Financing for Growth in Additive Manufacturing By Jason Wehrs B.S. Business Administration in Finance B.S. Business Administration in Information Technology Colorado Technical University, 2007 SUBMITTED TO THE MIT SLOAN SCHOOL OF MANAGEMENT IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION AT THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY JUNE 2018 @2018 Jason Wehrs. All rights reserved. The author hereby grants to MIT permission to reproduce and to distribute publicly paper and electronic copies of this thesis document in whole or in part in any medium now known or hereafter created. Signature redacted Signature of Author: Signature redacted- MIT Sloan School of Management May 11, 2018 Certified by: Visiting A Signature redacted Accepted by: _ MASSACHUSETTS INSTITUTE OF TECHNOLOGY JUN 0 7 2018 LIBRARIES Matthew Rhodes-Kropf ssociate Professor, Finance Thesis Supervisor Johanna Hising DiFabio Director, Sloan Fellows and EMBA Programs MIT Sloan School of Management o LU 1 11- 7
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Financing for Growth in Additive Manufacturing
By
Jason Wehrs
B.S. Business Administration in FinanceB.S. Business Administration in Information Technology
Colorado Technical University, 2007
SUBMITTED TO THE MIT SLOAN SCHOOL OF MANAGEMENT IN PARTIAL FULFILLMENT OF THEREQUIREMENTS FOR THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATIONAT THE
MASSACHUSETTS INSTITUTE OF TECHNOLOGY
JUNE 2018
@2018 Jason Wehrs. All rights reserved.
The author hereby grants to MIT permission to reproduceand to distribute publicly paper and electronic
copies of this thesis document in whole or in partin any medium now known or hereafter created.
Signature redactedSignature of Author:
Signature redacted-MIT Sloan School of Management
May 11, 2018
Certified by:
Visiting A
Signature redactedAccepted by: _
MASSACHUSETTS INSTITUTEOF TECHNOLOGY
JUN 0 7 2018
LIBRARIES
Matthew Rhodes-Kropfssociate Professor, Finance
Thesis Supervisor
Johanna Hising DiFabioDirector, Sloan Fellows and EMBA Programs
MIT Sloan School of ManagementoLU
1
11- 7
Financing for Growth in Additive Manufacturing
By
Jason Wehrs
Submitted to MIT Sloan School of Managementon May 11, 2018 in Partial Fulfillment of the
requirements for the Degree of Master of Business Administration.
ABSTRACT
Digital fabrication technologies have been improving their capabilities and
competitiveness steadily over the past decade and may be approaching an inflection point in
their enterprise adoption. However, several important technological, economic (cost) and
business (adoption risk) barriers stand in the way of broader adoption. This research seeks to
explore the rich history that has driven the growth of Additive Manufacturing (3D Printing) in
the application of manufacturing of a displacement or augmentation of current production-
level techniques, what business model or characteristics will continue to drive growth and
industrial adoption, and the current limitation that must be overcome to unlock broader
enterprise adoption.
Furthermore, from the viewpoint of growth financing, this paper seeks to answer two critical
questions to highlight investment opportunities in the space of Additive Manufacturing; 1)
Where is digital fabrication positioned to compete with traditional manufacturing methods over
the next five years and what are the key enablers, and 2) As digital fabrication becomes more
competitive for different applications, who in the value chain benefits the most.
Thesis Supervisor: Matthew Rhodes-KropfTitle: Visiting Associate Professor, Finance
2
Table of ContentsIN T R O D U C T IO N ............................................................................................................................................ 4
W hat this Thesis is Not ......................................................................................................................... 4
Research M ethodology ........................................................................................................................ 5
W HAT IS ADDITIVE M ANUFACTURING ......................................................................................................... 7
Total Addressable M arket ........................................................................................................................ 7
Benefits & Value Proposition ................................................................................................................... 7
3D Printing Techniques ............................................................................................................................ 8
U se C a se s .................................................................................................................................................. 9
Industry Application and Adoption Projections ..................................................................................... 10
HISTORY & EVOLUTION .............................................................................................................................. 12
H isto ry .................................................................................................................................................... 1 2
1980's to m id-2000's .......................................................................................................................... 12
M id -T e e n s .......................................................................................................................................... 12
P re se nt D ay ........................................................................................................................................ 1 3
D e a l A ctiv ity ........................................................................................................................................... 1 3
W ho is Investing ..................................................................................................................................... 17
CURRENT LANDSCAPE & PLAYER M OVEM ENTS ......................................................................................... 20
Value Chain Analysis ............................................................................................................................... 20
Supply & M aterials ............................................................................................................................. 20
Equipment M anufacturers ................................................................................................................. 22
Service Providers ................................................................................................................................ 25
E n d U se rs ............................................................................................................................................ 2 6
CHALLENGES OF ADOPTION & FINANCING ................................................................................................ 29
SYNOPSIS OF FINDINGS IN GROW TH FINANCING ...................................................................................... 34
Digital fabrication technologies have been improving their capabilities and competitiveness steadily over
the past decade and may be approaching an inflection point in their enterprise adoption. However,
several important technological, economic (cost) and business (adoption risk) barriers stand in the way
of broader adoption.
