The global rare gas market is expected to experience steady growth, with its valuation projected to increase from approximately USD 4.08 billion in 2025 to around USD 6.81 billion by 2035. This growth reflects a CAGR of approximately 4.6% over the forecast period. The expanding use of rare gases across various industrial sectors such as electronics, healthcare, aerospace, and manufacturing is the primary factor driving market expansion.
Rare gases, including helium, neon, argon, krypton, xenon, and radon, possess unique chemical and physical properties that make them indispensable in numerous high-technology applications. Helium, for instance, is critical for cryogenic processes in medical MRI machines and scientific research, while argon is widely used as an inert shielding gas in welding and metal fabrication. The demand for these gases is closely tied to technological advancements and the growth of end-use industries reliant on their specialized properties.
The electronics industry is a significant driver of the rare gas market, with applications in semiconductor manufacturing, flat-panel displays, and fiber optics. The precision and stability offered by rare gases are essential for producing high-quality electronic components and devices. Similarly, the healthcare sector’s reliance on helium for magnetic resonance imaging and respiratory therapies underpins sustained demand.
In 2024, the rare gas market experienced significant developments, driven by increasing demand in various industries. Linde secured 59 new long-term agreements to build, own, and operate 64 plants at customer sites, focusing on applications in electronics, battery production, and emission reduction efforts.
Air Liquide announced plans to invest over USD 250 million in a new industrial gas production facility in Idaho, USA, to supply high-purity gases to a leading semiconductor manufacturer. Additionally, Air Products reported a 67% increase in GAAP EPS from continuing operations, reflecting strong performance in its industrial gas sector.
Sustainability and supply security are key concerns for the rare gas market. Helium, being a finite resource, faces supply constraints that influence pricing and availability. Efforts to develop recycling technologies and alternative sources are ongoing to mitigate scarcity issues. Additionally, environmental regulations impact extraction and production practices, pushing the industry towards more efficient and sustainable operations.
| Attributes | Description |
|---|---|
| Estimated Global Rare Gas Market Size (2025E) | USD 4.08 billion |
| Projected Global Rare Gas Market Value (2035F) | USD 6.81 billion |
| Value-based CAGR (2025 to 2035) | 4.6% |
The cylinders segment is projected to dominate the rare gas market with an estimated 67.3% market share in 2025, reflecting its widespread adoption as the preferred supply mode. Cylinders are designed for easy handling and storage, featuring standardized sizes and safety mechanisms that facilitate proper use, especially among small to medium-scale consumers.
Their flexibility allows users to adjust gas consumption according to specific requirements, making cylinders ideal for applications with intermittent or variable demand. This adaptability ensures they cater to diverse sectors, including welding, metal fabrication, electronics manufacturing, healthcare, and scientific research.
The accessibility of cylinders through numerous gas suppliers and distributors guarantees consistent availability, making them a convenient option for businesses and laboratories requiring regular rare gas supplies. Their portability and user-friendly features have cemented cylinders’ dominance in the market, as they address operational efficiency and safety concerns effectively. As industries continue to grow and diversify their applications of rare gases, cylinders are expected to maintain their leading position, supporting market expansion through the forecast period.
The manufacturing segment is estimated to hold a significant 38.7% market share in 2025, emerging as the largest end-use sector for rare gases. Key gases like argon and helium are extensively used as shielding gases in welding and metal fabrication, vital for producing high-quality fabricated metal products in automotive, aerospace, and construction industries.
The sector’s global expansion, fueled by economic growth and technological advancements, intensifies the demand for rare gases essential in various manufacturing processes. Additionally, rare gases support electronics and optics production through applications such as laser cutting, fiber optics, and LED lighting, aligning with the rise in consumer electronics and energy-efficient technologies.
The glass and ceramics industry also relies on rare gases for processes including glass blowing, annealing, and inert atmosphere furnaces, catering to growing demands in construction and automotive sectors. With manufacturing driving innovation and volume in rare gas consumption, this segment is positioned for sustained growth and critical market influence through 2035.
Healthcare Sector Drives the Healing Power of Rare Gases
Rare gases play a crucial role in the healthcare sector, where the gases are utilized in a variety of medical applications ranging from diagnostic imaging to therapeutic procedures.
Medical imaging technologies including MRI heavily rely on helium and xenon for the unique magnetic and imaging properties. The gases are essential for producing high quality images that aid in the diagnosis and treatment planning of various medical conditions.
Rare gases like argon and carbon dioxide are utilized in laser surgeries for the precise cutting and coagulation capabilities, making them indispensable in ophthalmology, dermatology, and other surgical specialties.
