CVD Lab-grown Diamonds Market

Updated on : March 19, 2024

CVD Lab Grown Diamonds Market Size

The global CVD lab grown diamonds market was valued at USD 11.3 billion in 2022 and is projected to reach USD 15.9 billion by 2027, growing at 7.1% cagr from 2022 to 2027. Rising demand for alternative sourcing for mined products supported by growing awareness amongst millennial consumers about the authenticity of lab-grown diamonds is expected to be the driving factor for the market.

Attractive Opportunities in the CVD Lab-grown Diamonds Market

e-estimated, p-projected

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CVD Lab Grown Diamond Market Dynamics

Driver: Growing interest in CVD lab-grown diamonds in the gem and jewelry sector

The increased interest in CVD lab-grown diamonds among millennials and generation Z is one of the main factors contributing to the anticipated growth. It was estimated that around 70% of millennials have considered buying a CVD lab-grown diamond for an engagement ring to tackle the negative social and environmental effects associated with mined diamonds. One such effect is the destruction caused by the extraction of natural diamonds—mining from deep caves and diamond mines could damage the environment. Thus, as the synthetic manufacturing of diamonds could reduce the overall impact of the jewelry industry on the environment, both the jewelry manufacturers and consumers are increasingly demanding CVD lab-grown diamonds. In fact, according to a report by Goldiam, the share of lab-grown diamonds in the global diamond market is expected to grow by 7% between 2020 and 2030.

Restraints: Unclear long-term value

Although the jewelry industry has started accepting the usage of CVD lab-grown diamonds, the long-term worth of these gems is still under the radar. Technological advancements in synthetic diamond production could reduce the value of lab-created diamonds that have already been sold. Furthermore, as these gems could be mass-produced, their allure and rarity are affected, further pushing down their market prices. Thus, it is estimated that the overall price of lab-grown diamonds is going to dip in the upcoming years, while that of mined diamonds has experienced a growing trend. Thus, the resale value of synthetic diamonds is largely uncertain, which is one of the key barriers for the growth of the market.

Opportunities: Potential applications in quantum devices and semiconductors

Research in quantum technology is being carried out in a plethora of areas including quantum computing, simulation, communication, and sensing. For these novel applications, a wide range of technological options, including trapped ions, superconductors, quantum dots, photons, and semiconductor flaws, are now being developed.

There are advantages and disadvantages to every technical solution. While superconducting circuits can be made, they can only be used at cryogenic temperatures; trapped ions offer exquisite quantum properties but are difficult to integrate. This is where materials like CVD diamond come into play. They provide a compromise by operating at normal temperature and being solid-state, making it simpler to integrate into devices. One of the advantages of diamond-based quantum devices is their simplicity. A basic device can be made from a green light source, a diamond, a small microwave source, and a photodetector. With these super-technologies gaining traction in electronics and semiconductor manufacturing, the demand for CVD-lab-grown diamonds could see a shining light during the forecast period.

Challenges: Challenges in CVD diamond manufacturing process

Manufacturers face many challenges when trying to produce consistently high-quality lab-grown diamonds. System stability, vacuum leaks, and component costs need to be carefully monitored by manufacturers. The color of CVD lab-grown diamonds is a major concern. At high growth rates, diamonds grown in a CVD lab appear brown. After HPHT, the brown is reduced or eliminated, but most manufacturers’ CVD diamonds are gray and black in the initial production phase. Manufacturers have to invest further in solutions for clearing the color of diamonds, which reduces their margins in the market.

Increasing demand from industrial applications driving demand for rough CVD lab-grown diamonds

The high hardness and high wear resistance of CVD synthetic diamonds make them excellent material to film industrial tools and machinery components. Furthermore, their high thermal conductivity and appreciable electrical insulation capability make them suitable thermal management systems such as heat sinks. In abrasive industrial applications, rough diamonds can suitably fulfil these requirements and at a considerably lower cost than polished diamonds, making them account for the larger market share in the global market.

Colorless CVD lab-grown diamonds are projected to account for the largest share through the forecast period

Colorless diamonds not only cost less but are also largely devoid of impurities and doping. They provide excellent optical properties such as high transmission, suitable refractory index, and shiny bling suitable for industrial as well as gemstone applications. Furthermore, most colorless and near-colorless CVD diamonds are inert to longwave UV light, making them suitable for optical applications. Also, the colorless CVD method is less expensive because it can be manufactured at moderate temperatures and low pressure, requiring smaller and less expensive equipment. Therefore, owing to these factors, the demand for colorless CVD diamonds is projected to expand considerably through the forecast period.

