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The Rise of 3D Printing Market Insight


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Star Trek Technology Becomes Real Distuptive Phenomenon
While traditional production relies on removal of the material from the solid cast or mold, 3D printing adds the layers of the material on the existing layers. 3D printing saves on energy by 40 to 65 percent as it eliminates shipping and other logistics activities and enables users to produce objects with lesser material.

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The Rise of 3D Printing Market Insight

  1. 1. The Rise of 3D Printing Star Trek Technology Becomes Real Disruptive Phenomenon
  2. 2. Overview • Introduction to 3D Printing • 3D Printing vs. Traditional Manufacturing • Overview to the Value Chain of 3D Printing Industry • How is 3D Printing Monetized – Key Business Models • Impact of 3D Printing on Future of Supply Chain • Impact of 3D Printing on Key Industries and Economies 2
  3. 3. 3D printing is a computer-driven additive manufacturing technology used for producing the final product from a digital model by laying down successive layers of material. Typical 3D Printing Process Introduction to 3D Printing While traditional production relies on removal of the material from the solid cast or mold, 3D printing adds the layers of the material on the existing layers. Design 3D printing begins with creating a digital model of the object, usually using CAD software, which is later converted into a .STL file. Print The 3D printer slices the .STL file into numerous digital cross-sections, and automatically builds the model using materials like thermoplastics & ceramics. Finish The final 3D printed object is then cleaned to remove overhung material and is polished, painted (if required) and made ready for use. Source: Frost and Sullivan 3
  4. 4. 3D printing saves on energy by 40 to 65 percent as it eliminates shipping and other logistics activities and enables users to produce objects with lesser material Traditional Manufacturing vs 3D Printing. Global, 2014 Cost Speed Design Quality Higher Cost of manufacturing & shipping Less innovative designs due to cost constraints More time to build final product Creates more waste; subtractive process will compromise on precision Up to 70% savings due on Prototyping costs Allows for easy yet inexpensive innovation in design Lesser time taken due to compressed design cycles Lighter & smaller amount of waste; Higher precision with layer-by-layer manufacturing. Traditional Manufacturing 3D Printing 3D Printing vs Traditional Manufacturing 4
  5. 5. Mass Customization Crowdsourcing Key Attributes of 3D Printing Small Batch Manufacturing 1 2 3 4 Key Attributes of 3D Printing On-demand Production 5
  6. 6. Key Attributes of 3D Printing (continued) Crowdsourcing 1 Small Batch Manufacturing 2 Mass Customization 4On-demand Production 3 A website dedicated to the sharing of user-created digital designs A contract manufacturing firm using 3D printing technologies with capability to fulfil small production orders with high cost-effectiveness Helped the reverse engineering of a Ferrari 312P engine by 3D printing the sand molds for the engine Adidas was one of the first companies to install the Objet Connex500 3D printing system from Stratasys. 6
  7. 7. Mass Production vs. Mass Customization Mass production treats large groups of customers as anonymous individuals Mass Production Mass Customization Retailer CustomerFactory Customer Factory Retailer Product Design Build to Order 1 2 3 1 2 3 • Emergence of digital platform enabling product engineers, customers, industry outsiders to contribute ideas resulting in more differentiated, better-designed products. • Abundance of open source designs will lead to shortening of R&D design cycles. Design Crowdsourcing Leads to Co-creation of Products 3D printing puts the power into the hands of consumer and interjects the buyer participation in the product design optimizing the production of single units 7
