The growing market for CBN and diamond products
1
conomlcs The Growing Market for CBN and Diamond Products Thomas Abraham Authors Note: This article summarizes infonnation com- piled for the Business Communications Company report New Industnal DUlmond and eBN Technology and Markets INTRODUCTION Because of a combination of properties that include high hardness, high ther- mal conductivity, low thermal expan- sion, and high electrical resistance, dia- mond and cubic boron nitride (CBN) materials have become important indus- trial materials, enhancing productivity in metal working, material production, grinding and finishing, oil production, mining, rock cutting, precision cutting, and machining. Diamond, diamond-like, and CBN films and coatings are now entering the commercial market via tool inserts, wear parts, prosthetic devices, audio speakers, x-ray windows, and heat sinks. Several diamond-coated products are being applied to advanced electronic and optical systems. INDUSTRY STRUCTURE The diamond and CBN materials in- dustry interfaces directly with the heavy, automotive, high-technology, construc- tion, and stone-cutting industries by the widespread use of diamond and CBN products for grinding, cutting, polish- ing, and finishing. The industry is char- acterized by different production technologies-from the high-tempera- ture, high-pressure synthesis of diamond and CBN to plasma chemical vapordepo- sition for diamond and CBN films and coatings. Diamond and CBN product technologies are characterized by differ- ent forming methods, including electro- plating, resin and metal bonding, and vitrification. Brazing technologies are also adopted for single-crystal or poly- crystalline products. The U.S. diamond and CBN materials, films, and products industry is charac- terized by more than 350 companies that may be classified in four ways. First are companies that supply raw diamond, CBN, polycrystalline diamond (PCD), and polycrystalline CBN (PCBN) prod- ucts. Next are companies that use these raw products to make the finished prod- ucts. The third set of companies com- prises those that supply all of these prod- ucts. The final set consists of companies that conduct research and development and/ or commercialize the products. The U.S. industrial diamond industry is characterized by three primary pro- 42 ducers of synthetic diamonds, a dozen reclaimers, about 200 producers of dia- mond products, and 100 or more dis- tributors, including those who service the diamond products. Three compa- nies produce PCD compacts. Many non- U.s. companies also have establishments within the United States for distributing diamonds and diamond products. A few even have U.S. production facilities. Worldwide, the CBN materials and PCBN blanks industry is characterized by very few players. Excluding Russia, there are only three producers of CBN materials in the world. CBN wheels and PCBN products are manufactured by many of the companies that produce diamond wheels and PCD products. Although the current market is comparatively small, the industry is in the midst of booming sales and growth. There are about two dozen U.S. com- panies that are actively pursuing the research, development, testing, and com- mercialization of diamond, diamond- like, and CBN films and coatings. Al- though the current market is compara- tively small, the industry is in the midst of booming sales and growth. It is an area that will attract a large number of companies in the future. THE U.S. MARKET U.S. markets for industrial diamond and CBN materials, films, and products totaled $956 million in 1990 and $958.5 million in 1991. The growth rate from 1990 to 1991 is only about 0.25%. Be- tween 1991 and 1996, however, the U.S. market is projected to increase at an annual rate of 7.9% to reach more than $1.4billionby1996. This estimate is based on the historic growth rate for the past ten years of close to 10%. The exception- ally poor growth rate for 1990-1991 is considered an aberration that reflects the present economic downturn. The market for industrial diamond and PCD and their products was $839 million in 1991. By 1996, this consump- tion is expected to reach more than $1.1 billion, reflecting an annual growth rate of 6% over the study period. Of the total 1991 market, diamond grit, stones, and PCD blanks constituted $204 million; finished products accounted for about $635 million. CBN and PCBN products, including CBN wheels, accounted for sales of $108.5 million in 1991. Expansion will be rapid, however, as the market is projected to total $202.5 million by 1996, reflecting an average annual growth of 13.3%. In 1991, the U.S. marketfor diamond, diamond-like and CBN films totaled $11 million. Annual growth will be an in- credible 47%, however, with the market totaling $75 million by 1996. With regard to market share, industrial diamonds and their products have the largest market share-more than 80% during each year of the studied period. However, CBN products as well as dia- mond, diamond-like, and CBN films and coated products will have faster growth rates than the diamond products. There- fore, the market shares for CBN and the film products will increase at the ex- pense of diamond products. CBN and PCBN products, as a per- centage of the total diamond/CBN in- dustry, will increase from 11.3% in 1991 to 14.5% in 1996, reflecting an important shift toward expanded utilization. As a percentage of the total diamond/CBN industry, film products accounted for only 1.2% in 1991, although this figure will swell to 5.3% by 1996. Currently, the U.S. market for dia- mond and CBN materials, films, and products constitutes approximately 25% of the total world market. In terms of international competition, the United States has an edge with regard to dia- mond and CBN materials technology and products. However, Japan is ahead of the United States in the diamond, diamond-like, and CBN thin-film prod- ucts area. There is clearly a surge of activity in the United States to com- pensate for this deficiency. Thomas Abraham is senior mdustry analyst and director of the Ceramics Croup at the Business Communications Company in Norwalk, Connecticut. He is also the editor o[High Tech Ceramics News. If you want more information on this subject, please circle reader service card number 53. [J [J [J JaM • October 1993
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Transcript of The growing market for CBN and diamond products
conomlcs
The Growing Market for CBN and Diamond Products Thomas Abraham
Authors Note: This article summarizes infonnation compiled for the Business Communications Company report New Industnal DUlmond and eBN Technology and Markets
INTRODUCTION
Because of a combination of properties that include high hardness, high thermal conductivity, low thermal expansion, and high electrical resistance, diamond and cubic boron nitride (CBN) materials have become important industrial materials, enhancing productivity in metal working, material production, grinding and finishing, oil production, mining, rock cutting, precision cutting, and machining. Diamond, diamond-like, and CBN films and coatings are now entering the commercial market via tool inserts, wear parts, prosthetic devices, audio speakers, x-ray windows, and heat sinks. Several diamond-coated products are being applied to advanced electronic and optical systems.
