CVD Lab-grown Diamonds Market - By Type (Rough, Polished), By Application (Machine and Cutting Tools, Heat Sinks & Exchangers, Optical, Laser and X-ray, Electronics, Healthcare Instruments, Gemstone), By Color (Colored, Colorless) & Forecast, 2024 – 2032

CVD Lab-Grown Diamonds Market Size

CVD Lab-Grown Diamonds Market was valued at around USD 13.3 billion in 2023 and is anticipated to register a CAGR of over 7.4% between 2024 and 2032. The market is witnessing significant growth, fueled by a combination of technological advancements, changing consumer preferences, and increasing applications across various industries.
 

The chemical vapor deposition (CVD) process enables the production of high-quality diamonds that are not only cost-effective but also nearly indistinguishable from their natural counterparts in terms of physical and chemical properties. This has led to a surge in demand, particularly among environmentally and ethically conscious consumers who are seeking alternatives to traditionally mined diamonds. The rising awareness of the environmental degradation and human rights issues associated with diamond mining has further accelerated the shift towards lab-grown diamonds.
 

In addition to the jewelry sector, where lab-grown diamonds are becoming increasingly popular, the market is expanding into other industries such as electronics, optics, and cutting tools, where diamonds are valued for their hardness and thermal conductivity. The cost advantages, coupled with the growing availability of larger and higher-quality stones, are making CVD lab-grown diamonds an attractive option for both consumers and manufacturers. As a result, the market is expected to continue its upward trajectory, driven by ongoing innovations and the broader acceptance of lab-grown diamonds in various applications. Thus, the market growth is expected to attain a market value of over USD 25.1 Billion by 2032.
 

Two major pitfalls facing the CVD lab-grown diamonds market is the ongoing challenge of market perception and brand positioning. While lab-grown diamonds are increasingly recognized for their ethical and sustainable advantages, they still face skepticism among a segment of consumers who regard them as less valuable or prestigious compared to natural diamonds. This perception issue is particularly pronounced in the luxury market, where the rarity, tradition, and brand heritage associated with natural diamonds play a crucial role in consumer purchasing decisions. Many consumers still equate the value of a diamond with its natural origin, perceiving lab-grown alternatives as inferior or merely synthetic replicas, despite their identical physical and chemical properties. This stigma can limit the market penetration of lab-grown diamonds, especially in high-end segments where brand narratives often emphasize the historical and emotional significance of naturally mined diamonds.
 

CVD Lab-Grown Diamonds Market Trends

An emergent trend in the CVD lab-grown diamonds industry is the increasing integration of these diamonds into high-end, bespoke jewelry collections, driven by a confluence of consumer demand for sustainability, technological advancements, and shifting perceptions of luxury. Traditionally, the luxury jewelry market has been dominated by natural diamonds, with their rarity and historical prestige forming the backbone of their appeal. However, as consumers—particularly Millennials and Gen Z—place greater importance on ethical sourcing and environmental impact, the narrative surrounding luxury is evolving. This shift has opened the door for CVD lab-grown diamonds to carve out a significant space within the luxury segment, where sustainability and innovation are becoming key differentiators. CVD technology now enables the creation of large, high-quality diamonds that are virtually indistinguishable from their natural counterparts, both visually and chemically. This technological leap has allowed luxury brands to offer lab-grown diamonds that not only meet but often exceed the aesthetic and quality expectations of discerning buyers.
 

Moreover, the growing transparency in the diamond industry, bolstered by blockchain and other traceability technologies, has further empowered consumers to make informed choices, amplifying the appeal of lab-grown diamonds as a traceable and responsible option. This trend is also catalyzing collaborations between luxury brands and lab-grown diamond producers, resulting in exclusive collections that emphasize both craftsmanship and ethical production. As a result, CVD lab-grown diamonds are being increasingly recognized not merely as cost-effective alternatives, but as luxurious, innovative products that align with contemporary values. This trend is poised to redefine the concept of luxury in the jewelry industry, making sustainability and ethical considerations as integral to the luxury experience as the diamonds themselves. Consequently, as consumer preferences continue to evolve and technology further enhances the quality and availability of lab-grown diamonds, their presence in the luxury market is expected to grow, reshaping industry standards and consumer expectations in the process.
 

