3d_printing_single_category

Mixed Results for Quarterly Global 3D Printer Shipments as Industry Attentions drawn to M&A
Inflation and increasing demand for high-end systems prop-up Industrial 3D printer revenues; unit sales in many categories fall across the globe.
LONDON, 18 July 2023 – In a quarter which saw companies jockeying to combine to create the world’s first $1B+ 3D printing company, growth in product shipments varied across sectors as economies all over the world grappled with inflation and readied themselves for potential recessions. While unit shipment growth varied, system revenues were up nicely across the board thanks to inflationary price increases and the continuing shift in demand to higher-end metal systems.
Three of the world’s largest 3D printing companies – Stratasys, 3D Systems and Desktop Metal – were in the news in Q2 2023 with the competition between various companies to merge with or be acquired by Stratasys at the centre of it all. As the third quarter began, Stratasys was set to merge with Desktop Metal but continued offers from 3D Systems, and from nascent player Nano Dimension, leave the industry guessing.
Global shipments of new additive manufacturing systems in the Industrial and Professional price classes were down year-on-year (YoY) by −15% and −30% respectively in Q1 2023, while the Midrange, Personal and Kit&Hobby categories all saw shipment rise – up 18%, 34% and 29% YoY respectively. Revenues from system shipments in most price classes increased (the exception being those in the Professional class), leading to overall total system revenue growth of 15% on the previous year.
INDUSTRIAL SYSTEMS
The YoY fall in global shipments of Industrial 3D printers – the largest category accounting for 54% of total system revenues in the period – was mostly due to weaker sales of polymer systems (although sales of polymer material extrusion machines held up). This drop did not follow through to revenues, where an 11% YoY rise was driven by growing demand for higher efficiency metal machines.
While sales of almost all types of Industrial polymer printers fell, the sharpest drop was in the largest segment: vat photopolymerization. Shipments of these machines were down −33% with weakness seen across most geographies. In North America, for example, market leaders such as 3D Systems saw sales to certain dental markets slump as inflation led consumers to shift spending away from inessentials (such as cosmetic dental procedures) in favour of fuel and food. While the market in China is rebounding from a difficult end to 2022, market leader UnionTech saw weak sales of their higher-end vat photopolymer systems in this region as well, with weakness reported across many industrial sectors.
Industrial metal 3D printers fared better: revenues rose 25% YoY in Q1 2023 even though unit sales were down −8%. Powder bed fusion (PBF) printers accounted for 77% of shipments of metal systems but were basically flat (down −1% YoY). Although the number of sales was a challenge, the continued increase in demand for more productive (and larger) systems helped to push revenues for Industrial PBF systems up by +34%. Driving this revenue growth in the period were Velo3D and SLM Solutions (now part of Nikon) with each offering sought-after multi-laser, large build-volume (and higher priced) machines. Vendors seeing strong YoY unit shipment growth included GE Additive, allowing it to join Eplus3D and EOS as metal PBF unit market share leaders for the period.
Chart 1: Global Industrial Metal 3D Printer System Unit Shipments and Revenues
by Process
MIDRANGE SYSTEMS
The 18% YoY growth in unit shipments of Midrange 3D printers – a price class dominated by polymer machines – was driven mostly by: (1) net-new products such as Formlabs polymer PBF Fuse line; and (2) strong domestic demand across multiple end-markets in China for UnionTech’s vat photopolymer DLP offerings. Although cheaper polymer PBF machines are, in themselves, nothing new, Formlabs has been able to tap into newly discovered demand, super-accelerating growth: polymer PBF machines accounted for 17% of all shipments in the Midrange category in Q1 2023, compared to just 2% a year ago. Formlabs’ success has focussed attention on this category with the period seeing 3D Systems acquire Wematter, and Nexa3D expand their offering by acquiring the XYZprinting product line focussed on the technology.
