Chris Connery, VP Global Analysis and Research, leads the 3D printing effort for CONTEXT with over a quarter-of-a-century of experience in brand management, marketing and industry analysis of various aspects of the IT market. Here he presents the latest findings on the 3D printing market
Latest CONTEXT analysis of the global 3D printer markets sees the Professional, Design and Industrial markets set for growth in spite of cautious outlook in some sub-markets, but the Personal sector continuing to struggle. Double-digit printer shipment growth for the year as a whole is still projected with rising shipments from new form factors and from within certain vertical markets offsetting newly cautious forecasts for slowing manufacturing and automobile sectors.
Personal price class
Defined by having an entry-level price point (below $2,500), this class of 3D printers has now seen six consecutive quarters of declining sales. Projections for the remainder of the year show that the class may struggle to see flat year-on-year shipment totals after a fall of -10% in Q2 2019. With no signs of emerging geographies, and sales yet to take root outside the education and hobby markets, many vendors are now completely shifting their focus to the Professional class.
Global 3D printer shipments by price class for Professional and Personal.
Professional price class
This is now a hot sector. On a trailing twelve months (TTM) basis, this class – along with the Industrial class – has seen the greatest growth: unit shipments up +8% and revenues rising +37% over the past year. While the dental market has embraced many modes of 3D printing using machines at a range of price points, sales of Professional printers have been exceptionally strong in recent quarters – exemplified by strong shipments of 3D Systems’ Figure-4/NextDent platform and EnvisionTEC’s One line. The segment saw a short-term downturn in Q2 2019 with shipments falling by -7% year-on-year, but this was more a supply-chain/product transition issue for one vendor rather than due to reduced demand.
Design price class
Unit sales in this segment have long been dominated by three of the oldest players in the market (Stratasys, 3D Systems and EnvisionTEC) but recent quarters have seen HP enter the field and contribute to an 11% rise in shipments in Q2 2019 –and an even stronger rise in printer revenues of +26% . HP’s new colour 3D printers performed especially well in this period.
Global 3D printer shipments by price class for Design and Industrial.
Industrial price class
Industrial price-class printer shipments were up just +4% in Q2 2019 and only +5% in 1H 2019 but, historically, over 30% of this category’s shipments come in the fourth quarter. Key verticals such as the European automotive sector are currently weak – as evidenced by the shipment of -18% fewer metal powder bed fusion printers in Q2 2019 than in the year before – and many are pointing to slow sales into this market as a key issue. However, other verticals are still strong and the outlook for the year remains positive. Shipments of Industrial class printers in the Chinese domestic market were particularly strong in 1H 2019, and the new sub-class of lower-priced metal 3D printing solutions from the likes of Desktop Metal and Markforged have also buoyed this class this year.
Bottom-up forecasts for 2H 2019 project that strong Q4 shipments will yield double-digit unit shipment growth in the Industrial, Design and Professional classes with the Professional class poised for the strongest annual growth of +15%.
