3D Printing Industry Chain Analysis Report
Ⅰ. Definition of 3D Printing
3D printing, also known as additive manufacturing (AM), is an advanced manufacturing technology that encompasses multiple disciplines. Based on a computer's three-dimensional design model, 3D printing uses software to discretize and control the shaping system, transforming the three-dimensional object into several two-dimensional planes. It utilizes adhesive materials such as powdered metal, plastic, ceramic, resin, etc., and constructs objects layer by layer through the printing process. Overall, 3D printing combines information network technology with advanced material technology and digital manufacturing technology. The manufacturing process spans multiple disciplines including mechanical engineering, materials science, software development, electronics engineering, design principles,and computer vision techniques.
3D flowchart
Analogous to the process of printing on a flat surface,3D printing can produce functional products based on three-dimensional information. 3D printing can be simply understood as replacing electronic documents in traditional printing with 3D digital models, and using specialized materials for layer-by-layer printing to form three-dimensional products. The files printed by traditional flat printers only serve the purpose of information transmission and storage, without functionality. However, products produced through 3D printing can achieve preset functions and are directly applied as components in aerospace, military industry, medical equipment, automotive, and other industries.
Ⅱ. History of 3D Printing
Looking at the development history of the global 3D printing industry, it can be roughly divided into three stages: technology research and development, mass production application, and business profitability. 3D printing was born in the early 1980s and has undergone nearly 40 years of development so far, which can mainly be summarized into three stages. The period from 1980 to 1990 is the first stage, during which patents, technologies, and prototype machines for 3D printing were successively developed. In 1982, Charles Hull first proposed applying optical technology to rapid prototyping field and invented the world's first Stereolithography Apparatus (SLA) prototype machine for solidifying photosensitive resin through light exposure in the following year. He is hailed as the father of 3D printing since then various types of 3D printing technologies and their prototype machines have emerged continuously.
The second stage was from 1990 to 2010. Influential 3D printing companies gradually formed in Europe and the United States, transitioning from the prototype of technology and theory to the production of 3D printers and products. World-leading companies such as 3D Systems, Stratasys, and EOS have successively launched 3D printing equipment at this stage, covering the current mainstream fused deposition modeling (FDM), selective laser sintering (SLS), metal laser sintering (SLM) and other technologies. In addition, the product categories produced through 3D printing are also expanding at this stage, and the downstream application scenarios are also increasing.
From 2010 to present, it is the third stage. The 3D printing industry has experienced rapid development, and leading companies have continued to merge and acquire. The merger of Stratasys and Object in 2012 was the largest merger in the 3D printing industry. 3D System completed the acquisition of Phenix Systems, Medical Modeling, Bot Object and other companies from 2010 to 2016. In 2016, GE of the United States acquired 3D printing giants Concept Laser and Arcam, the business scale of leading companies has experienced rapid development due to mergers and reorganizations.
China's 3D printing industry started about ten years later than Europe and the United States, but the gap has gradually narrowed in recent years. China's 3D printing industry began in the early 1990s, with several universities such as Tsinghua University, Xi'an Jiaotong University, and Huazhong University of Science and Technology initiating additive manufacturing technology research with government funding support. In 1995, Xi'an Jiaotong University successfully developed a 3D prototyping machine. From 2000 to 2010, various universities successively achieved breakthroughs in mainstream 3D printing technologies such as SLA, SLS, FDM, and SLM. From 2011 to 2016, it was a stage of technological catch-up. The number of related patents in the 3D printing industry increased rapidly from five in 2011 to 6,564 in 2016, approaching the level of European and American countries. After 2016, there was a sharp increase in the number of companies involved in the business of 3D printing in China. In 2019, China's first listed company specializing in domestic market foray into this field called "Polymaker" debuted on the Sci-Tech Innovation Board (STAR Market), marking China's gradual transition from technological accumulation to commercialization in the field of 3D printing.
