the rise of 3d printing market insight
TRANSCRIPT
The Rise of 3D Printing Star Trek Technology Becomes Real
Disruptive Phenomenon
Overview
• Introduction to 3D Printing
• 3D Printing vs. Traditional Manufacturing
• Overview to the Value Chain of 3D Printing Industry
• How is 3D Printing Monetized – Key Business Models
• Impact of 3D Printing on Future of Supply Chain
• Impact of 3D Printing on Key Industries and Economies
2
3D printing is a computer-driven additive manufacturing technology used for producing the final product from a digital model by laying down successive layers of material.
Typical 3D Printing Process
Introduction to 3D Printing While traditional production relies on removal of the material from the solid cast or
mold, 3D printing adds the layers of the material on the existing layers.
Design
3D printing begins with creating a digital model of the
object, usually using CAD software, which is later
converted into a .STL file.
The 3D printer slices the .STL file into numerous digital
cross-sections, and automatically builds the model
using materials like thermoplastics & ceramics.
Finish
The final 3D printed object is then cleaned to remove overhung material and is
polished, painted (if required) and made ready for use.
Source: Frost and Sullivan
3
3D printing saves on energy by 40 to 65 percent as it eliminates shipping and other logistics activities and enables users to produce objects with lesser material
Traditional Manufacturing vs 3D Printing. Global, 2014
Cost
Speed
Design
Quality
Higher Cost of manufacturing & shipping
Less innovative designs due to cost constraints
More time to build final product
Creates more waste; subtractive process will compromise on precision
Up to 70% savings due on Prototyping costs
Allows for easy yet inexpensive innovation in design
Lesser time taken due to compressed design cycles
Lighter & smaller amount of waste; Higher precision with layer-by-layer
manufacturing.
Traditional Manufacturing
3D Printing
3D Printing vs Traditional Manufacturing
4
Mass
Customization Crowdsourcing
Key Attributes of 3D Printing
Small Batch
Manufacturing
1 2 3 4
Key Attributes of 3D Printing
On-demand
Production
5
Key Attributes of 3D Printing (continued)
Crowdsourcing 1 Small Batch
Manufacturing
2
Mass Customization 4 On-demand
Production
3
A website dedicated to the sharing of user-created digital designs
A contract manufacturing firm using 3D printing technologies with capability to fulfil small
production orders with high cost-effectiveness
Helped the reverse engineering of a Ferrari 312P engine by 3D printing the sand molds for
the engine
Adidas was one of the first companies to install the Objet Connex500
3D printing system from Stratasys.
6
Mass Production vs. Mass Customization
Mass production treats large groups of
customers as anonymous individuals
Mass
Production Mass
Customization
Retailer Customer Factory
Customer Factory
Retailer
Product Design
Build to Order
1 2 3
1 2
3
• Emergence of digital platform enabling product engineers, customers, industry outsiders to contribute
ideas resulting in more differentiated, better-designed products.
• Abundance of open source designs will lead to shortening of R&D design cycles.
