up and stifling growth of the global rare gas market. Companies reliant on rare gases must contend with geopolitical issues and find alternative supply chains in such scenarios.