Ⅲ. advantages and disadvantages of 3D printing technology
Compared to traditional subtractive manufacturing technologies, 3D printing has the advantages of customization, low waste, and precision manufacturing. Traditional subtractive manufacturing processes involve machining raw materials through processes such as turning, milling, planing, and drilling. Compared to traditional subtractive manufacturing, 3D printing allows for customized non-standard production in the design process without the need for pre-preparation of molds. Additionally, waste is reduced compared to traditional manufacturing. Furthermore, some parts used in precision manufacturing may encounter constraints during production such as inability to produce molds or insufficient manual manufacturing accuracy due to complex internal structures. In these cases, they can only be produced using 3D printing.
Schematic diagram of subtractive manufacturing process
Comparison between 3D printing and some traditional crafts
Based on the above characteristics of 3D printing, the future development direction mainly focuses on the production of customized and complex structural parts. The cost sensitivity of 3D printing is low in terms of economies of scale, unlike traditional manufacturing processes that achieve cost reduction and efficiency improvement with increasing production volume. Therefore, 3D printing has a significant competitive advantage before reaching the breakeven point. Typically, such products have at least one of two characteristics: customization or high complexity. Customized products are usually produced in small batches and cannot be scaled up through traditional processes. They are widely used in aerospace defense, medical, cultural creativity, education fields, etc. As for complex structural parts, their unit price often remains higher than that achieved by manual labor or traditional processes even after mass production. In some cases, it is difficult or even impossible to produce them using conventional methods; examples include certain special hollowed-out components, mixed metal parts, and biocompatible degradable artificial organs. These applications are commonly found in aerospace defense industry as well as automotive and medical sectors.
The relationship between output and cost in the 3D printing production process.
Ⅳ. Classification of 3D Printing Technologies
Currently, in the mainstream classification dimensions of 3D printing, it is divided into metal 3D printing and non-metal printing based on the different materials used, and further differentiated by different technological characteristics.
Metal 3D printing has higher barriers, higher value-added potential, and greater future application space compared to non-metal 3D printing. Among them, the mainstream technologies used in metal 3D printing include selective laser melting (SLM), electron beam melting (EBM), laser engineered net shaping (LENS). The raw materials for printing are mostly metal powders such as iron, titanium, nickel, steel etc., which are mainly used in fields with high performance requirements such as aerospace & defense industry and medical devices.
The mainstream technologies used in non-metal 3D printing include selective laser sintering (SLS), stereolithography apparatus (SLA), fused deposition modeling (FDM), three-dimensional powder bed inkjetting (PJ) etc., which are mainly used for manufacturing non-standard products such as industrial molds, entertainment creativity and medical supplies. Some of these technologies(SLS and 3DP) can also use metal powders as raw materials for printing but the market's mainstream material selection is still plastics,resins,nylons,cereamics etc., so they are still classified as non-metal prints.
Heavy industrial products typically rely on high-temperature and corrosion-resistant metal materials. In order to meet the needs of heavy industrial products, 3D printing initially focused on the development and investment in metal powders. Metal powders generally require high purity, good sphericity, narrow particle size distribution, and low oxygen content. Currently, the main metal powder materials used in 3D printing include titanium alloys, cobalt-chromium alloys, stainless steel, and aluminum alloy materials. Additionally, there are also precious metal powder materials such as gold and silver used for printing jewelry. Titanium alloys benefit from their high strength, good corrosion resistance, and high heat resistance. They are widely used in the production of aircraft engine cold-end compressor components as well as various structural components for rockets, missiles, and airplanes. Furthermore, stainless steel powder is widely applied due to its corrosion resistance. 3D printed stainless steel models have higher strength and are suitable for printing larger-sized objects.
Currently, countries such as Europe and America have achieved laser direct forming of small-sized stainless steel parts and high-temperature alloys. In the future, laser rapid forming of large-scale metal components made from high-temperature alloys or titanium alloy materials will be a major focus of technological breakthroughs.
Engineering plastics refer to industrial plastics used as industrial parts or housing materials. They have excellent properties such as strength, impact resistance, heat resistance, hardness, and aging resistance. Engineering plastics are the most widely used type of 3D printing materials, including common materials such as ABS, PC, nylon, etc.
