In terms of revenue, the global synthetic diamonds market was valued at $15.13 billion in 2021 and is expected to reach $32.22 billion by 2030, growing at a CAGR of 8.89% during the forecast period, 2022 to 2030.

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Lab-grown diamonds, commonly referred to as man-made diamonds or lab-created diamonds, are grown in highly controlled laboratory settings using cutting-edge technological procedures. These processes replicate the environmental conditions under which diamonds are developed naturally beneath the Earth’s crust. Synthetic diamonds are made of real carbon atoms arranged in a diamond crystal form. Since they are composed of the same substance, synthetic diamonds also share the same chemical and optical characteristics as real diamonds.

Synthetic Diamonds Market

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In addition, modern technology imitates the process by which natural diamonds are formed, either through the use of high temperatures, pressures known as high pressure high temperature (HPHT) method, or a unique deposition technique termed chemical vapor deposition (CVD).

Key growth enablers of the global synthetic diamonds market:

• Affordable alternative for natural diamonds
• Growing need and less production time
• Increasing industrial demand for synthetic diamonds
  • Synthetic diamonds exhibit a very low coefficient of friction with exceptional hardness. This factor makes them advantageous across mechanical applications, especially in terms of reducing downtime, minimizing carbon footprints, decreasing operating costs, and extending tool life.
  • Aligning with this, polycrystalline diamond (PCD) is a tough synthetic diamond with excellent wear resistance, fracture toughness, and thermal stability.
  • It also comprises an ‘ideal ‘window’ material owing to its wide spectral band. Therefore, it is used for numerous R&D, defense, industrial, and laser applications and in automotive cutting applications, as well.

Key growth restraining factors:

• Declining value of synthetic diamonds
• Expensive and extensive set-up for synthetic diamond production
  • It can take up to 200 hours to produce a synthetic diamond in a laboratory setting. Besides, in order to produce a more perfect diamond (in terms of clarity and color), the hatching time may also extend up to 400 hours.
  • Lab diamond manufacturing equipment such as reactors also incur high operational costs as each reactor consumes roughly 10,000 units of power every month.
  • The cost of processing a rough diamond, i.e., cutting and polishing the diamond into a gemstone, is significantly high. As a result, the operation and care of diamond growth equipment require highly skilled professionals such as PhDs and special technicians.
  • Therefore, high initial capital investment will likely challenge the growth of the global synthetic diamonds market over the forecast period.

Global Synthetic Diamonds Market | Top Trends

• The next generation of inventions, including new quantum technology, is now being developed by scientists. Research is still underway on quantum computing, simulation, communication, and sensing, which could have an impact on, among other aspects, the development of novel materials, healthcare, and the automobile sector.
• One of the most adaptable super materials for defense is a synthetic diamond, which has a wide range of uses, including high-power radars, communication and electronic warfare systems, directed energy weapons, etc.
• While materials for implants and sensors frequently cause a significant foreign body reaction, current biomaterials for biomedical devices have limitations in their ability to regain performance.
• Due to its numerous advantageous qualities, such as biocompatibility, antibacterial capacity, antifouling capabilities, electrical conductivity, and chemical functionalization capacity, diamonds are becoming highly popular.

Market Segmentation – Manufacturing Process, Color, Distribution Channel, and Application –

Market by Manufacturing Process:

• High Pressure High Temperature (HPHT)
• Chemical Vapor Deposition (CVD)
  • The chemical vapor deposition (CVD) segment, under the manufacturing process category, is set to grow with the highest CAGR during the forecast period.
  • In chemical vapor deposition (CVD), a gas, such as methane is first introduced into a vacuum chamber, where microwaves are then used to activate and disassemble the gas’s molecules. As a result, carbon atoms start to build up on a substrate.
  • The CVD process is relatively less expensive since it operates at low pressure and moderate temperatures, requiring smaller and less expensive equipment
  • Moreover, yellow or blue synthetic diamond crystals can form in the chamber if nitrogen or boron are added.
  • The size of the stone at completion and the effectiveness of technologies employed determine how quickly a CVD diamond grows.

Markey by Color:

• Colored
• Colorless
  • Colorless is set to be the dominating color during the forecast period.
  • Low color grade CVD synthetic diamonds usually contain nitrogen in their as-grown form owing to their structural flaws. Besides, they always have a brown tint.
  • High pressure, high temperature (HPHT) is commonly used to transform such brown diamonds from practically colorless to colorless.
  • The success of the process depends on the quality and chemical composition of the solvent/catalyst melt, the choice of nitrogen getters, and the capacity to manage the chemical and thermodynamic conditions across the reaction layer.
  • Due to the costly modifications that must be made to the capsule design and the additional constraints placed on the chemical constituents to limit dopant uptake, especially nitrogen – the production of colorless HPHT synthetics is substantially more challenging.

Market by Distribution Channel:

• Online Channel
• Offline Channel

Market by Application:

• Construction
• Mining
• Oil & Gas
• Electronics
• Healthcare
• Jewelry
• Other Applications

Geographical Study Based on Four Major Regions:

• North America: The United States and Canada
• Europe: The United Kingdom, Germany, France, Italy, Spain, Belgium, and Rest of Europe
• Asia-Pacific: China, Japan, India, South Korea, Indonesia, Thailand, Australia & New Zealand, and Rest of Asia-Pacific
  • The Asia-Pacific is expected to be the most dynamic regional market, capturing the highest share in 2021.
  • The market growth of the region is attributable to the presence of numerous synthetic diamond manufacturing plants as well as a large skilled labor force for processing synthetic diamonds.
  • The region is flourishing with the increasing disposable incomes, in addition to favorable government policies and initiatives across various sectors. These include telecommunications, healthcare, and other industries, expected to play a vital role in fueling the Asia-Pacific synthetic diamonds market growth.
  • China captured the greatest market share of 34.75% in 2021, and this growth is set to continue to 2030, as the nation undergoes rapid industrialization and urbanization, coupled with the development of the construction and electronics sector. Hence, the demand for synthetic diamonds is expected to surge during the forecast period.
  • On the other hand, the proliferation of 4G/LTE networks and the IoT (Internet of Things) in India are pushing the market acceptance of electronics goods. Also, the country’s demand for IoT has increased as a result of programs like ‘Digital India’ and ‘Smart City’ projects. This is expected to further increase the demand for synthetic diamonds, thus propelling the region’s market growth.
• Rest of World: Latin America, the Middle East & Africa

Major players in the global synthetic diamonds market:

• Engis Corporation
• Brilliant Earth LLC
• Asahi Diamond Industrial Co Ltd
• Element Six
• Heyaru Engineering NV

Key strategies adopted by some of these companies:

In January 2021, a United States-based crystal growth technology enterprise, J2 Materials, was acquired by WD Lab Grown Diamonds to lead the company in the global synthetic diamonds market.

In August 2021, a new range of heavy-duty tools, i.e., the HD™ Series with its own proprietary MasterGrade™ carbide, was launched by Element Six SE for the provision of superior performance and improved reliability for milling and reclaiming operations, as well as extended tool life.

In February 2019, Sumitomo Electric Industries Ltd established a strategic partnership with Aquantia Corporation for Sumitomo Electric in order to offer Multi-Gig Ethernet connectivity products to autonomous vehicle manufacturers globally.

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