Does 3D Printing have the potential to revolutionize markets and businesses in China-A Look into Development of 3D Printing in China - 3dprint ...

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Does 3D Printing have the potential to revolutionize markets and businesses in China-A Look into Development of 3D Printing in China - 3dprint ...
Does 3D Printing have the potential to revolutionize
                   markets and businesses in China
                   -A Look into Development of 3D Printing in China
                                                Lim Mun Chun
                                         Senior Market Analyst
                                                                                1
                                                                      © IDC, 2019
Does 3D Printing have the potential to revolutionize markets and businesses in China-A Look into Development of 3D Printing in China - 3dprint ...
Worldwide 3D printing (including hardware, materials, software, and services)
spending to be nearly $22.7 billion with a five-year compound annual growth rate
(CAGR) of 19.1%.
    United States               Western Europe                   China

                        38.7%                        24.5%                           12.9%

        ~$8.8 Billion                ~$5.5 Billion              ~$2.9 Billion

       33% Hardware                  37% Hardware                48% Hardware

       36% Material                  41% Material                20% Material

       30% Services                  20% Services                27% Services

        1% Software                   2% Software                 5% Software

                                                                       © IDC, 2019     2
Does 3D Printing have the potential to revolutionize markets and businesses in China-A Look into Development of 3D Printing in China - 3dprint ...
IDC Expects
APEJ to be one of the largest region along United
States & Western Europe on overall spending with                              Key
China driving the force. China is expected to
experience fastest spending growth over the five-year                         Takeaways
forecast period with CAGR of 21.6%
                                                                              Metal 3D Printing
                                                                              Continues to rise in China with
                                                                              strong adoption in Aerospace
                                    Discrete Manufacturing                    and tooling industry

                                       Dominant industry for 3D printing,
                                           delivering more than half of all
                                      worldwide spending throughout the
                                                       2018-2022 forecast

                                                                              End Part Production
                                                                              Aerospace and defense industry,
                                                                              combined with the tooling
                                                                              industry, accounted for about 60%
                                                                              of the market share for end-part
                                                                              production.

                                                                                             © IDC, 2019        3
Does 3D Printing have the potential to revolutionize markets and businesses in China-A Look into Development of 3D Printing in China - 3dprint ...
China Aim to Become An Industrial Powerhouse
     RATIONALE behind                                                                                   2025

                                               MANUFACTURING
                                               MAKEOVER PLAN
                                                                                                        MANUFACTURING POWER
         Gap
        1New Normal                                                                                                                               2     Priority Focus
                                                                                                        2035
                                                                                                        MID-TIER AMONG WORLD
         Global Manufacturing
                                                                                                                                                  10    Sectors Focus
         Aging Society, Rising Labor Cost                                                               2045
                                                                                                        LEADING WORLD MFG. POWER
         Large % of GDP & Export

AM Development
                                  1980s’                         1990s’                      2000s’                    2015+
                                AM System &                    RP center, First              Aerospace                   AM
                                 Application                   AM company &              components, First          implementation
                                  Research                        product               high-end SLS system              Plan

                                        《增材制造产业发展行动计划(2017-2020年)》                                                                                     9,809

                              8
                                         AM Industry Development Action Plan (2017 – 2020)
                                                                                                                              3,519
                                        《“增材制造与激光制造"重点专项2018年度项目申报指南》
                                         AM and Laser Manufacturing Key Special Project 2018
                    3DP Related Initiatives
                           in 2017                                                                                    Source: ASKCI Corporation

                                                                                                                                                       © IDC, 2019       4
Does 3D Printing have the potential to revolutionize markets and businesses in China-A Look into Development of 3D Printing in China - 3dprint ...
Powder Bed Fusion maintains momentum. Metal a predominant
focus in China while thermoplastic is gaining traction
   Binder Jetting             Direct Metal Laser Sintering (DMLS)   Digital Light Processing (DLP)          Electron Bean Melting (EBM)      Fused Deposition Modelling (FDM)

   Multijet Fusion (MJF)                  Material Jetting          Selective Laser Melting (SLM)          Selective Laser Sintering (SLS)   Stereolithography (SLA)

                                                  US$25-100k                                                           >US$100k
                Units                                                                                316              392            350          392

                                  2017H1         2017H2        2018H1       2018H2               2017H1             2017H2          2018H1       2018H2

                                                                                                     92.5            129.6          121.1        122.9
                    US$ million