PC-ABS is the most widely used thermoplastic engineering plastic. It combines the toughness of ABS and the high strength and heat resistance of PC. It is mostly used in automotive, household appliances, and communication industries. Parts made from this material have a strength that is about 60% higher than traditionally manufactured components. In industry, PC-ABS material is commonly used to print concept models, functional prototypes, manufacturing tools, and final thermoplastic components. PC-ISO is a white thermoplastic material certified for medical hygiene use with high strength. It is widely applied in pharmaceuticals and medical device industries for surgical simulation, cranial repair surgery,dentistry,and other professional fields.
Photosensitive resin is generally in liquid form. It can undergo immediate polymerization and curing under the irradiation of ultraviolet light at a certain wavelength. It can be used to produce high-strength, high-temperature resistant, and waterproof materials. Somos 19120 material is pink in color and is a special casting material. After molding, it can directly replace the wax film prototype used in precision casting, avoiding the risk of developing molds. It has low ash residue rate and high precision characteristics. Somos Next material is white in color and is a new type of PC-like material with excellent toughness. It can basically achieve the performance of nylon materials produced by selective laser sintering (SLS), while having better accuracy and surface quality. The parts made from this material have the best rigidity and toughness so far, while maintaining the advantages of exquisite craftsmanship, precise dimensions, and beautiful appearance of photosensitive stereolithography materials. It is mainly used in automotive, household appliances, electronic consumer products, etc.
Ceramic materials have excellent characteristics such as high strength, high hardness, high temperature resistance, low density, good chemical stability, and corrosion resistance. They are widely used in industries such as aerospace, automotive, and biology. In traditional processes, complex ceramic parts need to be formed using molds. Mold processing costs are high and development cycles are long, making it difficult to meet the constantly evolving product demands. However, selective laser sintering (SLS) with 3D printing can process ceramic powders by eliminating cumbersome design steps and achieving rapid product formation.
This material has certain defects. SLS uses a mixture of laser-sintered ceramic powder and a certain type of binder powder. After laser sintering, the ceramic products still need to undergo post-processing in a temperature-controlled furnace. Moreover, when the ceramic powder is rapidly sintered directly by the laser beam, it has large liquid phase surface tension which leads to significant thermal stress during rapid solidification process resulting in numerous microcracks forming.
In recent years, colored gypsum materials, artificial bone powder, cell biological raw materials, and food materials such as sugar have also been applied in the field of 3D printing. Colored gypsum material is a full-color 3D printing material. Based on the principle of layer-by-layer printing on powder media, after processing, the surface of the 3D printed product may have a slight particle effect and appearance similar to rocks. There may be subtle annual ring-like textures on curved surfaces. Therefore, it is widely used in fields such as anime dolls. The fresh meat printed by the University of Pennsylvania in the United States is a substitute substance similar to fresh meat generated using laboratory-cultivated cell media. It is made with water-based solvents as binders and special sugar molecules. There are also concept-stage bioprinting inks made from human cells and similarly special bio-paper. During printing, bio-ink is sprayed onto bio-paper under computer control to ultimately form various organs.
Regarding food materials, currently sugar 3D printers can directly produce various shapes of beautiful and delicious desserts by spraying heated sugar. Existing additive manufacturing dedicated materials include four categories: metal materials, inorganic non-metallic materials, organic polymer materials, and biological materials; however limited types of single-material severely restricts the application of additive manufacturing technology due to inadequate performance. Currently leading companies in the industry as well as some material companies are actively developing specialized materials including new high-performance polymer composites , high-performance alloyed metals , biologically active substances , ceramic-based compounds etc . These enterprises combine nanomaterials with existing material systems to develop multifunctional nano-composite Materials , fiber-reinforced composite Materials , Inorganic filler composite Materials , Metal filler composite Materials And Polymer alloys etc., not only endowing these new composites with multi-functional characteristics but also expanding their applications within additive manufacturing technology making them one of its development trends.
3D printing types classified according to different process technologies.
