The value of the synthetic diamond market is anticipated to register a CAGR of 8% during the forecast period of 2024 to 2032. When it comes to synthetic diamonds, the majority of jewelers would be able to acquire the diamonds straight from the laboratory. Synthetic diamonds are becoming increasingly popular. In most cases, the procedure is carried out in the same manner. For instance, if a customer wants to build an engagement ring, they will request that a synthetic diamond be set in the center of the band. Because of their physical and chemical properties, such as the widest optical transparency window, wide band gap, chemical inertness, electric insulation, hardness, exceptional thermal conductivity, high electrical carrier mobility, high resistance to thermal shock, and excellent mechanical properties, it has become an extensively useful option for application in electronic devices. This is due to the fact that these properties have made it possible for the material to be used in such a wide variety of electronic applications. However, customers' negative attitudes toward jewelry made from synthetic materials and their preference for real diamonds will work to slow the rate at which the industry expands. The manufacturing process is becoming increasingly complicated, which will further impede the rate of market expansion. In addition, the absence of a robust branding and marketing framework will provide obstacles, which will prevent the market rate from rising smoothly.
Increased Demand in Industrial Applications
There are several different forms of synthetic diamonds that may be purchased, such as bort, grit, dust, and powder. Each of these forms of synthetic diamonds has its own unique applications in specific end-user sectors. Synthetic diamonds are put to use in a wide variety of industrial applications nearly ninety-nine percent of the time. They find widespread application in the manufacturing of computer chips, construction, the production of machinery, mining services (such as drilling for minerals), gem exploration, stone cutting and polishing, surgery, astronomy, experimental physics, and electric insulation, to name a few of these fields' many other applications.
There is no other material that is capable of withstanding the harsh circumstances that are common in oil and gas mines, hence synthetic diamonds are also employed in the drilling process for oil and gas. Products derived from synthetic diamonds are also being used in the purification of water in both industrial and domestic settings. When it comes to high-performance loudspeakers, CVD diamonds are an indispensable component. Synthetic diamond detectors of ultraviolet (UV) light or high-energy particles are utilized at high-energy research centers and are also available for purchase on the commercial market. In the world of cutting and polishing tools, CVD diamonds are frequently used as abrasives. As a consequence of this, they are utilized in a substantial variety of different industrial applications. One of the most prominent trends that are still occurring in the synthetic market is the rise in the usage of CVD diamonds.
Synthetic Diamonds are More Price Efficient
The discovery of natural fresh diamond deposits deep under the earth has made the process of diamond extraction more difficult and more expensive. It is also dependent on a resource that is limited. During the past few years, the capital intensity of new projects has increased many times across the board for the majority of minerals. In addition to this, the prices of important input variables like labor and energy have increased at a rapid pace. As a consequence of this, it is anticipated that the cost of a natural diamond will increase per carat. Chemical vapor deposition (CVD) and high-pressure high temperature (HPHT) technologies are the two primary methods that are utilized in the manufacturing process of synthetic diamonds. When compared to the cost of natural diamonds, the production of synthetic diamonds by either of these two processes is far more cost-effective.
There is a substantial gap in cost between natural diamonds and manufactured industrial diamonds. Synthetic diamonds can be purchased for as little as US$ 800 per carat all the way up to US$ 1000 per carat, according to the industry standard. At this time, approximately 1% of the market for diamond jewelry worldwide is held by synthetic diamonds. Despite this, it is anticipated that the use of synthetic diamonds in the production of jewelry will expand as a result of the ongoing research and development in the technology required for the production of synthetic diamonds.
Multiple Factors that Are Promising Opportunities During the Forecast Period
The growth rate of the synthetic diamond market will be positively impacted, as a result, by the increasing rate of industrialization, as well as the rising rate of personal disposable income. The development of additional end-user sectors, as well as the expansion and growth of the fashion industry, will further produce attractive chances for the market. The increasing use of super abrasives in a variety of industrial settings, including dressing, grinding, cutting, and drilling, is anticipated to be a significant driver of market expansion in the years to come. It is expected that their use in the electronics sector will rise as a result of their capacity to function as heat sinks. This ability will help to reduce the temperatures at which electronic devices operate, improve their dependability, and lengthen their service lives. A rise in consumer demand for electronic goods, most notably an increase in the volume of sales of semiconductors, will serve as market drivers and further enhance the number of opportunities that are advantageous to the growth rate of the market.