Design Crowdsourcing Leads to Co-creation of Products
3D printing puts the power into the hands of consumer and interjects the buyer participation in the product design optimizing the production of single units
7
3D Printing Going Mainstream
2014 2030
Alliances formed to enable development of standards
Smartphone apps to design 3D models and access online services (Sculpteo)
Raw materials for 3D printers manufactured or procured and provided by 3D Printer manufacturers
Home 3D Printers available at leading retail stores for around $1000
Present Day
Prices of 3D Printers
Standardization of Raw/Feed Materials
Accessibility to Services on Mobile
Devices
Establishment of Regulations/
Standards
Inexpensive feed materials for a broad range of household items now available in the market
Home 3D Printers with wireless and internet capabilities allowing remote control at an average price of $500
Establishment of Global standards for feed materials for 3D printers
Smartphone/ tablet apps to design products and control 3D printers remotely (“Design-on-the-fly”)
3D Printing Goes Mainstream
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2014 2019 2015 2016 2017 2018 2020
Year of Commercial Impact: Key Application Sectors C
om
mer
cial
ized
T
o b
e C
om
mer
cial
ized
O
ngo
ing
R&
D
Hobby (arts and crafts)
Jewellery
Household printing
Printing small to medium medical prosthetics
Prototypes for automotive industry (for example, instrument panels)
Retail prototypes
Rapid prototyping for large industrial applications
Components for aerospace (for example, air ducts, hinges, jet engine parts, wing spares, spare parts) and defence research and development
Printing chocolate
Printing food
Printing toys
Printing bicycles
Clothing and apparel in fashion industry
3D printed furniture
Building construction
Industrial tools manufacturing
Life sciences R&D
3D printed complex metal systems
3D printed energy harvesters for power stations
Large aircraft parts
3D printed semiconductors/ICs
Smart prosthetics
Artificial ears
3D printed organs
3D
PR
INT
ING
TE
CH
NO
LO
GY
RE
AD
INE
SS
Digital and memory equipment
Digital and memory equipment and rechargeable batteries
3D printed consumer electronics
Consumer Applications
Medical, Automotive, Retail Applications
Industrial Applications
9
Major 3D Printing
Technologies
A stereolithography apparatus uses liquid plastic, a perforated platform, and UV laser to print 3D objects
Stereolithography (SLA)
Fused Deposition Modelling
(FDM)
Selective Laser
Sintering (SLS)
Laminated Object
Manufacturing (LOM)
The system uses thermoplastic material which is melted to a semi-liquid state and extruded according to computer-controlled paths
Small particles of plastic, glass, or ceramics are fused together from a high power laser to form a solid 3D object
A focused beam of high energy electrons is used to melt the metal powder layer by layer in high vacuum as per the pre-defined dimensions
A economical process where layers of adhesive-laminated paper or plastic sheets are glued together and cut to create complex shapes
Similar to electron beam melting, this method creates complex objects by completely melting the metal powder using high powered laser beam
Selective Laser Melting
(SLM)
Source: Frost & Sullivan analysis.
Electron Beam Melting (EBM)
Major 3D Printing Technologies Although all 3D printers use the basic “additive fabrication” method, that involves building
the part one layer at a time, they differ on the types of material and techniques used
10
What’s Next? 4D Printing Physical programming of macro-sized 3D materials to self-assemble themselves into
predetermined structures and shapes
A Possible Scenario for 4D Printing
Industrial 4D Printing
Environmental Manufacturing
Self Assembling Materials
Holds potential to revamp manufacturing introducing a new field of environmental manufacturing in which ambient sources of energy, water or even light will be used as impetuses to self-assemble
Exploring materials and understanding reaction to external elements
Industry application will be explored with cost of technology more suited for industrial applications
2015 2035 2045 2013
3D Printing
11
Ongoing Research on 4D Printing
Space Exploration 4D printed parts can be sent to space and programmed to self-assemble into an object at the
desired location.
Construction/ Architecture Materials that could be programmed to adapt and change shape in response to
environment or situation. Example: Pipes that expand when demand
increases
Medical Ongoing research on developing a nano robot
built from DNA strands in the form of a clamshell basket, with double-helix "locks" that
are only opened when the robot comes into contact with specific cancerous cells.
Value Chain of 3D Printing Industry The 3D printing industry value chain is extremely fragmented with no clear “one-stop-
shop” solution provider offering end-to-end solutions
3D Printing, Value Chain Participants
2 1 3 4 3D Printer Manufacturers
Design Software Providers
Service Providers Developer/ User
Community
Example: 3D Systems, Stratasys, Arcam AB, Z Corporation, MakerBot.