PROFESSIONAL
Shipments of Professional 3D printers dropped significantly in Q1 2023 (down −30% YoY) although revenues held up a bit better (falling only −15% YoY) as the weighted pricing rose 21% to $7,271. The drop in demand affected all of the Top 5 vendors but UltiMaker (which recently combined with MakerBot) remained the class leader in both unit shipments and system revenues. Foreseeing the stagnation in this category, vendors like Formlabs had initially introduced new products -- like low-end polymer PBF printers -- into this Professional price-class with some success seen in the year-ago quarter. Demand in recent quarters has however moved to a slightly more advanced product, which, when combined with inflationary price increases, has shifted this low-end polymer PBF segment into the Midrange category, a phenomenon which also contributed to the YoY comparison results. This price-class has been dominated however by Material Extrusion and Vat Photopolymerization shipments with Powder Bed Fusion shipments – while accelerating – yet to make much of a dent in overall market share. If shipments of polymer PBF systems are excluded from the figures for Q1 2023, shipments of core products in the category still fell by −28% (with Material Extrusion down -33% and Vat Photopolymer shipments down -18%) so it was a difficult quarter for vendors working in this price class regardless of how sales are measured.
PERSONAL AND KIT&HOBBY
Although there were excellent sales of lower-end, consumer-centric Personal and Kit&Hobby printers in Q1 2023, full-year growth expectations for the category remain subdued as these shipment increases were mostly due to improved supply-chain logistics and other factors than to new demand. For instance, AnkerMake shipped huge numbers of its Personal machines in the period but the demand was generated, and orders placed, during a super-successful Kickstarter campaign in 2022. One strong exception for the period was Bambu Lab where fantastic demand allowed them to successfully move from crowd funding into mainstream commercialisation; in fact, demand for their products was so strong as to help accelerate them to the number two global market share position in the quarter surpassed only by Creality.
OUTLOOK
While much of the industry’s attention has recently been focussed on Western company consolidation, vendors like China’s Farsoon have continued the trend in the Asia–Pacific region of going public by way of more traditional IPOs. While mergers, acquisitions and public listings often dominate headlines, such actions do not typically drive demand or market growth in the near term. Separate from the potential industry consolidation, the prospects for 3D printing remain bright, with demand growing and accelerating, especially as many companies are managing to keep supply-chain challenges and reshoring initiatives at top-of-mind while the inside-the-industry machinations play out around them. 3D printing continues to excel in prototyping, and there is still ample room for growth in the areas of mass customisation and low-volume production of complicated parts, but it is volume mass production which has the strongest growth potential in the coming years.
Chart 2: Industrial Unit Shipment Forecast by ASTM Process and Material
For polymers, technologies such as vat photopolymerization and PBF are best poised to meet these mass production needs; whereas it is PBF and binder jetting technologies that are best positioned to accelerate metal AM into mainstream production. Indeed, metal PBF is the leading technology in the Industrial market and is on track to see a 5-year shipment CAGR of +26%. Meanwhile, although forecasts predict that metal binder jetting will remain behind PBF, the projected CAGR through to 2027 for this technology is +30%.
* Price classes for fully assembled finished goods: Industrial $100,000+; Midrange $20,000–$100,000 (this category was previously known as Design); Professional $2,500–$20,000; Personal <$2,500; Kit&Hobby printers require assembly by purchaser.
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Quarterly 3D Printer Revenues Rise, Unit Shipments Slow as Worldwide Markets React to Inflation
Rising prices, divestures and currency fluctuations complicate additive manufacturing industry growth expectations
LONDON, 12 January 2023 – Aggregate 3D Printer unit shipments dropped by -4% during the third quarter of 20221, while systems revenues across the same time period rose by +14%, according to CONTEXT, the market intelligence firm.
Rising prices, divestures and currency fluctuations complicate additive manufacturing industry growth expectations
LONDON, 12 January 2023 – Aggregate 3D Printer unit shipments dropped by -4% during the third quarter of 20221, while systems revenues across the same time period rose by +14%, according to CONTEXT, the market intelligence firm.
