Global Market Study on Synthetic Sapphire: Sapphire Substrates Application Segment Estimated to Account for More than 30% Market Value Share by 2016 End


  • Published On : Nov-2016 |
  • Pages : 177 Pages |
  • Format :

Persistence Market Research (PMR) offers an eight-year forecast on the global synthetic sapphire market between 2016 and 2024. The report defines 2015 as the base year and provides data for the following 8 years. This research report provides a detailed analysis of the global synthetic sapphire market, while identifying the factors contributing to growth of the market across the regions. This study offers insights about the market dynamics and trends of various regional markets that are influencing the current nature and future dynamics of the global synthetic sapphire market during the forecast period.

The report provides insights on synthetic sapphire of various applications that include optical, sapphire substrates, display and other industrial uses. Increase in the demand of sapphire particularly for LED chips with favorable government policy for increasing adoption of LED over incandescent and CFL is a major factor creating a significant growth in global synthetic sapphire market. In order to meet increasing demands, manufacturers and new players in the market are investing in capacity increase and also R&D initiatives for developing new applications. A detailed analysis by each application and end use further empowers clients to formulate strategies for every stage of their business.

As per analysis, product availability plays a very important role, and hence this report further offers an analysis on the segmentation, targeting and positioning (STP) analysis for key revenue growth areas.

The next section of report includes analysis of the global synthetic sapphire market on the basis of end use. It provides market outlook for 2016–2024, and sets the forecast within the context of sapphire markets. This study discusses about the synthetic sapphire market size and its dynamics on the basis of type of end use namely LED manufacturing, semiconductor, medical devices, consumer electronics and industrial. It talks about the market share of each of the segment in the global synthetic sapphire market. LED manufacturing segment is the prominent segment among the rest five end use segments. The consumer electronics segment is further bifurcated on the basis of smart phones, camera lens and watches for the period 2016-2024.

In the final section of the report, a competitive landscape has been provided to present the client with a dashboard view of various comparison points including revenue bracket, key application areas, and global presence amongst others. It also enables identification and evaluation of key competitors based on in-depth assessment of their capabilities and success in the marketplace. Key companies covered are Rubicon Technology Inc., KYOCERA Corporation, Saint-Gobain, SCHOTT AG, Monocrystal, Rayotek Scientific Inc., CRYSTALWISE TECHNOLOGY INC., ILJIN Display CO., Ltd, Namiki Precision Jewel Co., Ltd., Juropol Sp. z o.o.

Research methodology

A detailed analysis has been provided for every segment in terms of market size analysis for the global synthetic sapphire market. In order to offer an accurate forecast, we started by sizing up the current market, which forms the basis of how the global synthetic sapphire market is expected to develop in the future. Given the characteristics of the market, we triangulated the outcome of three different types of analysis based on supply side, downstream industry demand and the economic envelope. 

It is vital to note that in an ever-fluctuating global economy, we not only conduct forecast in terms of CAGR, but also analyze the same on the basis of key parameters such as, year-on-year (Y-o-Y) growth to understand the predictability of the market and to identify the right opportunities for market players. 

Another key feature of this report is the analysis of all segments in terms of absolute dollar. This is usually overlooked while forecasting the market. However, absolute dollar opportunity is critical in assessing the level of opportunity that a provider can look to achieve, as well as identify potential resources from a sales and delivery perspective in the global synthetic sapphire market. In addition to this, we have also provided strategic recommendations and key success factors for new entrants in the global synthetic sapphire market.

Synthetic Sapphire is aluminum oxide (Al2O3) and is also known as Corundum or α- alumina. It is chemically inert, hard, thermally stable till 1600ο C and has a melting temperature of 2050 οC. Manufactured from high purity alumina (>99.99% purity) by one of the five methods namely Verneuil, Czochralski (CZ), Heat Exchanger Method (HEM), Edge-Defined Film-Fed Growth (EFG) and Kyropoulos, where EFG and Kyropoulos methods are most popular and are mostly modified in-house to increase the yield. Synthetic sapphire on hardness scale (Mohs) stands on 9 which is the next hardest material after diamond and possesses excellent physical and chemical properties. The wear and scratch resistance of synthetic sapphire is considered to be unique. The sapphire crystal boule undergoes series of processing steps such as drilling, slicing, grinding, polishing and cleaning to get the final synthetic sapphire in required form.

