United States Rare Gases Market By Type (Neon, Krypton, Xenon), By Application (Automotive, Electronics, Consumer Durables, Construction, Others), By Region, Competition, Forecast and Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 278.91 Million
CAGR (2026-2031)	4.81%
Fastest Growing Segment	Neon
Largest Market	Midwest
Market Size (2031)	USD 369.73 Million

Market Overview

The United States Rare Gases Market will grow from USD 278.91 Million in 2025 to USD 369.73 Million by 2031 at a 4.81% CAGR. The United States Rare Gases Market involves the commercial extraction, distribution, and utilization of noble gases including helium, neon, argon, krypton, xenon, and radon which are distinguished by their chemical inertness and stability. The primary drivers supporting market growth are the expanding semiconductor manufacturing sector where high purity gases are indispensable for lithography and plasma etching processes alongside the healthcare industry which relies heavily on helium for magnetic resonance imaging systems. These fundamental industrial requirements provide a stable demand base that is distinct from temporary market trends or cyclical consumption patterns.

According to the Compressed Gas Association in 2024 the broader compressed gas industry contributed over $10 billion to the United States economy which underscores the critical financial magnitude of this sector. Despite this robust economic footprint a significant challenge that could impede market expansion is the vulnerability of the supply chain to geopolitical instability in key sourcing regions. Such disruptions frequently lead to severe shortages and price volatility that complicate long term procurement strategies for major industrial consumers.

Key Market Drivers

The expansion of domestic semiconductor manufacturing, heavily supported by federal incentives, serves as a paramount driver for the United States Rare Gases Market. As fabrication facilities proliferate to secure local supply chains, the requirement for high-purity noble gases used in photolithography processes has intensified. Neon, krypton, and xenon are critical mediums for the excimer lasers in deep ultraviolet (DUV) and extreme ultraviolet (EUV) lithography tools that define modern chip production. According to the Semiconductor Industry Association, in September 2024, the U.S. semiconductor ecosystem had announced over 90 new manufacturing projects with cumulative investments reaching nearly $450 billion across 28 states. This massive capitalization guarantees a long-term, escalating need for these specialty gases as new foundries become operational and ramp up production capacity.

In parallel, the rising utilization of helium in healthcare diagnostics, specifically for magnetic resonance imaging (MRI), anchors a substantial portion of market demand. Liquid helium is physically unique and currently irreplaceable for cooling the superconducting magnets inside MRI scanners to the necessary cryogenic temperatures. This medical necessity creates a non-cyclical consumption baseline that buffers the market against industrial volatility. According to the U.S. Geological Survey, in January 2024, magnetic resonance imaging applications accounted for 17% of the total estimated domestic helium consumption. Underscoring the strong commercial activity in this region, Air Liquide reported in February 2024 that Gas & Services revenue in the Americas totaled 10,169 million euros for the fiscal year, reflecting robust demand across these key end-markets.

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Key Market Challenges

The vulnerability of the supply chain to geopolitical instability represents a substantial hurdle for the United States Rare Gases Market, directly hampering its ability to maintain consistent growth. As domestic reserves face depletion or operational constraints, the industry effectively loses its buffer against international market shocks, forcing suppliers to rely increasingly on imports from regions characterized by political volatility. This dependency creates a precarious environment where trade disputes or regional conflicts can trigger immediate supply bottlenecks, making it nearly impossible for industrial consumers to secure the guaranteed volumes necessary for continuous manufacturing. Consequently, major stakeholders in the semiconductor and healthcare sectors are often compelled to delay expansion projects or limit production capacity due to the inability to forecast material availability accurately.

This instability is quantitatively evidenced by the declining reliability of domestic sourcing, which exacerbates the need for external procurement. According to the U.S. Geological Survey, in 2024, the volume of helium extracted from natural gas in the United States decreased by 8% in 2023 compared to the prior year. This reduction in domestic output forces the market to lean more heavily on the volatile global supply chain, thereby exposing American industries to severe price fluctuations and logistical uncertainties that complicate long-term investment strategies and restrict overall market momentum.

Key Market Trends

The acceleration of non-hydrocarbon helium exploration projects represents a pivotal shift in the United States Rare Gases Market, responding to the structural decline of legacy natural gas by-product reserves. Unlike traditional extraction which relies on hydrocarbon production rates, this trend focuses on developing primary helium reservoirs where the gas exists in high concentrations within nitrogen carrier fields, offering a supply mechanism decoupled from fossil fuel volatility. This strategic pivot towards dedicated geological sourcing is exemplified by recent high-grade discoveries in the Midwest. According to Pulsar Helium Inc., in March 2024, laboratory analysis of the Jetstream 1 appraisal well in Minnesota confirmed helium concentrations of up to 13.8%, significantly exceeding the economic viability threshold and signaling the potential for a new, stable domestic production hub.

