Understanding the 3D Printer Market from a 2D Perspective

THE PRINTER AND SUPPLIES INDUSTRY’S LEADER FOR NEWS AND ANALYSIS
Understanding the 3D Printer
Market from a 2D Perspective

© 2015 Actionable Intelligence » THE PRINTER AND SUPPLIES INDUSTRY’S LEADER FOR NEWS AND ANALYSIS ii
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Actionable Intelligence Whitepaper | UNDERSTANDING THE 3D PRINTER MARKET FROM A 2D PERSPECTIVE
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© 2015 Actionable Intelligence » THE PRINTER AND SUPPLIES INDUSTRY’S LEADER FOR NEWS AND ANALYSIS iii
Table of Contents
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
2D versus 3D Comparison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
3D Opportunities and Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
About Actionable Intelligence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Figure 1: The CoLiDo 3D Printer from Print-Rite . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Figure 2: Top 7 Hard Copy Firms Filing 3D Printing Patents and Applications . . . 2
Figure 3: Worldwide 3D Printing Industry Forecast 2014-2020 . . . . . . . . . . . . . . . 5
Figure 4: Makerbot Thingiverse is an online community . . . . . . . . . . . . . . . . . . . . 6
for sharing 3D-printable objects
Figure 5: The Airwolf3D HDR printer. Source: Airwolf3D . . . . . . . . . . . . . . . . . . . . 8
Figure 6: The Objet260 Dental Selection printer. Source: Stratasys . . . . . . . . . . 8
Figure 7: Prosthetic hand produced by the CoLiDo X3045,
which is shown on the right.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Figure 8: Most Common Commercial 3D Printing Technologies . . . . . . . . . . . . . 12
Figure 9: Overview of 3D Printing Software . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Figure 10: Overview of the Most Commonly Used Commercial
3D Printing Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Figure 11: 3D Printing Marketplaces for Downloadable Content . . . . . . . . . . . . . 14

© 2015 Actionable Intelligence » THE PRINTER AND SUPPLIES INDUSTRY’S LEADER FOR NEWS AND ANALYSIS 1
Executive Summary
If you believe the pundits and market researchers, nearly every home
and many businesses will have a 3D printer within the next five years.
That means rapid growth in sales of 3D printers and consumables.
The Wohlers Report projects the total worldwide 3D printing market to
grow from just over $5 billion this year to more than $20 billion in 2020.
According to MarketsandMarkets, the 3D printing materials sector will
reach $1.052 billion in global turnover by 2019, growing at a CAGR of 20.4
percent from 2014 to 2019. By 2019, the plastics category—which has the
most in common with 2D printing materials—is expected to represent
64 percent of total value ($671 million) and grow at a similar CAGR (20.3
percent), which would place its current value at roughly $250 million.
While some might consider these projections optimistic, 3D printing presents a huge
opportunity even if the predictions are only half right. But what does that mean to resellers
and OEMs of 2D printers and consumables? Let’s face it. People are printing less with their
inkjet and laser devices. Companies that produce, distribute, and sell hardcopy products are
taking a long look at the 3D market as a way to spur growth.
You don’t have to look far to find companies in the hardcopy space that either have made
or are in the process of making the transition to the 3D market. You probably know that 2D
printer heavyweight Hewlett-Packard will bring out its first 3D device, the Multi Jet Fusion,
next year. While other OEMs such as Canon, Epson, and Ricoh have yet to unveil any
hardware, they are all promising to release 3D machines in the near future. Most hardcopy
OEMs have distribution deals with 3D OEMs like 3D Systems and Stratasys.
The major players aren’t the only ones entering the nascent 3D market. Print-
Rite, a well-known vendor of aftermarket printer consumables, has leveraged its
existing infrastructure and technical expertise to design, manufacture, and sell
the CoLiDo line of printers and filaments. Although small compared to hardcopy
OEMs, Print-Rite is an example of a company that ignored the differences
in the 2D and 3D printing markets and made the necessary investments and
commitment to learn what it needed to know to succeed in 3D. The firm is
emerging as an innovator in the 3D space and holds 55 patents or patent
applications on 3D technologies. Print-Rite is currently the third-ranking firm in
the hardcopy market in terms of 3D patents, behind first-place Samsung (107
patents) and second-place Xerox (98 patents), and ahead of OEMs in the 2D
industry such as Canon, Eastman Kodak, and HP.
FIGURE 1:
The CoLiDo 3D Printer
from Print-Rite
3D Printing Market
Key Facts
»» Current Annual
Sales: $5 billion
»» Projected Sales in
5 years: $20 billion
»» Projected Materials
Sales by 2019:
$1.052 billion

