October 10, 2002: Diamond has long held a special place in the hearts and minds both of scientists and the public at large. It is the hardest material known and has the highest thermal conductivity among all known materials. Combined with these important properties, diamond has very low thermal expansion and high electrical resistance.
The mid-1990s saw the market for diamond, diamond-like, and CBN thin films and coated products take off. Several new technologies emerged during this period. These included arc jet plasma, microwave plasma and their modifications, the interactive laser technique, and a technique to produce nanocrystalline diamond films using fullerenes in an argon atmosphere.
Another technique, known as "alpha diamond technology," commercialized DLC-coated shaving blades. Diamond, diamond-like, and CBN films have moved from a gestation period to commercial reality. Since the advent of these new technologies, diamond and diamond-like films and coated products have reached a greater level of activity in their applications. Currently, established market segments exist for shaving blades, cutting tool inserts, wear-resistant parts and automotive components, thermal-management substrates, recording and print heads, protective windows, and sunglasses.
According to a soon-to-be-released study from Business Communications Company, Inc. RGB-173U Diamond, Diamond-like and CBN Films and Coated Products: Market Analysis, the North American market is expected to reach $290 million by 2006, with an AAGR (annual average growth rate) of 18.3% per year from 2001 through 2006. Among the established market segments, the largest growing segment is for DLC-coated wear-resistant parts and auto components. Consumer applications and tool inserts will double from 2001 to 2006. By 2006, new market segments will emerge, including medical, flat-panel displays, electronic devices, sports equipment, and protective coatings.
The global market for diamond, diamond-like, and CBN films and coated products in 2001 is estimated to be $284 million. This is expected to increase to $725 million by 2006, as it grows at an AAGR of 20.6% per year from 2001 through 2006. In terms of the market share, North America stood at about 30% of the world market in the early 1990s, which increased to about 44% of the world market by the late 1990s. This rate has been maintained in 2001. It is forecast that North America's market share will decline slightly in 2006, while the European market share will simultaneously increase.
The former Soviet Union and Japan were pioneers in diamond film research and development; the U.S. was a latecomer. After the breakup of the Soviet Union, most of the diamond film technologies stayed with Russia. However, in the past 10 years, Russian R & D and commercialization efforts have been minimal compared to other countries. In competition with Japan, the U.S. has not only caught up in R & D, but now has surged ahead in commercialization efforts. However, there is still fierce competition between the U.S. and Japan in the global market for diamond, diamond-like, and CBN material films and coatings. Although Europe has been behind the U.S. and Japan, it has recently increased its development activities. Russia slipped behind in the past 10 years. However, it would also be a likely candidate in future competition.
In terms of the industry structure, the U.S. diamond, CBN, and diamond-like film industry is characterized by over 55 companies actively pursuing research, development, testing, and commercialization of these products. There are 10 U.S. suppliers of thin-film products and 4 U.S. suppliers of thick films. While there have been reorganizations among film producers and coating-service companies, more user companies have perfected in-house commercial production of items and gadgets for their own use. In the new scenario, companies holding the exclusive rights to improved and new technologies have started licensing their technologies to coating-service companies or to the end users.