Concurrently, a surge in xenon utilization for satellite electric propulsion is reshaping demand dynamics as aerospace entities prioritize mass-efficient ion thrusters for orbit raising and station-keeping. This transition allows operators to maximize payload capacity and extend mission lifespans, effectively embedding xenon as a critical fuel for the expanding commercial space ecosystem. The intensity of this orbital activity is directly correlated with the rapid cadence of deployment for next-generation constellations. According to the Space Foundation, in July 2024, the global space industry recorded 126 launch attempts in the first half of the year, marking a 30% increase over the previous year's record pace, which underscores the escalating operational scale driving the consumption of high-purity noble gases.

Segmental Insights

In the United States Rare Gases Market, the Neon segment is emerging as the fastest growing category driven by its critical requirement in the semiconductor sector. This expansion is heavily influenced by the United States government’s implementation of the CHIPS and Science Act, which promotes domestic integrated circuit manufacturing. Neon acts as an essential component for lasers used in photolithography, a key phase in chip production. As domestic fabrication capacity increases under these federal incentives, the demand for Neon accelerates significantly, establishing it as the primary growth area within the regional market.

Regional Insights

The Midwest United States maintains a leading position in the domestic rare gases market due to its dense concentration of heavy manufacturing and automotive industries. This region generates substantial demand for noble gases, particularly argon, which serves as a critical shielding agent in arc welding and metal fabrication processes essential to the automotive sector. Furthermore, the strong presence of steel production facilities in states such as Ohio and Indiana ensures consistent consumption of these atmospheric gases. This alignment of industrial infrastructure and material requirements solidifies the Midwest as the primary region for market activity.

Recent Developments

• In July 2025, Linde announced a $100 million investment to build a new air separation unit in Brownsville, Texas. The facility, scheduled to commence operations in 2026, was designed to produce liquid oxygen, nitrogen, and argon to support the rapidly growing commercial space sector in the region. The project also included the expansion of an existing facility in Florida to further serve the aerospace industry. The company highlighted that the new capacity would address the increasing demand for industrial gases used in rocket propulsion and aerospace testing, reinforcing its supply network in the southern United States.
• In November 2024, Pulsar Helium signed an agreement with a subsidiary of Chart Industries to advance its Topaz Helium Project in Minnesota. The collaboration focused on implementing advanced gas processing technologies, specifically for helium and carbon dioxide capture. Under the terms of the agreement, the partner was tasked with completing engineering studies and providing recommendations for a helium plant design and storage tanks. This partnership marked a significant step toward monetizing the project's resources and establishing a new domestic source of high-grade helium in the United States to meet growing industrial demand.
• In June 2024, Air Liquide announced a plan to invest up to $850 million to construct, own, and operate four Large Modular Air separation units in Baytown, Texas. This initiative, established through a long-term agreement with a major energy corporation, was designed to support a significant low-carbon hydrogen project. The new facilities were set to produce high volumes of oxygen and nitrogen, along with substantial quantities of argon, krypton, and xenon. This expansion aimed to strengthen the company's rare gases offering, ensuring a robust supply for customers in the electronics and industrial sectors across the United States.
• In June 2024, Messer successfully completed the acquisition of the Federal Helium System from the U.S. Bureau of Land Management. This strategic transaction included the Federal Helium Reserve, the Cliffside Field with its wells and gathering system, and a 423-mile crude helium pipeline. The company emphasized its commitment to the responsible stewardship of these critical assets to ensure a reliable supply of helium for vital industries such as healthcare, aerospace, and electronics manufacturing. This development finalized the privatization process of a key component of the American helium infrastructure and secured the company's position in the domestic market.

Key Market Players

• Linde North America, Inc.
• Air Products & Chemicals, Inc.
• Praxair, Inc.
• American Air Liquide Holdings, Inc.
• Matheson Tri-Gas, Inc.

By Type	By Application	By Region
Neon Krypton Xenon	Automotive Electronics Consumer Durables Construction Others	Northeast Midwest South West

Report Scope:

In this report, the United States Rare Gases Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• United States Rare Gases Market, By Type:

• Neon
• Krypton
• Xenon

• United States Rare Gases Market, By Application:

• Automotive
• Electronics
• Consumer Durables
• Construction
• Others

• United States Rare Gases Market, By Region:

• Northeast
• Midwest
• South
• West