Market Trends of Diamond Coating Industry
This section covers the major market trends shaping the Diamond Coating Market according to our research experts:
Growing Demand from the Electrical and Electronics Industry
- Diamond coatings find extensive use in consumer electronics owing to their properties, such as high thermal conductivity, strength, electrical resistivity, and low coefficient of friction.
- Diamond is the hardest material, and it possesses unique qualities, such as high thermal conductivity, high resistivity, and low coefficient of friction. These properties make diamonds suitable for diverse applications. However, the extensive use of diamond for these applications would be costly, so technologies like CVD and PVD were developed to make the process feasible.
- Diamond-like carbon or diamond coating is a kind of amorphous carbon, which holds the properties of diamond such as high electrical resistivity making it favorable for new generation high-performance consumer electronics gadgets.
- With the advent of new technologies, the global electronics industry has been under pressure to deliver better every time. New technologies like 5G, the Internet of Things, and augmented virtual reality rely on materials that are strong and difficult to machine.
- The electronics industry is continuously making remarkable progress and development, the demand for the market studied is growing rapidly. The production of cellular phones, portable computing devices, gaming systems, and other personal electronic devices will continue to spark the demand for semiconductors, capacitors, and other electronic components.
- According to Zentralverband Elektrotechnik- und Elektronikindustrie e.V. (ZVEI), the German Electrical And Electronic Manufacturers' Association, the global electric production was valued at EUR 4.2 trillion in 2017, which increased by EUR 4.4 trillion in 2018, and it was further estimated to reach EUR 4.5 trillion in 2019. However, the industry was estimated to decline to EUR 4.4 trillion by the end of 2020, severely impacted by the COVID-19 pandemic. In 2019, the industry registered a growth rate of more than 2%, which declined to -3% (estimated) in 2020 but is expected to recover and reach more than 6% in 2021.
- Hence, owing to the aforementioned factors and the rising demand for diamond coating from the global electrical and electronics industry, the market is expected to grow during the forecast period.
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Asia-Pacific to Dominate the Market
- The Asia-Pacific region is expected to be the largest and fastest-growing market, owing to the huge demand of the market studied from various end-user industries in the region.
- China dominates electronics production in the global market. The country's electronics production, which was steadily increasing through the years, has recently suffered from deceleration owing to the ongoing trade war between China and the United States, forcing various electronics producers to shift their base from China to other countries in the Asia-Pacific region. However, the country still continues to dominate the electronics production in the global market,
- In India, electronics production was valued at around USD 63.62 billion in 2018-2019. The National Policy on Electronics 2019 planned to advance local assembling and fare in the whole worth chain of Electronics System Design and Manufacturing (ESDM) to accomplish a turnover of USD 400 billion by 2025. India is expected to become the fifth-largest consumer electronics and appliances industry in the world by 2025. Additionally, in India, technology transitions, such as the rollout of 4G/LTE networks and IoT (Internet of Things), are driving the adoption of electronics products.
- The growing medical industry in the region further has increased the demand for diamond-coated medical devices and equipment, and this is expected to propel the market studied in the region.
- The market for medical devices is expected to rise the fastest in Asia-Pacific due to rapid growth in the healthcare segment in the region. India is an attractive destination for healthcare tourism and is known for its economic treatment. This has led to a growth in the healthcare segment in the region, which has increased the demand for the market studied from the medical devices industry.
- In India, the government anticipated the healthcare industry to register three-fold growth to USD 133.44 billion by 2022. Moreover, the government is planning to increase public health expenditure to 2.5% of the country's GDP by 2025.
- The medical device market in China has been witnessing strong growth with a growing number of hospitals and increasing demand for medical assistance. According to the China Association for Medical Device Industry, the medical device market size was recorded to be around ~USD 80 billion in 2019. About 70% of the growth was majorly fueled by hospital procurement.
- Medical devices are found to constitute a thriving industry in Thailand, with the country acclaimed as a major healthcare hub in Asia. Thailand, as a leader in Asia, is found to be playing a vital role in many regional and international organizations dedicated to promoting the advancement of medical devices in the area. Most of the medical devices manufactured in Thailand for export fall into the category of single-use devices, and approximately 84% of the revenue of all medical supplies exported are in this group.
- All the aforementioned factors are expected to drive the growth of the diamond coating market in the region, during the forecast period.
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