Samsung
Electronics
Numberofpatents
0
20
40
60
80
100
Xerox
Source: Actionable Intelligence
Print-rite HP Canon Mimaki
Engineering
Eastman
Kodak
Faced with a declining hardcopy market and a growing number of vendors with 3D
technology touting the opportunities it offers, many in the channels that traditionally sell
printers, copiers, and supplies are wondering if they can cash in on 3D. Some have. Case in
point: OEM Airwolf 3D hired a former Toshiba executive, Mark Mathews, as president and
tasked him with using his experience and connections in the 2D market to build a reseller
channel. Many of the 50-plus resellers he has signed have come from the hardcopy market.
Actionable Intelligence has put together this white paper as a primer on the 3D printing
market for the 2D industry. Our intent is to provide enough information to help you decide
whether to explore opportunities in 3D printing and, if so, where you might investigate further.
The paper is divided into three parts:
1. 2D versus 3D Comparison: What are the similarities and differences between 2D and
3D printing in terms of technology, materials, and market perspectives? This section
also explains the state of the art in 3D printing technologies, materials, markets, and
channels.
2. Markets: A look at the size of the 3D printing market and key vertical segments for
these devices.
3. 3D Opportunities and Challenges: A look ahead at possible opportunities in 3D for
the 2D printing industry. We also identify areas in which a 2D company would have
difficulty transitioning.
FIGURE 2
Top 7 Hard Copy Firms Filing 3D
Printing Patents and Applications

2D versus
3D Comparison
3D printing, which is also referred to as additive manufacturing, is not a new technology.
Stereolithography (SLA), the first inkjet-based form of 3D printing, was invented in 1984
and became commercially available in 1992. A combination of lower costs to acquire and
own equipment, a greater selection of improved and new materials, and a growing base of
knowledgeable resellers is fueling interest in 3D among businesses and consumers.
The term 3D printing is confusing because it implies more similarities with generating
hardcopy than really exist. There are some important similarities between the two, however,
that make the 3D market attractive to companies serving the 2D ecosystem. The three key
intersections of commonality are technology, channels, and consumables. An appendix at
the end of this report further illustrate the differences, which are numerous.
Technology: When you compare the mechanisms that actually image and accommodate
consumables, there are few similarities between 2D and 3D. Sure, some SLA systems have
sourced toner containers from laser printer vendors, and the print heads used to jet binder fluid
are identical to those used in conventional aqueous or solvent 2D printers. Print heads used in
material jetting are identical to those used in 2D UV-curing printers and phase-change ink jet
systems such as the Xerox Phaser and ColorQube products. Specific situations will probably
change once the 3D market gets large enough to support development.
The strongest similarities the technologies share are the expertise and manufacturing capabilities
of companies in the 2D and 3D industries. Designing, building, and servicing 3D printers requires
many of the same technical skills required to manufacture and maintain 2D printers, which is
why companies as diverse as HP and Print-Rite can play in the 3D space. An engineer who
understands how fluids are jetted by the heads in an inkjet printer, for example, will feel right at
home developing print heads for a 3D printer and the consumables the 3D heads will fire. OEMs
report that technicians with experience servicing 2D printers pick up 3D quickly, and certain
hardcopy equipment manufacturers are amassing sizeable patent portfolios for 3D machines.
Channel: Dealers who move hardcopy devices share a common ground with the emerging
3D printer channel, and both groups will readily identify the business model employed
by the other. As was the case a couple of decades ago for hardcopy equipment vendors,
companies in the 3D printer channel are currently making money on the box. Companies
marketing 3D devices also recognize the aftermarket revenue opportunities they provide and
seek to maximize the opportunities that service and supplies sales offer, just as companies
in the hardcopy channels do. Hardware manufacturers like HP and Print-Rite, which have
established hardcopy channels, enter the 3D space far ahead of their newer competitors who
must establish channels as well as bring new hardware to market.
There are some differences in the channels, although perhaps none as great as at the very
low end of the 2D and 3D markets. The 3D OEMs that live there sell direct to hobbyists and
people experimenting with the technology, and most leave it to the customers to find their
own consumables suppliers. Companies selling into the low end of the hardcopy market can
rely on a vast network of retailers, including online and brick-and-mortar outlets that can
move lower-end units along with the supplies for these machines. While it is still too early
for a large low-end 3D market, we have seen some companies make inroads with big-box
retailers like Staples, which is currently selling lower-end 3D devices to consumers.
Designing, building, and
servicing 3D printers
requires many of the
same technical skills
required to manufacture
and maintain 2D
printers, which is why
companies as diverse
as HP and Print-Rite can
play in the 3D space.

