Synthetic Diamonds Market: Global Prospects & Challenges

The staggering ramifications of the COVID-19 pandemic affected the global distribution system of major countries producing synthetic diamonds. However, post-pandemic, the diamond industry was stimulated through digital platforms. With reduced operations, companies relied heavily on digital activities while focusing on their B2C online business. Sale of synthetic diamonds was expected to increase as manufacturers gave more importance to environment friendliness and sustainability in the production of lab-grown diamonds. Thus, due to the rising branding and marketing, along with increasing industrial uses, the global synthetic diamonds market is anticipated to advance with a CAGR of 8.26% during the forecasting period 2022-2028.

Additionally, major countries such as India and China have become a hub for the production and processing of lab-grown diamonds as a result of technological breakthroughs, cost-efficient production of gem-quality stones and growing consumer awareness. The rising production is because synthetic diamonds make an ideal window material for many industrial, R&D, defense and laser applications.

Rising Industrial Demand - Key Driver

Modern technology resembles the conditions under which diamonds naturally develop by using either of the two manufacturing methods high pressure-high temperature (HPHT) or chemical vapor deposition (CVD). Our study estimates that the high pressure-high temperature will dominate the manufacturing method segment, capturing a share of 59.59% during the forecast period 2022-2028. These processes produce synthetic diamonds with the same chemical properties as earth-mined diamonds, allowing them to be used in a variety of industry applications:

1. Construction

Synthetic diamonds such as HPHT diamonds are used in the construction industry due to their physical hardness for cutting, sawing, and drilling, making them a highly significant commercial material. The market’s demand in the sector is driven by the need to reduce construction times while delivering economical and effective performance. For instance, North America’s construction industry is anticipated to develop with a CAGR of 8.73% during the forecast period. The region has experienced substantial expansion owing to the repairing and building of roads and highways and other construction activities.

2. Mining

Mining is anticipated to dominate the industry vertical with a 19.30% share throughout the forecast period. Mining tools are subjected to severe wear during extraction, conveying, and services in drilling for minerals, oil and gas exploration, or processing natural rocks. Synthetic diamonds increase the durability of mining tools, making them operationally efficient. Furthermore, China holds the highest share in rare minerals production, followed by Australia and the United States, thus increasing the use of synthetic diamonds. The country will also witness numerous gas exploration projects over the long run, which may create a market for synthetic diamonds.

3. Healthcare

Lab-grown diamonds are used in therapeutic and curative laser applications due to their superior optical and thermal characteristics. Synthetic diamonds designed with nitrogen-vacancy (NV) centers can detect changes in magnetic fields. These are powerful tools for biosensing technologies used in the medical detection and diagnosis of diseases. For instance, magnetoencephalography (MEG) is a neuroimaging technique used to map brain activity and trace pathological abnormalities, such as epileptic tissue. Thus, the expanding healthcare sector will likely enhance the demand for synthetic diamonds from instruments such as laser devices.

4. Defense

Synthetic diamonds have superior carrier mobility, break down electric field and thermal conductivity; thus, they are emerging as one of the most versatile materials for defense. They have a variety of applications in defense, such as high-power radars, communication and electronic warfare systems, directed energy weapons, etc. Additionally, AKHAN Semiconductor and Lockheed Martin demonstrated the capability of a new diamond-based coating technology. This technology acts as a new solution to increase the survivability of manned and unmanned military aircraft systems.

Future Prospects

Even though lab-grown diamonds are an inexpensive alternative to earth-mined ones, the high cost of production can result in a setback for the synthetic diamonds market. For instance, a perfect CVD diamond can take 400 hours of hatching time and specialized reactors to culture the diamonds. These reactors consume approximately 10000 units of power monthly, thereby increasing operational costs. However, the ongoing research around quantum computing, simulation, communication and sensing, with potential impacts in healthcare and the automotive industry, is expected to increase synthetic diamonds’ applications and reduce the overall production cost.

For instance, in 2021, a German-Australian start-up Quantum Brilliance announced the installation of a diamond-based quantum accelerator leveraging synthetic diamond technology. The start-up stated promising applications, leading to major benefits for drug design, chemical synthesis, energy storage and nanotechnology.

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