Diamond Market to Grow by USD 42.72 Billion from 2024-2028, as Demand for Wedding Jewelry Rises with AI-Powered Market Evolution - Technavio

NEW YORK, Nov. 11, 2024 /PRNewswire/ -- Report on how AI is driving market transformation - The global diamond market size is estimated to grow by USD 42.72 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 8.09% during the forecast period. Growing demand for wedding jewelry is driving market growth, with a trend towards rising demand for synthetic diamonds from emerging applications. However, presence of counterfeit products in e-retailing space poses a challenge.Key market players include Anglo American plc, BlueStone Jewellery and Lifestyle Pvt. Ltd., Brilliant Earth LLC, Cartier SA, Chanel Ltd., Compagnie Financiere Richemont SA, DAMIANI S.p.A., F.lli Pisa SRL, Graff Diamonds Ltd., Kalyan Jewellers India Ltd., Kering SA, Malabar Gold and Diamonds, Pandora AS, Sheetal Group, Signet Jewelers Ltd., Swarovski AG, Tacori Inc., and The Swatch Group Ltd..

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Market Driver

The diamond market is buzzing with trends, from the formation of these rare minerals to their various applications. Diamonds are the hardest natural gemstone, formed under extreme pressure and high temperature. They're prized for their beauty in jewelry and ornaments, but also for their industrial uses. Industrial diamonds are used in cutting tools, grinding tools, and metal machining. Synthetic diamonds, created through processes like Chemical Vapor Deposition, are gaining popularity due to their environmental sustainability. Millennials and Generation Z prefer lab-grown diamonds for their ethical and affordable appeal. Natural diamonds, with their rarity and purity, remain a top choice for jewelry application. Investment levels are high, with online sales growing due to consumer buying habits. E-commerce platforms offer a wide range of diamonds, from rough to polished, including Type Ia and Type IIa, which are the purest forms. Diamonds' thermal conductivity makes them ideal for home care products. They're also used in abrasive industry, construction, exploration drilling, and social media influencer gifts. Carbon, the base element of diamonds, is a valuable resource. The diamond market continues to evolve, with new trends shaping its future. 

The market for synthetic diamonds is experiencing growth due to their increasing usage in various sectors, particularly electronics and semiconductor applications. These diamonds offer unique advantages, such as superior thermal management properties. In semiconductor applications, synthetic diamonds are preferred for their high thermal conductivity, which enhances power densities and extends operational life by reducing junction temperatures. With a thermal conductivity higher than metals like copper and aluminum, synthetic diamonds effectively distribute heat across all three dimensions, making them an ideal choice as thermal spreaders. 

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 Market Challenges

• The diamond market faces several challenges in the 21st century. Diamond formation as a natural process is rare and requires extreme pressure and high temperature. Natural diamonds, being a hard and valuable mineral, are highly sought after for jewelry and industrial applications. However, the discovery and production of synthetic diamonds through methods like Chemical Vapor Deposition have disrupted the market. Consumer buying habits have shifted, with millennials and Gen Z preferring lab-grown diamonds for their environmental sustainability. The abrasive industry uses industrial diamonds for metal machining and construction, while the jewelry industry values their brilliance and hardness for jewelry and ornaments. Sorting, cutting, and polishing rough diamonds remain labor-intensive and time-consuming processes. The increasing popularity of e-commerce and online sales has changed the diamond market landscape. Purity and rarity are key factors influencing investment levels in natural diamonds. The market also faces challenges in balancing the demand for jewelry applications with industrial applications, such as exploration drilling and carbon-based industries. The diamond market must adapt to these challenges by focusing on innovation, sustainability, and consumer preferences. Synthetic diamonds, while not identical to natural diamonds, offer cost-effective alternatives for various industries. As the market evolves, it's crucial to consider the impact on the environment, ethical sourcing, and consumer education.
• The rise of counterfeit jewelry sales in the online diamond market is a growing concern. Sellers of imitation jewelry exploit this platform, as customers cannot physically inspect products before purchasing. They profit from full payments for fake jewelry. Increased brand awareness and the desire for luxury items have fueled the spread of counterfeit products. These counterfeit brands offer lower-priced imitations to attract customers. They also mimic top brands' digital marketing strategies, including pay-per-click (PPC) campaigns using company names and popular search terms. This deceptive practice misleads consumers and undermines the authenticity of the online diamond market.

