In 2008, world production of industrial diamonds will exceed $2.3 billion. The majority of these will be used in abrasive and cutting tool applications. Manufacturers of cutting tools and superabrasives have long recognized the advantages of diamond over other abrasive products, such as ceramic and cemented carbides, but have not been able to justify the added expense of using diamond products over these less expensive materials. Continually, however, efficiencies in synthetic diamond production and the development of untapped mines in Canada and South America, lower the cost of diamond materials. The result has sparked an increased interest in diamond tools.

The US market for cutting tools, such as drill bits for construction, saw blades and grinding wheels, has been dominated by materials such as aluminum oxide ceramics or tungsten carbide as the abrasive component. However, superabrasives such as cubic- or polycrystalline boron nitride and diamonds offer distinct advantages, such as greater wear resistance and cleaner finish. These characteristics result in increased tool life (in some cases by a factor of fifty.) The main disadvantage of superabrasives is price which can be as much as ten times greater than ceramic or carbide. Ironically, the tool would long outlive the times-ten price differential, but OEMs contend that the tool actually outlives the job for which it is needed, and that buying five carbide blades, for instance, is more cost effective than buying one diamond tool blade. Thus, the market for ceramic and carbide cutting tools continues to represent a huge potential for diamond tool makers.

Within the cutting tools sector, superabrasive products (i.e., diamond and CBN/PCBN) make up approximately 10% of the total world market. Diamond tools make up slightly less than 50% of the total. Over 94% of the industrial diamonds used will be synthetically produced. Even with the increased market for natural industrial diamonds which total 67.7 million carats in 2008, the industrial diamond industry will remain dominated by synthetic products which equal approximately 1,182.8 million carats in 2008.

Dedalus Consulting (www.dedalusconsulting.com) recently released new research on Diamond Tools as part of its Advanced Materials Series. The report contains data on the world market by product type in the following end-user industries: Stone Quarrying, Processing & Construction, Machinery, Transportation, and Electronics & Semiconductors. The products covered include: saw blades, diamond wire saws, grinding wheels, drill bits, gang saws, core drills, metal band saws, and dressers. From 2002-2007, the world market for diamond tools grew at an average annual rate approaching 10%. From 2008-2013, the market will continue to grow strongly at an average of 6.3% annually. Within each of the main end-use markets for diamond tools (stone/construction, machinery, transportation, and electronics) growth rates vary considerably. From 2002-2007, both the stone/construction and transportation markets grew at the moderate rates of 5.1% and 4.8% respectively, while the electronics and machinery markets showed stronger growth at 8.6% and 15% respectively.

Exhibit One shows the total market for diamond tools by tool type. In 2009, saw blades, wire saws and grinding wheels made up over 66% of the total market for diamond tools. The main driving factors in the growth of the diamond tool industry continues to be: the decrease in the cost of synthetic diamonds; increasing efficiencies in diamond tool manufacturing; and advances in materials sciences.

Some main suppliers worldwide include Asahi Diamond, Husq Varna, Sandvik, Kennametal and Iscar, to name a few.

Using 2007 as the base year, the report assesses the overall growth potential for diamond tools and forecasts growth by product type and end-use market through 2013. It includes extensive information on the competitive environment, including recent market entrants, types of suppliers, differentiation points, general warranty standards, service contracts and barriers to market entry.

Author Bio: cutting tools, market research consultants, global market research

Category: Marketing
Keywords: Global Market Research, Market Research Consultants, Cutting Tools, Diamond Tools