Sept 9 (Reuters) - The global demand for helium is

likely to nearly double by 2035, backed mostly by a rise in

demand from the semiconductor industry due to the lack of viable

alternatives, according to a report by market research firm

IDTechEx.

Global demand could exceed 322 million cubic meters by 2035

for the gas used widely in manufacturing due to its cooling and

inert properties, said the report, released in August.

WHY IT'S IMPORTANT

The global semiconductor market is expected to grow by 13.1% in

2024, according to World Semiconductor Trade Statistics, amid a

strong demand from artificial intelligence applications.

Helium is essential for heat management during

semiconductor production and it has no viable alternatives

currently.

As the gas is a finite resource, the total global reserves

could run out at a much faster rate due to rising demand from

industries such as AI, quantum computing, telecoms, aerospace

and electric vehicles, according to the report.

CONTEXT

Production of helium, the second lightest element after

hydrogen, is expected to rise with Qatar and Russia ramping up

their output, the report said. However, there was no guarantee

of a disruption-free supply due to geopolitical tensions, the

report added.

Air Products, Linde ( LIN ) and Air Liquide

and the privately-held Zephyr Solutions are some of

the biggest helium-producing companies in the world.

BY THE NUMBERS

Global helium production averaged about 160 million cubic

feet between 2019 to 2023, according to the report.

Demand for the gas is likely to rise five-fold in the

semiconductor industry, the report said.

Helium is only produced in a handful of countries, with the

U.S. and Qatar among the leading players in the industry.

In 2023, the estimated U.S. sales of grade-a helium and

gaseous helium was an estimated 2.8 billion cubic feet valued at

about $1.1 billion, according to the U.S. geological survey

data.