Rising awareness about the authenticity of CVD diamonds pushing its demand from the gemstone segment

In the initial years, the CVD lab-grown diamonds were perceived as fake diamonds. Therefore, consumers did not accept them as gemstones in their jewelry and luxury goods purchases. However, with the effort from the companies manufacturing CVD diamonds for increasing awareness as well as institutions such as the International Gemological Institution and Gemological Institute of America defining CVD lab-grown diamonds as real diamonds, the interest amongst consumers has spiked in recent years. According to a survey, about 70% of the millennial generation have considered purchasing jewelry made of CVD lab-grown diamonds for their loved ones. Moreover, jewelry manufacturers such as Ritani and Swarovski have also started offering CVD diamonds with a certificate of authenticity, assuring the consumers about their purchases. As these diamonds cost around 50 – 60% lower than mined diamonds, a significant part of the global population has became capable of buying diamond jewelry, which is driving the growth of this market.

Consumption of CVD lab-grown diamond in North America to account for the largest share during the forecast period with growing demand from both industrial as well as jewelry applications

North America is the dominant market for CVD lab-grown diamonds, driven by the demand from the US. According to US Geological Survey, about 99% of the industrial diamond tools in the US are manufactured using CVD process. With high-strength materials such as reinforced plastics and ceramics gaining impetus for weight reduction applications, the demand for diamond-based tools is expected to increase in the region for machining and abrasion applications. On the other hand, diamonds manufactured synthetically are also gaining traction in the US owing to their lower cost and overall lower environmental impact. Even though the manufacturing of CVD lab-grown diamonds is concentrated in the Asia Pacific region, a major share is imported in the US owing to the considerable demand.

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Key Market Players

Key players in this market are De Beers (UK), Goldiam (India), Adamas One Corp (US), and Sumitomo Electric Industries Ltd. (Japan). Other noteworthy private players in this market are Bhanderi Lab-grown Diamonds LLP (India), Hebei Plasma Diamond Technology Co., Ltd. (China), SP3 Diamond Technologies (US), Delaware Diamond Knives, Inc. (US), EDP Corporation (Japan), Tomei Diamond Corporation (Japan), Heyaru (Belgium), Beijing Worldia Diamond Tools Co., Ltd. (China), Ritani (US), and Shanghai Zhengshi Technology Co., Ltd.  (China). These players have acquisition, agreements and new product development as the major strategies to consolidate their position in the market.

Read More: CVD Lab Grown Diamonds Companies

CVD Lab Grown Diamonds Market Report Scope

This research report categorizes the CVD Lab-grown diamonds market based on type, color, application, and region.

Based on type, the CVD Lab-grown diamonds market has been segmented into:

• Rough
• Polished

Based on color, the CVD Lab-grown diamonds market has been segmented into:

• Colored
• Colorless

Based on application, the CVD Lab-grown diamonds market has been segmented into:

• Machine and Cutting tools
• Heat Sinks & Exchangers
• Optical, Laser and X-ray
• Electronics
• Healthcare Instruments
• Gemstone
• Others (oil and gas, automotive, water treatment and aerospace & defence)

Based on the region, the CVD Lab-grown diamonds market has been segmented into:

• North America
• Europe
• Asia Pacific
• Middle East and Africa
• South America

Recent Developments

• In June 2021, Goldiam announced the acquisition of an 88% stake in EcoFriendly Diamonds LLP (EDL). EDL was engaged in the manufacturing of lab-created diamonds using the CVD method. The acquisition was done by Goldiam in order to enter the fast-growing lab-grown diamond market in the Asia Pacific region.
• In January 2021, SP3 Diamond Technologies signed an agreement with MAPAL for the supply of diamond coatings. The OptiMill-Composite-Speed-Plus coating was the first successfully supplied coating to the company by SP3 Diamond Technologies.
• In 2020, Element Six developed its new CVD diamond-based offering, Diamfilm 2020, a thermally isotropic diamond film. The film has excellent heat sink characteristics along with dielectric permittivity, optical clarity, excellent electrical insulation, low density, and chemical inertness, making it an ideal material for advanced thermal management components.

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