Growth continues for diamond, DLC, and CBN markets
1
Economics Growth Continues for Diamond, DLC, and CBN Markets Thomas Abraham Synthetic diamonds are produced by a high-pressure, high-temperature tech- nique. However, a low-pressure tech- nique to produce diamond using chemi- cal vapor deposition (CVD) has drawn worldwide attention in recent years. In- deed, there has been an explosion of interest in CVD diamond, diamond-like carbon (DLC), and cubic boron nitride (CBN) films and coatings. One advan- tage of CVD diamond technology over the high-pressure technology is its low cost and ability to coat on any shapes. CVD diamond has advantages for applications in electronic packaging due to its extremely high thermal con- ductivity coupled with its excellent di- electric properties. Also, large substrates are now available, and a variety of pack- age designs are possible with CVD dia- mond. Tool inserts with CVD diamond thick-film blanks or thin-film coatings constitute the newest tool material. Diamond, DLC, and CBN films and coatings are now entering the commer- cial market as coated tool inserts, wear parts, prosthetic devices, audio speak- ers, x-ray windows, and heat sinks for electronic devices. Diamond and DLC coatings are also finding new optical applications as coatings for sunglasses, ophthalmic lenses, and infrared win- dows. Several of the diamond-coated products are also emerging as devices for a variety of advanced electronic and optical systems. There are still a few technical problems to be resolved for the massive commercialization of these products. These include reproducible fabrication of highly adherent coatings, improving deposition rates while main- taining quality, and scaling up technol- ogy for large-scale production. Business Communications Company recently completed the study Diamond, Diamond-Like Carbon and CBN Films and Coated Products, whichisa detailed analy- sis of the U. S. industry and markets for these materials. According to the study, the U.s. market for diamond, DLC, and CBN films and coated products in 1993 was worth $11.5 million. This analysis includes test, prototype, and production quantities, but excludes R&D spending. Currently, the markets are dominated by diamond-coated tool inserts, thermal management substrates, and optical ap- plications. The U.S. market is expected to reach 60 $60 million by the year 1998 with an annual average growth rate of 39.2 % per year from 1993 to 1998. Diamond-coated tool inserts represents the largest grow- ing market segment during this period. CVD diamond has already proven itself as a substrate material for electronic ap- plications (e.g., laser diode substrates and microwave circuits). High growth rates between 30% and 40% are expected for tool inserts, thermal management substrates, and optical applications. By 1998, new market segments to emerge include semiconductors and protective coatings. The global market for diamond, DLC, and CBN films and coated products in 1993 was $40 million. This is forecast to increase to $195 million by the year 1998 with an annual average growth rate of 37.3% per year from 1993 to 1998. In terms of the market share, the U.S. has currently 29% of the world market and is expected to maintain the same market share through the survey period. By the early 21st century, the diamond, DLC, and CBN films and coated prod- ucts business could become a multibillion dollar industry. In terms of the industry structure, the U.S. diamond, DLC, and CBN film in- dustry is characterized by more than 40 companies actively pursuing product research, development, testing, and com- mercialization. The market leaders are Norton, Crystallume, General Electric Superabrasives, and Diamonex. Norton, a leader in advanced ceramic products, has a variety of diamond film products such as cutting-tool inserts and substrates for electronic applications. Crystallume also has similar products in the market. Both companies are conducting exten- sive product development with support from government agencies. Although General Electric Superabrasives has tool inserts and wear-resistant products, these would compete with their own PCD and PCBN products. For optical areas, the leader is Diamonex. The second level of u.s. producers comprises Advanced Technology Mate- rials, Applied Science and Technology, and SI Diamond Technology. From out- side of the United States, competition is primarily provided by Drukker Interna- tional (De Beers products), supplied through Harris Diamond Corporation. Japanese products are yet to arrive in large quantities in the U.S. market. A new group of U.s companies enter- ing Ithe diamond-film products area are the large electronic, automotive, com- puter, aerospace, and telecommunica- tion companies that see a large potential for the diamond, DLC, and CBN coat- ings and thin-film products for which they are potential users. These compa- nies include such giants as IBM, General Motors, Ford, AT&T, Xerox, McDonnell Douglas, Texas Instruments, Du Pont, Raytheon, Rockwell, and Lockheed Space and Missile Company. Although the United States entered the :field at a rather late stage, the slow rate of progress in this field has allowed it to pull up virtually even in terms of both scientific understanding and com- mercialization. In 1989, Japan had the largest numbers of issued U.S. patents, followed by the United States. In 1990 and 1991, Japan and the United States had an equal number of patents. In 1992 and 1993, the U.s. receive the majority of the patents issued by the U.s. patent office. In terms of global competition, engi- neers and scientists in the United States and Japan are locked in a very close race to commercially develop the low-pres- sure synthesis of diamond and to under- stand the chemical and physical pro- cesses that accompany deposition of polycrystalline and monocrystalline lay- ers. They are joined in this competition by investigators in the United Kingdom, Sweden, Germany, Austria, and, espe- cially, Russia. Although the former Soviet Union has been a leader in diamond-film research, it has not been able to move from re- search to industrial applications. With the breakup of the Soviet Union, Russia now has most of the technological find- ings. With the current economic turmoil there, however, not many diamond coated products have entered the mar- ket. In the future, Russia could be a potential player. Thomas Abraham is senior industry analyst and director of the ceramics group at the Business Communications Company in Norwalk, Connecticut. He is also editor of the High Tech Ceramics News and Diamond and Structural Carbon News. For more information, contactT. Abraham, Busi- ness Communications Company, 25 Van Zant StreElt, Norwalk, Connecticut 06855; (203) 853- 4266; fax (203) 853-0348. JOM • November 1995
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Transcript of Growth continues for diamond, DLC, and CBN markets
Economics
Growth Continues for Diamond, DLC, and CBN Markets
Thomas Abraham
Synthetic diamonds are produced by a high-pressure, high-temperature technique. However, a low-pressure technique to produce diamond using chemical vapor deposition (CVD) has drawn worldwide attention in recent years. Indeed, there has been an explosion of interest in CVD diamond, diamond-like carbon (DLC), and cubic boron nitride (CBN) films and coatings. One advantage of CVD diamond technology over the high-pressure technology is its low cost and ability to coat on any shapes.