On the commercial side, the 3D channel will
be very familiar to anyone working in the
hardcopy market. In fact, many 3D OEMs
prefer channel partners with experience in
the 2D world because their relationships and
knowledge match well with their needs. And
unlike a startup focused only on 3D, they know
how to run a reseller business and have the
necessary infrastructure in place. Specifically,
hardcopy resellers have the right kind of
sales organizations and are set up to properly
support and service 3D printing equipment.
Entering the 3D printing market does not
require a large financial investment for
hardcopy resellers depending on the markets
they target. If they sell to companies that can
use smaller, less expensive 3D systems--
education, for example--the initial investment
can be as low as $10,000 to $15,000. Selling
more expensive equipment to companies like
manufacturers or engineering firms might
require and investment of $100,000 or more.
Companies that sell 2D printers, copiers, and
office equipment are not the only channel
partners in the 3D market. OEMs that have
a strong manufacturing presence often
partner with industrial equipment resellers.
Larger OEMs also have relationships with
distributors such as Ingram Micro, who
may sell direct to some large accounts and
supply smaller resellers. Specialized 3D-only
resellers are cropping up everywhere as
well, often as hybrid resellers and 3D printing
service bureaus.
As noted earlier, several 2D OEMs have
become channel partners for 3D vendors,
presumably until they have their own
systems to sell. Konica Minolta and Canon
resell 3D Systems printers. Lenovo is
rebranding printers made by XYZPrinting.
Retailers leading the way with 3D include
Staples (3D Systems, Afinia, MakerBot), Best
Buy (Leapfrog, MakerBot, 3D Systems), Home
Depot (Dremel, Afinia, MakerBot), and Sam’s
Club (MakerBot, 3D Systems). Amazon has a
wide range of brands, as would be expected.
Consumables: Like the devices themselves,
materials consumed by 3D hardware have
very little in common with toner and ink.
Remember that 3D consumables are
basically construction materials that need to
provide the form, strength, and finish for an
intended application. The closest similarity
to the 2D printing process is MCor’s ability
to color the surface of objects with ink. The
binder-jetting mechanisms on powder-based
printers have some similarities to hardcopy
inkjet print heads. Powder-based 3D materials
are produced using polymerization, similar
to certain chemically grown toners and for
the exact same reason. Because powders
used in 3D applications require tiny, uniform
particles, they cannot be made using the
same pulverizing techniques employed to
make ground toners.
Although the materials are distinct and
unique, companies with the chemical
expertise required to manufacture ink and
toners are finding opportunities in 3D. As
with the hardware, a hardcopy consumables
company can adapt manufacturing
capabilities and leverage its materials
expertise to get a jumpstart in the 3D
consumables business. If you have been to
one of the large consumables trade shows
lately, you know that a number of them are
doing just that.
The 3D consumables market shares one
important aspect with hardcopy: the big
hardware OEMs are trying to insulate the
highly lucrative aftermarket and prevent
third-party vendors from marketing
supplies. 3D Systems, for example, houses
the filament material used in certain 3D
devices in a proprietary cartridge. And it’s
common for 3D OEMs to prohibit or limit
usage of third-party consumables through
their service contracts and warranties.
Manufacturers often imply that using third-
party supplies could void the warranty, and
both resellers and manufacturers often state
in their service agreements that they will
not support machines that use third-party
supplies. We expect to see such agreements
challenged as the 3D market matures.
Many 3D OEMs prefer
channel partners
with experience in
the 2D world because
their infrastructure,
relationships, and
knowledge closely
match their needs.

Markets As demand for hardcopy declines, the emerging 3D market is enjoying robust growth. To
recap, the 3D printing materials sector is going to reach $1.052 billion in global turnover by
2019, growing at a CAGR of 20.4 percent from 2014 to 2019. By 2019, plastics are expected
to represent 64 percent of total value ($671 million), also growing at a similar CAGR (20.3
percent), which would place its current value at roughly $250 million.
Source: Actionable Intelligence, based on data from the Wohlers Report 2015, Wohlers Associates
Revenue(inbillionsofUSD)
$0
$5
$10
$15
$20
$25
2014 2015 2016 2017 2018 2019 2020
There are hurdles 3D must overcome before it reaches its potential. Gartner reports that
60 percent of businesses believe that 3D printing is too expensive to implement at present.
Factored into the expense is the time needed to produce an object—production volumes
need time to scale.
The following are a few vertical markets in which hardcopy dealers currently have a strong
presence and customers are accelerating their usage of 3D printing:
Education: One of the fastest growing markets for 3D printing is education. Many
schools with a STEM (Science, Technology, Education, and Math) program, from
grade school and up, are launching programs to teach 3D printing and design skills to
prepare students for the workforce. The types of applications found in an education
environment vary widely. For instance, students might start by producing very basic items such as
pencil holders and progress to designing and printing complex parts or artistic designs.
Schools want machines that are durable, easy to use, and inexpensive to maintain and that
use mainstream technology and materials. They often rely on local resellers for sales, service,
and support. All this is great news for firms selling printers and copiers and the consumables
used in these machines. Because local school districts and other educational organizations
are among the largest generators of hardcopy, 2D equipment and supplies vendors tend to
have long-standing relationships with them in place. Hardcopy dealers are finding they have a
competitive advantage when selling 3D equipment into the education vertical.
FIGURE 3
Worldwide 3D Printing Industry
Forecast 2014-2020

