The Synthetic Diamond Market is estimated to be valued at US$24.22 Mn or Bn in 2023 and is expected to exhibit a CAGR of 7.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Synthetic diamond, also known as laboratory-grown diamond or cultivated diamond, has the same chemical, physical, and optical properties as natural diamond. It finds wide applications in the electronics and semiconductor industry for manufacturing of advanced cutting and grinding tools. It also finds use in mechanical devices owing to its high hardness. Growing demand from end-use industries is expected to drive the growth of the market during the forecast period.
Market Overview:
Synthetic diamond is created in the laboratory through chemical vapor deposition (CVD) or high-pressure high-temperature (HPHT) growth processes under controlled high pressure and high temperature conditions. These lab-grown diamonds are pure and free of imperfections making them highly suitable for industrial applications where precision cutting and grinding are required. Key industries utilizing synthetic diamonds include construction, electronics, semiconductor, healthcare and others.
Market key trends:
Synthetic diamond finds major application in the electronics industry for manufacturing semiconductor wafers. Growing demand for consumer electronics globally is fueling the demand for semiconductors which in turn is driving the synthetic diamond market. Synthetic diamond exhibits very high electrical resistivity and thermal conductivity making it very suitable for applications like cooling of high-powered microchips. Furthermore, properties like high strength and hardness also make synthetic diamond preferable over natural diamonds for aggressive cutting and grinding in various industrial processes.
Porter's Analysis
Threat of new entrants: New entrants face high costs for R&D, technology and manufacturing facilities to enter the synthetic diamond market. Bargaining power of buyers: Buyers have moderate bargaining power due to the presence of numerous established players offering differentiated products. Bargaining power of suppliers: Suppliers of raw materials have moderate bargaining power due to availability of substitute raw materials. Threat of new substitutes: Threat from new substitutes is low as natural diamonds are considered superior in performance and appearance. Competitive rivalry: High as players compete based on innovation, quality and pricing.
SWOT Analysis
Strengths: Synthetic diamonds offer similar physical properties as natural diamonds at lower prices. Manufacturers have control over diamond characteristics such as color, clarity and cut.
Weaknesses: Synthetic diamonds are not as rare as natural diamonds and lack nostalgic value. High setup and production costs.
Opportunities: Growing demand for affordable diamond jewelry from millennials. Increasing industrial applications in semiconductor industry due to high thermal conductivity.
Threats: Adverse economic conditions can lower disposable incomes and dampen demand. Strict environmental regulations during manufacturing.
Key Takeaways
The global Synthetic Diamond Market is expected to witness high growth, exhibiting CAGR of 7.0% over the forecast period, due to increasing demand for affordable luxury products. The market size is projected to reach US$ 41.73 Mn by 2030.
Regionally, North America accounts for around 30% share of synthetic diamond market and is expected to maintain its dominance owing to large semiconductor & industrial sector. Europe is the second largest market growing at a CAGR of 6.5% during forecast period due to high per capita income and demand for high-end luxury jewelry.
Key players operating in the synthetic diamond market are Adamas One Corp., Applied Diamond Inc., Element Six UK Ltd, Henan Huanghe Whirlwind Co. Ltd, ILJIN Diamond Co. Ltd, New Diamond Technology, Pure Grown, Diamonds (PGD), Sumitomo Electric Industries Ltd, Swarovski, Zhengzhou Sino-Crystal Diamond Co., and Zhongnan Diamond Co. Ltd. Players are focused on product differentiation through innovation and expansion into new application areas.
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