While great unit shipment disparities were seen across various printer price-classes*, all segments saw system revenues rise from a year ago. Unit volume growth in the period was led by the Design price class with unit volumes up +29% thanks mostly to industry stalwarts launching products in new modalities.
Shipments of Industrial printers were up only +2% with those of Metal printers up +4% and those of Industrial polymer printers down −2%. Professional, Personal and Kit & Hobby shipments were down -7%, -11% and -3% from a year ago due to a combination of both demand and supply issues. Reports of growth in the industry were, thus, more related to revenues than volumes.
Inflationary pressures across the globe led to same-model price increases in all classes helping to prop up revenues. In a separate trend and also pushing up industry revenues, the Industrial metal segment also again benefitted from a shift in demand to more efficient and more productive machines such as for Metal Powder Bed Fusion models with more lasers and greater efficiency that enable higher outputs.
Chart 1: Global 3D printer system shipment changes by price class: Q3-22 and YTD Q1-Q3 22
INDUSTRIAL
Unit shipments in the period were characterised by (1) strong growth for Metal Directed Energy Deposition systems thanks in part to the emergence of new low-end player Meltio, (2) the continued rise in demand for Metal Powder Bed Fusion Systems, especially in China, and (3) rising Vat Photopolymerization shipments thanks to the bounce-back by UnionTech. UnionTech, in fact, drove most of the shipment growth in Q3 2022, bouncing back from their covid lockdowns the prior quarter (when shipments were down -38% Y/Y) to see +62% more printers than in Q3 2021. Over the period, China was not only the largest market (35% of the world’s Industrial 3D printers were shipped there) but also saw higher growth (+34%) than either North America or Western Europe.
Many high-profile 3D printer companies made layoffs as industry dynamics shifted from those prevalent at the start of the year. Some faced supply-chain challenges that hindered their ability to ship more units while others are suffering from stagnating demand. Amid fears of a forthcoming recession, some end-markets are, as a precautionary measure, reducing capital expenditure until global macroeconomic conditions stabilise.
Market leader EOS – which has the largest global system revenues in this class – exemplified the trend for revenues to rise much faster than unit shipments, enjoying +35% year-on-year system revenue growth against an increase of only 1% in unit shipments. Other Top 10 companies seeing strong growth in system revenues in Q3 2022 included UnionTech, HBD, SLM Solutions, Velo3D and Desktop Metal.
Chart 2: Global Industrial system shipments by material: Q3-21 and Q3-22
DESIGN
Shipments of Design printer systems were up significantly in Q3 2022, at +29%, increasing growth for the YTD to +22%. This was mostly due to sales of net-new products to the category including Formlabs Fuse 1+30W (already the fourth-bestselling product in this price category), new DLP system from UnionTech, Stratasys’ Origin P3, Photocentric’s LC Magna and Desktop Metal’s Fiber system. New models accounted for 15% of shipments in the category with just two products, Fuse 1+30W and Origin P3, making up 9% of the category total.
PROFESSIONAL
In the Professional price class, shipments dropped −7% from Q3 2021: FDM/FFF printer shipments dropped −8% with SLA printer shipments down−21% from a year ago. FDM shipments were relatively flat over the YTD through Q3, with only −1% fewer products shipping than in the same period of 2021, but the same is not true of SLA shipments which were down −19% from 2021. UltiMaker (the newly combined MakerBot and Ultimaker), which produces both Professional and Personal printers, had a market share of 36% in this price class but in aggregate saw unit shipments drop −14% in the price class. Collectively, UltiMaker and Formlabs (which also saw reduced unit shipments) accounted for 51% of global Professional system revenues in Q3 2022. New to the category this quarter was Nexa3D which is now ramping up shipments of its XiP printers.