  8. 8. 3D Printing Going Mainstream 2014 2030 Alliances formed to enable development of standards Smartphone apps to design 3D models and access online services (Sculpteo) Raw materials for 3D printers manufactured or procured and provided by 3D Printer manufacturers Home 3D Printers available at leading retail stores for around $1000 Present Day Prices of 3D Printers Standardization of Raw/Feed Materials Accessibility to Services on Mobile Devices Establishment of Regulations/ Standards Inexpensive feed materials for a broad range of household items now available in the market Home 3D Printers with wireless and internet capabilities allowing remote control at an average price of $500 Establishment of Global standards for feed materials for 3D printers Smartphone/ tablet apps to design products and control 3D printers remotely (“Design-on- the-fly”) 3D Printing Goes Mainstream 8
  9. 9. 2014 20192015 2016 2017 2018 2020 Year of Commercial Impact: Key Application Sectors Commercialized Tobe Commercialized OngoingR&D Hobby (arts and crafts) Jewellery Household printing Printing small to medium medical prosthetics Prototypes for automotive industry (for example, instrument panels) Retail prototypes Rapid prototyping for large industrial applications Components for aerospace (for example, air ducts, hinges, jet engine parts, wing spares, spare parts) and defence research and development Printing chocolate Printing food Printing toys Printing bicycles Clothing and apparel in fashion industry 3D printed furniture Building construction Industrial tools manufacturing Life sciences R&D 3D printed complex metal systems 3D printed energy harvesters for power stations Large aircraft parts 3D printed semiconductors/ICs Smart prosthetics Artificial ears 3D printed organs 3DPRINTINGTECHNOLOGYREADINESS Digital and memory equipment Digital and memory equipment and rechargeable batteries 3D printed consumer electronics Consumer Applications Medical, Automotive, Retail Applications Industrial Applications 9
  10. 10. Major 3D Printing Technologies A stereolithography apparatus uses liquid plastic, a perforated platform, and UV laser to print 3D objects Stereolithogra phy (SLA) Fused Deposition Modelling (FDM) Selective Laser Sintering (SLS) Laminated Object Manufacturing (LOM) The system uses thermoplastic material which is melted to a semi-liquid state and extruded according to computer- controlled paths Small particles of plastic, glass, or ceramics are fused together from a high power laser to form a solid 3D object A focused beam of high energy electrons is used to melt the metal powder layer by layer in high vacuum as per the pre- defined dimensions A economical process where layers of adhesive-laminated paper or plastic sheets are glued together and cut to create complex shapes Similar to electron beam melting, this method creates complex objects by completely melting the metal powder using high powered laser beam Selective Laser Melting (SLM) Source: Frost & Sullivan analysis. Electron Beam Melting (EBM) Major 3D Printing Technologies Although all 3D printers use the basic “additive fabrication” method, that involves building the part one layer at a time, they differ on the types of material and techniques used 10
  11. 11. What’s Next? 4D Printing Physical programming of macro-sized 3D materials to self-assemble themselves into predetermined structures and shapes A Possible Scenario for 4D Printing Industrial 4D Printing Environmental Manufacturing Self Assembling Materials Holds potential to revamp manufacturing introducing a new field of environmental manufacturing in which ambient sources of energy, water or even light will be used as impetuses to self- assemble Exploring materials and understanding reaction to external elements Industry application will be explored with cost of technology more suited for industrial applications 2015 2035 20452013 3D Printing 11 Ongoing Research on 4D Printing Space Exploration 4D printed parts can be sent to space and programmed to self- assemble into an object at the desired location. Construction/ Architecture Materials that could be programmed to adapt and change shape in response to environment or situation. Example: Pipes that expand when demand increases Medical Ongoing research on developing a nano robot built from DNA strands in the form of a clamshell basket, with double-helix "locks" that are only opened when the robot comes into contact with specific cancerous cells.