CVD diamond has advantages for applications in electronic packaging due to its extremely high thermal conductivity coupled with its excellent dielectric properties. Also, large substrates are now available, and a variety of package designs are possible with CVD diamond. Tool inserts with CVD diamond thick-film blanks or thin-film coatings constitute the newest tool material.
Diamond, DLC, and CBN films and coatings are now entering the commercial market as coated tool inserts, wear parts, prosthetic devices, audio speakers, x-ray windows, and heat sinks for electronic devices. Diamond and DLC coatings are also finding new optical applications as coatings for sunglasses, ophthalmic lenses, and infrared windows. Several of the diamond-coated products are also emerging as devices for a variety of advanced electronic and optical systems. There are still a few technical problems to be resolved for the massive commercialization of these products. These include reproducible fabrication of highly adherent coatings, improving deposition rates while maintaining quality, and scaling up technology for large-scale production.
Business Communications Company recently completed the study Diamond, Diamond-Like Carbon and CBN Films and Coated Products, whichisa detailed analysis of the U. S. industry and markets for these materials. According to the study, the U.s. market for diamond, DLC, and CBN films and coated products in 1993 was worth $11.5 million. This analysis includes test, prototype, and production quantities, but excludes R&D spending. Currently, the markets are dominated by diamond-coated tool inserts, thermal management substrates, and optical applications.
The U.S. market is expected to reach
60
$60 million by the year 1998 with an annual average growth rate of 39.2 % per year from 1993 to 1998. Diamond-coated tool inserts represents the largest growing market segment during this period. CVD diamond has already proven itself as a substrate material for electronic applications (e.g., laser diode substrates and microwave circuits). High growth rates between 30% and 40% are expected for tool inserts, thermal management substrates, and optical applications. By 1998, new market segments to emerge include semiconductors and protective coatings.
The global market for diamond, DLC, and CBN films and coated products in 1993 was $40 million. This is forecast to increase to $195 million by the year 1998 with an annual average growth rate of 37.3% per year from 1993 to 1998. In terms of the market share, the U.S. has currently 29% of the world market and is expected to maintain the same market share through the survey period.
By the early 21st century, the diamond, DLC, and CBN films and coated products business could become a multibillion dollar industry.
In terms of the industry structure, the U.S. diamond, DLC, and CBN film industry is characterized by more than 40 companies actively pursuing product research, development, testing, and commercialization. The market leaders are Norton, Crystallume, General Electric Superabrasives, and Diamonex. Norton, a leader in advanced ceramic products, has a variety of diamond film products such as cutting-tool inserts and substrates for electronic applications. Crystallume also has similar products in the market. Both companies are conducting extensive product development with support from government agencies. Although General Electric Superabrasives has tool inserts and wear-resistant products, these would compete with their own PCD and PCBN products. For optical areas, the leader is Diamonex.
The second level of u.s. producers comprises Advanced Technology Materials, Applied Science and Technology, and SI Diamond Technology. From outside of the United States, competition is primarily provided by Drukker International (De Beers products), supplied through Harris Diamond Corporation. Japanese products are yet to arrive in
large quantities in the U.S. market. A new group of U.s companies enter
ing Ithe diamond-film products area are the large electronic, automotive, computer, aerospace, and telecommunication companies that see a large potential for the diamond, DLC, and CBN coatings and thin-film products for which they are potential users. These companies include such giants as IBM, General Motors, Ford, AT&T, Xerox, McDonnell Douglas, Texas Instruments, Du Pont, Raytheon, Rockwell, and Lockheed Space and Missile Company.
Although the United States entered the :field at a rather late stage, the slow rate of progress in this field has allowed it to pull up virtually even in terms of both scientific understanding and commercialization. In 1989, Japan had the largest numbers of issued U.S. patents, followed by the United States. In 1990 and 1991, Japan and the United States had an equal number of patents. In 1992 and 1993, the U.s. receive the majority of the patents issued by the U.s. patent office.
In terms of global competition, engineers and scientists in the United States and Japan are locked in a very close race to commercially develop the low-pressure synthesis of diamond and to understand the chemical and physical processes that accompany deposition of polycrystalline and monocrystalline layers. They are joined in this competition by investigators in the United Kingdom, Sweden, Germany, Austria, and, especially, Russia.
Although the former Soviet Union has been a leader in diamond-film research, it has not been able to move from research to industrial applications. With the breakup of the Soviet Union, Russia now has most of the technological findings. With the current economic turmoil there, however, not many diamond coated products have entered the market. In the future, Russia could be a potential player.
Thomas Abraham is senior industry analyst and director of the ceramics group at the Business Communications Company in Norwalk, Connecticut. He is also editor of the High Tech Ceramics News and Diamond and Structural Carbon News.
For more information, contactT. Abraham, Business Communications Company, 25 Van Zant StreElt, Norwalk, Connecticut 06855; (203) 853-4266; fax (203) 853-0348.
JOM • November 1995