                                   2017H1         2017H2        2018H1       2018H2              2017H1             2017H2          2018H1       2018H2

                                                                                                                                                  Source: IDC, April 2019   © IDC, 2019   5
Does 3D Printing have the potential to revolutionize markets and businesses in China-A Look into Development of 3D Printing in China - 3dprint ...
Aerospace & Defence continue to experience strong growth in
          China with 36% YoY increase while digital dentistry starts picking up

                              Tooling            Aerospace & Defence           Education                   Medical                  Automotive           Electrical & Electronics                    Dental
2017                           $66.93                  $49.83                     $41.80                    $28.17                     $15.04                      $10.20                            $19.86
2018                           $72.97                  $67.73                     $47.50                    $20.55                     $15.34                      $10.64                            $27.40
% Growth                       9.02%                   35.92%                     13.63%                   -27.03%                     2.00%                        4.30%                            37.98%
>90 %                 SLM, DMLS, FDM, SLS, SLA     SLM, DMLS, EBM      SLM, SLA, DMLS, SLS, FDM, Material Jetting, SLM, SLS,   SLA, SLS, FDM, Material   SLS, SLA, FDM, Material            SLM, SLA, DLP, Material
Share                         (96%)                     (97%)            Material Jetting (96%)          SLA (94%)                  Jetting (97%)              Jetting (93%)                    Jetting (100%)

                                                       6%
 Material (US$ mil)

                                                                                                                 13%                      0%                             0%
  2018 Split by

                                                                                           27%
                        35%
                                                                                                                                                                                               46%
                                                                                                                                                                                                                  54%
                                        65%
                                                                            73%
                                                            94%                                           87%                             100                           100
                                                                                                                                           %                             %

                                                                                           Metal         Non-metal

                                                                                                                                                           Source: IDC, April 2019   © IDC, 2019              6
China’s Key Verticals 3D Printing Development
                                        Applications usage and Activities in China

                                                          Aerospace & Defense                                                            Tooling                                                      Automotive

                                             •   China made C919 commercial airliner and engine                   •   Interest rise in AM conformal cooling channel as to         •   Car makers are targeting to reduce overall development
                                             •   INDICS Aerospace cloud manufacturing                                 prolong tool life and increase productivity                     cycle
                                             •   Multiple development parts in aircraft                           •   Increasing demand of high-mix low volume product            •   Evaluating AM for end part production such as heat
>US$25K Price Band Applications Split

                                             •   Interest rise in factory automation with AM                      •   Temporary spare parts are seen being produce with AM            exchanger
                                                                                                                                                                                  •   Personalization gaining traction

                                                                                                                                                                                                                         10
                                                                                                                                                       46                                        10
                                                        66                        88                                                                   64
                                                                                                                               49                                                                136                    156
                                                                                                                               61                  294
                                                        41                        31                                          148

                                                      2017                      2018                                       2017                    2018                                        2017                    2018

                                                                                                          Medical                                                           Dental
                                                                                  •    Pre-surgical planning and practice model is common use      •    Expiry of clear aligner patent had prompt more interest
                                                                                       cases in the region                                         •    Some province in China has include AM dental product
                                                                                  •    Multiple medical implants successful case studies                in insurance coverage
                                                                                  •    2 enterprise and 4 3DP parts certified by CFDA,             •    3DP as a method to produce dental crown is raising
                                                                                       discussion are on going

                                                                                                  11
                                                                                                                          5                                                                 39                           Prototyping
                                                                                                                                                                   22                       40
                                                                                                                                                                                                                         Manufacturing Aids
                                                                                                 155                    128                                       203                      210                           End Use Part

                                                                                                                                                                                                                        © IDC, 2019            7
                                                                      Source: IDC, April 2019   2017                    2018                                     2017                      2018
Print Service Providers: an important role in China’s 3D Printing
                             Development

                                                                                               东北
SLA is still the dominant lead

                                            2017
 but PBF is gaining traction

                                           83%                             华北
                                                                                                         More than 210
                                                                                   Beijing               3D Print Service
                                                                                                         Providers
                                                                      西北                                 available in
                                                                                                         China

                                                                 西南
                                                                                              Shanghai
                                            2018                             华中
                                            76%                                        华东
                                                                                       East

                                                           PBF
                                       VAT                                 华南
                                 Source: IDC, April 2019
                                                                           South

                                                                                                           © IDC, 2019      8
Into the Tailwind and Opportunities Ahead
                                                                                                                                                        Significant breakthrough in AM development
                                                                                                                                            $659.65
                                                                                                                                                        >30% YoY Growth by 2020
                                                                                                                          $576.05
                                                                                                                                                        Establishment of AM Ecosystem
                                                                                                        $510.40
                                                                                                                                                        2-3 capable local brand internationally
                                                                                      $454.32