Home/hobby: A cottage industry
of low-end 3D printer and
materials makers have sprung up
to support the so-called “maker
movement” that has embraced 3D printing.
Individuals purchase inexpensive printers—
mostly based on FDM technology—to
produce items such as art, replacement
parts, toys, or utilitarian objects (tools,
dishware, smartphone cases, and so on).
Hobbyists are willing to experiment with
materials, and there is a wide range
available to them because OEMs at the low
end typically do not limit where customers
can buy consumables. They can even buy
their own extruders that create filaments
from a wide range of recycled plastics.
A key barrier to growing
the 3D printing home/
hobby market outside of
the maker movement is
the skill level required to
produce even a simple
object from scratch.
You need to learn how
the hardware works
and which materials to
use for a given project.
Then there’s the process
for digitizing the object
you want to create. This requires that you
either create it using some kind of 3D design
software or you digitize an existing object to
copy using a 3D scanner.
Ultimately, the consumer market will become
one where people simply download ready-
made designs to print, or they can use online
services to have custom projects designed
for them. Many are currently available today
for free or for a small fee (see Figure 11 on
p. 14), and some of these services also host
vibrant communities where designs and
ideas are shared.
These communities are a key driver of
innovation in the 3D market. They are
constantly pushing the limits not only in
terms of what the current hardware can
produce, but also how that hardware should
evolve. For example, a number of OEM
companies have emerged from the maker
community, typically launching through
crowd funding.
Hobbyists and DYIers tend to buy
inexpensive (under $1,000) printers direct
from the manufacturer, or they can download
files from which they can build their own 3D
printer using a friend’s machine. While this
market is dominated by direct sales and big
retailers, resellers should reach out to the
local DYI community as they are often a
hiring pool for 3D talent.
Manufacturing: 3D printers
are most often used in rapid
prototyping, according to Gartner,
where manufacturers test a part or
product for fit and function. It is also used to
create casts or molds from which products are
made by more traditional processes. The value
of 3D printing in manufacturing is that it greatly
shortens the time from design to having a
working physical prototype in hand. Once an
initial design for a new device such as a valve
is completed, it might take several weeks to
have a physical example made by traditional
methods. With 3D printing, that valve prototype
could be produced within a day.
Very few businesses use additive
manufacturing exclusively because of
limitations on speed, quality, and expense.
We are seeing specialized parts production in
industries such as aerospace and automotive.
At the high end, industrial 3D printers can
cost $500,000 or more, and those purchases
are made directly through the manufacturer
or through a large distributor or reseller.
At the mid and low range, however, there
is a great deal of opportunity for resellers.
Machines here range in price from a few
thousand dollars to about $100,000.
As they do with educators, most hardcopy
equipment dealers have relationships with
manufacturers. This makes the manufacturing
vertical another great opportunity for
potential 3D printer sales. In many cases,
According to Gartner
Group, 3D printers are
most often used in rapid
prototyping, which
involves manufacturers
testing a part or product
for fit and function.
FIGURE 4:
Makerbot Thingiverse is an
online community for sharing
3D-printable objects