  12. 12. Value Chain of 3D Printing Industry The 3D printing industry value chain is extremely fragmented with no clear “one-stop- shop” solution provider offering end-to-end solutions 3D Printing, Value Chain Participants 21 3 43D Printer Manufacturers Design Software Providers Service Providers Developer/ User Community Example: 3D Systems, Stratasys, Arcam AB, Z Corporation, MakerBot. Examples: Autodesk, CATIA, 3DView, SolidView, Rhino Example: Thingiverse,, Cad Crowd, Example: Shapeways, Ponoko, Sculpteo, 3DMe by Cubify • 2D to 3D converter • Animation to 3D models • Product specific platform (Jewelry, sake set, etc.) • Home 3D Printers • Industrial 3D Printers • Self-replicating 3D Printers (RepRap) • Online 3D Printing of user designs • Creating figurines out of 2D pictures • Design crowdsourcing • Online marketplaces for user products • Portal to hire designers Integrators working across the value chain Types of Services 12
  13. 13. 1 2 3 4 In-House 3D Printing Contract Manufacturing Model 3D Printing as a Service Retail 3D Printing The manufacturer has the in-house capability as well as the infrastructure to manufacture components using 3D printing technology. Example: General Electric Portable 3D printers available in the retail market which can be used to manufacture products at home Example: Cubify Online business model where the orders are received online and the finished products are mailed to the customers. Example: Shapeways A 3D manufacturer who contracts with a firm to manufacture components using 3D manufacturing, an outsourcing model. Example: GPI Prototype & Manufacturing Services How is 3D Printing being Monetized – Key Business Models 13
  14. 14. Time to Set up Level of Investment 3D Printing Business Model Comparison VERY HIGH: R&D and plant set-up (10-25 years) VERY HIGH: R&D and plant set-up VERY LOW: Zero interaction before production; Only sales interaction LOW: in-house design team, face-to-face sales interaction MEDIUM-HIGH: Mass procurement of raw materials and supply of finished products MEDIUM : Plant Set-up (1-3 years) MEDIUM: Plant set-up HIGH: Build-to-order based on customer design and preference MEDIUM-LOW: in case of taking online orders (online design) MEDIUM: Small-batch procurement of raw materials, and supply of finished products MEDIUM: Online ecosystem and key partnership (1-2 years) MEDIUM: Online platform MEDIUM: Production based on customer design received online HIGH: online orders, online design, online payment. HIGH: Supply of finished products to individual customers VERY LOW: 3D printer, familiarizing with design platform (0-2 months) LOW: Home 3D printer and raw material HIGH: Customer is the user or is strongly connected with the user. MEDIUM-LOW: Accessing design from crowdsourcing communities LOW: No requirement except in case of retail home delivery. In-house 3D Printing Contract Manufacturing Model 3D Printing as a Service Retail 3D Printing (Home use and Hobbyists) Level of Customer Interaction Use of Online Technologies Requirement of Logistics 14
  15. 15. 3D Printing—Key Supply Chain Models Raw Material DESIGN SUPPORT Product Integrator/ Traditional Manufacturer Additive Manufacturer Online Retail Traditional Retail Store B2B2C IN CUSTOMER’S VICINITY Consumer Consumer B2B B2B Manufacturer Owned Production 2 Manufacturer Owned Production 1 3D Printing Hub 3D Retail Market Raw Material Product Integrator/ Traditional Manufacturer Additive Manufacturer Consumer Raw Material Product Integrator/ Traditional Manufacturer Additive Manufacturer Consumer B2B Raw Material 15
  16. 16. 3D Printing Industry Adoption Map Early Adopters Late Adopters Consumer goods Energy Metals C&I Automotive** Aerospace Automotive* Personal Accessories Healthcare Consumer goods (Novelty Products) Sports & Entertainment Textiles C& I - Construction and Infrastructure * Specialty vehicles and parts **Low powered vehicles and parts Costperproduct Expected Production Speed Customization Classification High Levels Medium Levels Low levels Slow adoption presently due to low durability of the 3D printed materials 16
  17. 17. 3D Printing and its Impact on Key Economies Countries with lesser investment in 3D Printing and higher dependency on manufacturing exports stand to lose the most France Share of Manufactured Exports in Total Exports (%) NumberofPatentsin3DPrinting(Between2009andJan2014) Note: The size of the bubble for a particular country indicates the Manufacturing Value Added ($ Billions) US China Japan South Korea Taiwan Canada Russia Australia Spain United Kingdom Hong Kong The adoption of 3D Printing in the manufacturing sector will lead to the disruption of Global Manufacturing Hubs as the manufacturing will get localized (closer to customers or consumers). The countries encircled in Red will get affected the most. 17