Respiratory therapies, including helium oxygen mixtures for treating respiratory conditions like asthma and chronic obstructive pulmonary disease, further contribute to the demand for rare gases in the healthcare sector.
Industrial Applications are the New Catalysts of Advancements
Rare gases such as helium, neon, argon, krypton, and xenon, play a pivotal role in a myriad of industrial applications, spanning manufacturing, electronics, and healthcare sectors. The inert properties of gases including high thermal conductivity, and unique light emitting capabilities make them indispensable in various processes.
For instance, argon and neon, in semiconductor manufacturing are used for plasma etching and lithography, essential steps in producing microchips and electronic components.
The lighting industry relies on krypton and xenon for producing energy efficient and long lasting bulbs, contributing to both environmental sustainability and energy conservation efforts. The significance of rare gases in industrial applications will grow exponentially, as industries continue to evolve and demand for advanced technologies increases.
Rare Gases are Energizing Electronic Innovation
The electronics industry is experiencing rapid expansion globally, driven by technological advancements, increasing consumer demand for electronic devices, and the emergence of emerging economies as manufacturing hubs.
The growth trajectory will significantly impact the demand for rare gases, which are integral to various electronic manufacturing processes. For instance, rare gases such as argon, neon, and helium are used in critical processes like plasma etching, ion implantation, and chemical vapor deposition, in semiconductor manufacturing.
The processes are essential for creating microchips and integrated circuits that power a wide range of electronic devices, from smartphones and laptops to automotive electronics and IoT devices.
The need for rare gases in semiconductor manufacturing is poised to escalate accordingly, as the demand for semiconductors continues to surge, particularly in emerging economies like India, China, and Southeast Asia.
The scope for rare gas rose at a 2.2% CAGR between 2020 and 2024. The global market is achieving heights to grow at a significant CAGR of 4.6% over the forecast period 2025 to 2035.
The market experienced a significant demand during the historical period, owing to electronics, healthcare, and energy. The expansion had driven demand for rare gases in semiconductor manufacturing, medical imaging, and energy related applications.
Rapid technological advancements, especially in areas like electronics, aerospace, and renewable energy, increased the demand for rare gases for various advanced applications such as LED lighting, satellite technology, and solar panel manufacturing.
Advances in healthcare technology and increased healthcare spending globally had also fuelled the demand for rare gases in medical imaging, diagnostic equipment, and therapeutic applications, supporting market growth during the historical period.
The forecast period will experience continued growth, attributed to the space exploration and satellite technology. The forecast period projects increased investment in space exploration and satellite technology, leading to growing demand for rare gases for spacecraft propulsion, thermal control, and communication systems.
Ongoing advancements in biotechnology and regenerative medicine will accelerate the demand for rare gases in cryopreservation, cell culture, and biomedical research applications, supporting market growth in the healthcare sector.
The transition towards clean energy sources and technologies, coupled with increasing focus on sustainability, will be a significant driver of growth for the rare gas market during the forecast period.
The following table shows the estimated growth rates of the top three markets. India and China are set to exhibit high demand in rare gas, recording CAGRs of 7.6% and 5.7%, respectively, through 2035.
| Countries | CAGR 2025 to 2035 |
|---|---|
| The United States | 2.9% |
| The United Kingdom | 2% |
| Japan | 2.1% |
| China | 5.7% |
| India | 7.6% |
The rare gas market in the United States will expand at a CAGR of 2.9% through 2035.
The country is a hub for technological innovation, particularly in industries such as electronics, aerospace, and healthcare. Technological advancements drive the development of new applications for rare gases and increase the demand in emerging technologies like renewable energy, quantum computing, and space exploration.
The United States has a diverse industrial base, including sectors such as manufacturing, electronics, healthcare, and energy. The demand for rare gases for various applications such as welding, semiconductor manufacturing, medical imaging, and energy production will increase, as the industries continue to expand.
The energy sector in the country, including oil and gas exploration, LNG production, and renewable energy development, utilizes rare gases for various applications such as gas chromatography, cryogenics, and energy storage. The demand for rare gases increases, as the energy sector continues to grow and diversify.
The rare gas market in the United Kingdom to expand at a CAGR of 2% through 2035.
The country is committed to transitioning to clean energy sources and reducing greenhouse gas emissions. Rare gases such as helium and argon are used in renewable energy technologies like solar panels and wind turbines, as well as in carbon capture and storage systems. Government support for clean energy initiatives will boost the demand for rare gases in the United Kingdom.
The country is known for its strong research and development capabilities across various industries, including pharmaceuticals, biotechnology, and materials science, where rare gases are used for experimentation and product development. Investment in research and development activities drives innovation and creates new opportunities for rare gas utilization.