Thesis Objectives
This paper seeks to explore the rich history that has driven the growth of Additive Manufacturing (3D
Printing) in the application of manufacturing of a displacement or augmentation of current production-
level techniques. In addition, an analysis of what business model or characteristics will continue to drive
growth and industrial adoption, and the current limitation that must be overcome to unlock broader
enterprise adoption.
Specifically, from the viewpoint of growth financing (Venture Capital & Private Equity), this paper seeks
to answer two critical questions to highlight investment opportunities in the space of Additive
Manufacturing;
1. Where is digital fabrication positioned to compete with traditional manufacturing methods over the
next five years (on a performance basis) and what new product and supply chain capabilities will
digital fabrication enable (mass customization, on-demand manufacturing)? What emerging
technologies and startups (materials, equipment, services, applications) will enable that?
2. As digital fabrication becomes more competitive for different applications, who in the value chain
(material makers, machine makers, service providers, application developer/end users) is going to
benefit the most (e.g. which parts of the value chain are most defensible and which are most likely
to be commoditized).
What this Thesis is Not
Where-as a lot of perspectives have already been written in the area of additive manufacturing and
adoption, this paper does not seek to duplicate or reinvent this well covered research. Therefore, the
4
following topics will not be explored but rather will be referenced from industry analysists and
professionals for context.
e Industry specific uses will not be researched in depth, there has been heavy coverage from industry
experts in this space.
* Adoption projections has been widely speculated by industry experts such a predominate industry
authorities as Wohlers Report and Sculpteo's annual state of the industry surveys.
e Desktop printers will not be a focal point as this study specifically explores growth in production-
augmented additive manufacturing. The desktop printers are widely used by engineers for
prototyping and hobbyists, therefore these specifically businesses are omitted (i.e. Makerbot).
Research Methodology
To derive insights and provide a pragmatic perspective in application and investment opportunities
within additive manufacturing beyond theoretical synopsis, I worked closely with the investment team
at an early-stage venture fund in NYC, Particle Ventures. This venture fund focuses its funds primarily on
investments in digital transformation within slow-sector industries (manufacturing, construction,
agriculture, etc.) Furthermore; to supplement findings, primary and secondary research was conducted
through the following means;
* Primary research - answering critical qualitative questions by interviewing entrepreneurs,
operators, and experts in these frontier markets which the rest of the VC community is just starting
to think about. Examples of interviews conducted included:
High-Tech Research experts (Google & Apple), Executive Professionals in the industry (Advanced
Technologies, McKinsey, BCG, Cincinnati, Stratasys), Founders of startups currently operating and
exited (Formlabs, Desktop Metal, others), Academic Professionals including PHD students and
professors (MIT Media Lab, MIT Mechanical Engineering, MIT Material Sciences, and Rice
University), Prominent VC investors that have invested in companies prominent companies such as
Formlabs, Desktop Metal, Uber and many others.
* Secondary research - exploring the broader digital fabrication ecosystem to discern insights into the
ecosystem of players, new techniques and ground breaking research, and financing trends that has
driven the advancement and adoption in the market today, including;
5
Ecosystem analysis that explores 450+ players across the value chain, including segmentation of
business models, value drivers and enablers, strategic movements within the markets, and
companies' concentration and technical advancements that has driven capital requirements and
investor confidence.
Publications research that discerns advancements within the 3D Printing market more broadly
including manufacturing techniques, business models, and technique and material advancements.
Publications include; Mckinsey, BCG, ATK, Wohlers Report, Industry Week, MIT Technology Review,
Forbes, Supercharged, Science Journal, Nature Journal, Fabbaloo, 3DPI, and Sculpteo.
Investment Activity was analyzed to understand where in the value-chain investment dollars were
funneled in the past and which type of firms and characteristics drove capital requirements and how
has that changed overtime.
6
WHAT IS ADDITIVE MANUFACTURINGTotal Addressable Market
Since 3D printing's introduction at MIT in 1985, today it represents $5 Billion dollars in the global
market", Industry experts such as BCG expects this figure to triple by 2020 and Wohlers Report predicts
$20B by 2020 while reach $350B by 20352. Since 3D Printing's inception at MIT in 1985, these estimates
are rather optimistic given the slow growth in adoption over the past 33 years and hints towards an
inflection point in broader enterprise adoption.
There is no dispute, if Additive Manufacturing were to take off, it seeks to disrupt a very large portion of
enterprise manufacturing. According to Wohlers Report the global economy is $80 Trillion with $12.8T
(or 16%) representing manufacturing2 . Let's assume if 3D Printing techniques displaces just 5% of the
global manufacturing GDP, the total addressable market could be as much as $640 Billion Dollars.
Applying the same assumptions for specifically, the United States; the World Bank quotes the united
states GDP at $18.5 Trillion (2015 Actuals), with ~12% of that representing manufacturing for $2.22T.3
Again, assuming 3D Printing techniques displace just 5% of the United States' manufacturing GDP, the
total U.S. addressable market could be as much as $111 Billion Dollars.
Benefits & Value Proposition
According to Sculpteo's State of 3D Printing report (surveying nearly 1,000 companies), 90% of
respondents from America and Europe consider 3D Printing as a competitive advantage in their strategy.
In addition, the drivers indicate that these users are predominately using 3D Printing techniques to
"accelerate product development" (28% of respondents) followed by "offering customized products"
(16%).4
Furthermore, an abundance of additional benefits can be attributed to additive manufacturing such as
curtailing expensive carrying cost of slow moving products and parts in warehouse. SAP has crunched
the numbers on the benefits of reducing carrying costs, SAP quotes global inventory is over $12 trillion
dollars, if manufacturing could reduce global inventory by just 5%, it would free up -$500B in capital5. In
1BCG, How to Position Your Company In The 3D-Printing Value Chain, May 20172 Wohlers Report, March 20183 The World Bank, CY 20154 Sculpteo, State of 3D Printing, CY 2017s SAP, Metal 3D Printing using SAP Distributed Manufacturing, March 2017
7
addition, on-demand manufacturing can provide added benefits in the areas of increased availability of
slow-moving parts, parts for emergency repair, shipping and transportation cost, and reduce import
tariffs, and tax exposure.
Sculpteo concludes that 47% of industry survey respondents have reported a Return On Investment
(ROI) for 3D Printing as being greater than the previous year, where-as this number was at 40% a year
prior (2016)6 indicating a growing impact and value proposition.
3D Printing Techniques
There are many disparate 3D Printing techniques which hinders adoption and requires a skillset to
understand the needs and limitations of each technique. Additionally, the techniques can vary according
to materials used or method of printing. Techniques can dictate speed, time to print, quality, print
resolution, and material type. There are 13+ different printing techniques out in the market today and
growing with new technical advancements in materials. Techniques that lead the market today are
Fused Deposition Modeling (FDM), Selective Laser Sintering (SLS), and Stereolithography (SLA). The
reason for this proliferation of techniques was due incremental advancements that addresses limitations
in a technique or to circumvent techniques while patents (expiring after 20yrs) were in place.
e SLS (1986) - SLS leads to mass customization in manufacturing and was developed at UT. The first
SLS (selective laser sintering) machine becomes viable and years later the patent was acquired by 3D
Systems. This type of machine uses a laser to fuse materials into 3D products. This breakthrough
opens the door to mass customization and on-demand manufacturing of industrial parts, and later,
prostheses. That same year Objet, a 3D printing systems and materials provider, creates a machine
capable of printing in multiple materials, including elastomers and polymers. The machine permits a
single part to be made with a variety of densities and material properties.7
e FDM (1989) - Fused Deposit Modeling technique was developed by Stratasys. FDM printed parts are
used for functional testing and engineering application. The high performance thermoplastic
materials it uses allow for great properties, opening the door to rapid manufacturing amongst other
applications.8
6 Sculpteo, State of 3D Printing, CY 2017Deloitte, Disruptive Manufacturing - The Effects of 3D Printing, UndatedAxis Prototypes, www.axisproto.com/solutions/, Undated
8
* SLA (1992) - The first SLA (stereolithographic apparatus) machine is produced by 3D Systems. The
machine's process involves a UV laser solidifying photopolymer, a liquid with the viscosity and color
of honey that makes three-dimensional parts, layer by layer. Although imperfect, the machine
proves that highly complex parts can be manufactured overnight.9
Materials are a main driver for 3D Printing techniques, however one key limitation has been industrial
grade metals printed with speed, resolution, and affordability. In the market today, the use of plastic has
grown from 73% to 88% Year-over-year. Whereas resin materials known for its solid properties 35%
from 27% YoY, followed by metals at 28% from 23% the prior year, largely driven by new techniques in
Selective Laser Melting (SLM) and Direct Metal Laser Sintering (DMLS) and more affordable means to
print metals.10
Additionally, 3DP printing techniques offers benefits that traditional manufacturing cannot deliver. For
example; mass customization, shorter design and lead time, simplifying the supply chain and
manufacturing process, and lastly provides a significant reduction in materials waste.
Use Cases
3D Printing has been and continues to be largely leveraged for prototyping activities within R&D and
Engineering. According to Sculpteo's 2017 State of 3D Printing report, 3D Printing applications are as
follows within the industry; Prototype: 34%, Proof of Concept: 23%, Production: 22%, Market Samples
10%, followed by nominal single digit amounts in education, art and hobby.' 0
To further support the assertion, the following departments have reported to be leveraging 3D Printing
techniques; 62% R&D, 53% Design, 40% Production, 28% Engineering, and single digits for all other
department such as maintenance. 0
9 Deloitte, Disruptive Manufacturing - The Effects of 3D Printing, Undated1 Sculpteo, State of 3D Printing, CY 2017
9
Industry Application and Adoption Projections
Today, the top industries to adopt 3D printing techniques have been automotive, aerospace, medical
and consumer. Largely these trends have been led by prototyping and mass customization of products.
Several examples of these areas are as follows:
* Automotive: BMW, Premiere in the i8 Roadster. The mounting for the top cover would not have
been possible using a traditional casting process. Now the 3D printed car part is stronger and weighs
less." and according to EY, they forecast 49% of automotive companies will directly manufacture 3D
Printed car parts to achieve operational efficiencies.
e Aerospace: GE's fuel nozzle that lowers fuel consumption by 15%, by making these products more
lightweight overall reducing the cost of ownership.' 3
* Medical: Casting of orthopedic tooth casting and orthopedic aligners with a dominate provider in
the industry providing the printers to orthodontist, dentists, and labs with the value proposition of
dramatically shortening delivery times, improving service levels, while also potentially reducing costs
and creating perfect fitting aligners in minutes.
* Consumer: Producing insoles for shoes, developed by companies like SOL (medical grade and direct
to consumer insoles), similarly being explored by the strategic partnership between Adidas and
Carbon 3D.
Some experts predict production application of 3D Printing techniques will grow to $7.4 billion and the
consumer market to $0.4 billion. But growing at a CAGR of 29% and to the value of $12 billion,
prototyping will continue to be the predominate use-case for those companies that continue to improve
their offerings.15
1 BMW, https://www.bmw.com/en/innovation/3d-print.html, Undated1 EY, Global 3D printing Report 2016, CY 20161 3DPI, The Future of 3D Printing, Lee-Bath Nelson, June 201714 Envisiontec, https://envisiontec.com/3d-printing-industries/medical/orthodontic/, Undated1s 3DPI, The Future of 3D Printing, Dr. Conor Maccormack, October 2017
0-499K $0.0 $0.0 NA $0.1 $0.5 $0.4 $0.0 $5.5 I $3.6 $1.8 I $2.0 12% 276% NA $2.9500k-0.9M 0.0 0.0 NA 0.0 * 5.0 00 0.0 I 5.0 3.2 8.9 I 3.1 -65% NA NA 4.01M-4.99 0.0 0.0 NA .5 .1 3. E 13.9 N 15.8 N 13.5 12.6 4.7 95% 15% NA 05.35M- 9.9M a 7.2 NA 4.2 o.1 .2 S.0 M 4.7 18.7 -53% -7% 11% 33.310M - 24.9M 18.4 6 NA 0.0 0.0 1. . 6 -51% -16% 7% 46.1
VC 0-24M $144 I $370 NA $9.3 1 $341 $12.1 $26.4 $156 $21.0 $24.5 $17.0 -31% -11% 2% $20.6
PE 29M - 99M I 35.0 0.0 NA 0.0 | 39.5 0.0 1 132.4 j 126.1 I 132.6 166.8 165.7 -1% 6% 19% 136.4
PE 100M-499M 243.8 3 282.0 NA 0.0 0.0 I 017.9 flj 280.0 1 251.3 .S . 40% -14% 21% 032.5PE 500M-999M 0.0 0.0 NA 0.0 0.0 0.0 604.0 0.0 0.0 762.8 0.0 -100% -100% NA 683.4PE IB - 2.49B 0.0 0.0 NA 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 NA NA NA 1210.0
AN $94.3 $86.7 NA $9.3 $34.9 $30.1 $147.1 $44.0 $3.5 $144.0 $143.1 -2% -20% 5% $102.3
19 Pitchbook, 3D Printing Landscape, February 2018
16
Geographic Concentration
As of 2017, the majority of 3D Printing startups are concentrated in North America (92 companies) and
Europe (62 companies) and a very distant third, Asia (9 companies). It is no surprise that the amount of
capital being dispersed around the global are concentrated in North America (68% of total capital) and
Europe (28% of total capital) as their economies represent some of the most advanced nations in
technology, R&D, and engineering.
