SYNTHETIC DIAMOND MARKET ANALYSIS

The global synthetic diamond market size was valued at US$ 22.64 Bn in 2022, and is expected to exhibit compound annual growth rate (CAGR) of 7.0% from 2023 to 2030. Increasing disposable incomes and industrialization are expected to drive the global synthetic diamond market growth in the near future. Growing fashion industry is expected to create lucrative opportunities for the market. Rising demand for super-abrasives will also boost the market growth in the near future.

Global Synthetic Diamond Market Drivers:

• Growing demand from electronics and semiconductors In the electronics and semiconductor industry, synthetic diamonds are used as heat spreaders, high-power switches, and as a substrate for electronic devices. The high thermal conductivity and excellent electrical insulation properties of synthetic diamonds make them ideal for these applications. Additionally, synthetic diamonds are also used in cutting and polishing tools for the semiconductor industry, where precision and accuracy are critical.
• Increasing demand for super abrasives: Increasing demand for super abrasives is again projected to augment the market growth. Synthetic diamonds are mainly used in super abrasive tools such as drilling, cutting, and dressing tools and grinding wheels, to produce products in the automotive, aerospace, medical, and electronics industries. Super abrasives are commonly used due to characteristics such as longevity, hardness, resistance to abnormal temperatures, and chemical inertness.

Global Synthetic Diamond Market Opportunities:

• Increasing use of synthetic diamond in additive manufacturing: Increasing applications in additive manufacturing are expected to provide lucrative growth opportunities in the market. Rapid industrialization worldwide is expected to fuel demand for additives. It is widely used in industries ranging from aerospace to textiles, buildings, medicine, and metals. It has the ability to print custom designs such as complex grid structures.
• Usage of synthetic diamond in various applications: Diamond’s durability, low friction, and biological inertness make it suitable for orthopedic medical devices such as joint replacements. Thus, the adoption of synthetic diamonds in such applications is creating lucrative opportunities for the growth of the market.

Global Synthetic Diamond Market Trends:

• Increasing Product Launches : New product launches due to continuous innovation is a rising trend. This ongoing trend is expected to fuel market growth. For instance, in January 2020, Swarovski passion for innovation and design, and mastery of crystal cutting has defined Swarovski as the leading jewelry and accessories brand introduced a new range of lab-grown diamonds with diverse cuts and 16 fancy colors at Haute Couture Fashion Week in Paris. The offering is the most extensive assortment of hues in the global market.
• Expanding jewelry market: A growing jewelry market across developed countries due to changing fashion trends is expected to fuel the global market. According to the De-Beers Group, an international corporation that specializes in diamond mining, diamond exploitation, diamond retail, diamond trading, and industrial diamond manufacturing sectors, in 2020, the global diamond jewelry market was valued at approximately US$68 billion. Nearly half of the world's demand for polished diamonds was from the U.S., with 51% of the global demand in 2020, followed by China (16%) and India (10%).

Global Synthetic Diamond Market Restraints:

Complex manufacturing process

• The manufacturing process of synthetic diamonds is a complex and intricate process that involves several stages. One of the most commonly used methods for producing synthetic diamonds is the High Pressure High Temperature (HPHT) method.
• In this method, a small diamond seed is placed in a metal capsule along with a carbon source and a catalyst. The capsule is then subjected to extremely high pressure and temperature conditions, typically around 1,500 degrees Celsius and 5-6 GPa, which mimics the natural conditions under which diamonds are formed in the Earth's mantle.
• As the temperature and pressure are gradually increased, the carbon atoms in the capsule start to crystallize around the diamond seed, forming a larger diamond crystal. The process can take several hours to several days, depending on the desired size and quality of the diamond.
• Counterbalance: The most effective way to develop synthetic diamond is by HPHT process in which the carbon is contained in a containment cube, which is pressed to enforce the same pressure a diamond faces under the earth’s surface. And then the cube is intensely heated through electric pulses.

Unfavorable condition arising due to negative impact COVID-19

The global synthetic diamond market has been negatively impacted by the COVID-19 pandemic, as it has disrupted the supply chain and led to a decline in demand from end-use industries such as automotive, electronics, and construction. The lockdowns and travel restrictions imposed by governments have also affected the production and distribution of synthetic diamonds, leading to delays and cancellations of orders. However, the market is expected to recover gradually as the restrictions are lifted and the demand from end-use industries picks up. The growing adoption of synthetic diamonds in various applications, such as cutting, polishing, drilling, and grinding, is also expected to drive the market growth in the post-pandemic period.

Global Synthetic Diamond Market Segmentation:

Figure 1. Global Synthetic Diamond Market, By Type, 2022

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• The global synthetic diamond market is segmented into type, manufacturing process, and region.
• Based on type, the market is segmented into polished and rough. Polished segment is further segmented into jewelry, and electronics, healthcare, and other polished types. Rough is segmented into construction, mining, oil and gas, and other rough types Out of which, polished segment is expected to dominate the global market over the forecast period, and this is attributed to the growing global  Synthetic diamond market.
• among rough sub-segemnt, construction sector is also expected to witness significant growth in the near future and this is owing to the increasing demand from cutting blade solutions for all abrasives surfaces.                                

Figure. 2 Global Synthetic Diamond Market, By Region, 2022

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• Regionally, Asia Pacific region is expected to dominate the global synthetic diamond market, with China is leading the way in terms of revenue. The market for synthetic diamonds will grow rapidly in the region in the coming years, driven by growing interest in this material and growing GDP (Gross domestic product) of the country. China is the largest economy in terms of GDP.
• North America is expected to witness the fastest growth in the global market over the forecast period. U.S. construction industries was valued at US$1,469.15 billion in 2020 and growing further in 2021. According to the US Census Bureau, during December 2021, the construction spending in the country was estimated at a seasonally adjusted annual rate of US$1,639.9 billion, 0.2% more than the revised November estimate of US$1,636.5 billion.

Global Synthetic Diamond Market: Key Developments

• In February 2022, Element Six UK LTD. Is which a global leader in the design, development and production of synthetic diamond and tungsten carbide supermaterials collaborated with II-VI Inc. Through this collaboration, II-VI licenses Element Six’s intellectual property and necessary equipment will produce high-quality single-crystal diamonds to expand its core competency in diamond technology.
• In July 2021, Element Six UK LTD. and the University of Warwick partnered to develop the next generation of synthetic diamond-enabled technologies. Under this partnership, Element Six applied its renowned expertise and capabilities in advanced material solutions.

Global Synthetic Diamond Market: Key Companies Insights

The global synthetic diamond market is highly competitive. This is attributed to the continuous launch of new technologies due to ongoing R&D (Research and development) and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on a regional and global basis. Some of the key players in the global 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

*Definition: Synthetic diamond is produced using advanced technological processes, such as High Pressure High Temperature (HPHT) and Chemical Vapor Deposition (CVD) methods. In the HPHT method, a small diamond seed is placed in a high-pressure press and subjected to high temperatures and pressures, which cause carbon atoms to bond together and form a larger diamond crystal. This process can take several weeks to produce a single diamond.