hardcopy dealers support their manufacturing
customers with a range of hardware, including
desktop devices and copiers along with
wide-format machines for printing mechanical
drawings and CAD output. In these instances,
the hardcopy dealer is already a trusted
advisor that expands its product offerings to
include 3D devices.
Service bureaus: Regardless of
whether they are manufacturing
companies or non-profit
establishments such as schools,
many businesses cannot justify acquiring
industrial 3D printing systems (and hiring the
staff to run them) because the systems are
too expensive or not needed. When these
organizations need to create a prototype or
model, for example, they often turn to a
service bureau. In the commercial sector,
service bureaus currently represent a
significant portion of the overall 3D printing
market in terms of systems sold and
materials consumed. For example,
Solidscape recently agreed to supply 1,000
printers to a new service bureau in China.
Service bureau customers are typically any
business that needs a model or prototype, a
cast or mold, a part reproduced for a repair,
or a proof of concept. For example, a local
design firm might use a service bureau to put
its concepts into physical form to show its
clients. For that design firm, it might be more
cost effective to pay a service bureau than
to invest in 3D technology, especially since
the service bureau probably has a range of
3D capabilities to meet specific material and
finish requirements.
In some cases, using a service bureau to
3D print an object offers no advantage in
cost, time, or quality. For example, it takes a
similar amount of time to create an average
architectural model using a 3D printer as it
does to create it by hand due to the time the
software needs to prep the digital models.
Some elements cannot be produced using
3D printing because of their complexity or
quality requirements. But the technology is
rapidly maturing and 3D printing is offering
more and more advantages over traditional
production methods.
While many service bureaus are unique to
manufacturing processes, there is one type
that currently offers 3D products, and 2D
hardcopy vendors supporting the print-
for-pay market know it well—reprographic
providers. Certain reprographics providers
are now using 3D printing to expand beyond
their traditional 2D large format printing
business and are creating 3D signs and
graphics with text and images.
We are hearing that some companies
currently marketing 3D machines are
also acting as service bureaus. Potential
customers looking at 3D machines
may, for whatever reason, decide not
to make a purchase, but they still need
the output 3D machines deliver. With
access to the machines printing 3D output
in their showrooms, some of the more
entrepreneurial dealers are leveraging these
machines and acting as service bureaus.
These dealers realize that in addition to
making money through prototyping, they are
building solid relationships with customers
who will come back and purchase hardware
in the future.
There is also a growing number of online
3D printing service websites, such as
Shapeways and i.materialise. Some large
retail chains and other service providers
have also announced their intentions to test
the market for 3D printing services. Staples
not only sells a range of 3D printer brands,
it also provides 3D printing services in
stores with Innovation Centers. UPS offers
3D printing services at 56 of its UPS Store
locations at this writing.
For example, it takes a
similar amount of time
to create an average
architectural model
using a 3D printer as
it does to create it by
hand due to the time
the software needs to
prep the digital models.
Some elements cannot
be produced using 3D
printing because of their
complexity or quality
requirements.

Just as more print-for-pay work has moved
online, we expect to see more 3D services
bureaus pop up on the web. The opportunity
for resellers is with the smaller local service
bureaus. The larger national providers will
likely deal directly with the OEMs.
Architecture and engineering
(CAD/CAE): 3D printing is
making inroads with architects
and engineers as a means to
create models of things like specific design
feature such as a window frame, single
building to shopping malls, or proof-of-
concept engineering designs. Let’s say an
architectural firm wants to create a model of
an office building it designed. Simple parts of
that model might be more cost effective to
produce by hand--the traditional method.
The most complex parts might need to show
great detail and a particular finish and would
be most effectively produced by a high-
quality 3D printing system. Other less
detailed parts might be produced using less
expensive 3D printers.
Like manufacturing firms, hardcopy vendors
often sell an assortment of machines to
architects and engineers including printers
and copiers as well as wide-format prointers
and scanners so adding 3D printers to the
package is a natural fit.
As noted earlier, 3D technology that
supports architectural firms is just coming
on the market. While in some cases 3D
printing creates higher-quality models, the
advantage is offset by slow production
speeds. For example, architects
typically outsource model creation
or use junior staff to create them
by hand—basically like a craft
project. That process could take
30 hours. The preparation time
to set up the same model to be
printed in 3D, however, could take
50 hours or more.
This is primarily a software issue. It takes
time to process and translate a CAD image
into a format that a 3D printer understands.
Industry insiders expect improvements that
could reduce processing time to just a few
hours within the next year.
3D printing output also often does not yet
meet architects’ and engineers’ exacting
standards. There is a loss of detail for intricate
designs, and getting the desired finish or color
can sometimes be difficult. For this reason,
an architect or engineer might use 3D printing
for specific pieces that are best suited for the
technology and use traditional model building
techniques for the rest.
Healthcare (including dental):
Not many local clinics, dentist
offices, or hospitals have 3D
printing capability on-site, but
this could change quickly. As machines
become more capable and precise, they are
being used to create prosthetics or dental
crowns much more quickly and far less
expensively than by traditional means. In
fact, in its latest earnings report, Stratasys
cited “significant expansion” in the dental
vertical for its Polyjet sales. More practices
are using 3D printing for custom orthodontic
products, according to the report.
The manufacture of clear braces is already
being taken over by 3D printing. With the
traditional process, each set of braces is
made individually from unique molds. With
3D printing, many braces can be combined
from scans and produced in one pass on a
3D printer.
Prosthetics is another area that 3D printing
is radically changing. The prosthetic hand
in the photo, for example, was printed on a
relatively inexpensive 3D printer, the CoLiDo
X3045. The cost to do so was a fraction
of what it would have been with traditional
manufacturing methods.
FIGURE 6:
The Objet260 Dental Selection
printer. Source: Stratasys
FIGURE 7:
Prosthetic hand
produced by the
CoLiDo X3045, which
is shown on the right.
FIGURE 5:
The Airwolf3D HDR printer.
Source: Airwolf3D

