The global synthetic diamond market has been valued at USD 16.83 billion in 2016 and is expected to reach USD 23.8 billion by 2021, growing at a CAGR of 7.14% during the forecast period, 2016-2021.

Synthetic diamond, also known as cultured diamond, cultivated diamond or artificial diamond, is produced using an artificial process, unlike natural diamond which is produced using a geological process. These diamonds exhibit similar properties like natural diamonds and can be manufactured at a lower cost. They are widely used in various end-user industries. Synthetic diamond can be used for grinding, polishing, milling, cutting and drilling as an abrasive due to its high rigidity. These diamonds also have good electrical and thermal properties and are used in electronics as material for wafer substrate and conductors. Synthetic diamond is also referred to as HPHT diamond or CVD diamond depending on the manufacturing process, high-pressure high-temperature (HPHT) and chemical vapor deposition (CVD).

Market Dynamics

The synthetic diamond market is driven by its low-cost as compared to the normal diamond. The other driving factor is the increase in its demand in various end-user applications, since it can be modified as per the requirements of end-user industries. The main restraint or drawback for the synthetic diamond market is the complex manufacturing process.

Market Segmentation

Synthetic diamonds are segmented by the way they are manufactured, i.e. high-pressure high-temperature (HPHT) and chemical vapor deposition (CVD) methods. These diamonds are also categorized by type into polished or rough. By the product segment, synthetic diamonds are divided into dust, grit, stone, bort and powder. Depending on the end-user application, they are divided into jewelry, electronics, construction, mining and healthcare.

The market has been geographically segmented into Asia-Pacific, Europe, North America and the Rest of the World. Asia-Pacific is the biggest market for the synthetic diamond, with over 50% share of the global synthetic diamond market, in 2014, due to an increase in the end-user application. This is also due to the increase in mining activities in India, China and ASEAN countries. Europe has a slow growth due to its economic crisis. The Middle East and Africa and South America are growing significantly in this market due to the increased use of synthetic diamond in construction activities.

Opportunities & Market Players

The growing environmental regulations regarding the mining process for extracting natural diamond are likely to affect the production of natural diamonds, and hence paving the way to produce synthetic diamonds. The synthetic diamond’s use in semiconductor industries is also an opportunity for the market.