The synthetic diamond market size was valued at around USD 18. 36 billion in 2020, and the market is projected to register a CAGR of over 7% during the forecast period (2021-2026). The market was negatively impacted by COVID-19 in 2020.
New York, Sept. 06, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Synthetic Diamond Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06134951/?utm_source=GNW
Synthetic diamond finds its major application in the construction industry. Considering the pandemic scenario, the construction activities were at a temporary halt during the lockdown. Thus, this led to a decrease in the demand for synthetic diamond-based cutting, grinding, and saw blades, which had negatively impacted the market’s demand for synthetic diamonds.
Over the short term, the growing demand for super abrasives for grinding, cutting, dressing, and drilling tools is expected to drive the market’s growth.
Consumers’ perception of the original diamond and unfavorable conditions arising due to the impact of COVID-19 are the factors hindering the market’s growth.
Asia-Pacific dominated the synthetic diamond market across the world, owing to the rapid growth of electronics manufacturing in countries like China, India, and Japan.
Key Market Trends
Growing Demand for Polished Diamonds from the Electronics Industry
The usage of synthetic diamonds in the electronics industry has been increasing due to their ability to act as a heat sink. Synthetic diamond prevents silicon and other semiconductor materials from overheating, and thus, it has become a critical heat-enabling technology.
The demand is expected to increase during the forecast period, as semiconductors have become more embedded in the ever-increasing product number, from cars to coffee makers, and nascent technologies, such as artificial intelligence, virtual reality, and the Internet of Things (IoT).
Synthetic diamond is unmatched in its ability to diffuse heat. When used as a semiconductor, synthetic diamond is used to manufacture smaller and more powerful electronics, thereby increasing its usage in radio frequency (RFs) and power device types.
Moreover, due to the high refractive index of the diamond, it is used in telecommunication information transmissions, as it minimizes the information loss during high-level-security signal transmission. It also increases the transmission capacity.
The global consumer electronics industry has been proliferating across the world over the years, owing to the consistently increasing demand for cellular phones, portable computing devices, gaming systems, and other personal electronic devices, which in turn are driving the demand for semiconductors and boosting the market demand of synthetic diamond in semiconductor applications.
This increasing usage of semiconductors by various end-users is expected to boost the demand for synthetic diamonds from the electronics industry during the forecast period.
Asia-Pacific Region to Dominate the Market
The Asia-Pacific region dominated the global market share. Owing to the high manufacturing activities by numerous end-user industries in the country, synthetic diamonds have a huge market in China.
The electronic manufacturers in China are making attempts for intelligent manufacturing and upgrading to high-end manufacturing. Apart from China, the ASEAN region is the largest exporter of electronics, which is equivalent to about 25% of the region’s total exports in goods.
Japan also has significant contributions to the electronics and IT industries. Japanese electronics and IT industries were valued at about USD 327 billion in 2020, and they are estimated to reach about USD 340 billion in 2021, with a growth rate of about 4%, which in turn stimulates the market demand for synthetic diamonds.
Synthetic diamonds are widely used in the stone and construction industry. They are used in cutting blade solutions for all abrasive surfaces. Other applications of synthetic diamonds in the construction industry include sawing, cutting, grinding, diaphragm wall cutting, tunneling, etc.
The Chinese healthcare industry is the second largest industry globally after the United States, and it registered a revenue of USD 1.1 trillion in 2019. China is expected to have 25% of global healthcare industry revenue share by 2030. This is expected to increase the demand for synthetic diamond in medical applications.
The medical device market in China is one of the fastest-growing market sectors. The number of private hospitals in the country is less and the procurement of healthcare product is majorly driven by large public hospitals, which led to the increasing usage of medical devices in public hospitals. This factor drove the demand for synthetic diamond in the sector
Furthermore, the total new construction in Japan was accounted for about 127.55 million square meters in 2019 and reached about 113.74 million square meters in 2020, with a decline rate of about 10.5%, thus led to a decrease in consumption of synthetic diamond used in the construction industry.
Therefore, the aforementioned factors are expected to show a significant impact on the market in the coming years.
The synthetic diamond market is highly fragmented, with various large, mid-sized, and small players focusing heavily on research and innovation, to cater to the rising demand. The market is demand-oriented, due to which, products are manufactured depending upon the specifications from the end-user industry. Some of the key players in the market include Element Six UK Ltd, Sumitomo Electric Industries Ltd, Zhongnan Diamond Co. Ltd, Henan Huanghe Whirlwind Co. Ltd, and Zhengzhou Sino-Crystal Diamond Co. Ltd, among others.
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