Analysis on China's Diamond Tools Market Situation

Diamond tools are widely used in geological prospecting, stone, machining, auto, the national defense industry, and many other industry application fields. Diamond tools that are used for machining, geological drill bits, and stone cutting tools have seen a substantial improvement in aspects of manufacturing techniques. 

For the past few years, demands for diamond tools have seen an increase annually in such fields as machining, gemstone, medical device, wood, glass fiber reinforced plastics, stone crafts, ceramics, and nonmetallic compound hard and brittle materials. Currently, PDC drill bits for oil exploration, diamond fickert for stone polishing, honing stone, diamond rotary dressers, PCD cutters, diamond files, and triode are in an urgent need to be developed. To meet the market demand and guarantee quality, the promotion of new technologies and techniques, for example, vacuum welding, spark sintering, laser welding, etc, should be accelerated.

Diamond tools play an irreplaceable role in various industrial fields due to their superior performance, such as super hardness, wear resistance, high temperature resistance, oxidation resistance, and erosion resistance. Diamond tools are used in cutting and processing of special materials, such as granite, marble, all kinds of minerals, refractory materials, armored concrete, ceramics, bituminous pavement, airfield runway, etc. In the past decade, diamond tools market demand have been growing at 15% annually. The market demand is expected to increase at a speed of over 20%. As a result, diamond tools manufacturing industry in China is faced with unprecedented opportunities.

Diamond tools market in China has two segments – high-end specialized market and low-end market. The former targets a professional diamond tools market with high-performance, namely, it focuses on special cutting equipment and cutting materials. So the diamond tools are required to reach certain technical standards in terms of cutting efficiency, service life, and cutting precision. The total output of specialized diamond tools market only takes up around 10% of the low-end market, while the sales revenue accounts for more than 80% of the entire diamond tools market in China. However, over 1,000 diamond tools manufacturers existing in China concentrate on low-end market. Supply exceeds demand due to fierce competition in the entire industry. While high-end diamond tools pose a higher demand for production equipment, investment, and techniques, they sell at a higher price with abundant profits, and the market are monopolized by Europe, the U.S, and Japan. With the manufacturing industry's shifting from developed countries to developing countries, China's diamond tools manufacturers are still faced with huge potential markets.