Construction Industry to Drive the Market for Diamond Tools

Industry Outlook Team

The global diamond tools market is anticipated to grow at a CAGR of 6.47 percent until 2026. Diamond tools comprise either synthetic diamonds or diamond pieces that are not used for ornamental purposes. What differentiates Diamonds tools from the other machine tools are its high hardness, cutting-edge sharpness, and good thermal conductivity. Diamond tools are tremendously used in optical manufacturing industries, which comprises lenses, mirrors, and also other glass drilling works, and the diamond abrasive wheels are used in the Abrasive machining process. Other than this, the diamond tools are used in specific micromachining processes, polishing and cutting of different metals, polymeric plastic machinery process, and production of accuracy tooling.

Factors fueling the growth of the diamond tools market include the increasing investments in the construction industry and the surge in demand for diamond saw blades. With the massive rise in construction activity, the construction industry is estimated to be an attractive segment. Furthermore, the new ongoing construction buildings require diamond tools to smoothen and finish the floors, walls, and other areas, and this is predicted to boost the demand for diamond tools.

Market Segmentation

The Global Diamond Tools market is segmented based on regional analysis. This includes North America, Asia Pacific, Europe, and the other parts of the world. The region that holds the largest market share is North America due to high construction activity in the region. Other factors expected to boost the market growth in this region include the expansion of the automotive industry, ongoing projects, and strong governmental initiatives.

Based on the product, the market is classified into Diamond Sawing tools, diamond drilling tools, diamond cutting tools, and abrasives type. The largest market shareholder is the abrasives tool types and is expected to witness the highest Compound Annual Growth Rate during the forecast period. The factors driving the growth of this segment are attributed to rising demand from the construction industry for floor finishing. Based on industry, the diamond cutting tools market is classified into the Geological Prospecting industry, Machining, Stone processing industry, transportation industry, and construction industry, and the construction industry landscape is anticipated to witness the highest CAGR during the forecast period, compared to the other industries. Major factors driving the growth of this segment include the surge in demand for increased spending on construction around the world.

The diamond cutting and polishing hub of Surat is anticipated to buzz with activity after Diwali, owing to 200000 migrant workers who are anticipated to return to work to help fulfill the orders that are pouring in from various countries across the world. This includes the key markets of the United States and China.
In Surat, there are about 5000 rough diamond cutting and polishing units. These units employ 650000 people and nearly 85 percent of the diamonds manufactured across the globe are cut and polished in Surat.

“Demand has revived and the trade is getting good orders from the US, China, Gulf countries and some parts of Europe. There is good demand in India too,” said Colin Shah, Chairman, Gem & Jewelry Export Promotion Council (GJPEC).