Speaking at the gasworld Specialty Gas Summit, Dilla said the space industry and semiconductor sector are set to become the two most important drivers of future rare gas use, as traditional markets continue to shrink.
Markets once dominated by halogen lighting and krypton-filled insulating windows have increasingly been overtaken by high-tech applications in electronics and space.
“There are two segments which are quite important for the future of the rare gases market,” he said. “This is the electronics industry and the space industry.”
For space, growth is being driven by a surge in satellite launches, which Dilla said is set to “strongly increase” over the next few years, alongside rising activity from agencies such as NASA and its Artemis programme.
Industrial gas companies are also set to benefit. Air Liquide won two new contracts from space technology firm ArianeGroup to supply cryogenic equipment and propulsion gases for the European Space Agency’s Ariane 6 heavy launcher programme.
The surge in satellite launches is being fuelled by the rapid deployment of commercial megaconstellations such as SpaceX’s Starlink and Amazon’s Project Kuiper, aimed at expanding global internet coverage.
Demand is also increasing from governments seeking to expand satellite networks for defence and security applications.
The scale of growth is evident in the numbers. Five years ago there were roughly 3,000 to 4,000 active satellites in orbit. Today, that figure exceeds 15,000.
“The number of satellite launches are an important driver for krypton and xenon demand because this is a kind of fuel for the motor of a satellite,” explained Dilla.
Demand is likely to surge following news that Elon Musk’s SpaceX has raised $75bn in a record , which values the satellite, rockets and artificial intelligence company at $1.77 trillion.
Artemis II was a 10-day crewed lunar flyby mission that took four astronauts farther into space than any humans had ever traveled ©NASA
Xenon is considered the preferred propellant for electric satellite propulsion systems due to its ability to generate thrust efficiently when ionised and accelerated to high speeds.
“You also need a molecule which is easy to ionise. This is the case for krypton and xenon,” said Dilla.
When used in ion engines, the gases allow satellites to maintain orbit and manoeuvre in space while using far less propellant than conventional chemical systems.
“This is the main reason why both of them, especially xenon, [are considered to be] a workhorse when it comes to propellants for those electrical propulsion systems.”
While space is emerging as a major growth market, Dilla said semiconductors remain the largest consumer of rare gases globally.
Over the past decade, the electronics industry has become a dominant driver of demand for neon, krypton and xenon, particularly for chip manufacturing processes.
Neon is widely used in excimer lasers for semiconductor lithography, while krypton and xenon are increasingly linked to advanced etching technologies used to produce next-generation chips.
“The electronic industry really developed to become the biggest consumer of the rare gases on the global scale,” said Dilla.
According to research, the semiconductor market consumes around 70% of the global supply of neon.
Dilla added that future demand growth could come from increasingly complex semiconductor architectures, although manufacturers have also responded to recent supply disruptions in the Middle East by improving efficiency and introducing greater gas recycling.
Looking ahead, Dilla said the long-term outlook remains positive.
“I have the impression that, especially the space segment and the growth potential which is behind it, and the electronic industry will continue to become important consumers of the rare gases not only for Europe but on the global scale.”
