Editor’s Note
The global market for lab-grown diamonds is experiencing significant growth, projected to more than double in value by 2032. This expansion is driven by technological advancements and strong regional demand, particularly in the Asia Pacific region.
The global lab-grown diamond market was valued at USD 25.89 billion in 2024. The market is projected to grow from USD 29.46 billion in 2025 to USD 74.46 billion by 2032, exhibiting a CAGR of 14.11% during the forecast period.
The Asia Pacific region dominated the synthetic diamond market with a 33.17% share in 2023.
Lab-grown diamonds are artificial or man-made diamonds developed using controlled CVD (Chemical Vapor Deposition) or HPHT (High Pressure High Temperature) manufacturing processes to ensure quality. Unlike natural diamonds, which take years to form, this product is produced in laboratories within months with superior quality. Lab-grown diamonds are increasingly used for various applications such as jewelry, research, cutting tools, and machine parts, significantly boosting global sales. Furthermore, they are more cost-effective compared to natural diamonds as they do not require mining and have wider availability, accelerating adoption across countries.
The COVID-19 crisis negatively impacted industry expansion. The new pandemic led to temporary closures of laboratories and manufacturing plants, reducing synthetic diamond production. Additionally, many people faced financial difficulties in 2020 due to job-related disruptions and business closures. This resulted in decreased demand for non-essential products, including artificial diamonds.
Market Size and Forecast:
Market Size in 2024: USD 25.89 Billion
Market Size in 2025: USD 29.46 Billion
Projected Market Size in 2032: USD 74.46 Billion
CAGR: 14.11% (2025-2032)
Market Share:
The Asia Pacific region dominated the synthetic diamond market with a 33.17% share in 2023, driven by high manufacturing in India and China, government R&D support, and strong demand for affordable jewelry.
By method, HPHT led the market in 2023 due to its ability to produce high-quality diamonds with transparency similar to natural diamonds.
The ‘Up to 2 Carats’ segment held the largest size share, favored for its affordable price and use in everyday jewelry.
Colorless diamonds naturally dominate due to superior quality and wide industrial applications, while the fashion segment is growing fastest due to rising demand for designer jewelry.
Key Country Highlights:
India: Government-backed R&D, a rapidly growing jewelry market, and expansion of synthetic brands like Ayaani drive growth.
USA: High disposable income and growing demand for ethical diamonds boost adoption in fashion and industry.
China: A major hub for manufacturing and exporting synthetic diamonds in various carats and forms.
France & Germany: Sustainability-conscious consumers prefer eco-friendly lab-grown alternatives.
South America: Rising jewelry demand due to an increasing number of working women and the affordable price of lab diamonds.
Middle East & Africa: Regional expansion is supported by growing awareness and adoption for industrial applications like cutting tools.
Sustainability Growth Trend Offering Growth Opportunities
The rapidly growing sustainability trend across countries supports the adoption of lab-grown diamonds. They are eco-friendly products that cause less harm to the planet and generate minimal waste. These diamonds are more sustainable than natural diamonds because they do not require mining, which can significantly impact the environment through deforestation, air pollution, land erosion, carbon emissions, and water pollution. Additionally, synthetic diamonds consume a limited amount of electricity, which can be produced from renewable resources, and do not use harmful substances or chemicals in the manufacturing process. These aspects, coupled with rising awareness of environmental protection, will increase product sales, especially among environmentally conscious consumers.
The synthetic diamond market in Asia Pacific grew from USD 6.53 billion in 2022 to USD 7.56 billion in 2023.
Rising Demand for Lab-Grown Diamond Jewelry Driving Market Growth
In recent years, the demand for synthetic diamond jewelry has increased globally, boosting product sales. Jewelry containing these diamonds is available in various forms such as rings, earrings, bracelets, and necklaces to meet end-user needs. This jewelry is a more affordable option for middle-class consumers with budget constraints, as it is significantly cheaper than mined or natural diamond jewelry. Additionally, several prominent celebrities worldwide are promoting product use, accelerating sales. Key industry players like Variation, Limelight Diamonds, House Of Quadri, Syndiora, and Emori emphasize offering a wide range of lab-grown diamond jewelry. Furthermore, rising demand for affordable, high-quality jewelry items, especially among women, will contribute to global market expansion in the near future.
