The most recent report from CONTEXT has revealed a difficult image for 3D printing {hardware} distributors within the third quarter of 2023 as shipments of commercial 3D printers struggled throughout the globe.
The market intelligence firm, which tracks 3D printer shipments from entry-level to industrial programs, says distributors struggled as key markets confronted inflation and excessive rates of interest. As a substitute, entry-level (sub-$2,500) 3D printers dominated the market with 9% development in shipments, and what CONTEXT describes because the ‘cannibalisation’ of gross sales from dearer, skilled desktop printers.
Mergers, acquisitions, and inventory market information continued to dominate the additive manufacturing area in 2023, however publicly traded 3D printing corporations have been solely accountable for 33% of current international system revenues. Such public corporations, like Stratasys, 3D Methods, and Velo3D, which focus totally on industrial-class programs, claimed simply 51% of machine gross sales in Q3 2023 revenues inside this worth class.
“Many public 3D printing companies within the West started shifting their consideration from market development to profitability and have lately been distracted by failed mergers and layoffs”, stated Chris Connery, international VP of study at CONTEXT. “Though these woes have been mirrored within the wider international market as effectively, there have been pockets of alternative and glimpses of power in some 3D printer segments, particularly within the often-overlooked Entry-level portion of the market.”
International shipments of $100K+ 3D printers dropped −11% 12 months on 12 months (YoY) in Q3 2023 however 2023 international revenues from this class have been up 2% on the earlier 12 months. Inside that, industrial polymer printer shipments dropped −17%, whereas industrial steel printer shipments have been down −3%, due to a -9% drop in powder mattress fusion shipments. Even in China, which continues to be the biggest marketplace for this worth class, noticed a −16% drop in opposition to the earlier 12 months, largely as a consequence of weak polymer printer shipments, primarily vat photopolymerisation printers. In truth, if this machine kind was excluded from figures, industrial polymer printer shipments could be up 2% from a 12 months in the past.
The report additionally notes that the Covid pandemic continues to be having an influence on figures, as proven with Chinese language producer UnionTech which noticed shipments drop by -28% YoY. The drop is a results of comparability to a interval the place UnionTech was in a state of ‘accelerated restoration’ following native lockdown measures in Q1/Q2 2022.
Yr on 12 months shipments dropped for industrial steel printer shipments in China (−8%) and North America (−6%). Nevertheless, inflationary worth will increase and development for bigger build-volume, multi-laser powder mattress fusion programs led to eight% larger revenues than in Q3 2022. Regardless of falling figures, the Direct Vitality Deposition (DED) section noticed a lift from corporations likes Meltio and SPEE3D, whereas EOS, like final 12 months, noticed development in shipments of polymer PBF programs, as did Stratasys with its polymer programs.
“A difficult 2023 has set the stage for a rebound and 3D printer shipments look to speed up within the years to return”, added Chris Connery. “At the moment it seems that international rates of interest will stay elevated via no less than the primary half of 2024, nonetheless which might imply Industrial system shipments stay stagnant within the close to time period. Fears of regional recessions have largely abated and the basic worth of additive manufacturing is effectively recognised throughout industries, clearing the best way towards accelerated development as soon as the as soon as the price of capital lowers within the second half of the 12 months and on into 2025.”
Shipments of mid-range printers additionally fell -5% YoY, largely propped up by shipments of lower-cost PBF programs from the likes of Formlabs, and home shipments in China from UnionTech. With out these corporations, this class would have seen a 17% drop with shipments down −17% for Stratasys, −28% for 3D Methods and −33% Markforged.
The largest drop, nonetheless, was felt by the skilled worth class, which noticed shipments fall for the sixth consecutive quarter by -41% in comparison with the earlier 12 months. Each skilled vendor noticed double-digit YoY decline in shipments, apart from Nexa3D, owed to shipments of its lower-end XiP 3D printer vary. It paints a really completely different image to 2020/2021 the place skilled desktop programs noticed a lift in gross sales due to do business from home eventualities. The report means that customers are typically dismissing these dearer desktop choices in favour of cheaper, hobbyist machines from the likes of market chief Creality and newcomer Bambu Lab, which customers discovered might present the identical or “adequate” capabilities.
“Though the market might seem to have settled after the very public failed mergers of 2023, many corporations have overtly acknowledged that they’re extra privately investigating strategic alternate options, that means that gross sales, mergers, acquisitions and divestures might but lie forward,” famous Connery. “An extra space ripe for funding is the Entry-level class as an increasing number of corporations have come to recognise this lately neglected class.”