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Segment Overview 

This diamond market report extensively covers market segmentation by

1. Application 
• 1.1 Jewelry making
• 1.2 Industrial applications
2. Type 
• 2.1 Natural
• 2.2 Synthetic
3. Geography 
• 3.1 APAC
• 3.2 North America
• 3.3 Europe
• 3.4 Middle East and Africa
• 3.5 South America

1.1 Jewelry making- The diamond market experiences significant growth due to expanding middle-class populations and their increased spending power. Customers can now afford to invest more in personal accessories like diamond jewelry. Innovative designs and evolving customer tastes, driven by changing lifestyles and urbanization, further fuel demand. Major contributors to the market include the US, UK, France, and Germany. Culture, ethnicity, and fashion influence buying decisions. Daily wear jewelry's growing popularity presents new opportunities. Online shopping trends are on the rise, leading vendors to introduce virtual Try-On technology. Offline distribution channels are expanding, with Brilliant Earth opening showrooms in Palo Alto, California, and Baltimore, Maryland. These factors collectively drive the jewelry-making segment and the global diamond market's growth.

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Research Analysis

Diamonds are rare minerals formed under extreme pressure and high temperature from carbon atoms. Known as the hardest material on Earth, diamonds have diverse applications in various industries. In jewelry, they are cherished for their brilliance and beauty. In the abrasive industry, diamonds are used for their exceptional hardness and thermal conductivity to cut and polish other materials. The discovery of lab-grown and synthetic diamonds has disrupted traditional diamond markets, offering affordable alternatives to natural diamonds. Millennials, with their changing consumer buying habits, are driving the demand for lab-grown diamonds and synthetic products. Rough diamonds undergo a rigorous process of sorting, cutting, and polishing to transform into polished diamonds, ready for jewelry designing or industrial applications. Type Ia diamonds, the purest form of diamond, are highly sought after for their superior clarity and brilliance. E-commerce platforms have made it easier for consumers to buy diamonds online, from rough diamonds to polished diamonds, and even synthetic diamonds. Home care products also use diamond particles for their abrasive properties. The diamond market continues to evolve, adapting to new technologies and consumer preferences.

Market Research Overview

Diamonds are formed deep within the Earth under extreme pressure and high temperature, making them a rare mineral and the hardest known substance on Earth. With a thermal conductivity that outperforms copper, diamonds have diverse applications in various industries. In jewelry, they are prized for their beauty and rarity, while in the abrasive industry, they serve as essential cutting and grinding tools. The discovery of lab-grown diamonds through methods like Chemical Vapor Deposition has disrupted the market, offering more affordable and environmentally sustainable alternatives to natural diamonds. The millennial and Gen Z demographics are driving the shift towards lab-grown diamonds, with online sales and e-commerce platforms playing a significant role in consumer buying habits. Diamonds are not only used for jewelry and ornaments but also for industrial applications such as metal machining, construction, and exploration drilling. The purity and rarity of natural diamonds make them valuable for investment purposes. The diamond market is continually evolving, with advancements in technology leading to the production of synthetic diamonds. The sorting, cutting, polishing, and jewelry designing processes are essential in transforming rough diamonds into polished gems suitable for various applications. Carbon, the primary element in diamond formation, is subjected to high pressure and temperature to create these precious gems. Type Ia and Type IIa diamonds, with their exceptional purity, are highly sought after for their superior optical and electrical properties. The diamond market caters to various industries, including jewelry, home care products, and the abrasive industry. Consumer buying habits and social media influence continue to shape the market's trends. With the increasing popularity of lab-grown diamonds, the industry is expected to experience significant growth and innovation.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application
• Jewelry Making
• Industrial Applications
• Type
• Natural
• Synthetic
• Geography
• APAC
• North America
• Europe
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio