2024-11-07 23:11:00
Of the 906 exhibitors at Formnext, 101 are from China this year. The country is rapidly developing into not only one of the largest markets for additive manufacturing, but also the country with a large group of manufacturers of 3D printers. Chinese manufacturers have already taken over the bottom end of the market; will the market for 3D metal printing follow?
Karsten Heuser, VP AM at Siemens, recently said it during the ExpertenTreff at Reichenbacher Hamuel: Europe must pay attention. One in three metal AM systems is currently sold in China, while the country played only a minor role in this segment six years ago. The latest figures on printer sales from research agency Context confirm the rise of Chinese players. They have completely hijacked the bottom segment of the mart. But they are also active in the industrial market segment.
Chinese manufacturers of 3D metal printers are growing against the market
Reflect on financial health
“The slowdown in the delivery of new equipment in the all-important Industrial segment has allowed companies focused on that segment – particularly Western companies – to take a step back and look at their own financial health. Conversely, the continued acceleration of consumer-centric Entry-level has enabled companies targeting this segment to thrive right now,” said Chris Connery, VP of Global Analysis at Context, summarizing the impact of the market developments. He does note that some Chinese AM parties will soon be listed on the stock exchange and may therefore be boosting their sales figures. “But there is no build-up of inventory in the pipeline, suggesting current demand is the real demand.”
Sales of industrial DLP systems almost halved
Forse daling Industrial
According to the recent Context figures, the market in the highest Industrial segment is in dire straits. Overall deliveries in this segment fell by 25% in the second quarter. Pain is being suffered especially on the plastics side. Sales of systems over $100,000 are down 36%. DLP and SLA printer sales have even fallen by 47%. Both Chinese and Western parties sell little. The Chinese UnionTech is the global market leader in this subsegment; 3D Systems is leading in the Western markets.
More Chinese metal printers sold
Sales of 3D metal printers over $100k also declined in the second quarter. With 7%, according to Context. On a twelve-month basis, this market immediately grew by a paltry 2%. However, the numerical analysis shows the growing position of the Chinese AM industry. Some Chinese hardware manufacturers have grown against the general market trend. On a 12-month TTM (trailing-twelve-month) basis, BLT has seen deliveries increase by 31%; Eplus3D with 29% and ZRapid Tech with 54%. The Chinese parties, who mainly supply in China itself, have accounted for 53% of the industrial PBF systems in the last twelve months (calculated up to and including June); that accounts for 32% of all turnover. On a quarterly basis, growth slowed to 5%. BLT is the largest in this market; EOS a close second in terms of the turnover it generates with PBF systems. Western manufacturers saw their sales decline by 2%. White ravens were Trumpf (up 22%) and Collibium / GE Aerospace (up 35%). Nikon SLM Solutions particularly benefits from the supply of the large NXG multi-laser system. The Japanese-German company saw sales grow by 30%; the number of machines sold decreased.
94% of Chinese-owned entry-level printers sell
The other segment in which the Chinese are very strong is the entry level market segment. They actually completely stole that away in just a few years. Here, deliveries increased by 34% quarter on quarter; 65% on an annual basis. Creality alone accounts for 47% of all deliveries in this segment; Bambu Lab managed to grow sales by 336% and is now number 2 with a global market share of 26%. Creality, Bambu Lab, Anycubic and Elegoo, four Chinese manufacturers, together have a market share of 94% worldwide!
Also read this: Will the machine industry follow the German car industry?
Also in the middle segment
Actually, this says everything. The middle segment of the market, which at Context is the price range $20K to 100K), shrank by 6% on a quarterly basis and 10% on a twelve-month basis in the second quarter. But here too you see the role of China: sales of Chinese manufacturers increased by 18% in the second quarter; those of Western manufacturers fell by 15%. All Western suppliers in the top 10 saw their deliveries fall, while the opposite was true for the three Chinese suppliers – UnionTech (up 12%), ZRapid Tech and Flashforge (up 90%). Stratasys, UnionTech and Formlabs are once again the top 3 global suppliers in the category.
Formlabs an Ultimaker
In the $2.5K to $20K segment, Ultimaker and Formlabs remain the two top sellers globally. Deliveries everywhere in the second quarter in this segment were 10% lower and even 28% lower on a twelve-month basis. Context sees a shift here to the entry level segment.
Does China still need the West?
It will be exciting to see how the Chinese AM industry will turn out at Formnext in two weeks. In any case, what is striking is the breadth with which the AM industry from China presents itself this year. Under the 101Chinese exhibitors (more than 11% of all exhibitors) you will not only find manufacturers of the most diverse 3D printers, but also producers of metal powders, laser sources, HIP installations, industrial sintering ovens, materials up to and including chemical vapor smoothing systems. Does China still need the West for the AM industry? Or will we soon get all 3D printers from China?
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**Interview with Chris Connery, VP of Global Analysis at Context on China’s 3D Printing Market Boom**
**Interviewer**: Thank you for joining us, Chris. With the latest data showing that one-third of metal additive manufacturing systems are sold in China, how do you see this shift impacting the global market?
**Chris Connery**: It’s an exciting but challenging time for the 3D printing industry. Six years ago, China had a minimal presence in the metal AM segment. Now, they’ve rapidly established themselves as a dominant force. This shift not only pressures Western manufacturers to re-evaluate their strategies but also indicates a significant evolution in manufacturing capabilities in China.
**Interviewer**: You mentioned in your recent statements that Chinese manufacturers have captured the entry-level printer market almost completely. What factors do you think contributed to this success?
**Chris Connery**: Several factors play a role here. The affordability and accessibility of Chinese brands like Creality and Bambu Lab have made them particularly appealing to consumers and small businesses. They have successfully outpriced Western competitors while delivering reliable products, which has fueled their market share growth dramatically—like Bambu Lab’s 336% increase in sales.
**Interviewer**: It seems there is a growing dichotomy in market performance between different segments. Can you elaborate on the trends you’re seeing?
**Chris Connery**: Definitely. The industrial segment is experiencing a downturn, with a 25% decrease in deliveries. This has created a unique opportunity for Chinese manufacturers who have been able to maintain or even grow their sales. In fact, companies like BLT and ZRapid Tech have seen significant gains in this challenging environment, proving that they’re not just resilient but also rapidly advancing in technology and innovation.
**Interviewer**: Given that many Chinese companies are preparing to list on stock exchanges, how might this affect their sales moving forward?
**Chris Connery**: Public listings can boost visibility and investor confidence, potentially resulting in increased sales. However, it’s crucial to note the current data indicating that there’s no inventory build-up. Sales figures appear to represent real demand, suggesting that these companies are not inflating numbers artificially but are genuinely responding to market needs.
**Interviewer**: Lastly, what advice would you give to Western manufacturers in light of these emerging trends?
**Chris Connery**: They need to focus on innovation and differentiation. While competitive pricing is essential, Western companies should leverage their strengths in advanced technologies and customer service. Moreover, there’s a need for collaboration and possibly strategic partnerships that can help them retain market relevance against the growing influence of Chinese manufacturers.
**Interviewer**: Thank you, Chris, for your insights into the shifting landscape of the 3D printing industry.
**Chris Connery**: My pleasure! It’s an exciting time in additive manufacturing, and I look forward to seeing how these dynamics evolve.