Application Insights
During the forecast period, it is anticipated that the application of jewelry will expand at a CAGR of 3.0%. Some of the most important elements that are contributing to the expansion of the jewelry market are an expanding middle-class population and the rising purchasing power of members of the millennial and generation Z generations. According to the De Beers Group, millennials make up over 60% of the jewelry industry in the U.S., while in China, millennials are responsible for an astounding 80 % of the total jewelry demand in that country.
Products that are either synthetic or lab-grown have a substantially better penetration rate for use in industrial applications. The most common application for an industrial diamonds is as an abrasive, and their demand in industries such as metal machining, construction, and exploration drilling has been steadily growing over the past few decades. It finds special usage in the construction industry for operations such as hand sawing, wire sawing, and core drilling, among others. It is anticipated that expanding building activity in developing countries will be beneficial to the growth of the segment.
High-Pressure, High-Temperature-Manufactured Synthetic Diamonds Will Continue to Dominate the Market
The global market for synthetic diamonds has been segmented into two categories, namely, high-pressure high temperature (HPHT) and chemical vapor deposition, in accordance with the manufacturing process (CVD). In the synthetic diamond industry, one of the most important market segments is HPHT, and in 2021, it accounted for a 75% share of the market. Many different applications make use of synthetic diamonds that have been produced using a process that involves high pressure and high temperature. Since high pressure, and high temperature is a relatively affordable technique, it has found widespread application as a result. Therefore, it is anticipated that the high-pressure high temperature segment of the synthetic diamond market would see a sizeable increase in its market share over the course of the projected year.
Utilization of Synthetic Diamonds in Machining and Cutting Tools on a Large Scale to Drive Market Growth
The global market for synthetic diamond has been segmented in terms of its applications into the following categories: gems, heat sinks, and exchangers, high-end electronics, laser and x-ray, machining and cutting tools, surgical machinery, water treatment, quantum computing, optical, sensors and scanning, medical, and electrical. The segment of the global market for a synthetic diamond that dealt with machining and cutting tools held a sizeable portion of the market share. During the course of the forecast, it is anticipated to develop at a CAGR of 7% during the forecast period. Polycrystalline diamond (PCD), which has a hardness of more than 50 gigapascals (GPa), is the type of diamond that is used in cutting tools more than any other type (compared to 20 GPa for cemented carbides, the next best class of cutting tool materials). It has been used for many years to improve the productivity of the automobile industry's aluminum alloy and wood machining operations, and it has seen considerable success in doing so.
APAC to Remain as the Global Leader
Asia-Pacific region held the largest revenue share in the synthetic diamond market in 2021. This is because there is a growing demand for man-made diamonds in this part of the world. The Asia-Pacific area is the most important market for synthetic diamonds, and China is the most important country in this region in terms of the high industrial activity, growth, and expansion of a variety of different end-user sectors. The growing jewelry industry in the Asia Pacific led to an increase in demand for synthetic diamonds, which in turn led to an increase in demand for synthetic diamonds. As a result, Asia Pacific accounted for approximately 51% of the global market for synthetic diamonds in 2021. The U.S. is one of the top consumers of diamonds. Additionally, the nation is a major producer of synthetic industrial diamonds, making it one of the world's leading manufacturers in this sector. As a result of the growth of the synthetic diamond industry in the Middle East and Africa (MEA) and the implementation of technology to test synthetic diamonds by the top diamond-producing mines in Africa, such as De Beers, the synthetic diamond market in the Middle East and Africa is also anticipated to expand during the forecast period.
Market Remains Consolidated
There are various small to medium-scale firms that cater to a particular country or region in the global diamond industry, but there are only a few significant players that cater to the entire market. Some examples of these major players include the De Beers Group, ALROSA, and Rio Tinto. The major firms also have a hand in the upstream sector of the industry. Because there are already so many companies operating in the upstream area, getting a foothold is a challenge. However, there are no limitations on manufacturing connected with items that are created in a laboratory. As a direct consequence of this, leading producers are focusing on the development of lab-grown alternatives for use in jewelry applications. The market for synthetic diamonds on a global scale is highly concentrated, with a relatively small number of large-scale vendors controlling the majority of the market share. The companies Henan Huanghe Whirlwind, ILJIN Co., Ltd., Zhengzhou Sino-Crystal Diamond Co., Ltd., Applied Diamond Inc., and Scio Diamond Technology Corporation are the key market players in the synthetic diamonds market.
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Synthetic Diamonds market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
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| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Billion |
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Key questions answered in this report
