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Diamond Tools Market Segmented By Abrasive Type, Drilling Tools, Cutting Tools, Sawing Tools, Milling Tools, Diamond Dressers, Diamond Gauging Fingers Tool Type with Metal-bonded, Resin-bonded, Electroplated Manufacturing Method
According to Persistence Market Research, revenue from the global diamond tools market totaled US$ 12.31 Bn in 2021. Worldwide demand for diamond tools will accelerate with increasing investments in the construction industry and the rising adoption of Industry 4.0 in various industries. Sales of diamond tools are expected to reach US$ 26.78 Bn by 2032, increasing at a high CAGR of 7.4% over the next ten years.
Over the coming years, the growing automotive and construction industries in regions such as North America and Europe are likely to drive high demand for diamond tools. The target market is growing in popularity for use in advanced machining tools that are required across several end-use industries.
At present, diamond tools account for 15% to 20% share of the global tools market.
Diamond Tools Market Size (2021A)
US$ 12.31 Bn
Estimated Market Value (2022E)
US$ 13.13 Bn
Projected Market Value (2032F)
US$ 26.78 Bn
Value CAGR (2022-2032)
Collective Value Share: Top 3 Countries (2021)
From 2017 to 2021, the market for diamond tools expanded at 3.4% CAGR and is anticipated to surge at 7.4% between 2022 and 2032.
Due to an increase in construction activity, Y-o-Y growth in 2022 is significantly higher than it was in the past, and this trend is expected to continue throughout the forecast period.
Original equipment manufacturers (OEMs) are pursuing strong manufacturing infrastructure for the large-scale production of highly engineered components. Complicated designs, tight tolerance components, and manufacturing know-how will drive the demand for diamond tools for use in precision cutting. With the increased demand for high-quality products, Persistence Market Research anticipates robust growth over the next three years, as production is surging across the world.
Growth in North America is led by the resurgence in domestic manufacturing and the high demand for highly precise components. Since 2010, U.S. consumption of computer numerical control (CNC) machine tools has experienced a double-digit CAGR among all major product categories.
Asia Pacific is a prominent buyer of machine tools, led by strong demand from China, India, and South Korea. Subsequently, the demand for cutting tools is likely to increase over the coming years.
Overall, the global market of diamond tools is anticipated to expand 2X between 2022 and 2032.
“Huge Consumer Electronics Market of Asia Pacific to Provide Lucrative Opportunities”
In recent years, the electronics sector in Asia Pacific has seen prominent growth in both, the production and consumption of electronic appliances and technology. Consequently, diamond tools, which are widely used in the designing of printed circuit boards and semiconductor chips, have a major growth opportunity in the region.
Significant economies in the Asia Pacific region are seeing some of the greatest growth rates in consumer electronics, making the region a leader in the expansion of the worldwide electronics sector. Major markets such as China, Hong Kong, India, South Korea, Japan, and Singapore are at the center of this evolution.
India is rapidly evolving as an electronics hub with increased exports of electronics products by roughly 88% in the fiscal years 2021-2022. As a result, it is anticipated that the market for diamond drilling tools will expand in the region at a high-value CAGR.
Where Does China Stand in the Market for Diamond Tools?
The market in China is estimated to expand at 8.1% CAGR and hold a prominent share in the East Asia diamond tools market during the forecast period of 2022-2032.
China's industrial production rose 3.9% year-on-year in June 2022, following an increase of 0.7% year-on-year in the previous month. Despite supply chain-related challenges such as rising raw material prices, shortages of building materials, and skill shortages, China's construction sector is expected to maintain steady growth over the coming years. In particular, this double-digit growth in the construction sector since 2020 has greatly contributed to the recovery of China's overall economy, thereby augmenting demand for diamond tools as well.
China has developed into the world's largest construction market. In 2020, China's construction industry was worth US$ 1.49 trillion. The construction industry is expected to grow steadily at a rate of around 5% annually as the government plans to focus on improving the infrastructure of small- and medium-sized cities. This is expected to boost the sales of diamond tools in the Chinese market.
What is the Outlook for Diamond Tool Manufacturers in France?
France is expected to account for over 15% share of the European diamond tools market.
Increase in the sales of diamond tools in France is influenced by the strong growth of the aerospace industry as France ranks third in the world’s aerospace sector, which is the key driver for the growth of the diamond tools market in the European region.
The aerospace industry demands only the very best in terms of quality and durability. Efficiency is paramount when manufacturing aircraft parts and other highly critical items. To cater to these levels of accuracy and to handle the hardest and even most resilient materials, demand for diamond tools is increasing rapidly in the aerospace industry in France.
Why is the U.S. a Lucrative Market for Diamond Tool Suppliers?
The U.S. diamond tools market is expected to account for approximately 20% share of the global during the forecast period.
The construction industry is the most profitable, ever-changing, and largest contributor to the U.S. economy. In the U.S., several projects are well into the planning stages, while others have finally resumed after a year's delay due to the global pandemic.
This trend is expected to continue in 2022 and beyond as several projects are expected to be under construction. In Louisiana, for example, construction on a US$ 463 million project, which adds 8.3 miles of elevated highway, is expected to begin by January.
Significant disposable income and growing awareness about the advantages of diamond tools, especially for use at construction sites, will boost the sales of diamond tools across the United States.
Which Manufacturing Method is Most Popular for Diamond Tools?
Sales of metal-bonded diamond tools are projected to account for more than 40% of the global market by the end of 2032.
Metal-bonded diamond tools are built for endurance & performance and offer several benefits such as low maintenance, long life, and suitable for all levels of both, wet and dry grinding. Some examples of metal-bonded diamond tools are diamond core drill bits, diamond blades, diamond wheels, etc.
Why are Diamond Tools Widely Used in the Construction Industry?
Diamond drills play a formative role in the construction industry due to the toughness they offer. As per analysis, construction materials such as reinforced concrete and asphalt often require machining, cutting, and drilling. Diamond cutting tools such as saw blades, core drills, and grinding wheels are useful for such a wide range of applications.
At construction sites, diamond tools are used to cut layers of hardened material that would be too slow and expensive to remove by hand. A popular application is when developers need to drill holes in cast iron pipes or drill around existing foundations during the construction process. Diamond core drills are also widely used at construction sites so they can be dismantled using special machines with hydraulic rams.
As such, the construction sector is estimated to maintain its dominance for diamond milling tools with a considerable market share of 25% throughout the forecast period.
Market participants are mainly focused on continuous innovation in products, services, and software to gain a competitive advantage, attain operational excellence, and create and sustain their brand value in the global market.
Manufacturers are trying to grow and network with other market entities, leveraging their presence across various regions. Companies are utilizing their brand value and high-quality products to attract distributors and maintain collaboration with end-use customers.
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Between 2017 and 2021, the global diamond tools market increased at 3.4% CAGR.
The global diamond tools market is currently valued at US$ 13.13 Bn.
Sales of diamond tools are expected to surge at a CAGR of 7.4% from 2022 to 2032.
The U.S., China, U.K. France, Canada, and Germany are lucrative markets for manufacturers of diamond tools.
Saint-Gobain Abrasives Inc., Husqvarna AB, Tyrolit, Sumitomo Electric Industries, Ltd, and EHWA Diamond are leading suppliers of diamond tools.
The market for diamond tools in the U.S. is projected to expand at 6.4% CAGR through 2032.
Demand for diamond tools in India is predicted to surge at 8.4% CAGR through 2032.
Together, S. Korea and Japan currently account for 6.3% share of the global market for diamond tools.