  18. 18. 3D Printing—Key Transformational Shifts Smaller batches of production with high levels of customization Lower throughput compared to traditional manufacturing. But faster time to market Demand happens parallel to production Demand Supersedes production To document, relay and realize demand in real-time Eliminates the need to store finished products based on forecasted demand; lesser storage space required Manufacturers will store only the raw materials to meet on- Demand production requirements Low-storage space requirements as raw materials occupy lesser volume than finished products Hub and spoke model of supply chain will be challenged. Hubs will lose importance Global production houses will lose the competition to local manufacturing centers Mass Production to Mass Customization Supply Chain Focus: from “PUSH” to “PULL” Forecasted Demand to Real-time Demand Inventory: Finished Products to Raw Materials Manufacturing: Global to Local Key Transformational Shifts 18
  19. 19. What is a Mega Trend? What is a Mega Trend? Mega trends are transformative, global forces that define the future world with their far reaching impact on business, societies, economies, cultures and personal lives. Urbanization – City as a Customer Smart is the New Green Social Trends Connectivity and Convergence Bricks and Clicks Innovating to Zero New Business Models: Value for Many Beyond BRIC: The Next Game Changers Future Infrastructure Development Health, Wellness and Well Being Future of Mobility 19 Top Mega Trends Covered By The Visionary Innovation Research Division Future of Energy
  20. 20. 20 Mega Trends Universe We Track* *This list is not exhaustive Frugal Innovation Woman Empowerment
  21. 21. Macro Micro From Macro to Micro: Taking Mega Trends from Information to Strategy Implementation Mega Trend Selected trends that impact your business and markets Sub Trend A sub-layer of trends that has a wide ranging impact Impact to Your Industry Visualising the roadmap of these critical forces through scenario- building and macro economic forecasts Impact on Future Product/ Technology Analysis of Opportunities and Unmet Needs To 21
  22. 22. Learn More About “New Mega Trends” Published Book: New Mega Trends Implications for our Future Lives By Sarwant Singh Publisher: Palgrave Macmillan 23 Join Our Mega Trend Group On Mega Trends: Strategic Planning and Innovation Based on Frost & Sullivan Research 22
  23. 23. List of Topics done by Visionary Innovation Research Group • Future of Connected Living: Home, Work and City • Smart Cities • Future of Retail: Bricks and Clicks • Future of Logistics • Future of Mobile and Personal Robots • Women Empowerment • New Business Models • Future of 3D Printing • Top Technology Buzz To Watch Out For 23
  24. 24. A Wide Variety of Customers Avail our Consulting Services: Testimonials Attached Workshop/Consulting Clients The session from Frost & Sullivan was an amazing illustration of how much we can still do given the future ahead. Just getting this many people to see a clear vision was a task in itself, never mind providing actionable ideas for us! Super job” CEO – Global Transportation Company “Frost & Sullivan ran a one-day strategy workshop with Procter & Gamble to help our New Business Creation teams to understand the developing personal mobility market. The workshop consisted of Frost & Sullivan professionals presenting and informing us of the evolving opportunities across the industry value chain and then facilitating group plenary sessions to explore potential opportunities in this market. We found the information provided very insightful, strategic and tailored to our needs and appreciated the facilitation skills and tools used in the workshop, which helped us achieve our goals. We plan to be engaging with Frost & Sullivan in the future on other areas of interest.” Chief Innovation Catalyst Proctor & Gamble 24
  25. 25. For Additional Information 25 Archana Amarnath Program Manager, Visionary Innovation Research Group (+44) 2079157893 Sarwant Singh Partner & Practice Director, Visionary Innovation Research Group and Automotive & Transportation (+44) 2079157843 Archana Vidyasekar Team Lead and Senior Analyst , Visionary Innovation Research Group +91- (0) 80 67028070 Richard Sear Global Vice President: Visionary Innovation Research Group +1 (0) 210 247 3840