Comparing SLM technology with other technologies is a convenient way to understand the classification of 3D printing. SLM is currently a mature and versatile technology, which can be compared with other technologies to understand the current mainstream technology. The upper part of the SLM printer is a laser, and the lower part is a metal powder bed laid on the substrate. The forming method is solidification after melting, that is, by melting the metal on the metal powder bed and cooling it to solidify into shape, repeating this process layer by layer to print out finished products. Other metal and non-metal 3D printing processes can be seen as modifications and innovations based on SLM technology.
SLM process equipment diagram
1. EBM Technology: Replace the upper part with an electron beam instead of a laser, and print in a near-vacuum environment, which is EBM technology;
2. LENS Technology: Add a metal powder nozzle to replace the lower part of the metal powder bed, which is LENS technology.
Non-metal 3D Printing:
1. SLS Technology: Add a low-melting-point powder binder to the lower part of the metal powder bed and form it by bonding, which is SLS technology;
2. SLA Technology: Replace the upper part with ultraviolet laser and replace the lower part of the metal powder bed with a liquid photosensitive resin tank. Solidify the resin through light exposure for molding, which is SLA technology;
3. FDM Technology: Replace the upper part with a hot melt nozzle and only retain the substrate in the lower part. Melt and extrude materials directly through hot melt nozzles for forming, which is FDM technology;
4. 3DP Technology: Replace the upper part with sprayable, non-heating, viscous binder and use material powder bed as half-part. Form by bonding after binding powders together, which is 3DP technology;
5. PJ Technology: Replace the upper part of the laser with photosensitive polymer materials and ultraviolet lamps, retain only the substrate in the lower part, and achieve photo-curing molding by irradiating photosensitive materials, which is known as PJ technology.
Source: 3D Hubs, Joye3D, VicoNet, 3D Science Valley, Institute of Physics, Chinese Academy of Sciences, "Introduction and Application of 3D Printed Parts Manufacturing Technology", Guolian Securities Research Institute.
SLM is currently the mainstream solution for metal printing, with a relatively high cost-performance ratio. Products printed through metal 3D printing generally have excellent performance and can meet the demanding requirements of industries such as aerospace, defense, and medical. However, they also face issues such as high overall printing costs (ranging from tens of thousands to hundreds of thousands), limited product size, and slow production efficiency. Among them, SLM has a relatively high cost-performance ratio and advantages in terms of high density, strength, precision, and utilization rate. At the same time, it has lower costs compared to EBM and LENS technologies. With mature technological development, SLM is currently the mainstream solution for metal 3D printing.
Source: 3D Hubs, Joye3D, VicoNet, 3D Science Valley, Institute of Physics, Chinese Academy of Sciences, "Introduction and Application of 3D Printed Parts Manufacturing Technology", Guolian Securities Research Institute.
In non-metal 3D printing, SLS, SLA, and FDM are commonly used technologies. Products printed with non-metal 3D printing generally have weaker performance in terms of strength, accuracy, surface roughness, etc., compared to metal 3D printing. However, they can meet the needs of general industrial manufacturing and creative product production at a relatively low cost. SLS, SLA, and FDM technologies are relatively mature both domestically and internationally, with high downstream demand for printed products. They are currently common solutions for non-metal 3D printing.
SLS process has advantages such as wide material usage, high precision, high production efficiency without the need for support structures. However, its disadvantages lie in the binder-based method which results in gaps in finished products and poor mechanical properties. It may require additional processing and overall costs are relatively higher in non-metal 3D printing.
SLA process benefits from photopolymerization molding method which produces highly accurate products with superior surface quality. It also has advantages of waterproofing and heat resistance. Its disadvantages stem from inherent defects of resin materials resulting in relatively poor strength and stiffness requiring support structures during the production process.
FDM process does not require important components like lasers in its equipment structure leading to lower equipment costs and faster print speeds. The raw materials used for printing are thermoplastic materials that have loose environmental requirements making it suitable for office or home environments. However,it has drawbacks such as low print accuracy and inability to print complex components.Thus,FDM technology is widely regarded as a preferred solution for desktop-level 3D printing.