PERSONAL AND KIT & HOBBY
Growth in these low-end segments has significantly decelerated since the pandemic boom with both the Personal and the Kit & Hobby segments continuing to be dominated by market share leader Creality. Personal shipments fell -11% in the period. Kit & Hobby shipments were down -3% in the period, were down -10% from Q3 2020 (the pandemic boom) and were generally flat (up +2%) on a trailing twelve month’s basis. A significant bright spot is the emergence of Bambu Lab which, in Q3 2022, began shipping against its super-successful Kickstarter campaign that raised $7.1M against 5,513 pre-orders at ~$1,200 apiece. Only two previous crowdsourced 3D printer initiatives have bettered this: Anker ($8.9M) and Snapmaker ($7.8M).
OUTLOOK
Forecasts for 2023 have turned cautious as fears of regional recessions loom large and the worries that the loosening of China’s zero-Covid policy may reduce domestic demand and lead to further supply-chain disruption.
However, forecasts for key end-markets (including aerospace) and for key modalities – particularly Metal Powder Bed Fusion – remain strong. BLT and Eplus3D joined SLM Solutions and Velo3D to announce new large-format multi-laser metal systems to help meet this rising demand. Now that HP has fully launched their Metal Jet models and GE Additive is looking to commercialise their Series 3 products, Metal Binder Jetting machines may also help make 3D printing a more mainstream manufacturing process over the year to come.
As was seen in 2022, growth is expected to be much higher in system revenues than in unit shipments with revenues now forecasted to grow +19% across all technologies for the year against a unit volume growth expectation of just +9%.
* Price classes for fully assembled finished goods: Personal <$2,500; Professional $2,500–$20,000; Design $20,000–$100,000; Industrial $100,000+ Kit & Hobby printers require assembly by purchaser
Quarterly global Industrial 3D Printer shipments sag but revenues rise again
3D Printing Industry Resets Expectations for 2023
LONDON, 13 April 2023 – In the last quarter of 2022, global 3D printer shipments continued the trend established earlier in the year with volumes flat or falling.
3D Printing Industry Resets Expectations for 2023
LONDON, 13 April 2023 – In the last quarter of 2022, global 3D printer shipments continued the trend established earlier in the year with volumes flat or falling.
While industrial unit shipments dipped, system revenues rose again thanks to inflationary price increases and a shift at the highest end of the market towards more efficient (and higher priced) Industrial metal machines.
With their end-market buyers still challenged by global inflation and fears of regional recessions, 3D printer vendors across the world have begun to shift their focus from market expansion to profitability and reset their expectations for 2023 to single-digit unit sales growth.
INDUSTRIAL SYSTEMS
In the key Industrial price class (which accounted for 57% of global system revenues in Q4 2022) shipments were down -13% year-on-year (YoY) but revenues rose +7% thanks to average prices increasing by +23%.
While this was, in part, due to inflation, growing demand for large metal powder bed fusion systems also played a part. Between polymer and metal-based systems – which collectively accounted for 94% of the category unit total – Industrial polymer shipments dropped -19% YoY in the quarter while metal shipments fell -11%.
Industrial metal shipments had previously seen eight consecutive quarters of growth led by powder bed fusion systems and accelerated shipments into China. These latest figures show falling sales for Western and Chinese companies alike and metal powder bed fusion printer shipments down −5%. Nonetheless, shipments of the newest multi-laser, large build-volume systems from vendors such as Velo3D and SLM Solutions (recently acquired by Nikon) have continued to grow leading to an overall revenue increase of +26% for metal powder bed fusion printers. While the formerly red-hot China region saw shipments fall −5% YoY, it remained the world’s largest market – the destination for 39% of Industrial metal 3D printers from across the globe. The most concerning change in Q4 2022 was the −22% YoY volume drop for shipments into the US.
Chart 1: Industrial 3D printer systems: global shipments and revenues
Over the year as a whole, shipments of Industrial polymer printers dropped -10% YoY while metal printer shipments rose +5%. Within the metal category, powder bed fusion printers, which accounted for 75% of all Industrial metal systems, saw nice demand and were less hampered by their own supply-chain limitations, resulting in shipments rising +12% for the year. While polymer and metal printers dominate the Industrial class, representing 57% and 39% of the market respectively, two nascent material categories seeing noteworthy shipment growth for the year were ceramics and composites. While neither category rose above a 2% share, shipments of ceramic printers rose +34% thanks to strength from vendors like 3DCeram, Carima, Lithoz, Nano Dimension (after acquiring Admatec), Xjet and others while Markforged helped to create a new sub-category of Industrial composites thanks to ramped-up shipments of their FX20.