3D Opportunities
and Challenges
It is clear that there are opportunities for hardcopy companies to leverage their knowledge,
relationships, and infrastructure in the 3D market. The following are some of the key areas.
Customers: For the channel and OEMs, there is significant overlap in the hardcopy
customer base that is turning to 3D printing in various market segments. It’s not just about
having a foot in the door of these segments—it’s also about understanding the customers’
business. Hardcopy vendors find they don’t have a very steep learning curve if they are
already selling into verticals migrating to 3D.
Hardcopy OEMs considering the 3D market should also look at the customers they already
have. Note that even though you might already sell into the right verticals, you probably
do not know who the 3D decision makers are for those customers. Hardcopy sales tend to
happen through IT or the CIO’s office. An engineering or design department often makes
the purchase decisions for 3D. You will have to leverage your existing contacts within your
existing accounts to find the best contacts for 3D sales.
Your customers will have incentive for dealing with you for 3D system sales. It is much
simpler for them if they have one service provider and one contract for both hardcopy and 3D
equipment.
Service and support: Most of the 3D OEMs are young companies, and their service and
support capabilities have not matured to those of a Hewlett-Packard or Konica Minolta. While
those vendors might respond to a factory service request within 24 hours, a 3D OEM might
take 48 hours or longer. Support and maintenance represents a significant portion of total
revenue (25 percent).
Hardcopy resellers have advantages that will help them provide good service and support to
3D customers. Service technicians who have worked with printers, copiers, or other office
equipment can easily pick up skills needed to service 3D printers. Many OEMs provide
service training to resellers. In larger markets, especially ones with good maker communities,
you can hire people with 3D service experience from the local talent pool.
Just as important, your existing customers know and trust you, whereas a startup 3D reseller
will have to take time to build credibility. Leverage that trust to set realistic expectations for
service and support.
Training: For resellers, retailers, and OEMs, your customers’ learning curve for 3D systems
will be significantly steeper than it is for your typical office printer or copier. If they are unsure
of how they might apply 3D printing in their business they might be confused by the range
of options. This is good news for office equipment dealers who are already viewed by their
customers as technology experts. The ability to instill a sense of confidence in customers
through training and tutorial material will be a great advantage.
Introductory training courses designed to give an overview of 3D printing and its use will
to a long way toward making your hardcopy customers comfortable with the technology. It
gives resellers an opportunity to address any questions about performance or capabilities
and get the customers thinking about the technology in the proper perspective. Walk your
customers through the entire application process so they see where 3D technology adds
For the channel
and OEMs, there is
significant overlap in
the hardcopy customer
base that is turning to
3D printing in various
market segments.

value, and show them where and how
they can compensate for the technology’s
shortcomings.
Infrastructure: 3D printing is a new industry,
and any new company just starting out in that
industry, such as OEMs, channel players, or
materials/consumable manufacturers, will
have to build up their infrastructure to be
successful. Infrastructure includes facilities,
workforce, channel, and supply chain.
Resellers in the 2D industry already have
this infrastructure. Yes, they will need
to retrain staff, adapt some processes,
and work with new partners in the supply
chain. While such change in an existing
organization might not be easy, it’s a lot
easier than building from scratch.
While each 3D printing market is different,
they all have inherent challenges that a
customer might object to. A reseller can
easily and effectively address all of them by
understanding the applications for which its
customers will use 3D printing. This will allow
them to put the limitations into the proper
perspective. With performance questions, for
example, which is better: waiting two weeks
for a model to be made by traditional means,
or 12 hours on a 3D printer? Walk your
customers through the entire application
process so they see where 3D technology
adds value, and show them where and how
they can compensate for the technology’s
shortcomings.
These are the challenges:
While each 3D printing market has its own
unique aspects, they will all encounter the
following challenges.
Speed: “Fast” is not a word often associated
with additive manufacturing, and it’s not
just the printing process itself that is slow.
FDM printers, for example, move the print
head at a rate ranging from 10 to 300 mm
per second. Creating digital models and
converting them to files that the equipment
understands is also time-consuming. Until
speed issues are addressed, additive
manufacturing will be limited to custom jobs
and small production runs in the commercial
market. For the consumer market, slow
printing will be a barrier to adoption.
For performance, make sure your customers
focus on the time spent on the entire process
and not just the time on the printer. Also,
the technology is improving rapidly. Work
with OEMs so you can talk about planned
performance improvements.
Ease of use: The low end of the 3D printing
market has seen significant improvements
of late in ease of use, from creating and
editing digital files to setting up and using
the hardware. Commercial 3D printing
products are also getting easier to use, but
their higher level of sophistication means
you need people with specialized skills to
produce the desired results, or you need to
retrain designers, engineers, or machinists
on the new software and technology.
The learning curve for experienced technical
professionals, however, is not very steep. By
offering training, a reseller can easily show
customers that their time to productivity with
3D printing may be faster than expected.
Physical volume of objects produced:
The maximum size that a 3D printer can
handle is limited. At the low end, that means
a build area as small as 5 × 5 × 5 inches.
Commercial units can handle build sizes as
large as 39.3 × 31.4 × 19.6 inches. No matter
what hardware is being used, users are also
limited to the dimensions available even if
the object being produced is less than the
available cubic inches. Larger objects can
be created by breaking them up into smaller
pieces to be assembled, but this adds time
and labor to an already lengthy process.
Addressing this limitation is a matter of
understanding the customer’s application
and matching them with the right 3D
equipment. You might also have to do a proof
of concept project to show that the system
can handle their application.
There is always a
lag time between a
technology’s readiness
for a market and the
market’s readiness for
it. As companies and
professionals learn more
about what 3D printing
is and what it can do,
adoption rates will rise
significantly.

