The global Synthetic Diamond Market is estimated to be valued at US$ 24.22 Mn 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 diamonds are man-made diamonds that are chemically, physically and optically identical to natural diamonds but can be produced in a very controlled and reproducible way. Synthetic diamonds find applications in mechanical and electronic applications due to their high thermal conductivity. They are used in applications involving high power laser transmitters, artificial heart valves, X-ray detectors and as gemstones. The expanding construction sector globally is the major driver boosting demand for synthetic diamonds.
Market key trends:
One of the key trends in the synthetic diamond market is the growing demand from the construction industry. Synthetic diamonds are extensively used in construction equipment such as drill bits, cutting tools, saw blades and grinding wheels due to their high hardness. This makes them suitable for cutting, drilling, grinding and polishing hard materials like concrete, stone and ceramic tiles. The rapid growth of the construction sector in developing economies such as China, India and Indonesia is fueling the demand for construction equipment and thereby boosting consumption of synthetic diamonds. Additionally, synthetic diamond manufacturers are increasingly investing in research & development to produce larger and higher quality synthetic diamonds at reduced costs. This is increasing the application scope of synthetic diamonds in various industries.
Threat of new entrants: The manufacturing process of synthetic diamonds requires expensive capital investments in machinery and technology, which poses challenges for new players to enter the market.
Bargaining power of buyers: The synthetic diamond market has a large customer base comprising jewelry manufacturers and industrial buyers. However, the availability of alternative substitutes at competitive prices allows buyers to negotiate on prices.
Bargaining power of suppliers: A few companies globally have the capability and resources to synthesize diamonds using technologies like high-pressure high-temperature (HPHT) and chemical vapor deposition (CVD). This concentration gives some bargaining power to suppliers.
Threat of new substitutes: Alternatives like moissanite exist but cannot match diamonds’ optical properties. However, laboratory-grown or cultured diamonds are emerging as substitutes offering similar look without mining impacts.
Competitive rivalry: The synthetic diamond market landscape is highly competitive due to the presence of several players offering undifferentiated products. Players focus on differentiating through branding and lowering costs.
The global Synthetic Diamond Market size is expected to witness high growth, exhibiting a CAGR of 7.0% over the forecast period of 2023 to 2030, due to increasing application in jewelry and industrial machinery. The market size for 2023 is estimated to be US$ 24.22 Mn.
North America currently dominates the market owing to high demand for synthetic diamonds in industries. However, Asia Pacific is expected to grow at the fastest pace during the forecast period due to the increasing jewelry demand from countries like India and China.
Key players operating in the synthetic diamond market include 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 focusing on leveraging new technologies to enhance product properties and lower production costs.
- Source: Coherent Market Insights, Public sources, Desk research
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