CVD Lab-Grown Diamonds Market Analysis

Based on type, the market is divided into rough, polished. The polished segment held the dominant market share accounting for USD 7.7 billion in 2023 and the market expected to attain a market value of over USD 14.8 billion by 2032. In the CVD lab-grown diamonds industry, the polished segment is emerging as the fastest-growing type, driven by several key factors. Polished lab-grown diamonds are increasingly in demand, particularly within the jewelry industry, where consumers are attracted to their high quality, ethical sourcing, and affordability compared to mined diamonds. The rise of polished lab-grown diamonds is also fueled by advancements in cutting and polishing techniques, which ensure that these diamonds exhibit exceptional brilliance and clarity, making them highly desirable for engagement rings, earrings, and other fine jewelry.
 

Additionally, the growing awareness and acceptance of lab-grown diamonds as legitimate, luxurious alternatives to natural diamonds are bolstering their popularity. Factors such as rising consumer preference for sustainable and eco-friendly products, along with the increasing availability of polished lab-grown diamonds in various retail channels, are further accelerating the growth of this segment. As consumer trends continue to favor ethical luxury, the polished segment is expected to maintain its strong growth trajectory in the coming years.
 

Based on application, the market is categorized as machine and cutting tools, electronics, optical, laser and x-ray, heat sinks & exchangers, healthcare instruments, gemstone, others. machine and cutting tools accounted for 26% of the market share in 2023 and is projected to grow through 2032. In the CVD lab-grown diamonds market, the machine and cutting tools segment is the fastest-growing application, driven by the superior hardness, thermal conductivity, and durability of lab-grown diamonds. These properties make CVD diamonds highly effective for industrial applications, particularly in cutting, grinding, drilling, and machining hard materials like metals, ceramics, and composites. The increasing demand for precision and efficiency in manufacturing processes across industries such as aerospace, automotive, and electronics is fueling the growth of this segment.
 

Additionally, the growing adoption of advanced manufacturing techniques, including CNC machining and automated cutting systems, further boosts the need for high-performance diamond tools. The cost-effectiveness and consistent quality of lab-grown diamonds compared to natural diamonds make them an attractive option for manufacturers looking to optimize their operations and reduce wear on cutting tools. As industries continue to seek more durable and efficient materials for their cutting and machining needs, the machine and cutting tools segment is poised for significant expansion, driven by ongoing innovations in CVD technology and the increasing adoption of lab-grown diamonds in industrial applications.
 

By color, In the CVD lab-grown diamonds market, the colorless segment is the fastest-growing due to its strong appeal in the jewelry industry, where the demand for clear, brilliant diamonds remains high. Colorless lab-grown diamonds are particularly popular for engagement rings, wedding bands, and other fine jewelry, as they closely resemble the most sought-after natural diamonds in terms of clarity and sparkle. Advances in CVD technology have made it possible to produce larger, higher-quality colorless diamonds at a fraction of the cost of their natural counterparts, making them an increasingly attractive option for consumers.
 

This growth is also driven by a shift in consumer preferences toward ethical and sustainable luxury products, with colorless lab-grown diamonds offering a guilt-free alternative to mined diamonds without compromising on quality. Moreover, the ability to precisely control the CVD process allows for the production of flawless colorless diamonds, which meet the high standards of discerning buyers. As awareness and acceptance of lab-grown diamonds continue to rise, the Colorless segment is expected to experience sustained growth, supported by increasing consumer demand and the expanding availability of these diamonds across various retail channels.
 

Asia Pacific dominated the CVD lab-grown diamonds market in 2023. It generated a revenue of USD 5 Billion in 2023 and the growth forecast for 2032 is USD 9.5 billion. The market is dominating the Asian market due to several key growth factors. First, the region's rapidly expanding middle class, particularly in countries like China and India, is driving increased demand for affordable luxury items, including lab-grown diamonds. These consumers are increasingly drawn to lab-grown diamonds for their ethical and sustainable attributes, which align with rising environmental and social consciousness.
 

