Growing Industrial Activities to Accelerate Demand for Synthetic Diamonds

The top three players leading the global synthetic diamond market are ElementSix, SandvikAB, and ILJINCo. , Ltd. These companies held a dominant 75.6% in the overall market in 2014. A new research report by Transparency Market Research indicates that forward integration has helped these players maintain their winning positions. However, the future will be dictated by sound investments in research and development activities to lower manufacturing costs and enhancing the product quality. 

"Setting up manufacturing plants in developing regions of Asia Pacific will also yield higher returns on investments," states the author of the research report. Tying up with research institutes to further bring down the research and development costs will also benefit the manufacturers of synthetic diamonds in the coming years.

Synthetic diamonds find an indispensable usage in myriad industrial applications such construction, computer chip production, oil and gas exploration, mining activities, stone cutting and polishing, and in surgeries. Thus, the definite rise in these activities has led to an upsurge in the demand for the synthetic diamond market. The ability of synthetic diamonds to remain unscathed in extreme conditions makes them a preferred choice amongst the aforementioned industries. Therefore they are used in high-energy research facilities and for highly abrasive tasks such as cutting and polishing.

The low cost of synthetic diamonds by a fair margin as compared to natural diamonds also increases their utility in a wide range of activities. Furthermore, availability of synthetic diamonds in a wide spectrum of colors is making jewelry not only affordable but aesthetic as well. Currently, synthetic diamonds make a 1% contribution to the global diamond jewelry market. "The ongoing research and development in improving the synthetic diamond technology is expected to increase the usage of synthetic diamonds in jewelry making in the coming years," reports the lead author of this research report.

Qualities of synthetic diamonds such as high mechanical strength, high thermal conductivity, low toxicity, and strong chemical inertness make them an integral component of various electronic products and semiconductors. Therefore, upbeat trends in both of these industries in the near future is going to have positive reflection on the synthetic diamonds market as well.

The complicated procedure of manufacturing large-sized synthetic diamonds is a major restraint for the overall market. Attaining a sizeable product with the desired cut, color, and clarity remains a big challenge for the manufacturers operating in this industry. Furthermore, the time-consuming nature of creating synthetic diamonds still remains a huge hurdle for this industry. 

The market drivers in the global synthetic diamonds market are expected to drive the overall market to a valuation of US$28.83 bn by 2023 from US$15.73 bn in 2014, as the market is estimated to expand at a CAGR of 7.0% from 2015 to 2023. Asia Pacific will lead the global market with a volume share of 55.8% by 2023 due to a phenomenal growth in construction activities. The construction and mining industry will be the leading end-use segment as it is expected to represent 62.3% of the market by 2023 in terms of volume.