In terms of value, the global synthetic sapphire market is projected to register a CAGR of 8.4 % during the forecast period (2016-2024). The global synthetic sapphire market is forecasted to be valued at US$ 4,864.3 Mn in 2016 end and is expected to reach a value of US$ 9,255.7 Mn by 2024.      

Market dynamics

The global synthetic sapphire market is growing rapidly, owing to the proliferation of LED industry. Besides, the regional government regulations on increasing use of LED lightning boosts the synthetic sapphire consumption. More than 90% of LED chips are manufactured with sapphire as a substrate, underscoring the importance of sapphire as a material for LED industries. As per Persistence Market Research analysis, global synthetic sapphire market revenue is expected to grow 1.9X by 2024 compared to that in 2016. Growth is primarily driven by the increasing demand coming from LED manufacturing and consumer electronics. The company forecasts the consumer electronics segment market to register a strong CAGR during the eight year forecast period of 2016 through 2024.

Segment analysis

Based on application type, the sapphire substrates segment is estimated to account for more than 30% volume share of the overall global synthetic sapphire market by 2016 end, which is expected to increase further by the end of 2024. The global synthetic sapphire market volume, by the sapphire substrates segment is forecasted to grow at a single digit CAGR for the period of 2016 through 2024.

Amongst the end use segment, the consumer electronics segment is projected to be the most prominent segment over the forecast period since the synthetic sapphires are increasing consumed for smart watches and premium class of watches (Apple, Huwaei, Rolex etc.). Also, the smart phone covers, home buttons, camera lens are anticipated to show higher revenue by 2024. As per Persistence Market Research analysis, the LED manufacturing segment, which accounts for more than quarter of the global synthetic sapphire segment, is anticipated to register a CAGR which is estimated to be 0.5% lower than the CAGR of consumer electronics segment, during the forecast period.

This is owing to the market saturation for 2’’ and 4’’ sapphire substrates, where price drop in 2015 was prominent.  For instance, for 2’’ sapphire substrates price fell from US$ 25/mm to US$ 1.25/mm. One of the reason for this decline in prices is the supply of cheaper substrates from Asian sapphire substrates manufacturers.

Besides the use of synthetic sapphire in LED and semiconductors, owing to the exceptional physical and optical properties of synthetic sapphire, their use in industrial and medical segments is anticipated to increase by 2024. Large synthetic sapphire windows, transparent armours, and mechanical components are some of the revenue generators in industrial segment. Similarly in consumer electronics, watches are estimated to account for majority of the share followed by smart phones.

Currently, sapphire screen cover adoption is limited to fewer companies such as KYOCERA Corporation, Huawei and also has tough competition from Gorilla Glass of Corning Incorporated. Even with such market scenario for synthetic sapphire in smart phone end use, the research and development of synthetic sapphire is undergoing at a higher pace with modifications in sapphire growing techniques to yield higher quantity of sapphire is giving rise to tremendous opportunity.

LED manufacturing segment is the currently the second most valuable segment in the market, while the consumer electronics segment is projected to register an above average CAGR during 2016-2024. The industrial segment accounts for the smallest market share in the year 2015, and is expected to observe a Year-on-Year growth rate of 6.8% in 2016.  

global synthetic sapphire market

Regional analysis

The Asian countries such as China, Taiwan, South Korea, and Japan and in Europe, especially Russia, are demonstrating a rapid growth in the demand for synthetic sapphire as compared with rest of the countries in these regions. The key players in Asia Pacific region are undergoing capacity increase of sapphire with the increasing use in LED manufacturing.

Key market players

Rubicon Technology Inc., KYOCERA Corporation, Saint-Gobain, SCHOTT AG, Monocrystal, Rayotek Scientific Inc., CRYSTALWISE TECHNOLOGY INC., ILJIN Display CO., Ltd, Namiki Precision Jewel Co., Ltd. and Juropol Sp. z o.o. are some of the leading players in the global synthetic sapphire market.

Company Profile

  • Rubicon Technology Inc.
  • KYOCERA Corporation
  • Saint-Gobain
  • SCHOTT AG
  • Monocrystal
  • Rayotek Scientific Inc.
  • CRYSTALWISE TECHNOLOGY INC.
  • ILJIN Display CO., Ltd
  • Namiki Precision Jewel Co., Ltd.
  • Juropol Sp. z o.o.
  • Others
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