Rising Proclivity for Synthetic Diamonds driven by their Ethical Sourcing and Less Environmental Footprint Advantage
Published On : Nov 22, 2018 | Category : Energy & Natural Resources
The advent of synthetic diamonds or lab-made diamonds has stirred up the diamond industry that is still prevailed by the natural mined diamonds market. The waves of the popularity that these have garnered over the past few years across the world over are underpinned by the changing buying habits of consumers, especially the millennials. The evolution of the synthetic diamonds market is reinforced by the rising affinity of ethically-sourced diamonds that are of same chemical composition but at lower cost. These are responsibly produced lab-created diamonds with the use of less natural resources.
In recent years, retailers and jewelry brands in a number of countries are warming up to the idea of synthetic diamonds. That aside, synthetic diamonds have gained vast popularity in various industrial applications. They are popularly demanded in electronics, especially for PC chip creation; in the production of machine parts, to be used notably in the construction and mining activities; and stone cleaning and cutting, and gem exploration. The less environmental impact and low cost are the key propositions fueling the demand for synthetic diamonds.
Over the years, the demand for synthetic diamonds are expected to be not restricted to niche markets. If the projections by a report by Transparency Market Research is to believed, the global synthetic diamonds market is projected to reach worth of US$29.15 billion by 2025 end, garnering a CAGR of 7.0% during 2017–2025.
Which factors play key role in the rising consumer acceptance of lab-grown diamonds?
Several factors are at play in the favorable demand dynamic of synthetic diamonds in several end-use industries, including in the jewelry industry. The shifting consumer attitudes toward environmental-friendly sourced diamonds as opposed to mined ones is a key factor underpinning the growing proclivity of lab-grown diamonds in end-use industries. Their attractiveness is further stoked by its easier accessibility than that of mined diamonds which may take billions of years to form. The fluctuating mining profits related with sourcing of natural diamonds is also contributing to the popularity of synthetic diamonds.
The extensive demand for synthetic diamond-made items in the oil and gas industry is propelling the growth of the market. Moreover, lab-based diamonds are increasingly being used in water treatment in household and industrial segments. Moreover, synthetic diamonds based on polycrystalline CVDs are being used in high-end amplifiers.
How the advent of advanced manufacturing technologies has opened new avenues in the market?
The advent of advanced fabrication technologies, notably chemical vapor deposition (CVD), for synthetic diamonds has helped manufacturers lend versatile properties, pertaining to optical, mechanical, thermal, acoustic, electrochemical, and electronics properties. This is continuously expanding the application areas of these diamonds, especially in developing markets. Among the various regional markets, the demand for synthetic diamonds in Asia Pacific, is expected to rise at a staggering pace. This is attributed to the rising use of synthetic diamonds and its products in numerous economies of the region, such as in China, Japan, and India. The demand for synthetic diamonds by diamond wafer technologies in Japan is a case in point.
Several players in Asia Pacific are focused on leveraging the potential of synthetic diamonds for the fabrication of next-generation electronics. Furthermore, relentless research in China has opened new, exciting synthetic diamond fabrication technologies. Moreover, synthetic diamonds are expected to have a robust value proposition in the Middle East and Africa market.