Ⅴ. Policies in the 3D printing industry
Policies support the rapid development of the industry. As an important part of industrial upgrading, 3D printing technology has received full attention at the national level. Policies have been intensively introduced since 2015, showing strong continuity and fast response speed. At the same time, significant results have been achieved from the policy effects, and major objectives have gradually been realized with continuous improvement of industry standards.
In the "14th Five-Year Plan" in 2021, additive manufacturing has reached a higher level of importance and is listed as a key task. The plan emphasizes strengthening key core technology research and development. Subsequently, various ministries and local governments responded quickly. Provinces and cities such as Shanghai, Guangdong, Jiangsu, Chongqing explicitly emphasized the important position of additive manufacturing in overall high-end manufacturing development in their core policy documents. Local governments combined local needs and advantages to develop additive manufacturing industrial chains according to local conditions.
In terms of industry regulations, in 2020, multiple departments including the National Standardization Management Committee and Ministry of Industry and Information Technology issued the "Additive Manufacturing Standard Navigation Action Plan (2020-2022)", proposing to build a new standard system for additive manufacturing based on national conditions while aligning with international standards to accelerate implementation of relevant industry standards. Currently, China's national standards for additive manufacturing consist of 30 items; among them are 21 established within the past three years gradually achieving standardization which safeguards industry development.
Ⅵ. 3D printing industry chain pattern
1. Industrial chain map
2. Industrial chain value distribution
(1).3D printing overall market
In terms of global 3D printing market space, according to the "Wohlers Associates 2022" report, the compound annual growth rate of the additive manufacturing market from 2015 to 2021 is 19.77%. In 2021, the global additive manufacturing market will reach US$15.24 billion, with a year-on-year growth rate of 19.77%. 19.5%. The additive manufacturing market size is expected to reach US$29.8 billion in 2025, with a CAGR of approximately 18.2% from 2021 to 2025; after the constraints of the epidemic dissipate, and the downstream application scenarios continue to expand, Wohlers predicts that the additive manufacturing market size will reach US$85.3 billion in 2030 US dollar, the CAGR from 2021 to 2030 is about 21.1%, and the CAGR from 2025 to 2030 is about 23.4%.
Metal additive manufacturing will usher in rapid development. Metal 3D printing generally has higher production cost, product quality, and technical requirements than non-metal 3D printing, and its downstream versatility is weaker than non-metal 3D printing. In recent years, with the continuous optimization of metal 3D printing technology, product quality has approached or even exceeded traditional manufacturing processes, and the market size has gradually expanded. SmarTech Analysis data shows that the global metal additive manufacturing market size was US$3.3 billion in 2019. It is expected to continue its high growth rate in the future. The market size will expand to US$11 billion by 2024, with a CAGR of 27.2% from 2019 to 2024, a significantly rapid growth rate. Wohlers predicts the overall growth rate of the additive manufacturing industry (CAGR from 2021 to 2030 is approximately 21.1%).
2015-2030The global market size of additive manufacturing industry from 2019-2024 Global Metal Additive Manufacturing Market Size
Source: Wohlers, Guolian Securities Research Institute Source: SmarTech Analysis, Guolian Securities Research Institute
From the perspective of market share, according to the data presented by Wohlers in 2021, 3D printing services, 3D printing equipment, and 3D printing materials account for 40.9%, 22.4%, and 17.1% respectively in the segmented product scale. The market sizes are $6.23 billion, $3.41 billion, and $2.59 billion respectively. In terms of market share of materials, polymer powder materials, photosensitive resin, polymer filament materials, and metal materials are the main raw materials with shares of 34.7%, 25.2%, 19.9%, and 18.2% respectively.
It is worth noting that polymer powder sales have increased by a year-on-year growth rate of 43.3%, surpassing photosensitive resin as the most commonly used additive manufacturing material.The downstream demand for processes based on powder bed technologies such as SLS (Selective Laser Sintering) and SLM (Selective Laser Melting) has also increased.
