Preliminary research of Fairfield Market Research indicates a promising growth outlook for global synthetic diamond market during the course of next few years.
Unwavering Demand from Electronics & Semiconductor, and Fashion Industries Drives Synthetic Diamond Market
The rise in demand for synthetic diamonds from the semiconductor and electronics industry is the main driver fueling the growth of the global synthetic diamond market. The general population's increa se in disposable money is also benefiting the market. The growth of the market is also driven by the expansion of the fashion sector globally and the publication of these items in publications. Additionally, the market will benefit from advancements in production machinery for drilling, dressing, and polishing. Due to lockdowns initiated as a result of the pandemic, a scarcity of workers, industry closures, and skyrocketing transportation costs, the COVID-19 epidemic has slowed the expansion of market.
The global synthetic diamond market is being constrained because consumers do not favor purchasing synthetic diamonds over real diamonds. Additionally, because the production of synthetic diamonds is labor-intensive and complex, this issue may also deccelerate expansion. High investments are currently being made in new technologies to produce synthetic diamonds, which may lead to low production costs and high-quality and aesthetic synthetic diamonds. In addition, many businesses are working to establish their brand presence through the fashion industry to grow in that sector. These are some of the opportunities that may incline the demand for synthetic diamonds in the global market.
Synthetic Diamond Market: COVID-19 Impact
Because of the interruption to global supply lines and manufacturing facilities caused by the COVID-19, the synthetic diamond sector suffered. On the other hand, due to the closing of brick and mortar stores, internet channels have seen an increase in demand for synthetic diamonds. Following the pandemic, synthetic diamond sales are predicted to rise as environmental sustainability and friendliness gain in importance. The producers of synthetic diamonds have put more of an emphasis on sustainable production. Due to the pandemic's interruption of supply chains and exports from nations like China, and India, the sector for lab-grown diamonds suffered. Moreover, as the pandemic situation hampered operations of brick and mortar stores, the power of online has increased to a large extent. After the epidemic, it is anticipated that sales of lab-grown diamonds would rise as sustainability and environmental friendliness gain in significance. The creation of lab-grown diamonds sustainably is being given more attention
Broadening Industrial Application Fuels Synthetic Diamond Market
Many synthetic diamonds, including bort, grit, dust, and powder, have various uses in various end-user sectors. Artificial diamonds are employed in various industrial applications in almost all cases. They play a significant role in a variety of industries, including the production of computer chips, building, the manufacture of machinery, mining services (such as drilling for minerals), the exploration of gems, the cutting and polishing of stones, surgery, astronomy, experimental physics, and electric insulation.
Synthetic Diamond Market Benefits from Lower Price over Natural Counterparts
Deep below the earth, there are naturally occurring new diamond resources, which complicate and increase the cost of extraction. Additionally, it is reliant on a limited supply. For most minerals over the past few years, the capital intensity of new projects has increased several times. Aside from that, the cost of labor and energy, two significant input elements, has increased quickly. It follows that an increase in carat price is anticipated for natural diamonds, which would favor the progression of synthetic diamond market. Chemical vapor deposition (CVD) and high-pressure, high-temperature (HPHT) technologies are primarily used to produce synthetic diamonds. When compared to the production of natural diamonds, creating synthetic diamonds using either of these two methods is considerably less expensive.
In comparison to their rare-mined counterparts, colored synthetic diamonds are more affordable and more widely available. Compared to fancy-colored mined diamonds, colored synthetic diamonds can offer more affordable jewelry designs. Like mined diamonds, synthetic diamonds base their value on four factors – carat weight, cut, color, and clarity. Industrial diamonds, both natural and man-made, have very different prices. Generally speaking, the cost of synthetic diamonds ranges from US$800 per carat to US$1,000 per carat. Synthetic diamonds account for just 1% of the world's diamond jewelry market. However, because of ongoing R&D in synthetic diamond making, it is anticipated that synthetic diamonds in jewelry production will rise. This is likely to facilitate the growth of synthetic diamond market.
