Press releases
CONTEXT Report Reveals Sharp Declines in Industrial and Midrange 3D Printer Sales
A report from CONTEXT shows troubles for several segments in the 3D print industry.
CONTEXT provides regular analysis of sales in various segments of the industry. Their break down all 3D print sales into four categories: entry level, professional, midrange and industrial, largely based on the price points.
CONTEXT’s Chris Connery wrote:
“The trend of disparate market performance continued into the second quarter. Weak demand from tariff-paralysis and high interest rates made for difficult market conditions in the Industrial and Midrange segments. In contrast, the Entry-level space continued to thrive, with key players even making moves to go public, highlighting the segment’s sustained momentum.”
According to CONTEXT, all segments — except entry level, experienced double-digit drops in sales in Q2 of this year. At top you can see a chart illustrating how things have changed.
In the industrial and midrange segments CONTEXT believes most of the declines are due to high interest rates. Most of this equipment is priced quite high, meaning that businesses must take leases or loans to acquire the gear, and that’s where the interest rate problem comes in. CONTEXT also noted that there were some individual company successes in the quarter, while there was also corporate chaos due to mergers and divestments.
In the professional segment, CONTEXT sees material extrusion (FFF) collapse, while resin equipment grew significantly. The resin equipment is likely due to the success of companies like Formlabs, which has produced a winning system with their new Form 4 platform.
On the other hand, the professional FFF market has collapsed because of competition from entry level equipment. The intense competition in that segment has resulted in machines that are effectively professional-level gear, but available at entry level price points. I am constantly amazed at the features on these machines that has now become standard in the industry — whereas years ago they would have been found only on more expensive professional gear.
Buyers are making intelligent decisions here: they are acquiring the necessary technology at lower prices. In other words, many entry level machines are basically professional equipment at this point.
This suggests that there might be a need to reframe the categories we use for the equipment. Should there even be a professional category anymore?
Is some of the midrange decline related to the capabilities of the entry level machines, where advances in professional level equipment approach midrange capabilities? Is there a cascade downwards in price points across all levels?
If these trends continue in coming years, one wonders how the market will change.