2021 Global Additive Manufacturing Industry Segmentation Percentage
Proportion of raw materials in the global additive manufacturing industry in 2021
Source: Wohlers, Guolian Securities Research Institute Source: Wohlers, Guolian Securities Research Institute
In the 3D printing industry, equipment companies are often involved in raw materials, equipment components, and downstream services. Enterprises specializing in raw materials and equipment components usually have a relatively low proportion of 3D printing business. Therefore, it is more appropriate to observe the overall industry through the market competition pattern of 3D printing equipment companies.
In terms of domestic competition pattern, the current domestic 3D printing equipment market is relatively scattered. The CR3 consists of China's UnionTech, America's Stratasys, and Germany's EOS, with a total market share of approximately 44.3%. In addition to UnionTech as the mainstream domestic equipment manufacturer, Huashuo Gaoke and Bolite have relatively high market shares at 6.6% and 4.9% respectively.
In terms of the global competitive landscape, due to factors such as low individual value, large shipment volume, and numerous participating companies of desktop-level 3D printing devices, the competition landscape is usually observed based on the proportion of industrial-grade 3D printing device shipments (priced above $5000). Currently, the leading players in the industrial-grade sector are Stratasys and 3D Systems from the United States, with shipment proportions of 16.6% and 12.8% respectively in 2019. Domestic non-metal industrial-grade equipment companies LianTai Technology and Xianlin Sanwei entered the top ten with shipment proportions of 2.4% and 2.0% respectively.
Considering the diverse dimensions of 3D printing equipment classification, it can be divided into metal and non-metal based on raw materials, as well as industrial-grade and desktop-grade based on value and application field. By classifying the main participating companies according to different dimensions, the industry competition pattern can be better observed. Metal 3D printing equipment is mostly industrial-grade equipment, usually characterized by high individual value, high gross profit margin from equipment and service sales, and low shipment volume.
In terms of domestic market, companies mainly engaged in metal 3D printing have revenues ranging from 100 million yuan to 500 million yuan. The listed company Platinum Technology (subsidiary of Silver Union) is involved in metal 3D printing business. Apart from Platinum Technology, other companies such as Huashuogaoke and Xinjinghe have certain competitiveness in technology.
In overseas markets, major metal 3D printing companies are already listed. Among them, 3D Systems has the highest revenue at approximately RMB 4 billion. Non-metallic 3D printing includes both industrial-grade and desktop-grade devices with generally lower value compared to metal devices. However, they have higher shipment volume and overall company revenue.
On the capital level: In domestic market, major companies are not yet listed but are mostly in listing or primary market financing stage. Among them, Creality is a leading player in desktop-level with revenue exceeding RMB1 billion which makes it the highest-earning company in China's 3D printing industry. Liantai Technology is a leading player in industrial-grade non-metallic devices with revenue of RMB435 million.
In overseas markets, major companies within the industry are already listed; among them are Stratasys and 3D Systems which lead in non-metallic sector with revenues around RMB4 billion each.
In terms of the domestic 3D printing market space, according to data from Wohlers, China accounts for approximately 10.6% of the global market share in terms of additive manufacturing equipment installations, ranking second in the world. According to calculations by the China Industry Research Institute, the domestic additive manufacturing market is estimated to reach a scale of 26 billion yuan in 2021, with a year-on-year growth rate of 25.0%, doubling compared to the industry scale achieved in 2018. It is expected that by 2024, the industry scale will exceed 50 billion yuan and maintain a CAGR (Compound Annual Growth Rate) of around 24.0% from 2021 to 2024, significantly higher than the global growth level. The domestic additive manufacturing industry may enter a period of rapid development and has vast potential for future growth.
2021 Additive Manufacturing Equipment Installation Proportion Chart 2017-2024 China 3D Printing Market Size Forecast
Source: Wohlers, Guolian Securities Research Institute Source: China Commerce Industry Research Institute, Guolian Securities Research Institute
受3D打印产品逐步规模化应用和部分积压的3D打印设备需求释放的带动，2021年中国3D打印产业规模增速加快，产业规模增至216.5亿元。随着3D打印产品在已有场景中应用规模进一步扩张，以及新场景、新应用的不断开拓，预计2023年中国3D打印产业规模将突破400亿元。
(2). Distribution of 3D Printing Areas
China's 3D printing industry is mainly distributed in the Beijing-Tianjin-Hebei region, the Yangtze River Delta region, the Pearl River Delta region, and the central and western regions.