Complex Manufacturing Process Challenges Progression of Synthetic Diamond Market
Unfavorable market conditions brought on by the coronavirus outbreak will be a significant obstacle to the expansion of the synthetic diamond industry. Additionally, the growth rate of synthetic diamond market will be hampered by customer attitudes toward synthetic jewelry and their preference for real diamonds. Complexity in the production process will further impede market growth rate. A lack of strong branding and marketing structures would also hamper a steady rise in market rate.
Synthetic Diamond Market Witnesses Dominance of HPHT Segment
HPHT, and chemical vapor deposition are two categories for the global synthetic diamond market based on the manufacturing technique (CVD). The high-pressure, high-temperature method produces several applications for synthetic diamonds. Since high pressure and high temperature are relatively cheap, it is frequently utilized. In turn, it is anticipated that the market share of the high-pressure high-temperature segment will increase significantly during the forecast period.
Heat-resistant High-end Electronics Remains a Leading Segment in Synthetic Diamond Market
The synthetic diamond market is divided based on application into gem, heat sinks/exchangers, high-end electronics, laser and X-ray, machine and cutting tools, surgical machinery, water treatment, quantum computing, optical, sensors and scanning, medical, and electricals. With the largest market share, the high-end electronics segment currently rules the global synthetic diamond market. It is anticipated that this segment will continue to control the market during the forecast period and grow significantly. The demand for a synthetic diamond in the electronics industry is caused by the fact that it serves as an exceptional heat sink, keeps other components like silicon chips and semiconductors from overheating, and has emerged as a key heat-sink technology in the industry.
Synthetic Diamond Market of Asia Pacific Surges Ahead on the Back of High Manufacturing Activity
The majority of the global market share was in the Asia Pacific region. Synthetic diamonds have a considerable market in China due to the significant production activities carried out by several end-user industries. The country's construction industry is anticipated to grow by about 6% in 2022, according to China's five-year plan, which was unveiled in January 2022. China intends to boost the building of prefabricated structures to lessen waste and pollution from construction sites. The nation produces electronics to meet domestic demand and exports them to other nations. The demand for electronic devices is anticipated to rise as middle-class households' disposable incomes rise. This element is anticipated to boost the growth of synthetic diamond market. China produces fewer than 20% of the world's semiconductors, making it a net importer of semiconductor chips. The Chinese government has declared its intention to produce US$305 Bn by 2030 and satisfy 80% of domestic demand as part of the nation's ambitious Made in China 2025 strategy.
Furthermore, as part of the Pradhanmantri Awas Yojana, the government of India has agreed to offer interest subsidies of 3% and 4% for loans up to INR 12 lakhs & 9 lakhs, respectively, to the lower stratum of society for home construction and home purchase. Synthetic diamonds for heat sinks are in high demand due to the expanding electronics industry. By 2025, India's consumer electronics and appliances sector is anticipated to rank fifth globally. Furthermore, it was predicted that domestic Japanese electronics sector production would increase by 11% year over year in 2021 to reach JPY 10,932.2 billion. The country's electronics industry is expected to increase demand for synthetic diamonds as domestic industry production is predicted to reach JPY 11,161.4 billion in 2022, along with a growth rate of 2% Y-o-Y. These elements suggest that the region's synthetic diamond market will continue to expand steadily over the forecast period.
Global Synthetic Diamond Market: Competitive Landscape
A few of the top players in the synthetic diamond market include Element Six UK Ltd. (UK), Scio Diamond Technology Corporation (US), Applied Diamond Inc (US), HEYARU (India), Sandvik Group (Sweden), ILJIN DIAMOND CO., LTD. (South Korea), Henan Huanghe Whirlwind CO.,Ltd. (China), Zhengzhou Sino-Crystal Diamond Co.,Ltd. (China), Industrial Abrasives Ltd (UK), Swarovski (Austria), Soham Industrial Diamonds (India), Eco Star Diamond (India), Krystal Grown Diamonds (India), HeNan LiLiang Diamond Co., Ltd (China), New Diamond Technology (Russia), Forever Companies (US), Hyperion Materials & Technologies (US), Scio Diamond Technology Corporation (US), Nova Diamonds Pty Ltd (Australia), and Charles & Colvard (US).
Recent Notable Developments
Regional Classification of Global Synthetic Diamond Market Can be Given as Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability.
Key Elements Included In The Study: Global Synthetic Diamond Market
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