Cost and quality of materials: With all
the different technologies and multitude
of materials available for a relatively small
number of low-volume applications (compared
to 2D printing), 3D printing materials are still
very expensive. For filaments, cost is typically
given by weight, and prices range from
about $19 per kilogram for ABS to more than
$150 per kilogram for more exotic materials.
Powders can be more expensive, especially
those that are metal-based. Titanium, for
example, can run from $200 to $400 per
kilogram. And for many applications, 3D
printing materials do not yet match those used
for more traditional manufacturing methods in
terms of finish, strength, and durability.
This is another area where it will pay for a
reseller to be a trusted advisor. Educate your
customers on the available materials and keep
tabs on new developments. The 3D printing
materials market is very dynamic and new
options appear almost daily. Match customers
with the materials suppliers with the product
most appropriate for their applications.
Total operating cost: When you consider
the relatively small 3D printing market and
its low sales volume, cost of materials, and
skilled labor expense, the cost of owning
and operating a commercial additive
manufacturing system can be high.
For this reason, many resellers offer 3D
printing services in addition to equipment
sales. This way, potential customers can
not only learn what to expect in terms of a
finished product, but get a sense for whether
buying 3D equipment is cost-effective.
Fear and uncertainty: Nobody wants to
invest in a technology that will be obsolete
soon or is not right for their application.
Many customers are also reluctant to buy
from an unfamiliar vendor, especially if they
think a similar option will soon be available
from a trusted source. These are exactly
the dilemmas facing companies that are
considering 3D printing systems. They are
asking questions such as the following:
»» Why buy now if next year I can get a
similar system that’s 20 percent faster
for the same price?
»» With so many options for printing
technology and materials, how do I
make the best choices for my business?
»» Should I buy from a company that’s
been in business for less than five
years, or do I wait for 3D systems from
Hewlett-Packard/Epson/Ricoh/etc.?
One final point: the challenges listed
earlier highlight the growing pains of a
young industry. It will become more settled
over time, but with a young market the
greatest opportunities are at the beginning
of the growth curve, not when it’s stable
and peaking. Any company entering the 3D
market now should be prepared to be patient.
The 3D industry is undertaking efforts to
bring stability and consistency to the market.
Groups such as the 3MF Consortium is
working to define a common 3D printing
format that will allow design models to be
used across other applications, printers, and
platforms. 3MF is supported by Hewlett-
Packard, Autodesk, 3D Systems, and many
other significant players in the 3D community.
Autodesk’ Spark platform provides a way
to make it easier for software to prepare,
optimize, and deliver 3D models, and it is
supported in Microsoft Windows 10. And
key standards bodies such as the National
Institute of Standards and Technology and
Underwriter’s Laboratory are working with
industry groups on 3D printing standards
as well.
It will take time to learn and know 3D
technology and the market as well as you
know the hardcopy market. The same is true
of the customer base. There is always a lag
time between a technology’s readiness for
a market and the market’s readiness for it.
As companies and professionals learn more
about what 3D printing is and what it can do,
adoption rates will rise significantly.
Groups such as the 3MF
Consortium is working
to define a common 3D
printing format that will
allow design models to
be used across other
applications, printers,
and platforms.

Appendix
Printing
Technology
How It Works Materials Used Key Vendors
Stereolithography
(SLA)
An ultraviolet light beam “draws”
the object to be printed on the
surface of a light-sensitive polymer,
where it is solidified. The process
continues on a layer-by-layer basis
until the object is complete.
Liquid polymers 3D Systems
XYZPrinting
Fused Deposition
Modeling (FDM)
or Fused Filament
Fabrication (FFF)
An extrusion nozzle heats and
melts a solid material, typically in
the form of a coiled plastic filament
or metal wire. It then deposits the
material in successive layers, which
immediately harden. The nozzle
can move both horizontally and
vertically via stepper and servo
motors.
Plastic, metal, or
plastic/carbon
coiled filaments
Stratasys
Makerbot
(owned by
Stratasys)
Print-Rite
3D Powder (3DP) Uses inkjet printing technology
similar to that found in 2D printers
to deposit liquid binder onto thin
layers of powder. The process
repeats in a cross-section pattern.
When the printing is complete,
excess powder is removed for
reuse.
Powder, typically
gypsum, and a
liquid binder
3D Systems
3DP Unlimited
Selective Laser
Sintering (SLS)
A thermal beam fuses selected
areas within a reservoir of powder.
A range of pow-
dered material
Sharebot
Sinterit
Material Jetting Liquid droplets of build material are
selectively deposited into a build
tray, where it is cured using
ultraviolet light.
Wide range of
plastics and
composites
Stratasys
Polyjet
3D Wax Printing Uses wax in a direct-write ink-jet
system to do rapid prototyping or to
create master molds for proof-of-
concept castings.
Solid wax Solidscape
(owned by
Stratasys)
Selective
Deposition
Lamination (SDL)
Uses paper to build objects layer
by layer by successively applying
adhesive to a designated area and
placing one sheet of paper above
the other, with each sheet being cut
into the appropriate shape. Ink may
also be used to color the object
being built.
Paper, adhesive,
and ink
MCor
Technologies
FIGURE 8:
Most Common Commercial
3D Printing Technologies

Software Type What It Does Examples
3D Model Creation Allows you to design objects to produce
and then create a file to prepare for a 3D
printer.
AutoCAD
Solidworks
Rhino 3D
Post-Modeling
Software
Three classes of software that prepare
your model for printing:
• Slicing takes a 3D model and translates
it to individual layers that are then sent to
the printer for printing.
• Support structure is software that
generates code that the printer uses to
create a support structure for the object
being created.
• Optimization and printing analyzes the
code for the model being sent to the
printer to make sure it is rendered as
efficiently as possible.
Cura
KISSlicer
3DPrinterOS
Scanning Software Allows you to capture a file from a 3D
scanner to copy an existing physical
object.
Typically comes with the
scanner
FIGURE 9:
Overview of 3D Printing
Software
Material Description Printer Type
Solid plastics Typically sold as a coiled filament. Most
common groups are nylon, ABS, and PLA.
FDM
Liquid resin A photo-sensitive polymer that is either
jetted and cured or cured in a vat, in both
cases by UV light.
Material jetting and SLA
Metals Most commonly used in 3D printing are
stainless steel, gold, silver, and titanium,
typically in powder form.
Metal laser sintering (variation
of SLS)
Gypsum powder Stored in a reservoir where binding
material is jetted into it to form an object.
3DP
Paper Paper is layered using adhesives and cut
to shape.
SDL
Ceramics Used in powder form with a binder.
Porcelain is a common variety.
3DP
Carbon Most often found in composites sold in
filament form.
FDM
FIGURE 10:
Overview of the Most
Commonly Used Commercial
3D Printing Materials

Marketplace Description URL
Autodesk 123D A community where you can share
models, apps, projects, and tools. Paid
premium membership gives you greater
access to resources.
http://www.123dapp.com/
Gallery/content/all
3D Part Source Find 3D models for parts and industrial
components by form and shape.
http://www.3dpartsource.com/
GrabCAD A platform for collaborating on CAD-based
3D models with more than 910,000
available CAD models.
https://grabcad.com/
CGTrader A fee-based marketplace where designers
and hobbyists can buy and sell 3D
designs.
http://www.cgtrader.com/
i.materialise An online service bureau that sells
ready-made designs.
http://i.materialise.com/
Instructables A resource clearinghouse for the maker
community that includes many 3D models.
http://www.instructables.com/
Create This A fee-based marketplace where designers
and hobbyists can buy and sell 3D
designs.
http://www.createthis.com/
Makerbot
Thingiverse
Many creative commons (free to use) 3D
models and designs.
http://www.thingiverse.com/
Yeggi Search engine for 3D-printable models. http://www.yeggi.com/
FIGURE 11:
3D printing marketplaces for
downloadable content

About Actionable
Intelligence
Actionable Intelligence is the leading source for news, analysis, and research on the digital
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