(3) .Proportion of the 3D printing value chain
China's 3D printing equipment accounts for 45.0% of the total, while 3D printing services and materials account for over 25%.
Proportion of the 3D printing industry chain links
Proportion of internal value chain in each link
3D printing material value chain
he current mainstream classification of 3D printing is divided into two categories: metal and non-metal, further subdivided based on specific processes. Metal 3D printing has higher barriers, higher value, and greater future application space, thus receiving more attention than non-metal 3D printing. The main methods in metal 3D printing include selective laser melting (SLM), electron beam melting (EBM), laser engineered net shaping (LENS), etc., while non-metal 3D printing mainly includes selective laser sintering (SLS), stereolithography apparatus (SLA), fused deposition modeling (FDM), etc.
Raw materials for 3D printing are one of the important factors affecting the quality of printed products and serve as the material foundation for the development of 3D printing technology. Currently, 3D printing raw materials can be mainly classified into metal materials and non-metal materials. Data shows that in China's entire 3D printing market, aluminum alloy accounts for 20.2%, stainless steel accounts for10.0%, totaling to39.3%. The remaining majority consists of non-metal materials such as nylon, PLA plastic, ABS plastic, resin, etc.
3D printing equipment value chain
Currently, the mainstream equipment brands in the Chinese market include UnionTech, Huashuo, Polymaker, 3D Systems, GE, Stratasys, HP and others. Data shows that UnionTech has the largest market share in the 3D printing industry at 16.4%, followed by Stratasys and EOS with shares of 14.8% and 13.1% respectively.
With the continuous accumulation of domestic 3D printing companies' technology, the gap between them and foreign advanced levels is rapidly narrowing. In some areas such as large-scale molding, they have even achieved a reversal. Excellent companies continue to emerge as leaders in the industry represented by Polymaker, Huashuo High-Tech and UnionTech Technology with strong comprehensive strength.
3D Printing Service Value Chain
3D printing is currently widely used in aerospace, automotive, medical and other fields, and is gradually being tried in more areas. In 2021, 3D printing was mainly applied in the aerospace, automotive, consumer electronics, medical/dental, academic research and other fields. The three major application areas represented by aerospace, medical and automotive have broad space for development. From the perspective of market share of downstream applications of 3D printing, the three sectors with the highest proportion are aerospace, medical and automotive industries with proportions of 16.8%, 15.6% and 14.6% respectively. In the aerospace industry's applications of 3D printing technology mostly involve metal additive manufacturing processes such as SLM (Selective Laser Melting), EBM (Electron Beam Melting) and LENS (Laser Engineered Net Shaping). Both metal and non-metal additive manufacturing technologies are utilized in the medical and automotive industries' applications.
According to a report released by Ernst & Young (EY), currently aerospace/defense sector has a relatively high penetration rate for 3D printing technology adoption with significant future growth potential.
In terms of business models, downstream applications of 3D printing can be divided into military end-use sector and civilian end-use sector.
In military use cases, there is extensive application of 3D printing technology in the aerospace/defense industry primarily focused on customized product sales. It is mainly used in missiles production as well as aircraft engines components such as control surfaces (rudders), combustion chambers or intake ducts; also grid blades for military aircraft engines etc.. Military products often adopt negotiated pricing strategies resulting generally higher profit margins.
On the civilian side , it is mainly applied in fields such as automotive industry , healthcare , cultural creativity education etc., where there are relatively more sales volume for selling actual devices capable to perform additive manufacturing operations . Taking "Bolite" as an example, in 2021 Bolite sold a total of 140 devices with the proportion of military equipment sales and civilian equipment sales being approximately 43% and 57% respectively. However, in terms of value, the unit price for Bolite's military products is higher, ranging from several million to tens of millions per device, which is higher than the price range for civilian use devices that are priced between hundreds of thousands to millions. Overall , there is currently high demand on the military side downstream market where mature metal additive manufacturing technologies are required; while on the civilian side there are more industries involved with broad future growth potential where both metal and non-metal additive manufacturing processes are utilized. In addition to process maturity level considerations , upgrading industrial chains and consumer upgrade processes also need to be taken into account.
