Synthetic Diamond Market To Witness High Growth Owing To Rising Demand From Semiconductors Industry
The Synthetic Diamond market is estimated to be valued at US$ 24.22 Mn or 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.
Market Overview:
Synthetic diamond is an artificially produced diamond. It has similar physical and optical characteristics as natural diamond. Synthetic diamond is used in various applications such as mechanical devices, heat spreaders, ceramic-to-metal seals, electronics, semiconductors, quantum computing, laser optics, and medical devices. The growing semiconductor industry is majorly driving the demand for synthetic diamond.
Market Dynamics:
The growth of the synthetic diamond market is primarily driven by the rising demand from the semiconductors industry. Synthetic diamond is used in various semiconductor devices and components owing to its thermal conductivity and electrically insulating properties. According to World Semiconductor Trade Statistics, revenue from the global semiconductor market was valued at around USD 548 billion in 2022 and is expected to grow by over 7% annually till 2026. The other driver for synthetic diamond market growth includes increasing use in mechanical devices. Synthetic diamond is highly durable and has high mechanical strength, making it suitable for applications such as drilling tools, cutting tools, polishing disks, etc. which further supplements the market growth.
SWOT Analysis
Strengths:
- Synthetic diamonds have same optical, thermal and physical properties as natural diamonds. This makes them ideal substitute for jewelry and industrial applications.
- Production process allows customization of diamond characteristics like color, clarity and carat weight as per customer requirement.
- Lower prices compared to natural diamonds increases affordability and market size.
Weaknesses:
- Lack brand recognition and prestige associated with natural diamonds limits adoption in high-end jewelry segment.
- Process of diamond synthesis in laborious and capital intensive requiring sophisticated technology and equipment.
Opportunities:
- Growing demand for superhard materials from industries like electronics, optics and defense provides significant growth opportunity.
- Rising middle class population in developing economies willing to spend on premium products represents new potential customer base.
Threats:
- Negative publicity around lab grown diamonds questioning their authenticity and value impacts consumer sentiment.
- Aggressive marketing campaigns by natural diamond industry undermine credibility of synthetics.
Key Takeaways
The global synthetic diamond market forecast is expected to witness high growth, exhibiting CAGR of 7.0% over the forecast period, due to increasing demand for superhard materials from electronics and defense industries.The market size for 2023 is US$ 24.22 Mn.
Regional analysis: North America dominated the market in 2023, accounting for around 30% of global revenue due to presence of many prominent synthetic diamond manufacturers and advanced technology centers. However, Asia Pacific is anticipated to grow at fastest pace owing to rising electronics and optics industry in countries like China and India.
Key players: 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. The market is consolidated in nature with top players accounting for over 70% share.
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