Industry: Industrial Automation
Published Date: October-2024
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 191
Report ID: PMRREP28519
The diamond tools market size is anticipated to reach a value of US$13.13 Bn in 2024. It is estimated to record a CAGR of 7.4% during the forecast period between 2024 and 2031. A considerable value of US$27.78 Bn is predicted to be exhibited by the market in 2031. Increasing construction activities in both developed and developing countries are projected to bolster demand by 2031. It is mainly attributed to surging investments by government bodies in infrastructure development projects. As per the India Brand Equity Foundation (IBEF), infrastructure is set to be a key aspect for India to become a US$ 26 trillion. With similar plans, the construction industry will likely to augment the need for diamond tools.
Key Highlights of the Market
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Market Attributes |
Key Insights |
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Diamond Tools Market Size (2024E) |
US$13.13 Bn |
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Projected Diamond Tools Market Value (2031F) |
US$27.78 Bn |
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Global Market Growth Rate (CAGR 2024 to 2031) |
7.4% |
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Historical Market Growth Rate (CAGR 2019 to 2023) |
3.4% |
Sales of diamond tools in Europe are projected to remain steady throughout the forecast period. This is mainly attributed to the booming optical manufacturing industry across Germany and the U.K. The demand for high-quality mirrors and lenses has drastically surged in recent years, mainly due to the shift of modern consumers toward aesthetics.
It has further augmented the demand for novel diamond tools with precise cutting properties. The U.K. will likely exhibit a CAGR of around 5.2% through 2031. Increasing mergers and acquisitions among local as well as international players across Europe are also projected to fuel demand.
In July 2024, for instance, Torrent Holdings LLC, based in Florida, joined hands with U.K.-based Knight Optical. This acquisition would enable the former to strengthen its position in opto-electrical and photonic components. In addition, it would allow the company to expand its customer base across Europe.
In North America, the U.S. is anticipated to remain at the forefront in the evaluation period. The country has recently witnessed a meteoric rise in construction activities. The blend of rapid economic growth, environmental concerns, and technological innovations has created a unique scenario of prosperity and expansion in the country.
In 2021 and 2022, three major legislations were passed in the U.S., namely, the Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act, the Inflation Reduction Act (IRA), and the Infrastructure Investment and Jobs Act (IIJA). Though they mainly look after financial aspects of the country, they also help guide industries toward clean energy, transportation, and manufacturing infrastructure.
The convergence of funds received from these acts is set to propel construction activities, thereby propelling the need for diamond tools for cutting and shaping of materials. Owing to the abovementioned factors, the U.S. is estimated to surge at a CAGR of around 5% in the next ten years.
In terms of tool type, the drilling tool segment is set to dominate the diamond tools industry in the foreseeable future with a share of around 27% in 2031. These drills play a significant role in the construction industry owing to their ability to provide tough cutting features.
Construction companies often require sturdy equipment to drill and cut asphalt and reinforced concrete. Core drills help to effectively cut layers of hard materials that would otherwise be time consuming if done manually. These are also set to be used to drill holes in cast iron pipes across construction sites.
The construction segment is projected to lead the end use category in the near future. It is estimated to account for a value share of 24.1% in 2031. With rising construction projects across the globe, the need for cutting-edge equipment that can easily cut and shape asphalt, stone, and concrete has surged.
It has further resulted in the high demand for novel diamond tools that can precisely cut materials with minimal labor cost, thereby saving time. Rising demand for aesthetic flooring in urban areas is also expected to augment sales as these tools are mainly utilized for polishing and grinding surfaces.
The global diamond tools industry report estimates demand to surge at a steady pace amid increasing development of renewable energy infrastructure. The rapid inclination toward sustainable energy sources, such as solar and wind power, is projected to push the need for cutting-edge components and materials. Diamond tools are set to gain traction in the renewable energy sector as these are frequently used to cut and shape these materials.
Government bodies and private agencies across the globe are constantly striving to reduce carbon emissions. Hence, they are encouraging several industries to move toward renewable energy.
The European Union (EU), for example, has set carbon dioxide emissions targets, especially for vans and cars. It has set a target of 49.5 g CO2/km (2030 to 2034) for cars and 90.6 g CO2/km (2030 to 2034) for vans by taking into account the Worldwide Harmonized Light Vehicles Test Procedure (WLTP).
The Corporate Average Fuel Efficiency (CAFE) rules have mandated that average CO2 emissions must be less than 113 gm/km per phase II for automakers. With such stringent norms, companies are focusing on developing innovative infrastructure by incorporating materials like hardened steel and carbon fiber composite. These require diamond tools for precise cutting, which is anticipated to create new opportunities.
The diamond tools industry assessment predicts it to witness a CAGR of 7.4% between 2024 and 2031. During the historical period from 2019 to 2023, it exhibited a CAGR of 3.4%.
The historical period showcased moderate growth owing to trade tensions and economic disruptions backed by the pandemic. In 2023, the industry got back to normalcy with the resumption of construction activities.
Several manufacturers launched innovative diamond-coated laser cutting equipment to provide efficient properties. The electronics industry also demanded components like microchips that required diamond cutting tools.