Additionally, Asia has a strong jewelry manufacturing base, with many companies investing in CVD technology to produce high-quality diamonds at a lower cost, making them more accessible to a broader range of consumers. The region's robust e-commerce infrastructure further enhances market penetration, allowing for wider distribution and greater consumer reach. Moreover, cultural factors, such as the significant role of diamond jewelry in weddings and other celebrations, continue to fuel demand. As awareness and acceptance of lab-grown diamonds grow, supported by aggressive marketing and endorsement by celebrities, the market in Asia is set to expand rapidly, solidifying its dominance in the global landscape.
 

China's CVD lab-grown diamonds market is dominating due to several key growth factors. One of the primary drivers is the growing demand for sustainable and ethical luxury goods among Chinese consumers, particularly among younger generations who are increasingly conscious of environmental and social issues. The affordability of CVD lab-grown diamonds compared to natural diamonds makes them highly attractive to a broad base of consumers, including the rapidly expanding middle class. Additionally, China's strong domestic production capabilities, supported by significant investments in advanced CVD technology, allow local manufacturers to produce high-quality diamonds efficiently, further driving market growth.
 

The Chinese government's focus on innovation and technology in the industrial sector has also facilitated the growth of the lab-grown diamond industry. Moreover, the booming e-commerce market in China has made these diamonds more accessible to consumers across the country, enhancing their market penetration. The cultural importance of diamonds in Chinese weddings and gift-giving traditions also contributes to sustained demand. As a result, China's market is experiencing robust growth, positioning the country as a global leader in this emerging industry.
 

CVD Lab-Grown Diamonds Market Share

The CVD lab-grown diamonds industry features key players such as De Beers Group, Bhanderi Lab Grown Diamonds LLP, Sumitomo Electric Industries, Ltd., SP3 Diamond Technologies, and Hebei Plasma Diamond Technology Co., Ltd., each contributing significantly to the industry's growth and innovation. De Beers Group, traditionally known for natural diamonds, has expanded into the lab-grown segment, leveraging its brand strength to tap into new market opportunities. Bhanderi Lab Grown Diamonds LLP is a prominent name in the Indian market, focusing on producing high-quality lab-grown diamonds with advanced technology.
 

Sumitomo Electric Industries, Ltd., a global leader in various industrial sectors, brings its expertise in advanced materials to the lab-grown diamond market, particularly for industrial applications. SP3 Diamond Technologies is recognized for its cutting-edge innovations in diamond synthesis, catering to both industrial and gemstone markets. Hebei Plasma Diamond Technology Co., Ltd., based in China, is a significant player, capitalizing on the growing demand for lab-grown diamonds in the Asian market, with a strong focus on research and development to enhance product quality and production efficiency. Together, these companies are driving the expansion and acceptance of CVD lab-grown diamonds globally.
 

CVD Lab-Grown Diamonds Market Share

Major players operating in the market include:

• De Beers Group
• Bhanderi Lab Grown Diamonds LLP
• Sumitomo Electric Industries, Ltd.
• SP3 Diamond Technologies
• Hebei Plasma Diamond Technology Co., Ltd.
• Delaware Diamond Knives, Inc.
• ABD Diamonds Pvt. Ltd.
• CVD Diamond Inc.
• Vibranium Lab
• Shanghai Zhengshi Technology Co., Ltd.
• Ritani
• Nova Diamant
• Grown Diamond Corporation
• EDP Corporation
• Tomei Diamond Corporation
   

CVD Lab-Grown Diamonds Industry News

• In September 2023, Korean lab-grown diamond maker KDT Diamond announced the construction of a new plant in India. The expansion marked KDT's entry into the Indian market, aiming to boost its production of lab-created diamonds beyond its home base. The move reflects the company's strategic growth and increased global footprint.
   
• In June 2021, Goldiam acquired an 88% stake in EcoFriendly Diamonds LLP (EDL), which specialized in manufacturing lab-created diamonds using the CVD method. This strategic move aimed to position Goldiam in the rapidly growing lab-grown diamond market within the Asia Pacific region.
   

The CVD Lab-Grown Diamonds Market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue and volume (USD Million) (Thousand Carats) from 2021 to 2032, for the following segments:

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Market, By Type

• Rough
• Polished

Market, By Application

• 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)

Market, By Color

• Colorless
• Colored

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East and Africa
  • Saudi Arabia
  • UAE
  • South Africa
  • Rest of Middle East and Africa