INDUSTRY STRUCTURE
The diamond and CBN materials industry interfaces directly with the heavy, automotive, high-technology, construction, and stone-cutting industries by the widespread use of diamond and CBN products for grinding, cutting, polishing, and finishing. The industry is characterized by different production technologies-from the high-temperature, high-pressure synthesis of diamond and CBN to plasma chemical vapordeposition for diamond and CBN films and coatings. Diamond and CBN product technologies are characterized by different forming methods, including electroplating, resin and metal bonding, and vitrification. Brazing technologies are also adopted for single-crystal or polycrystalline products.
The U.S. diamond and CBN materials, films, and products industry is characterized by more than 350 companies that may be classified in four ways. First are companies that supply raw diamond, CBN, polycrystalline diamond (PCD), and polycrystalline CBN (PCBN) products. Next are companies that use these raw products to make the finished products. The third set of companies comprises those that supply all of these products. The final set consists of companies that conduct research and development and/ or commercialize the products.
The U.S. industrial diamond industry is characterized by three primary pro-
42
ducers of synthetic diamonds, a dozen reclaimers, about 200 producers of diamond products, and 100 or more distributors, including those who service the diamond products. Three companies produce PCD compacts. Many nonU.s. companies also have establishments within the United States for distributing diamonds and diamond products. A few even have U.S. production facilities.
Worldwide, the CBN materials and PCBN blanks industry is characterized by very few players. Excluding Russia, there are only three producers of CBN materials in the world. CBN wheels and PCBN products are manufactured by many of the companies that produce diamond wheels and PCD products.
Although the current market is comparatively small, the industry is in the midst of booming sales and growth.
There are about two dozen U.S. companies that are actively pursuing the research, development, testing, and commercialization of diamond, diamondlike, and CBN films and coatings. Although the current market is comparatively small, the industry is in the midst of booming sales and growth. It is an area that will attract a large number of companies in the future.
THE U.S. MARKET
U.S. markets for industrial diamond and CBN materials, films, and products totaled $956 million in 1990 and $958.5 million in 1991. The growth rate from 1990 to 1991 is only about 0.25%. Between 1991 and 1996, however, the U.S. market is projected to increase at an annual rate of 7.9% to reach more than $1.4billionby1996. This estimate is based on the historic growth rate for the past ten years of close to 10%. The exceptionally poor growth rate for 1990-1991 is considered an aberration that reflects the present economic downturn.
The market for industrial diamond and PCD and their products was $839 million in 1991. By 1996, this consumption is expected to reach more than $1.1
billion, reflecting an annual growth rate of 6% over the study period. Of the total 1991 market, diamond grit, stones, and PCD blanks constituted $204 million; finished products accounted for about $635 million.
CBN and PCBN products, including CBN wheels, accounted for sales of $108.5 million in 1991. Expansion will be rapid, however, as the market is projected to total $202.5 million by 1996, reflecting an average annual growth of 13.3%.
In 1991, the U.S. marketfor diamond, diamond-like and CBN films totaled $11 million. Annual growth will be an incredible 47%, however, with the market totaling $75 million by 1996.
With regard to market share, industrial diamonds and their products have the largest market share-more than 80% during each year of the studied period. However, CBN products as well as diamond, diamond-like, and CBN films and coated products will have faster growth rates than the diamond products. Therefore, the market shares for CBN and the film products will increase at the expense of diamond products.
CBN and PCBN products, as a percentage of the total diamond/CBN industry, will increase from 11.3% in 1991 to 14.5% in 1996, reflecting an important shift toward expanded utilization. As a percentage of the total diamond/CBN industry, film products accounted for only 1.2% in 1991, although this figure will swell to 5.3% by 1996.
Currently, the U.S. market for diamond and CBN materials, films, and products constitutes approximately 25% of the total world market. In terms of international competition, the United States has an edge with regard to diamond and CBN materials technology and products. However, Japan is ahead of the United States in the diamond, diamond-like, and CBN thin-film products area. There is clearly a surge of activity in the United States to compensate for this deficiency.
Thomas Abraham is senior mdustry analyst and director of the Ceramics Croup at the Business Communications Company in Norwalk, Connecticut. He is also the editor o[High Tech Ceramics News.
If you want more information on this subject, please circle reader service card number 53.
[J [J [J
JaM • October 1993
