CONTEXT
Industrial metal powder bed fusion 3D printer shipments
Shipments of industrial metal 3D printers continued to rise in China, while industrial polymer systems struggled globally in the first quarter of 2024, according to the latest report from CONTEXT.
The market intelligence firm has reported drops across several machine categories within the additive manufacturing industry. A -47% dip in shipments of Vat Photopolymerization 3D printers contributed to an overall -15% YoY decline for machines in its 100,000+ USD price-class, while machines in the mid-range price point of 20,000–100,000 USD also dropped -7%. Worst hit was the professional class, priced between 2,500–20,000 USD, which dropped -34% as buyers switched to lower-cost sub-2,500 USD entry-level printers, increasing global shipments here by 26% from a year ago.
“Regional moods were divided amongst Chinese vendors – particularly those engaged in the Industrial Metal Powder Bed Fusion side of the industry – were elated by their strong domestic demand, while Western vendors noted continued end-market challenges associated with low CapEx spending due to high interest rates and sticky inflation”, said Chris Connery, global VP of analysis at CONTEXT. “In the US and across Europe, the news was not all negative however, with many vendors reporting strong demand from domestic defence markets in the period.”
Nine of out 10 companies in the polymer space experienced reduced shipments from a year ago, but Vat Photopolymerization systems saw the biggest drop due to weak shipments from category leaders UnionTech and 3D Systems, largely affected by a drop in demand from the dental markets.
Metal shipments in this class, however, were up globally 10%. Of all machines shipped, metal powder bed fusion Systems accounted for 74% with a 7% rise from a year ago. Material Extrusion shipments were also up by 32%, followed by Directed Energy Deposition at 21%, and Binder Jetting up 15%. Demand from China in this category was particularly strong with shipments from Chinese vendors up 45% in the period. Compared to Western vendors, which have experienced four consecutive quarters of declining shipments in this category, Chinese vendors saw YoY quarterly shipments continue to grow. The top five vendors included four Chinese companies Eplus3D, BLT, ZRapid Tech and Farsoon, while Nikon SLM Solutions was noted as the leader in large-format, multi-laser systems. In terms of revenues, Nikon SLM Solutions and EOS led with the top marketshare positions in metal powder bed fusion system revenues.
The drop in midrange shipments is due to a -14% YoY decline in polymer powder bed fusion printer shipments. Shipments from Western vendors were down -9% in Q1-24 while those from China-based vendors were even down -1% YoY. Four of the top five vendors in this category, Stratasys, UnionTech, Formlabs and 3D System, all saw YoY shipment declines, but China’s ZRapid Tech saw YoY shipment growth across its SLA vat photopolymerization and low-end metal powder bed fusion ranges.
Global shipments of products in the professional price-class dropped for the eighth consecutive period with a decrease of -34% as just two of the top 10 vendors saw positive numbers. It is thought that inflation caused buyers to move towards entry-level machines, a category which has continued to grow, with companies like Bambu Lab and Creality leading the way. Significantly, Creality alone accounted for 56% of all shipments in this category. Excluding these two vendors, however, shipments for the rest of the price-class were up by just 9% YoY. Approximately 94% of all entry-level 3D printer shipments across the globe in Q1-24 came from Chinese vendors. 42% of the units shipped globally in this period into this region were delivered to users in the US.
Connery noted that consolidation conversations continue to dominate in the Western market, most notably Nano Dimension’s recent announcement of its intention to acquire Desktop Metal. While Western forecasts remain conservative, strong demand in the Chinese market, particuarly for metal powder bed fusion, means global industrial printer shipment forecasts are now projected to rise by 7% in 2024. This global increase is also said to be supported by demand from the defence sector in the West for machines from companies like Velo3D.
Connery said: “Accelerated growth in the industrial price class is anticipated in 2025 and beyond as the US and Europe stabilise post-election cycles and interest rates drop. While system vendors remain focused on further advancing additive manufacturing into mainstream manufacturing, many strategic growth initiates are now starting to also incorporate other digital production technologies beyond just additive into their portfolios, as a way to accelerate growth.”
Elsewhere, the midrange category forecast is now a modest 3% YoY growth, while the professional category is expected to dip by a further -1%. Growth is expected to continue in the entry-level category with projections at 14%, driven largely by new market demand following Bambu Labs’ success.
