SandvikAB, ElementSix, and ILJINCo. , Ltd. held the dominant share of 75.6% of the global synthetic diamond market in 2014. This is indicative of the market’s highly consolidated vendor landscape. As per a new study by Transparency Market Research (TMR), forward integration has helped these companies achieve dominance in the global synthetic diamond market. “The market’s future will be dictated by increased investments in research and development activities aimed at lowering manufacturing costs and improving the product quality,” said a lead TMR analyst.
“Building manufacturing facilities across Asia Pacific will yield higher opportunities for the market as well,” he added. In addition, business are tying up with research institutes to bring down R&D investments, while continuing to benefiting from the latest advances.
According to the report, the global synthetic diamond market is projected to exhibit a CAGR of 7.0% between 2015 and 2023. Rising at this pace, the market is expected to reach US$28.83 bn by the end of 2023, from a valuation of 15.73 bn in 2014. By the end of the forecast period, Asia Pacific is likely to emerge dominant with a share of over 55% in the global market. The phenomenal growth of the construction sector will aid the expansion of synthetic diamond market in the region. By end use, the construction and mining industry is likely to lead the market and hold over 62.3% of the overall market based on volume by the end of 2023.
Strong Research and Development Initiatives to Boost Use of Synthetic Diamonds
Synthetic diamonds have found use in diverse industrial applications such as construction, oil and gas exploration, computer chip production, stone cutting and polishing, surgeries, and mining activities. The rise in these activities has thus created significant scope for the market’s expansion. Synthetic diamonds remain unscathed even in extreme conditions, which has led to their widespread uptake across the aforementioned industries. Synthetic diamonds are also used for highly abrasive tasks such as polishing and cutting across
Therefore they are used in high-energy research facilities and for highly abrasive tasks such as cutting and polishing. Synthetic diamonds are available at a fairly low cost as compared to natural diamonds and have utilities across diverse activities. This, coupled with the easy availability of synthetic diamonds in a wide variety of colors, has bolstered their use in designing jewelries not only affordable but aesthetic. Synthetic diamonds currently account for a meager 1% of the global diamond market. However, research and development activities are underway to improve the quality of synthetic diamonds to boost their usage across the jewelry industry.
Complex and Time-consuming Manufacturing Process to Limit Market’s Growth
Despite witnesses robust growth, the procedure of manufacturing large-sized synthetic diamonds is extremely complex, which is acting as a major restraint for the overall market. Furthermore, getting the required size of synthetic diamonds with desired cut, color, and clarity still remains a big challenge for the market. Additionally, creating synthetic diamonds is a time-consuming process, which is inhibiting the expansion of the market to an extent.
Nevertheless, the rising demand for low-cost costume jewelries is expected to keep the demand for synthetic diamonds high through the forecast period.
This review is based on a report published by TMR, titled “Synthetic Diamond Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015–2023.”
The report segments the global synthetic diamond market as:
Synthetic Diamond Market: Manufacturing Process Analysis
Synthetic Diamond Market: Type Analysis
Synthetic Diamond Market: Product Segment Analysis
Synthetic Diamond Market: End-user Analysis
Synthetic Diamond Market: Regional Analysis
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