MIDRANGE SYSTEMS
Midrange 3D printers, costing $20,000–$100,000, provided a bright spot in the Q4 2022 market as +20% more of these machines were shipped across the world than in Q4 2021. Price increases have shifted some existing printers into this class but most of the growth was organic and due to take-up of new products. Stratasys remained head-and-shoulders above the competition and shipped 28% of all printers in this price class but Formlabs made a remarkable entrance into the class with its enhanced Fuse SLS polymer powder bed fusion line and vaulted into the number two position. Other new systems that helped the category grow included Stratasys’ Origin platform and UnionTech’s extension of its DLP vat photopolymerization platform as well as products from Sinterit, Roboze, Xact Metal and Desktop Metal’s Desktop Health line. Well-established companies moving beyond their initial or core technology to also offer solutions for other materials or using different processes in this way has driven expansion of the 3D printer market time and time again and has nearly always resulted in sustained growth.
Chart 2: Midrange 3D printer systems: global shipmentsby model/series (new models highlighted)
PROFESSIONAL
The Professional price class covers 3D printer shipments costing $2,500–$20,000. In Q4 2022 shipments of these were down for the third consecutive quarter, this time by -12% YoY. Revenues remained more or less flat, mostly as a result of inflation. UltiMaker, the market share leader in the class, saw a YoY -26% decline in aggregate shipments for products in this price-point (combining the MakerBot products which fall into this price class along with its Ultimaker brand products) but saw nice initial success with new products in other price-classes. Of the Top-5 vendors, Raise3D performed best in the fourth quarter, shipping +32% more printers YoY. Systems using LCD-based vat photopolymerization techniques such as Nexa3D’s LSPc technology were winners over the year with +7% more machines shipping in 2022 than in 2021.
PERSONAL AND KIT & HOBBY
Personal 3D Printer shipments dropped -2% from a year ago in Q4 2022 while revenues rose +16%. Kit & Hobby shipments were up +15% for the quarter with Creality remaining the dominant market-share leader in this low-end. While overall consumer spending in the United States (the largest end-market for this low-end with North America representing 40% of the collective category’s shipments) was quite weak in Q4, shipment rates in this category held up a bit better than expected in the region. While vendors of enterprise-focused systems are able to better cope with inflation by raising prices, many selling the smallest, cheapest printers are finding it increasingly difficult to make money. As a result, the period saw the beginning of the exit of some higher profile companies from the market including XYZprinting which divested part of its SLS business line to Nexa3D and announced its general exit from the 3D printer market. Other, more regional brands including S. Korea’s Sindoh and the US’ Dremel (formerly offered by Bosch) downsized, sold-off or otherwise defocused efforts on the 3D Printing market.
OUTLOOK
While the forecast for 2023 new printer shipments has been pared back, expectations are that revenue growth will once again far outpace unit growth. Inflation looks set to push prices up even more and the move toward higher-end metal powder bed fusion machines does not seem to be over.
The prospect of low- to mid-single-digit unit shipment growth applies to all major price classes with Industrial printers poised to do best (shipments are forecast to increase by +7% and revenues by +19%). While 2023 is set to be challenging, there is still a longer-term momentum: people across many industries still consider 3D printing a viable means of localising production to mitigate future supply-chain issues. As a result, the forecast is +28% CAGR in system revenues for the key Industrial printer market over the next five years.
* Price classes for fully assembled finished goods: INDUSTRIAL $100,000+; MIDRANGE $20,000–$100,000 (category renamed Q1-23 from DESIGN); PROFESSIONAL $2,500–$20,000; Personal <$2,500; Kit & Hobby printers require assembly by purchaser.