The semiconductor industry in the country relies on rare gases for processes such as CVD, plasma etching, and lithography. The demand for rare gases in semiconductor manufacturing will rise, with the increasing demand for semiconductors in electronics and telecommunications sectors.
Rare gas trends in India are taking a turn for the better. A 7.6% CAGR is forecast for the country from 2025 to 2035.
The automotive industry in India is expanding, driven by rising disposable incomes, urbanization, and government incentives for electric vehicles. Rare gases are used in automotive manufacturing processes such as welding, airbag inflation, and tire inflation, supporting the market growth.
The country is investing in infrastructure development projects, including transportation networks, renewable energy installations, and advanced manufacturing facilities. The projects create demand for rare gases used in construction materials, energy production, and industrial processes.
India faces water scarcity challenges, driving demand for water treatment and desalination technologies. Rare gases such as argon and oxygen are used in water treatment processes like ozone generation and membrane filtration, contributing to market growth in the water treatment sector.
The competitive landscape of rare gas market is characterized by the presence of several key players operating globally and regionally, each competing based on factors such as product portfolio, technological expertise, distribution network, and market presence.
The players engage in various strategies to maintain and enhance the market position, including product innovation, mergers and acquisitions, strategic partnerships, and expansion into emerging markets.
Mergers and acquisitions in rare gas market, along with strategic partnerships among key players reshape the competitive landscape, leading to increased market concentration and potential barriers to entry for new entrants.
Strong customer relationships and service capabilities play a crucial role in maintaining a competitive edge in the rare gas market, with companies focusing on providing value added services and customized solutions to meet customer needs.
Air Products and Chemicals, Inc. is a major player in the rare gas market, providing helium, argon, and other rare gases for various industrial applications. The company emphasizes technology driven solutions and has a global distribution network to serve its customers.
Linde plc. is one of the leading players in the global rare gas market, offering a wide range of rare gases including helium, neon, argon, krypton, and xenon. The company has a strong presence across industries such as manufacturing, healthcare, electronics, and energy, with a focus on innovation and sustainability.
| Report Attributes | Details |
|---|---|
| Current Total Market Size (2025) | USD 4.08 billion |
| Projected Market Size (2035) | USD 6.81 billion |
| Base Year for Estimation | 2024 |
| Historical Period | 2020 to 2024 |
| Projections Period | 2025 to 2035 |
| CAGR (2025 to 2035) | 4.6% |
| Quantitative Units | USD billion for value and tons for volume |
| Rare Gas Types Analyzed (Segment 1) | Argon, Krypton, Neon, Xenon, Helium |
| Supply Modes Analyzed (Segment 2) | Cylinders, Bulk and Micro Bulk, Drum Tanks, On Site |
| End Uses Analyzed (Segment 3) | Healthcare, Manufacturing, Electronics, Laser, Lighting, Others |
| Regions Covered | North America; Latin America; Western Europe; Eastern Europe; South Asia and Pacific; East Asia; Middle East & Africa |
| Countries Covered | United States, Canada, Mexico, Brazil, Argentina, Germany, France, United Kingdom, Italy, Spain, Netherlands, China, India, Japan, South Korea, ANZ, GCC Countries, South Africa |
| Key Players influencing the Rare Gas Market | Air Gas, Air Liquide, Matheson Tri-Gas, Inc., Messer Group GmbH, American Gas Products, The Linde Group, Air Products & Chemicals, Air Water Inc., Axcel Gases, Specialty Chemical Products Inc., Specgas Inc., Dakota Gasification Co., Nova Gas Technologies Inc., Iwatani Corporation |
| Additional Attributes | Dollar sales by gas type (argon, neon, xenon), Dollar sales by supply mode (cylinders, bulk, drum tanks), Industrial applications across healthcare and electronics, Growth in semiconductor and lighting sectors, Regional demand from steel, laser, and aerospace applications |
| Customization and Pricing | Customization and Pricing Available on Request |
The report consists of key types of rare gas including argon, krypton, neon, xenon, and helium.
The market is classified into cylinders, bulk and micro bulk, drum tanks, and on site.
The market is classified into healthcare, manufacturing, electronics, laser, lighting, and others.
The analysis of the rare gas market has been carried out in key countries North America, Latin America, Western Europe, Eastern Europe, South Asia and Pacific, East Asia, The Middle East and Africa.
The market is projected to reach a valuation of USD 4.08 billion in 2025.
The rare gas industry is set to expand by a CAGR of 4.6% through 2035.
The market is forecast to reach USD 6.81 billion by 2035.
India is set to be the top performing market, exhibiting a CAGR of 7.6% through 2035.
Cylinders are preferred, and will account for a share of 67.3% in 2025.
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