Exhibit: AM Global Footprint20
Overall by Region 2007 2008 2009 20M0 2011 2032 2013 2014 2015 2016 2017 YoY SyrCAG 10yrCAGR Years 90-'Europe
3. Issues with accuracy, precision, tensile strength and tolerances
4. Not fully automated, assembly (still) required
5. Lack of certified and tested material properties
6. Selling a process increases customer acquisition costs
7. High implementation costs and risk of disintermediation
8. Powerful incumbents with deep pockets
In addition to just overcoming these challenges, for companies to secure growth funding - they will have
to consider the following market forces.
1. The value proposition is still not strong enough
2. Investors will only look for novel advancements in high margin business models
3. Incumbents will respond by protecting their turf
4. Industry end users will lead innovation and shop it in the market
Although 3D Printing is unlikely to revolutionize additive manufacturing in the near future, there are still
some novel advancements investors should take a second look at for opportunity and return.
1. Advancements in metal printing
2. Integrated materials techniques and PCB chipsets advancements
3. Applications in construction, new materials on additional axis
4. Mass customization in the way of bio-tech and printable food techniques
5. New marketplaces and printable file libraries
38
BIBLIOGRAPHY
A.T.Kearney, (2015). 3D Printing: A Manufacturing Revolution. A.T.Kearney (pp. 1-11).
Ahmed, R., (2017). Here's Why 3D Printers With 5 or 6 Axes Will Be the Next Big Milestone for 3DPrinting. 3DPrinting.com. https://3dprinting.com/news/why-3d-printers-with-5-or-6-axes-will-be-the-next-big-milestone-for-3d-printing/
Anderton, J., (2016). 3D Printing, CNC Machining or Molding: What's Best for Your Prototype?Engineering.com. https://www.engineering.com/AdvancedManufacturing/ArticlelD/11575/3D-Printing-CNC-Machining-or-Molding-Whats-Best-for-Your-Prototype.aspx
Axis Prototype. Axis Prototype Solutions. Retrieved December 29, 2017, fromhttps://www.axisproto.com/solutions/
BMW. Additive Manufacturing: 3D Printing to Perfection. Retrieved December 29, 2017, fromhttps://www.bmw.com/en/innovation/3d-print.html
Bromberger, J., Kelly, R., (Undated). Additive Manufacturing: A Long-Term Game Changer forManufacturers. McKinsey (pp. 1-64).
CBlnsights. (2017). Corporate Investment Drives A New Wave Of Industrial 3D Printing. CBlnsights.https://www.cbinsights.com/research/corporate-investment-industrial-3d-printing/
CBS Denver, (2018). A Company Is Building 3D-Printed Homes For Just $10,000. CBS Denver.http://denver.cbsocal.com/2018/03/12/3d-printed-homes-10000-dollars/
Chu, J., (2016). 3-D Printing 101. MIT News (pp. 1-4).
Cohen, D., George, K., Shaw, C., (2015). Are You Ready for 3D Printing? Mckinsey Quarterly (pp. 1-4).
Core-Baillais, M., Bensoussan, H., Richardot, A., Kusnadi, H., (2017). The State of 3D Printing. Sculpteo(pp. 1-30)
Desjardins, J., (2017). All the Ways 3D Printing is Changing the World. Business Insider.http://www.businessinsider.com/infographic-3d-printing-2017-9?utmsource=feedburner&%3butmmedium=referral&utmmedium=feed&utm.campaign=feed%3a+businessinsider+%28business+insider%29
Envisiontec. Industry Overview. Retrieved December 29, 2017, from https://envisiontec.com/3d-printing-industries/medical/orthodontic/
Grynol, B., (Undated). Disruptive Manufacturing - The Effects of 3D Printing. Deloitte LLP (pp. 1-13)
Hagel, J., Brown, J. S., Kulasooriya, D., Giffi, C. A., Chen, M., (2015). The Future of Manufacturing: MakingThings in a Changing World. Deloitte.https://www2.deloitte.com/insights/us/en/industry/manufacturing/future-of-manufactu ring-industry.html
Kim, S., Colter, B., (2017) Gain Insight Into MOOG's Journey to Metal 3D Printing Using SAP DistributedManufacturing. SAP (pp. 1-4).
39
Linneman, A., (2017). High Volume 3D Printing vs. Injection Molding. Shapeways.https://www.shapeways.com/blog/archives/35860-high-volume-3d-printing-vs-injection-molding.html
MacCormack, C., (2017). The Future of 3D Printing. 3DPI. https://3dprintingindustry.com/news/future-3d-printing-dr-conor-maccormack-co-founder-ceo-mcor-122679/
Muller, A., Karevska, S., (2016). Global 3D Printing Report: How Will 3D Printing Make Your Company theStrongest Link in the Value Chain. Ernst& Young GmbH.http://www.ey.com/Publication/vwLUAssets/ey-global-3d-printing-report-2016-full-report/$ FI LE/ey-global-3d-printing-re port-2016-fu l-report. pdf
Nelson, L. B., (2017). The Missing Piece Obscured by the 3D Printing Hype. Additive Manufacturing in 5Years - the Quiet Game Changer. 3DPI. https://3dprintingindustry.com/news/3d-printing-next-5-years-lee-bath-nelson-co-founder-leo-la ne-116054/
Pitchbook. 3D Printing Industry Overview. Retrieved December 29, 2017 from www.Pitchbook.com
IDTechEx, (2017). The 3D Printing Metals Market Will Be Worth $12B in 2028 Forecasts New IDTechExResearch Report. PRNewswire. https://www.prnewswire.com/news-releases/the-3d-printing-metals-market-will-be-worth-12b-in-2028-forecasts-new-idtechex-research-report-63674 7313. html
Protolabs. Services Overview. Retrieved December 29, 2017, fromhttps://www.protolabs.com/?utmcampaign=us-ppc&utmsource=google&utmcontent=branded-pl-name&utmmedium=cpc&utmterm=new-users-
Recrosio, E., (2017). FDM vs. SLA vs. SLS: Battle of the 3D technologies. Sulpteo.https://www.sculpteo.com/blog/2017/05/15/fdm-vs-sla-vs-sis-vs-clip-battle-of-the-3d-technologies/
Recrosio, E., (2016). Units and Size: Understand Your 3D Printing Dimensions. Sulpteo.https://www.sculpteo.com/blog/2016/12/06/units-and-size-understand-your-3d-printing-dimensions/
Schoffer, F., (2016). How expiring patents are ushering in the next generation of 3D printing. TechCrunch. https://techcrunch.com/2016/05/15/how-expiring-patents-are-ushering-in-the-next-generation-of-3d-printing/
Thomas, D. S., Gilbert, S. W., (2014) Costs and Cost Effectiveness of Additive Manufacturing. U.S. Dept.of Commerce National Institute of Standards and Technology.https://nvlpubs.nist.gov/nistpubs/SpecialPublications/NIST.SP.1176.pdf
Wohlers Associates, (2018). 3D Printing and Additive Manufacturing State of the Industry, AnnualWorldwide Progress Reportlndustry Overview. Wohlers Associates.https://wohlersassociates.com/2018report.htm
Wolfgang, M., Knizek, C., Kupper, D., Ganeriwalla, A., Lee, J., Herbert, W., (2017). How to Position YourCompany in the 3D-Printing Value Chain. The Boston Consulting Group (pp. 1-5).
World Bank. Global GDP. Retrieved April 1, 2017, fromhttps://data.worldbank.org/indicator/NY.GDP.MKTP.CD
40
Exhibit: Additive Manufacturing Ecosystem Research
:Standard (ABS, PLA)Special (bIn, TPE, Fu Color, Acryic)
- Forecasts indicate gobal market for 3DP metals wilbe $128 by 2028
* Consolidetions with Meterial Providers- Carpenter Technology I Purus (access to tltariun ponder)
- Acquistions for Materials Advantages:- GE / Advnced Powders
* New Material Breakthroughs:-3D prining with polymer-derivd ceramics-3D prining of polymer-bondd magnets
- 3D4Makrs devloped Facilen C8, producing the smoothest FDM surfaces- Discord high-slrength aluminiurn alloys us by SLM- Many continued breakihroughs in Biomed- Researchers hase 3D printed fuly functonal circuits containing dff rmaerials
- Many metal providers develop equip to serve the one material- Thereby owning thuesou chain ivo the new IP
- Traditonal CAD sodkwre* Control Sothoare for AM systems-Topology Clinizabon
-CAD Designs & Rendering- Malerialse-Ro- PrinrBol
*Workflow Mgmt. & tMES- SAP- Aultenize- Carbon 3D
.CrowSourcing- CAD Croxid- DesignComd
- uirky
- Neow sreantined process enable rapid prootoyping sa 3D nano-nig
- Equip Mfg sole-source & supply materials for belter margins - Designers prter to stay close to equip sg. & Sun.- Make Printable partnered with 3D Hiubs & Shapeeoys Service treaus
- HPJut dekelped pipenetfor newaterlIs equip, diet. for prod equip - Poar3D partnerod Wts FashForge Equipment- Bot Skalasys and 3D Systems hoe roade significant bNz lately about product - Zoerse partnered with 3D Systems- So toe race is now on vn. HP Wo is now going for Prodocitn not prokodype,- Sralasys' eaclsive contracts with toe major reselers make it chalenging for HP - Consolideton to retain competitive advantage
- Equip in Shderng Consumer Market (Skasys / Makerbot)- Design in Goong Consumer Market (Makerfot / Thinerse)- New Industial Materials (Arcarn / Admnced Powders)- Aurora Labs paners with engneering firm to boost sales of metal printers
- New Techniques & Processes- Rapid Plasma Depositon (Norsk)- Blue Laser (Nuburu)- Auto Pat Rmororr (WPro)- Mtiple Mealts Print (NVLabs)- Post Processing (PoslProcess Technologies)- Fier finish: Cartons CUP technology
- Service Bureaus one Investing to Streaudine Processes- Rapid Manufacturing - eRapid Plugin (Streamline design to quole hi prod)
Shapeways - Upload API (enables applications to subit 3D models to the markPiethora - CAD Add-in (Instant feedback, pricing, and MES)Sculpteo - CAD Cloud (wordlow autiomalln, sched. jobs, oplhrize capacity)NVPro - Cloud dl(worlow utormaton, sched. jobs, optinize capacity)
Ed Markets / Active Market Moves- Aerospace (GE / Siemens I NASA / US Army)- Hearoore & Ortlopedics (Stryker)- Consumrers & Mass Custimeaon (Adidas)- Aulimfi (BMW / Ford / Toyota / Caerpillar)-BiooMedical (Mayo / Cleyeland Clinic / MedIronic)
71% of manufacturers hae currenty adopted 3D Printing -Whirs- 52% expoct 3DP will be used for high-olkume prod outhin 3-5yrs -Wi*s
22% predct 301P sIt ham a dsrupi effect on supply chains -Whirs
*Many Acquisitions & Strategic Partnerships- GE parnered wth Dragon Innovtion Service Bureau- Adidas panters with Carbon, leveraging CLIP tech to move from pros to prod- Ford has pamered vith Carbon- Siemens took a stake in Service Bureau Material Solutons- Aerex acquired SOLS (cusm insoes)SOerikon acquired Service Bureau Cintm- GE has made many acqsiteons to verticaly integate (Arcam Concept Laer)
- Adoption Barriers- Long build tmes, high cost and poor scalabilly
Materiel costs in the supply chain Is key driver of high-costs- Metal strengh (for airplans fuel lanks, nuclear power plant pressure oubes)integrating dissiitar maerials for interconnecing active cormponents
- Muli-Material printing wil eliminate assently of products- Successful adoption of metalic AM in avaon wil require investment