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As we enter a new year, everyone talks about New Year’s resolutions. For industrial manufacturers, the best place to start would be a decision to get in step with the manufacturing developments that have the potential to disrupt the industry in the coming year.
Amid the COVID-19 crisis, the global market for 3D printers estimated at US$14.7 billion in the year 2020, is projected to reach US$46.4 billion by 2027, growing at a CAGR of 17.9% over the period 2020-2027, according to ReportLinker. Service, one of the segments analyzed in the report, is projected to record a 17.1% CAGR and reach US$16.9 billion by the end of the period. After an early analysis of the business implications of the pandemic and its induced economic crisis, growth in the software segment is readjusted to a revised 19.2% CAGR for the next 7-year period.
The U.S. market is estimated at US$4 billion, while China is forecast to grow at 22.7% CAGR. The 3D printers market in the U.S. is estimated at US$4 billion in the year 2020. China, the world`s second largest economy, is forecast to reach a projected market size of US$10.6 billion by the year 2027 trailing a CAGR of 22.4% from 2020 to 2027. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 13.9% and 16.5%, respectively over the 2020-2027 period. Within Europe, Germany is forecast to grow at about 15.4% CAGR, reports the market reseach firm.
Material segment to record 18% CAGR
Combining different raw materials is always regarded as costly and difficult for mass production using traditional manufacturing methods, due to their varying chemical and physical properties. However, with the constant innovation made by enthusiasts and experts, various diverse materials can be combined for 3D printing production. In other words, many solutions have emerged to use different materials with unique finishes in 3D printing; mimicking the look and feel of glass, ceramics or even metal.
In the global material segment, USA, Canada, Japan, China and Europe will drive the 17.3% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$2.3 billion in the year 2020 will reach a projected size of US$7.1 billion by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$6.7 billion by the year 2027, while Latin America will expand at a 19.3% CAGR through the analysis period.
Factors such as huge investments in 3D printing by start-ups, increased focus on high-volume production using 3D printing, high demand for 3D printing software to produce industry-grade parts, and ease in development of customized products, significant demand for online 3D printing are driving the growth of the industrial 3D printing market are the major factors driving the growth of the industrial 3D printing market. Introduction of digital or smart manufacturing with emergence of Industry 4.0 and use of 3D printing in healthcare sector.
Software wise, the Ultimaker Cura plug ins simplify the way 3D Printing can be integrated into existing IT environments. Ultimaker Cura’s User Experience has moved from a specialist interface to manage settings towards a workflow-based interface, leading users step-by-step towards a successful print, supported by a pretty impressive touchscreen interaction. The biggest breakthrough of this printer was in material adoption where it introduced the concept of Print Profiles (PP), first for Ultimaker Materials and quickly widening this concept to a huge Ultimaker Material Alliance Program with virtually all material suppliers in the world, making PP available on UltimakerCura’s Marketplace and in doing so enormously extending the application range of Ultimaker.
Automotive industry
The growth in the use of 3D printed products in the automotive industry is a key factor propelling the growth of the 3D printer manufacturing market. The manufacture of lightweight vehicle components is possible with the aid of 3D printing that reduces vehicle weight, boosts car performance and increases fuel economy, and greater productivity can be achieved in injection molding equipment manufacturing using 3D printing technology. For instance, BMW released a new version of their bike in 2018, the s1000RR which uses 3D printing. The bike’s prototype consists of a 3D printed frame and a swing arm. Therefore, the growth in demand for 3D printed products in the automotive industry drives the demand for manufacturing 3D printers and contributes to the growth of the 3D printer manufacturing market.
“The automotive industry was one of the first industries to leverage 3D printing,” shared Benjamin Tan, Vice President of Ultimaker Asia Pacific in an interview conducted by International Metalworking News for Asia. “Some of our biggest customers are from the automotive companies including Ford and Volkswagen. Volkswagen saved close to €325,000 per year, simply by 3D printing multiple tool and fixtures with Ultimaker 3D printers. This was a 91% reduction in cost with a 35% improvement in final product quality.”
Importance of 3D printing
The importance of 3D printing goes beyond prototyping; it can change how various parts of the supply chain interact today. In metal 3D printing, it is crucial to differentiate between two main types of technologies: "Pure part" printing and "green part" processes. Generally, "green part" printers, produced by relatively newer entrants such as HPQ and Desktop Metal, are cheaper and faster with higher material attach rate, making them more suitable for higher volume production of non-critical parts, such as industrial parts and auto accessories.
However, "pure part" AM (additive manufacturing) machines benefit from higher precision of build and produce parts at better repeatability, which is important in producing critical parts in highly regulated industries such as auto, heavy vehicles, medical devices, aerospace, and defense.
3D printing industry remains highly fragmented across different printers, materials, and software. This fragmentation in the 3D industry will be a catalyst for growth, as no single company controls the majority of the market.
Conclusion
3D printing isn’t the future of manufacturing, it is NOW. Its aim is to accelerate the world’s transition to digital distribution and local manufacturing. It maximises productivity by leveraging parallel manufacturing, and identify high value applications and track ROI. 3D printing is touted as a sustainable form of manufacturing due to its high efficiencies in cost, production and energy. It dramatically reduces the risk of over-production, thus resulting in need for inventory storage. This in turn reduces carbon footprint used in inventory transportation.
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