Global Synthetic Sapphire Market - 2023-2030

Overview:

Global Synthetic Sapphire Market reached US$ 6.4 billion in 2022 and is expected to reach US$ 11.5 billion by 2030, growing with a CAGR of 7.6% during the forecast period 2023-2030.

Synthetic sapphire is used in the manufacture of LED substrates and cover screens for smartphones and tablets. The increasing adoption of lighting and the expansion of consumer electronics are contributing to the demand for synthetic sapphire market. Synthetic sapphires are considered for use in automotive applications. Advances in manufacturing techniques are driving synthetic sapphire market growth.

For instance, on January 10, 2023, Intel introduced its latest innovation, the 4th Generation Xeon processors, which are alternatively referred to as Sapphire Rapids. These processors come in multiple variants, including Sapphire Rapids HBM (featuring high-bandwidth memory) and Ponte Vecchio.

Sapphire's properties including its hardness and resistance to high temperatures, make it suitable for various applications. Electrical and Electronics are used in aerospace, defense, medical devices and watchmaking. Synthetic sapphire is used in electronics production and is increasing in demand for solar energy leading to the industry contributing more than 1/3rd in the market share.

Asia-Pacific, particularly countries like China and South Korea, had established themselves as manufacturing hubs for synthetic sapphire and covered more than 56.6% in 2022. These countries had well-developed facilities and expertise in growing high-quality sapphire crystals. The region offers cost advantages in terms of production and labor costs, making it an attractive destination for companies looking to manufacture synthetic sapphire materials more efficiently.

Dynamics:

Growing Demand in Electrical and Electronics

The electronics industry relies on semiconductor devices for various applications. Synthetic sapphire is used as a substrate material for manufacturing LEDs and laser diodes. The demand for these electronics continues to grow, driving the demand for synthetic sapphire.

Synthetic sapphire covering material for electronic displays, such as those in smartphones, tablets and smartwatches. It is hardness and scratch resistance makes it an ideal choice for protecting sensitive display screens. The synthetic sapphire market is growing with the increasing production and consumption of electronic devices.

Synthetic sapphire's excellent optical properties make it suitable for optical windows and lenses used in various optoelectronic devices, including cameras, sensors and laser systems. As optoelectronic applications expand in the electronics industry, so does the demand for synthetic sapphire components.

Rising Demand for LEDs

Synthetic sapphire is used as a substrate material for the production of LED chips. LEDs require a reliable and thermally stable platform for semiconductor growth and synthetic sapphire provides these essential characteristics. The LED lighting demand is growing in applications such as residential, commercial and automotive lighting and the market for synthetic sapphire substrates is expanding.

LED technology is used for monitors, laptops and smartphones. Synthetic sapphire is employed as a key component in LED backlight units (BLUs) to enhance light quality and durability. The increasing production and adoption of LED-backlit displays contribute to the growth of the synthetic sapphire market.

LED technology is an integral part of consumer electronics, including indicators, backlit keyboards and camera flashes. Synthetic sapphire is utilized to protect and enhance the performance of LEDs in these applications. As consumers continue to adopt electronic devices with LED components, it fuels the synthetic sapphire market.

Growing Demand for Solar Panels

Solar PV relies on synthetic sapphire for the production of photovoltaic cells are the building blocks of solar panels. Synthetic sapphire is used as a substrate or cover material due to its optical properties and durability. The shift towards renewable energy growing rapidly and solar panels are expanding in the market.

Reducing carbon emissions and combatting climate change is leading to a surge in solar panel installations across residential, commercial and industrial sectors. Governments and organizations worldwide are incentivizing solar energy adoption through various policies and subsidies. This increasing installation of solar panels is directly contributing to the market's growth, as it leads to higher demand for synthetic sapphire.

Increasing Industrial Applications

The market is witnessing demand from the electronics and semiconductor industry. Synthetic sapphire is used for the substrates and wafers for LEDs, lasers and electronic components. Synthetic sapphire is growing with the ever-increasing demand for electronic devices such as smartphones and advanced sensors.

Synthetic sapphire's exceptional optical properties such as high transparency make it a preferred choice for various optical components. This includes lenses, windows and covers used in cameras, optical instruments and laser systems. The expansion of industries reliant on precision optics, such as medical devices and aerospace, is driving the demand for synthetic sapphire.

Manufacturers are producing new products to meet the consumer demands. For instance, on August 9, 2023, Bradley's Jewellers York launched its renowned Eco Rocks brand by introducing a fresh collection of exquisite jewelry. This new collection showcases the beauty of lab-grown colored stones and lab-grown diamonds.

High Production Costs

High production costs for synthetic sapphire can make it less competitive compared to alternative materials in various applications. For instance, in the semiconductor and electronics industry, where cost-efficiency is crucial, the higher expenses associated with synthetic sapphire may limit its adoption. This limitation can impede the market's growth.

In solar photovoltaic, high production costs can translate into more expensive solar panels where synthetic sapphire is used for photovoltaic cell production, This could potentially slow down the adoption of solar energy systems, particularly in regions or markets with budget constraints, growing the solar panel market and hampered the synthetic sapphire market.

Limited Sources of Raw Materials

The synthetic sapphire market heavily relies on specific raw materials, primarily aluminum oxide. The sources of alumina are limited, which can create vulnerability in the supply chain. Disruptions or fluctuations in the supply of raw materials can lead to production delays and increased costs, affecting the overall stability and growth of the market.

Limited sources of raw materials can result in price volatility. When supply is constrained, raw material prices tend to rise, which can increase production costs for synthetic sapphire manufacturers. These cost increases are passed on to customers, potentially impacting demand and market growth as the material becomes less price-competitive.

Limited access to raw materials can create barriers to entry for new players in the synthetic sapphire market. Smaller or emerging companies face challenges in securing a consistent supply of raw materials, making it difficult for them to compete with established players. This limited competition can stifle innovation and market growth.

Segment Analysis:

The global synthetic sapphire market is segmented based on type, technology, application and region.

Rising Application of Synthetic Sapphire Wafers as Substrates for Semiconductor Device Fabrication

The electronics segment held the largest share of the global synthetic sapphire market and is expected to reach up to 30.4% in the forecast period. Synthetic sapphire wafers are used as substrates for semiconductor device fabrication, particularly in the production of radio frequency (RF) and microwave devices. Its high dielectric constant and thermal stability are advantageous in this context.

Synthetic sapphire is used to manufacture optical components like windows and lenses for cameras, sensors and various optical instruments due to its optical clarity and durability. Synthetic sapphire is used as a substrate material for LEDs, which are widely used in displays, lighting and indicators. Its high thermal conductivity and optical transparency make it an ideal choice to enhance LED performance.

Geographical Penetration

Manufacturing Hub, Large Consumer Electrical and Electronics Market and Technological Advancements

Asia-Pacific is dominating the global synthetic sapphire market and countries like China, India and Japan cover nearly 60.5% of the regional share. Asia-Pacific is emerged as a major manufacturing hub for synthetic sapphire products. Countries in the region China, Japan and South Korea, are investing heavily in sapphire production facilities. This concentration of manufacturing capabilities is allowing the region to meet global demand effectively.

Asia-Pacific consists of consumer electronics manufacturing, including smartphones. Synthetic sapphire is a crucial component in these devices, particularly for protective screens and camera lenses. The high demand for electronics in the region is driving the consumption of synthetic sapphire.

Asia-Pacific countries have wide technological advancements and innovations. This is leading to the development of new applications for synthetic sapphire. The synthetic sapphire market in Asia-Pacific is expanding rapidly.

COVID-19 Impact Analysis

The pandemic disrupted the global supply chain for synthetic sapphire. Manufacturing facilities faced reduced production capacities due to lockdowns, leading to delays in the delivery of raw materials and finished products. With economic uncertainties and reduced consumer spending during the pandemic, there was a decreased demand for luxury and non-essential products that use synthetic sapphire, which has led to a decline in market demand.

However, synthetic sapphire is used in various medical devices. During the pandemic, the healthcare sector saw increased demand for such devices, which positively impacted the market. Synthetic sapphire is a crucial component in emerging technologies. The pandemic accelerated the adoption of remote working and communication technologies, driving the demand for these applications.

Russia-Ukraine War Impact Analysis

Synthetic sapphire is used in various like electronics, optics and defense. Disruptions in the supply chain can lead to production delays and increased costs for companies, affecting their competitiveness and market performance. Geopolitical tensions and supply chain disruptions have contributed to price volatility in the synthetic sapphire market.

In response to the geopolitical risks associated with the Russia-Ukraine conflict, some businesses have explored diversifying their supply chains and sourcing synthetic sapphires from alternative regions. This diversification can enhance supply chain resilience but may also lead to increased competition in the market.

Despite the challenges, demand for synthetic sapphire remains strong in industries like electronics and optics. The continued growth of the global electronics sector, particularly in the production of smartphones and LED displays, contributes to market demand.

By Type

• Monocrystalline Sapphire
• Trigonal System Sapphire

By Technology

• Physical Vapor Deposition (PVD)
• Chemical Vapor Deposition (CVD)
• Others

By Application

• Electrical and Electronics
• Aerospace and Defense
• Medical Devices
• Consumer Electrical and Electronics
• Automotive
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico

• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe

• South America
  • Brazil
  • Argentina
  • Rest of South America

• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific

• Middle East and Africa

Key Developments

• In August 2022, Kyocera, a Japanese company known for ceramics and electronics, launched a website dedicated to transparently sharing the ethical aspects of the CRESCENT VERT manufacturing process.
• In March 2021, Kyocera introduced the DuraForce Ultra 5G UW, an exceptionally durable smartphone featuring its proprietary Sapphire Shield technology. This innovation serves to safeguard both the display and rear cameras from scratches and damage.
• In April 2019, Schott, a renowned glass and glass-ceramics manufacturer, introduced a duo of gemstone reading lights and an LED strip equipped with a temperature sensor. These innovative products found application in Boeing aircraft, where the reading lights seamlessly integrate into seat shells or other structures to provide customizable mood lighting.

Competitive Landscape

The major global players in the synthetic sapphire market include: Rubicon Technology, KYOCERA, Saint-Gobain, SCHOTT, Monocrystal, Rayotek Scientific, CRYSTALWISE TECHNOLOGY, ILJIN Display, Namiki Precision Jewel and Juropol.

Why Purchase the Report?

• To visualize the global synthetic sapphire market segmentation based on type, technology, application and region, as well as understand critical commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of synthetic sapphire market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global synthetic sapphire market report would provide approximately 61 tables, 59 figures and 196 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies