Current Trends
Current trends
How will the AM market develop in the years to come?
The focus of the previous sections was to provide an overview of recent developments and the current status of the AM industry. In this section we will highlight what we consider some of the main trends that will shape the AM market in the coming years. We therefore highlight the main trends and drivers within hardware and software, materials and on the AM market.
What you will find in this section
Hardware and software
Higher productivity and increasing automation
We expect that technological innovations from existing players and new entrants will have the biggest impact on the AM industry. Some of the main trends from our point of view are:
Low productivity and thus high cost per part is often the biggest limiting factor when it comes to the usage of AM for serial production. Machine manufacturers are therefore continuously pushing the boundaries of productivity of existing technologies.
Using the example of metal Laser Powder Bed Fusion, the most widely used metal process, we can see the following developments:
- Increasing the number of lasers (previously up to 4, now over 50). One good example for this is SLM SOLUTIONS and their NXG XII 600.
- Speeding up the build process by developing more productive printing parameters. Increasing the layer thickness from currently 30-60 μm to >200 μm might lead to a lower part density, for many applications this will however be acceptable. One good example for this is the collaboration between ACONITY and EQUISPHERES.
- Using lasers that are optimized for the AM Process. A novel laser developed by NLIGHT improves process robustness and enables higher productivity by actively changing the laser beam profile.
It is hard to predict the kind of processes that will come up in the coming years, but simply looking at technologies that have already been announced gives a good impression of what to expect. Some of our highlights are:
- The LaserProFusion technology by EOS: A Laser Powder Bed Fusion machine that instead of scanning the entire powder bed with one laser works with up to 1 million diode lasers, resulting in up to 10 times higher speed.
- 4D Printing technology project by Stratasys and MIT: In addition to traditional AM, 4D Printed parts will change its form over time when reacting to a media such as temperature or humidity.
- 3D-printed electronics with OPTOMEC’S Aerosol Jet printing technology: Even though 3D printing of electronics has been around for some years, the breakthrough is yet to come. The ability to print electronic and biological materials onto 2D and 3D components will enable smart applications across all industries.
- The area printing technology by SEURAT: By breaking up the laser into multiple beams, large areas of the powder bed can be melted simultaneously. This promises to speed up the printing process by a factor of up to 100.
Given the attention from investors, OEMs and end users, we expect to see many more such applications over the coming years. One trend across all these innovations is that it will not replace existing technologies but instead enable completely new applications.
Another trend we expect to continue is the increased usage of software across all steps of the value chain. This is an important development, since even though the AM processes itself are very digital, surrounding processes are often still performed manually. Some advancements we expect are:
- Easier creation of designs that are optimized for AM by using generative design software, e.g. AUTODESK Fusion 360. Another promising software is HYPERGANIC’S Artificial Intelligence driven Software.
- More reliable and faster simulation of the build process before starting jobs. This will significantly reduce the scrap rate and increase the “first time right” ratio, e.g. the AM software suite developed by ANSYS
- In-process monitoring solutions have been around for several years. Using such tools for quality control and qualification of parts is still not widespread, mainly due to a lack of intelligence of such systems. Besides solutions from machine OEMs, more and more independent offering exist such as SIGMA LABS PrintRite3D
- Support-free parts in the Laser Powder Bed Fusion (LPBF) Process. VELO3D and SLM SOLUTIONS offer data preparation and process control to minimize or eliminate support structures during the building process.
Besides using software to enhance the AM process, automation has been one of the main hurdles for AM towards becoming a technology for serial production. Some of the main areas that require automation are:
- Automatic de-powdering: For powder-based processes, removing excess powder after the print is a time-consuming process. Especially for sinter-based AM technologies like Metal Binder Jetting where de-powdering happens on the green part, manual de-powdering often leads to high scrap rates. No-hands production concepts like the one from DIGITAL METAL will thus be key.
- Automated support removal: Another main limitation for most polymer and metal technologies is manual support removal. Automating this process, e.g. using intelligent robotic arms equipped with sensors and vision systems, can significantly bring down cost per part. One promising company working on such topics is RIVELIN ROBOTICS.
- Automated production line: German carmaker BMW has implemented a fully automated production line for metal AM as part of a 3-year project including 12 members. The goal was to demonstrate that AM is ready for automotive serial production.
Automating these steps will not only drive down costs, especially for high-volume applications, but also increase the repeatability of the process.
One trend that could be seen across all technologies, but probably most notably for Metal Laser Powder Bed Fusion (L-PBF) is the introduction of new machines with bigger build volumes. While some machine manufacturers simply increase the build volume of existing machines, other manufacturers developed innovative processes to solve issues such as gas flow. Selected examples are:
- The Chinese Manufacturer E-Plus 3D that announced a machine with a build volume of 2050 mm x 2050 mm x 1100 mm that can be equipped with up to 64 lasers. Other examples are the NXG XII 600E (600mm x 600mm x 1500 mm) by SLM Solutions or the FS 621M (620mm x 620mm x 1100 mm) by Farsoon.
- The German company Kurtz Ersa with their machine Fyling Ray that features a build volume of 1500mm x 1000mm x 500mm. Instead of galvano scanners, the company is using a “swing-arm” concept make all lasers work efficiently over the large build volume.
In recent years, competition in the additive manufacturing market has surged, particularly with the entry of Chinese companies into Western markets. These new players have introduced aggressive pricing strategies, creating significant price pressure across the industry. As a result, several established companies have faced financial struggles, leading to bankruptcies or forced mergers to remain competitive. This evolving landscape underscores the need for innovation and efficiency to thrive in a rapidly maturing market.
Materials trends
Increasing availability of new materials
The second area that we expect to continuously advance Additive Manufacturing is materials. The main trends we observe in this area are:
A low number of qualified materials is one of the main hurdles for many processes. We expect to see more and more established materials being qualified for different processes. Some developments where we foresee a high impact are:
- Pure copper and copper alloys for metal processes such as Laser or Electron Powder Bed Fusion, metal binder jetting, or metal Material Extrusion. The ability to build complex geometries with high electrical and thermal conductivity will enable the production of inductors, electrical motors and many other applications.
- The development of high-strength Aluminium alloys such as 6000 or 7000 series will enable a wide range of applications in performance sectors. Additionally, more and more companies are successfully using Aluminium alloys for sinter-based AM technologies, such as machine OEM EXONE or powder supplier EQUISPHERES.
- Processing of cemented carbide: Swedish material’s specialist SANDVIK has developed powder and printing parameters for cemented carbide. This hard-to-process material offers significantly improved wear resistance compared to standard steels such as 316L is thus suitable for applications such as nozzles or wear parts.
Since Additive Manufacturing is still a fairly novel process compared to conventional manufacturing technologies such as casting or millling, it was a logic step to use known materials and processing them with AM. Since companies built up more trust and experience with AM technologies, a logic next step is to develop materials that are optimized for Additive Manufacturing and are hard to produce with other technologies. Promising examples include:
- The high-strength aluminium alloy Scalmalloy that combines high strength with low density, good processability and ductility.
- The production of precious and refractory metals by powder specialist HERAEUS, showing high heat and corrosion resistance or good thermal conductivity.
- NASA’S new alloy GRX-810 that can withstand temperatures over 1,090 degrees and can survive over 1000 times longer than existing, state-of-the-art alloys.
Even though feedstock used for metal AM is significantly more expansive than conventional materials, the main cost driver for many processes lies in a different area: low printing speed. Especially for metal Laser Powder Bed Fusion the usage of machines is the main cost driver. There are several companies addressing this, among them are:
- UNIFORMITY LABS, offering material with higher relative density than other AM powders, resulting in 3-10x higher print speed.
- ELEMENTUM 3D and their Reactive Additive Manufacturing (RAM) technology, leading to improved mechanical properties as well as higher printing speed.
The feedstock used for Additive Manufacturing technologies are usually significantly more expensive compared to materials used for conventional manufacturing processes. We expect the decline in prices we have seen over the last years to continue, among others for the following reasons:
- Higher production quantities: The increasing usage of AM, especially for high-volume applications, automatically leads to an increase in powder consumption. This allows existing suppliers to produce their materials more efficiently. Another effect is the entrants of new players and a stronger competition that usually leads to lower prices.
- Usage of conventional materials: Another trend we expect to continue is that more and more processes are capable of using feedstock from conventional processes. Examples include ME printers such as the one from POLLEN AM that works with pellets from injection molding as well as Metal Binder Jetting printers working with metal injection molding (MIM) feedstock and wire DED processes working with wires typically used for welding.
- Process innovation: Another driver that might have a great impact on lowering production costs is innovation during the material production process. One such example is GKN POWDER METALLURGY’S water atomization process for Stainless Steel 316L Powders
Multi-material printing is a reality for extrusion based processes for several years. Machines can easily be equipped with multiple different feedstock and change between them during the process. However, multi-matieral printing for other processes, especially powder-based, is more challenging. More recently, interesting advances have been made:
- The Belgian company Aerosint, which was acquired by motion technology company Schaeffler, offers a Selective Powder Deposition (SPD) technology to selectively apply different materials in the same layer. This technology enable multi-material printing for technologies such as L-PBF and Metal Binder Jetting.
- The German Fraunhofer IGCV has revealed several advanced components for multi-material printing. One interesting application is a rocket engine combustion chamber combining the materials CW106C and 1.2709 printed in Metal L-PBF.
Market trends
More funding and increasing collaboration
Change is not only happening in the fields of technology and materials. The AM market is rapidly evolving and we are certain that his trends will continue in the years to come.
In this section we would like to highlight some of the main trends on the AM market and some of the organizations that we believe will shape the market in the years to come.
While there were hardly any players in the AM market that were publicly listed in the early 2000s, this has significantly changed since then. After Stratasys was the first AM-company to go public in 1994, more players such as 3D SYSTEMS, MATERIALISE and EXONE have followed in the years to come to fuel their future growth ambitions. Some of the more recent IPOs that will have a great influence on the AM market are
- DESKTOP METAL IPO in December 2020: Even though DESKTOP METAL was only founded at the end of 2015, the company has since then grown into a multi-billion dollar company. Desktop Metal offers several printers for metal BJT as well as Material Extrusion (ME).
- MARKFORGED IPO in February 2021: Since it’s foundation in 2013, MARKFORGED managed to secure a leading position on the ME market, especially for metal ME and continuous carbon fiber ME. We believe that the additional funding will further nurture their growth and lead to innovation, also further expanding their AI-featured EIGER software.
- Other notable IPOs in 2021 include Swedish E-PBF machine supplier FREEMELT and American L-PBF machine manufacturer VELO3D.
- Besides more companies going public, several start-ups have recently closed new funding rounds despite challenging times. Some of the companies on that list include DIVERGENT3D, SEURAT, and HEADMADE MATERIALS. This trend is additionally fueled by funds dedicated to AM, such as the 100m Euro fund by AMVENTURES.
Being successful on the AM market requires deep knowledge in a broad range of skills, including design for AM capabilities, materials science, printing capacity and application knowledge. Due to the increasing complexity of the AM market it is getting tougher for companies to capture all of these topics by themselves. We therefore see increasing collaboration between different players. Some good examples for this include:
- The Swedish joint-venture AMEXCI: AMEXCI is a consortium of 11 companies in the nordic region that covers research, development and educational-topics related to Additive Manufacturing. None of AMEXCI’s owner companies stand in direct competition with each other, leading to an open exchange of opportunities and challenges within the AM market.
- Mobility goes Additive: Mobility goes Additive was founded by DEUTSCHE BAHN with the goal of driving the adoption of AM in the mobility sector. Since its foundation Mobility goes Additive has grown into the leading AM network, counting over 120 member companies from a broad range of industries. Members include AM users, service providers, machine OEMs and other players.
- Consortium for the oil & gas and maritime industry led by DNV: The consortium is a good examples how key stakeholders from a certain industry get together to jointly define clear requirements for parts produced with AM. Another good example for collaboration is the partnership between GKN and CONFLUX to develop next generation heat exchangers for Additive Manufacturing.
The AM industry has seen a wave of consolidation and divestments in recent years as companies adapt to intensifying competition, economic pressures, and shifting market dynamics. The post-hype reality of AM has forced many players to reassess their business strategies, leading to mergers, acquisitions, and the exit of underperforming or niche-focused firms. Larger corporations are acquiring smaller startups to gain access to innovative technologies, such as advanced materials or specialized hardware, while also broadening their market reach. Simultaneously, some companies are divesting non-core assets or divisions to focus on more profitable or scalable segments of the AM value chain. This trend has been amplified by the entry of aggressive competitors, particularly from China, who bring cost-effective technologies to Western markets, creating significant price pressures. While this consolidation phase reflects growing pains for the industry, it also signals maturation, as the remaining players are often better positioned to deliver robust solutions, scale production, and drive innovation for industrialized applications.
Latest developments (2023)
Market turmoil and sustainability
The overarching trends outlined in the previous sections were initially written in 2021 and have since been updated to reflect the latest insights. This section delves into the most recent advancements within the AM market, composed at the beginning of 2024.
Despite the challenges posed by the COVID-19 pandemic, the AM industry has demonstrated remarkable resilience compared to its other industries. However, 2023 proved to be a demanding year for many AM enterprises, including machine OEMs, material suppliers, and part manufacturers. Particularly notable were the struggles faced by publicly listed entities, often enduring significant devaluations of their stock prices. Additionally, the year was marked by the much-debated merger proposal between STRATASYS and DESKTOP METAL, a story that involved 3DSYSTEMS and NANO DIMENSION. While the merger did not materialize, the possibility remains open for further developments in 2024.
Assessing the trajectory of the AM industry as a whole has become increasingly intricate, given the diverse behaviors observed across different geographic regions, industries, and applications. Notably, sectors such as defense and space have witnessed substantial growth, a trend expected to persist. Similarly, the semiconductor industry is experiencing a surge in attention.
End users are placing heightened emphasis on the environmental impact of AM processes. Disruptions in the global supply chain, coupled with political uncertainties, have intensified the focus on local production and the utilization of AM to enhance supply chain resilience. While companies are not expected to entirely relocate their manufacturing operations or replace traditional methods with AM, the technology remains a cost-effective solution for producing select components in close proximity to customers. This inclination towards localized production is anticipated to gain momentum in 2024 and beyond.