                                                                    $404.25
                            US$
                           Million
                                              $371.94                                                                                                 New Verticals and Penetration of 3DP
>US$25K Market Forecast

                                                                                                                                                      in China

                                                                                                                                    6,149
                                                                                                                  5,602
                                                                                                5,038
                                                                              4,443
                                                            3,845
                                      3,255

                          Units

                                    2018                    2019              2020              2021              2022              2023
                                  Source: IDC, April 2019

                                                                                                                                                                                                  © IDC, 2019   9
IDC FutureScape: Chinese-Based Vendor Leads

                                                                                                                                  Prediction 1: By 2021, a Chinese-Based Vendor Will Have Become One of the Top 5 3D Printing
                                                                                                                             1    Global Market Share Leaders in the Industrial Segment as a Result of a Vendor Acquisition Made to
                             Companywide

                                                                           Market                                                 Satisfy Increasing Demand from Chinese Manufacturers
                                                                                                       Supply
                                                         Worker Skill     Adoption
                                                                                                       Chains
                                                            Set                                                     IP       2    Prediction 2: By 2021, 20% of Manufacturers Will Have Begun to Evaluate Robotics–3D Printer
                                                                                                                                  Hybrids for the Production Floor
                                                                                       1010                         4
                                                                               6                            9
ORGANIZATIONAL IMPACT

                                                                  6                                                               Prediction 3: By 2021, 10% of Discrete Manufacturers Will Start to Incorporate 4D Printing Via the
                                                                                                                    4        3    Use of Smart Materials to Produce Intelligent Parts Capable of Adapting and Reacting to
                                                                               7       Robotics-3D                                Environmental Conditions
                        or business units

                                                                      Mgt SW
                                                                                   7     Hybrid                  Chinese          Prediction 4: By 2021, 3D Printing Intellectual Property Concerns Will Have Lessened, as up to
                          departments

                                                                                                                 Vendor      4    50% of Commercially Used 3D Printers Will Include a Monitoring Application to Prevent Illegal and
                            Multiple

                                                                      High-                                     8 Leads
                                                                                                                     1            Unauthorized Printing
                                                                                                 2                  2
                                                                   Performance 8                                                  Prediction 5: By 2020, 25% of Prosthetic 3D Printing Will Be Operationally Managed Using a
                                                                     Material                                                5    Secure Blockchain, Enabling Secure Patient-Specific Data Sharing, Tightly Controlled Prosthetic
                                                                                                                                  Production and Distribution, and Reduced Process-Related Liabilities
                                                                                                        3                3
                                                                  5                      5                                        Prediction 6: By 2020, the Demand for 3D Printing Skills and the Transition from Prototyping to
                                                                                                                             6    Production Drives 20% of G2000 Manufacturers to Expand Their Own Digital Training Programs
                                                                                                      Smart
                        or business unit

                                                   Prosthetics                                                                    and Digital Cooperatives
                          department

                                                                                                     Materials                    Prediction 7: By 2020, More than 20% of Companies Using 3D Printers Will Rely on 3D Print
                                                                                                                             7
                            A single

                                                                                                                                  Management Software to Secure, Monitor, and Manage Their 3D Printers as They Would Other IT
                                                                                                                                  Assets
                                                                                                                                  Prediction 8: By 2020, New High-Performance Materials Will Be Used With 3D Printing Jetting
                                                                                                                             8    Systems to Produce Up to 15% of the Short-Term Replacement Parts Required to Support
                                                                                                                                  Operations in Remote Locations
                                                                                                                                  Prediction 9: By 2021, 20% of Manufacturers Will Have Adopted a 3D Printing Collaborative
                                            2018                 2019                  2020                         2021     9    Platform Within Their Supply Chain to Better Leverage the Broader Ecosystem of 3D Printing
                                                                                                                                  Services
                                                             TIME TO MAINSTREAM

                           Source: IDC, 2017
                                                                                                                             10   Prediction 10: By 2020, Enabled by Rapid Changes in 3D Printing Economics, All Top 10
                                                                                                                                  Manufacturers in the Dental, Eyewear, Footwear, and Orthotics Industries Will Have Embraced 3D
                                                        Worldwide                             APEJ
                                                                                                                                  Printing for Mass Customization

                                                                                                                                                                                                            © IDC, 2019                10
Lim Mun Chun

                                            Thank You!
Senior Market Analyst
Email: mclim@idc.com
LinkedIn: www.linkedin.com/in/munchunlim/

                                                         © IDC, 2019   12
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