High Product Usage Across Industries Boosting Global Sales
The use of lab-grown diamonds in cutting tools, machine parts, semiconductor devices, and abrasives drives market growth due to their unique properties. The product’s strength and hardness lead to its adoption for polishing, drilling, cutting, and grinding purposes across industries like automotive. It is added to saw blades to cut hard materials powerfully and efficiently. Moreover, these artificial diamonds have high thermal conductivity, increasing their utilization as heat spreaders in electronic devices like diode lamps and computers. Consequently, the growth of industries including electronics, automotive, and semiconductors is contributing to global lab-grown diamond market growth.
Availability of Substitute Products and Quality Issues Hindering Product Sales
The easy availability of substitute products such as natural diamonds and precious gemstones like emeralds, sapphires, garnets, amethysts, and peridots significantly hampers artificial diamond sales. The various characteristics of these substitutes, such as aesthetic beauty, quality, and durability, increase consumer inclination towards them. Moreover, concerns among consumers regarding quality related to color and durability of synthetic diamonds compared to mined or natural diamonds have also led to reduced sales. These quality issues cause consumers to perceive the product as inferior to others, hesitating to purchase. Additionally, limited awareness about artificial diamonds negatively impacts market expansion.
By Manufacturing Method Analysis
HPHT Segment Leads Due to Better Quality
By manufacturing method, the market is segmented into CVD and HPHT.
The HPHT segment dominated the global market in 2023. The HPHT method generally helps develop diamonds of better quality than the CVD process, making it more widely used in product development. Additionally, this process is very similar to the production method of natural/mined diamonds and offers better transparency grades and color quality.
The CVD segment will grow at the highest CAGR in the coming years as manufacturers increasingly prefer the CVD process for developing lab-grown diamonds, as it uses less energy and is faster than the HPHT method. The development of CVD diamonds in various colors will further support this segment’s growth. This segment gained a 45% market share in 2024.
By Size Analysis
Up to 2 Carats Segment Dominates Due to Affordability
By size, the market is segmented into Up to 2 Carats, Between 2-4 Carats, and Above 4 Carats.
The Up to 2 Carats segment holds the largest market share because diamonds in this category are priced lower than diamonds of 2 carats and above. Wedding rings and engagement rings containing diamonds up to 2 carats are also highly popular among end-users as their light weight and small size make them easy to wear daily. This segment is expected to hold a 70% market share in 2025.
The Between 2-4 Carats segment holds the second-largest market share. Diamonds in the 2-4 carat size range are expensive and preferred by high-income consumers. Moreover, rising consumer disposable income across countries and increasing demand for premium jewelry items, including diamonds, favor the expansion of this segment. This segment is likely to grow at a significant CAGR of 12.86% during the forecast period (2024-2032).
By Nature Analysis
Colorless Segment is Dominant
The market is segmented into Colorless and Colored based on nature.
The Colorless segment led the global market in 2023. Colorless lab-grown diamonds are in high demand due to their better value in terms of quality and grade. The extensive use of these diamonds in various applications such as cutting tools, electronics, and jewelry further propels this segment’s growth. This segment is expected to hold a 69% market share in 2025.
The Colored segment holds the world’s second-largest lab-grown diamond market share. Colored lab-grown diamonds are increasingly preferred as jewelry items due to their aesthetic appeal. Additionally, the lower price of these diamonds compared to colorless ones will accelerate product sales in the future. This segment is expected to grow at a significant CAGR of 13.67% during the forecast period (2024-2032).
By Application Analysis
Increasing Product Use Across Diverse Industries Supporting Segment Expansion
