Neon Gas Market Trends

Growth Drivers

• Widespread use in the medical and aerospace sectors: Medical and aerospace sectors make wide use of high-purity gases such as neon in component or device manufacturing processes. For instance, in medical imaging, neon gas is used in various diagnostic technologies such as MRI machines and gas lasers. Neon offers contrast enhancement that leads to the development of qualitative images and quantitative physiological information. Moreover, neon can be used in cryogenic applications, helping to preserve biological samples or tissues by providing a controlled cooling environment.
  
  In aerospace neon gases are vital in rocket propulsion, engine testing, and infrared imaging and detection equipment. Neon gas is a component in specific laser systems used for communication and navigation in aerospace applications.
• Increasing investments in semiconductor industry: Key market players are investing heavily in research and development activities to improve efficiency, mitigate waste, and explore innovative recovery methods. As the semiconductor industry is the dominant consumer of neon gas, it is expected that the demand for high-purity gases will eventually increase with increasing investment in the semiconductor industry. Through 2030, businesses worldwide intend to invest roughly USD 1 trillion in semiconductor fabrication. Most investment is concentrated in Asia and the U.S., but funding for European projects is also increasing.

Challenges

• Disturbance in supply chain systems: The rising geopolitical tensions among some countries including Russia and Ukraine are significantly hampering the sales of neon gas. For instance, around 45.0% to 54.0% of semiconductor-grade neon produced across the world comes from Ukraine-based companies Cryoin and Ingas. These conflicts are disturbing the supply chains leading to price volatility and prompting end users to seek alternatives.
• Strict environmental regulations: Strict regulations on gas emissions and environmental concerns related to gas extraction processes are expected to hinder the neon gas production and utilization process to some extent. Players in the neon gas market are required to conduct comprehensive environmental impact assessments before extraction projects can proceed. This delays production timelines and increases the overall operational costs.