Diamond Coatings - Global Market Outlook (2021 - 2028)

Diamond Coatings - Global Market Outlook (2021 - 2028)

According to Stratistics MRC, the Global Diamond Coatings Market is accounted for $2.49 billion in 2021 and is expected to reach $4.61 billion by 2028 growing at a CAGR of 9.2% during the forecast period. Diamonds are one of the hardest materials that man has known due to which it is far more effective and efficient than other materials which are used for abrasive, cutting, shaping, or finishing tools and have the highest thermal conductivity among all known materials. Diamonds also have very low thermal expansion and high electrical resistance. Their very high thermal conductivity makes them ideal for spreading and conducting heat out of compact, high-power, high-speed electronic packages. Some of the major benefits include high thermal conductivity, low coefficient of friction, maximum surface hardness, and exceptional wear properties. In terms of application, diamond coatings offer an excellent solution for a wide range of surface performance issues.

Market Dynamics:

Driver:

Innovation in technology through R&D

Key players in the diamond coatings market invest heavily in R&D activities every year to update and upgrade their offerings according to the end-use industry demands. Diamond coating is done to improve the substrates’ properties. Depending on the thickness of the coating layer and precursor material used, the properties of the substrate materials can be improved. R&D activities are carried out in various regions by universities and independent research organizations to improve the properties of the substrate materials with different precursor materials and reduce the cost of diamond coating process to benefit the end-users. Companies involved in the diamond coating process need to invest significantly to continuously update their product portfolio to meet the newer and increasing demands from end-users. Hence, innovation in technologies is expected to create a wider scope for the diamond coatings market in the coming future.

Restraint:

High investment

The diamond coating process requires a lot of capital investment. CVD and PVD technologies are capital intensive, and the equipment used in these coating technologies require special operating conditions, such as high temperature and controlled vacuum conditions for operation. The cost of manufacturing diamond-coated equipment is high and, since a few top global players control the market, the cost of equipment and tools for the end-use industry is high. The process of coating varies for different applications. It depends on the material to be coated and the thickness of the film layer. Different equipment is needed for different applications. The cost of diamond coating machinery is very high. Hence, it is not feasible for the end-user to set up their machines to diamond coat tools and equipment.

Opportunity:

Enhanced life of cutting tools and equipment

Diamond coating is done through advanced surface engineering technologies such as CVD and PVD and has been increasingly explored for cutting-tool applications. The diamond is an ideal element because of its high hardness and strength, low friction coefficient, and chemical stability, among others. Diamond coating enhanced the life of tools and equipment. This has increased its usages in lightweight and high-strength components, which have resulted in significant interests among end-users. Diamond-coated tools have great potential in various machining applications. It is advantageous in the fabrication of cutting tools with complex geometry such as drills.

Threat:

Adhesion difficulties on various substrates

Currently, there are issues and problems related to diamond coatings such as characterization and nucleation on foreign surfaces. Coating delamination is a major issue in the diamond coating process. Strong adhesion between the coating and the substrate is a key factor that determines the performance of the coating. The introduction of diamond-coated tools for industrial machining of materials was initially hampered mainly by coating adhesion difficulties. However, this difficulty has been addressed through several R&D done by diamond coating companies. With tungsten-carbide substrates, various techniques have been developed to enhance the adhesion strength. However, diamond coating on hard metal and ceramic tools still need extensive R&D. This remains a challenge as experimental results have not been consistent in many cases.

The electrical and electronics segment is expected to be the largest during the forecast period

The electrical and electronics segment is estimated to have a lucrative growth. This can be primarily ascribed to the unique combination of the thermal conductivity with high electrical resistivity and other favourable electronic properties possessed by CVD diamond coating, which makes it the enabling material for a new generation of high-performance electronics and computer products. The benefits of diamond have been measured in the thermal management of power semiconductor devices and insulated gate drive bipolar transistors. This is augmenting the demand for diamond coatings in the electronics industry and subsequently, driving the global diamond coatings market.

The chemical vapor deposition (CVD) segment is expected to have the highest CAGR during the forecast period

The chemical vapor deposition (CVD) segment is anticipated to witness the fastest CAGR growth during the forecast period. Chemical vapor deposition (CVD) is a deposition method used to produce high-quality, high-performance, solid materials, typically under vacuum. This technique of CVD process for diamond involves the deposition of carbon atoms that originate from the dissociation of a carbon-containing gas precursor on a solid substrate. In electronics industry benefits of CVD diamond have been measured in the thermal management of power semiconductor devices and insulated gate drive bipolar transistors other favorable electronic properties, which makes it the enabling material for a new generation of high-performance electronics and computer products.

Region with highest share:

North America is projected to hold the largest market share during the forecast period due to rising consumer demand, as well as the expansion of end-use industries. The high adoption of advanced technology and the presence of large players in this region are likely to create ample growth opportunities for the market. Growth of the automotive sector and increased investments in the healthcare sector and investment into sophisticated, cutting edge technologies are driving the market in the region. Advancement in technology and the development of the latest equipment and diamond coated tools are driving the regional market.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period due to its growing end-use industries, increasing domestic demand and income levels. Owing to the availability of cheap labor and economical and accessible raw materials, there are significant foreign investments, which are also driving the market growth in the region. Local manufacturers in APAC are successfully providing similar diamond coated tools and equipment at lower costs.

Key players in the market

Some of the key players profiled in the Diamond Coatings Market include Advanced Diamond Technologies, Inc, Anglo American Plc, Blue Wave Semiconductors, Crystallume, D-Coat GmbH, Diamond Product Solutions, Element Six, JCS Technologies, John Crane, NeoCoat SA, OC Oerlikon Management AG, SP3 Diamond Technologies, Surface Technology Inc, and United Protective Technologies LLC.

Key Developments:

In January 2020, Oerlikon acquired D-Coat, a supplier of Diamond Coatings technology, in order to expand its portfolio in surface treatment technologies especially in the cutting tools in aerospace and automotive industry.

In April 2019, John Crane announced that it completed the acquisition of Advanced Diamond Technologies (ADT), Industrial Division. ADT, based in Romeoville, Illinois, the United States, is a leader in the development and application of diamond films for industrial, electronic, mechanical, and medical applications.

Types Covered:
Standard Coating
Heavy Duty Coating
Soft Coating
Amorphous Coating

Substrates Covered:
Metal
Ceramic
Composite
Glass
Other Substrates

Technologies Covered:
Chemical Vapor Deposition (CVD)
Physical Vapor Deposition (PVD)

End Users Covered:
Electrical and Electronics
Mechanical
Industrial
Medical
Automotive
Aerospace
Other End Users

Regions Covered:
North America
US
Canada
Mexico
Europe
Germany
UK
Italy
France
Spain
Rest of Europe
Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
South America
Argentina
Brazil
Chile
Rest of South America
Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
Company Profiling
Comprehensive profiling of additional market players (up to 3)
SWOT Analysis of key players (up to 3)
Regional Segmentation
Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances