LattiSpec, the digital marketplace for technology-grade grown diamond (TGGD), has released the first market-size analysis of the industrial diamond economy. The report, the second in the LattiSpec Lens research series, projects the market for technology-grade grown diamond will grow from $1.65 billion in 2026 to $2.75 billion in 2031 and $4.7 billion by 2036. Growth is driven by defense systems, AI computing infrastructure, semiconductor manufacturing, and energy.
The analysis sizes demand across 43 sub-sectors in 17 industries, projecting unit volumes, pricing, and market value for 2026, 2031, and 2036. Among the findings:
Roughly $890 million, 54% of 2026 demand comes from applications already in current, high-volume use, including defense radar, industrial and EUV lasers, 5G/6G radio-frequency components, surgical instruments, and energy drilling.
AESA radar is the single largest sub-sector at $171 million. Defense applications together outrank every other category.
Thermal management for AI data centers and high-performance computing is close behind defense and compounding quickly. Diamond has the highest thermal conductivity of any known material, addressing heat issues in next-generation chip design.
Unit demand more than triples, from roughly 859,000 units in 2026 to 2.75 million by 2036, while maturing production economics broaden the range of viable applications.
Across key categories, buyer demand is already running ahead of what qualified growers can deliver.
"The surprise in this data isn't that the market is growing — it's how much of it is already here," said Marty Hurwitz, co-founder of LattiSpec. "More than half of this year's demand comes from products shipping today: radar arrays, laser optics, surgical tools, drill heads. The AI boom gets the attention, but defense is writing the biggest checks right now. Engineers across seventeen industries are designing with diamond, and the supply chain is racing to keep up."
The market-size analysis builds on LattiSpec's supply-chain benchmark published in July, which mapped adoption across the same industries and found 15 sub-sectors already at current or high usage.
