Synthetic sapphire, also known as laboratory-grown sapphire, is an artificially produced sapphire that is identical to natural sapphire in terms of chemical composition and physical properties. Synthetically produced sapphire has higher purity level and more consistent quality compared to natural sapphire. It finds wide application as a protective cover for screens of high-end phones and smartwatches due to its durability. Being transparent in the visible and infrared regions, synthetic sapphire is increasingly used as a substrate for light emitting diodes (LEDs) and as windows for laser diodes.
The global synthetic sapphire market is estimated to be valued at US$ 7.12 Bn in 2023 and is expected to exhibit a CAGR of 8.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the synthetic sapphire market is the growing demand from the semiconductor industry. Synthetic sapphire acts as an ideal substrate material for manufacturing semiconductors and integrated circuits (ICs) owing to its high thermal conductivity, robustness, and resistance to heat, chemicals, and radiation damage. It is increasingly replacing silicon wafers and nitride substrates in fabricating LEDs and optical devices used in display applications including OLED displays and laser systems. Sapphire offers five times higher thermal conductivity compared to silicon or gallium arsenide chips enabling compact and high-powered chips. This has boosted the consumption of synthetic sapphire substrates in the semiconductor industry.
Porter’s Analysis
Threat of new entrants: Entry into the synthetic sapphire market requires significant investments in R&D and manufacturing facilities. Large competitors have strong brand recognition and economies of scale which pose barriers for new players.
Bargaining power of buyers: Buyers have moderate bargaining power as synthetic sapphire has applications in various end-use industries. Switching costs are relatively low.
Bargaining power of suppliers: A few major players dominate the raw material supply chain which gives them bargaining power over buyers.
Threat of new substitutes: Synthetic diamond and other gemstones pose a threat but sapphire has established applications that are not easily substitutable.
Competitive rivalry: The synthetic sapphire market is consolidated with leading players differentiating based on quality, new product innovations and customer service.
Key Takeaways
The Global Synthetic Sapphire Market Trend is expected to witness high growth over the forecast period. Asia Pacific currently dominates the market owing to presence of major manufacturing countries like China and India. The region is expected to grow at a high rate during the forecast period.
Regional analysis: Asia Pacific accounts for around 60% of global production of synthetic sapphire due to low costs and supportive government policies in China and India. The region is expected to continue its dominance with highest CAGR during the forecast period owing to rising electronics and defense industries.
Key players: Key players operating in the synthetic sapphire market are The Coconut Company (UK) Ltd., Tirumala Food Industries, Enature Organic Products, Ayam Sarl, Nestlé S.A. These leaders focus on expanding manufacturing facilities and new product lines to cater to diverse end-use industries and regions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it