Editor’s Note
This article examines the growing importance of synthetic single crystal diamond in Japan’s high-tech sector. Driven by demand from semiconductors, quantum technology, and precision industries, its unique physical properties are making it a key material for next-generation applications.
In Japan, as demand for high-performance materials surges in advanced fields such as semiconductors, precision machining, and quantum technology, synthetic single crystal diamond is gaining attention as a crucial material supporting next-generation industries. Its characteristics, including high thermal conductivity, mechanical strength, and stability of electrical properties, are driving its adoption in diverse applications like power devices, laser optics, and ultra-precision tools. Leveraging domestic companies’ strengths in material technology and precision processing, development aimed at expanding application areas is also becoming more active. Amid a global acceleration in demand for high-performance materials, Japan’s synthetic single crystal diamond market presents a significant growth opportunity for technological innovation and enhanced industrial competitiveness.
Unlike most thermally conductive materials which are electrically conductive, synthetic diamond provides efficient, high heat dissipation without interfering with electrical circuits. This property makes it highly valuable in electronics, where synthetic diamond is used as a heat sink to efficiently dissipate heat.
Single crystal diamond powder is emerging as a key enabler for next-generation electronics, offering unparalleled performance and reliability. Rapid advances in synthesis and processing technologies, coupled with relentless demand for high-performance electronics, present diverse growth opportunities for companies and researchers willing to invest in this transformative technology. As the demand for smaller, faster, and more energy-efficient devices continues to grow, this advanced material is capturing the attention of innovators across the electronics industry.
Japan demonstrates strong demand for SCD, based on its focus on precision engineering and advanced research. Japanese manufacturers, renowned for their expertise in precision machining, require diamond tools for cutting, grinding, and polishing extremely hard materials. In India, demand for single crystal diamond is steadily increasing, driven by a growing manufacturing sector, particularly in the automotive and aerospace industries.
Element Six, Sumitomo Electric Industries Ltd, Hyperion Materials & Technologies, Orbray Co., Ltd, and Diamond Elements Pvt. Ltd are major players operating in the industry. Companies are pursuing strategies such as mergers, acquisitions, strategic partnerships, and R&D investments to enhance their product offerings and boost market share. Government initiatives and the rising need for sustainable, high-quality materials across industries further support market growth. The global market is highly competitive and fragmented, featuring the presence of both established industry leaders and emerging players, with the top five players accounting for approximately 60% of the market share.
The global synthetic single crystal diamond market size was valued at USD 2.12 billion in 2025. The market size is projected to grow from USD 2.28 billion in 2026 to USD 4.33 billion by 2034, exhibiting a CAGR of 8.30% during the forecast period. North America dominated the synthetic single crystal diamond market with a 53% share in 2025.
The development of diamond-based quantum processors is the latest trend. For decades, quantum computing was largely theoretical and confined to science fiction. Today, it is rapidly becoming a reality, with soaring demand from companies, governments, and research institutions seeking to harness its transformative potential. This momentum has sparked a global race to develop quantum technologies that could revolutionize industries.
Demand for high-quality synthetic single crystal diamond is driven by the rapidly growing quantum computing industry. Companies and research institutions are making significant investments in the development of diamond-based quantum processors, sensors, and communication devices. As breakthroughs emerge, these lab-grown gems are poised to form the foundation of the quantum future.
Increasing demand for heat spreaders and dissipators in the electronics industry is significantly propelling the growth of the synthetic single crystal diamond market. As high-performance electronic devices become increasingly compact, efficient thermal management has become essential to address overheating challenges.
Synthetic diamond heat spreaders are finding applications in aerospace (satellite systems), automotive (electric vehicles), telecommunications (5G technology), and high-performance computing (CPUs and GPUs), highlighting their versatility and expanding reach.
In a breakthrough development, Element Six, in collaboration with Delft University of Technology, demonstrated quantum entanglement between atomic-like defects in two separate synthetic diamonds. This milestone paves the way for diamond-based quantum networks, quantum repeaters, and secure long-distance quantum communication. Such advancements have the potential to revolutionize information processing by enabling systems that can solve problems beyond the reach of current technology.
The market is witnessing robust growth driven by a combination of superior properties, cost-effectiveness, technological advancements, expanding industrial applications, ethical sourcing considerations, and favorable regional growth dynamics. While challenges such as production costs persist, ongoing innovation continues to unlock significant opportunities across industries including electronics, healthcare, aerospace, and jewelry.
Synthetic single crystal diamonds are valued for their exceptional hardness, thermal conductivity, optical transparency, and chemical inertness. These properties make them indispensable in high-tech applications. Their extreme hardness is utilized in precision cutting tools and industrial abrasives, particularly in construction and manufacturing. For instance, synthetic diamonds are used in drilling equipment for geological mining for durability. In geological drilling, synthetic diamonds are embedded in drill bits to penetrate hard rock formations, enhancing performance and lifespan compared to traditional steel or tungsten carbide drill bits, thereby boosting the growth of the synthetic single crystal diamond market.
One notable application of the product is in stone cutting, where synthetic diamond-coated wires are used. These wires consist of metal cables with beads embedded with diamond powder, offering superior cutting efficiency. Synthetic diamonds are increasingly used in healthcare for medical imaging equipment, diagnostic devices, and surgical tools due to their biocompatibility, chemical inertness, and mechanical stability. Diamond-coated scalpels provide precise cutting during surgery while maintaining durability. Furthermore, synthetic diamonds are integrated into advanced imaging technologies such as X-ray detectors for clearer resolution.