In the forecast period, demand is likely to surge at a steady pace due to the increasing demand for laser systems, microscopes, and telescopes. The tools are mainly used to shape mirrors and lenses with the requirement for extreme precision. Also, the accelerating need for superior aircraft turbines and engines is projected to create prospects.
Rising Infrastructure Development Projects to Propel Demand
As per the report, ongoing infrastructure development projects across the globe are set to bolster demand. The tools are mainly utilized for applications like polishing, grinding, and cutting stones and concrete. Increasing popularity of aesthetic architectural infrastructure and high-rise buildings worldwide is also augmenting demand.
As per the Government of India, there has been a surge of around 500% in highway and road transport budget allocations since 2014. By 2023, the country’s National Highway (NH) network broadened by 60% to 1,46,145 km from 91,287 km in 2014. Such expansion plans are anticipated to create a high demand for diamond blades.
High Focus on Precision Manufacturing to Open the Door to Success
The surging adoption of robotics and automation across factories is anticipated to accelerate the popularity of precision manufacturing. The tools are projected to be utilized in precision manufacturing to polish and cut silicon wafers. These would further be used for the manufacturing of microprocessors and integrated circuits.
The healthcare sector is likely to contribute to the rising sales of diamond tools on account of the requirement for precise devices like surgical instruments, implants, and pacemakers. The Centers for Disease Control and Prevention (CDC) states that in 2022, coronary heart disease took away the life of around 371,506 individuals.
With high death rates, patients are likely to focus on early diagnosis and treatment. It is further anticipated to raise demand for complex medical devices requiring diamond tools.
Easy Availability of Alternative Materials May Hinder Sales
The low operational life of graphite molds and the expensive nature of diamond grits is projected to hamper the adoption of diamond tool kits in applications, such as metal processing. It has hence resulted in the development of alternative materials.
One such material gaining immense popularity is Cubic Boron Nitride (CBN). It is considered the second-most important naturally occurring material right after diamond. It is estimated to be used as a substitute for expensive diamond tools, especially in accurate cutting works.
CBN tools are known for excellent conductivity properties in terms of nanometric and macro cutting of silicon in multiple engineering applications. In addition, price hikes of raw materials like cobalt that are used in diamond grinding tools are set to negatively impact the market.
Key Companies to Gain New Opportunities Amid Surging Demand for Synthetic Diamonds
Renowned diamond tools manufacturers are investing huge sums of money in research and development activities to enhance the efficiency and performance of tools. They are introducing novel diamond synthesis techniques, such as high-pressure high-temperature (HPHT) and chemical vapor deposition (CVD) methods to improve the properties of synthetic diamonds.
As synthetic diamonds are more resistant to wear and tear, highly durable, and harder than conventional diamonds, their demand is set to rise in future. Apart from that, key players are estimated to develop innovative diamond tool coatings and designs to make them highly versatile in multiple applications.
Aerospace and Automotive Industries to Create Novel Prospects with Demand for Lightweight Components
The report suggests that prominent manufacturers are likely to target aerospace and automotive industries to increase sales. Diamond tools are in high demand in the aforementioned industries for precision machining and cutting applications.
The introduction of novel tools providing robust dimensional accuracy, surface finish, and high precision is estimated to help automakers and aerospace companies efficiently produce complex parts and components. Several automakers are likely to demand these tools for brake pad manufacturing, transmission production, and engine machining. Firms in the aerospace industry, on the other hand, are set to use the tools to make lightweight airframes and engines.
Rising sales and production of passenger as well as commercial vehicles is further projected to boost the diamond tools market growth. As per the International Organization of Motor Vehicle Manufacturers, in 2022, China produced around 2,383,6083 passenger vehicles and 31,84,532 commercial vehicles. Japan followed its footsteps and reached 65,66,356 passenger cars and 12,69,163 commercial vehicles. Such high sales figures are likely to create novel opportunities.
The global market analysis shows that several emerging and well-established players are anticipated to reign through 2031. Leading players, such as Husqvarna AB, Bosch, Sumitomo Electric Industries, Ltd., Makita, and Hilti are constantly striving to bring about innovation in their existing product portfolios.
A few other emerging companies are focusing on extending their product lines to cater to the varying needs of customers. At the same time, they are aiming to establish a robust presence across emerging markets to attract a large customer base.
Recent Developments in the Diamond Tools Indsutry
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Attributes |
Details |
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Forecast Period |
2024 to 2031 |
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Historical Data Available for |
2019 to 2023 |
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Market Analysis |
US$ Billion for Value |
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Key Regions Covered |
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Key Market Segments Covered |
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Key Companies Profiled in the Report |
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Report Coverage |
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Customization & Pricing |
Available upon request |
By Tool Type
By Manufacturing Method
By End Use
By Region
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The market is estimated to reach a value of US$13.13 Bn in 2024.
Companies like Hilti Group, Saint-Gobain Abrasives Inc., and Husqvarna AB make diamond tools.
Automotive, construction, fabrication, aerospace, and healthcare sectors use diamond tools.
A few standard tools are diamond grinding tools, drills, and blades.
Netherite tools last long and operate fast than diamond tools.