2021 Important Application Areas and Market Share of Additive Manufacturing Maturity of Current Application Areas and Future Development Potential of 3D Printing
Source: Ernst & Young, Guolian Securities Research Institute Source: Huajing Industrial Research Institute, Guolian Securities Research Institute
Application Field - Aerospace
Metal 3D printing has a high growth potential in the aerospace and defense industries. The materials commonly used in the aviation industry include titanium alloys, lithium-aluminum alloys, ultra-high-strength steel, high-temperature alloys, etc., which generally have characteristics such as high strength, stable chemical properties, and difficult formability during traditional processing methods. The rapid development of metal 3D printing has brought new ideas for the aerospace and defense industries. Metal 3D printing processes such as SLM, EBM, and LENS are widely used in the aerospace field, greatly promoting the flexibility of aerospace structural design and achieving a fundamental shift from "manufacturing-constrained design" to "function-driven design". At the same time, due to the low price sensitivity in the aerospace industry, 3D printing has taken a leading position in this field.
Multiple advantages contribute to the rapid development of metal 3D printing in the aerospace field. The advantages of metal 3D printing in aerospace applications can be summarized into four aspects: First is that it enables complex structural designs that are difficult to produce using traditional methods; it can also use composite materials to give different parts of components different properties. In China's context where traditional forging and casting technologies lag behind Europe and America's counterparts, this advantage becomes particularly important as it allows for leapfrogging through advanced manufacturing with 3D printing technology. Second is that it shortens research and development cycles by eliminating the need for manufacturing production molds while saving time on error correction, modification, and optimization during R&D processes. Third is optimizing component performance through hollow interlayers, integrated structures,
honeycomb lattice structures,and irregular topology optimization structures to achieve lightweighting while reducing stress concentration points and increasing service life.Fourth is improving material utilization rates which helps reduce manufacturing costs.
Application Field - Medical
Based on the current situation that traditional manufactured medical devices are mostly standardized in style or size due to individual differences in the human body, 3D printing is gradually being widely used in the medical field with its characteristic of personalized customization. The main application directions include manufacturing medical models, surgical guides, orthopedic/dental implants, rehabilitation equipment (main materials include plastics, resins, metals, and polymer composites), as well as bio 3D printing of human tissues and organs. With the continuous improvement of future economic level and precision medicine requirements, 3D printing technology will have great development space in the medical industry. The smart healthcare industry chain revolves around information infrastructure to "Internet + medical health" system construction. By utilizing technologies such as artificial intelligence, communication, big data etc., it gradually connects various links of "medical treatment", "medicine", and "insurance". Smart healthcare has become a new driving force for promoting China's rapid development of digital economy. It is expected that the industry will continue to develop rapidly and by 2023, the domestic scale of smart healthcare applications can reach RMB 93.66 billion.
Application Field - Automobile
With the innovative upgrade of 3D technology, its application in the automotive manufacturing field will gradually deepen. From concept model printing to functional model printing, it is currently being gradually applied to the manufacturing of functional components and expanding towards the direction of building complete vehicles. The main applications of 3D printing in the automotive manufacturing field include automobile design, parts development, interior and exterior decoration applications, etc., with main technologies such as SLS and SLM. With the increase in car ownership and production volume, the huge market size of the automotive industry will continue to provide broad space for the application of 3D printing technology. In January 2023, national automobile production and sales reached 1.594 million units and 1.649 million units respectively, a year-on-year decrease of 34.3% and 35%.
The situation in the automotive market improved in 2022, and companies' production and operation conditions gradually improved as well. In 2022, China's automobile manufacturing industry achieved operating income of RMB9289.99 billion yuan (CNY), a year-on-year growth rate of 6.8%. The total profit amounted to RMB5319.6 billion yuan (CNY), a year-on-year growth rate of 0.6%.