Examples: Autodesk, CATIA, 3DView, SolidView, Rhino
Example: Thingiverse, Crowdsourcing.org, Cad Crowd, DesignCrowd.com
Example: Shapeways, Ponoko, Sculpteo, 3DMe by Cubify
• 2D to 3D converter • Animation to 3D
models • Product specific
platform (Jewelry, sake set, etc.)
• Home 3D Printers • Industrial 3D
Printers • Self-replicating 3D
Printers (RepRap)
• Online 3D Printing of user designs
• Creating figurines out of 2D pictures
• Design crowdsourcing
• Online marketplaces for user products
• Portal to hire designers
Integrators working across the value chain
Types of Services
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1
2
3
4
In-House 3D Printing
Contract Manufacturing
Model
3D Printing as a Service
Retail 3D Printing
The manufacturer has the in-house capability as well as the infrastructure to manufacture components using 3D printing technology.
Example: General Electric
Portable 3D printers available in the retail market which can be used to manufacture products at home
Example: Cubify
Online business model where the orders are received online and the finished products are mailed to the customers.
Example: Shapeways
A 3D manufacturer who contracts with a firm to manufacture components using 3D manufacturing, an outsourcing model.
Example: GPI Prototype & Manufacturing Services
How is 3D Printing being Monetized – Key Business Models
13
Time to Set
up
Level of
Investment
3D Printing Business Model Comparison
VERY HIGH: R&D and plant set-up
(10-25 years)
VERY HIGH: R&D and plant set-up
VERY LOW: Zero interaction before
production; Only sales interaction
LOW: in-house design team, face-to-face sales
interaction
MEDIUM-HIGH: Mass procurement of raw
materials and supply of finished products
MEDIUM :
Plant Set-up
(1-3 years)
MEDIUM:
Plant set-up
HIGH: Build-to-order based on customer
design and preference
MEDIUM-LOW: in case of taking online orders
(online design)
MEDIUM: Small-batch procurement of raw
materials, and supply of finished products
MEDIUM:
Online ecosystem and key partnership
(1-2 years)
MEDIUM:
Online platform
MEDIUM: Production based on customer
design received online
HIGH: online orders, online design, online
payment.
HIGH: Supply of finished products to individual
customers
VERY LOW: 3D printer, familiarizing with design
platform
(0-2 months)
LOW:
Home 3D printer and raw material
HIGH: Customer is the user or is strongly
connected with the user.
MEDIUM-LOW: Accessing design from
crowdsourcing communities
LOW: No requirement except in case of retail
home delivery.
In-house 3D Printing
Contract Manufacturing
Model
3D Printing as a Service
Retail 3D Printing (Home use and
Hobbyists)
Level of
Customer
Interaction
Use of Online
Technologies
Requirement
of Logistics
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3D Printing—Key Supply Chain Models
Raw Material
DESIGN SUPPORT
Product Integrator/ Traditional Manufacturer
Additive Manufacturer
Online Retail
Traditional Retail Store
B2B2C
IN CUSTOMER’S VICINITY
Consumer
Consumer
B2B
B2B Manufacturer
Owned Production 2
Manufacturer Owned
Production 1
3D Printing Hub
3D Retail Market
Raw Material
Product Integrator/ Traditional Manufacturer
Additive Manufacturer
Consumer
Raw Material
Product Integrator/ Traditional Manufacturer
Additive Manufacturer
Consumer
B2B
Raw Material
15
3D Printing Industry Adoption Map
Early Adopters Late Adopters
Consumer goods
Energy
Metals
C&I
Automotive**
Aerospace
Automotive*
Personal Accessories
Healthcare
Consumer goods
(Novelty Products)
Sports &
Entertainment
Textiles
C& I - Construction and Infrastructure * Specialty vehicles and parts **Low powered vehicles and parts
Co
st p
er p
rod
uct
Expected Production Speed
Customization Classification
High Levels
Medium Levels
Low levels
Slow adoption presently due to low durability of
the 3D printed materials
16
3D Printing and its Impact on Key Economies Countries with lesser investment in 3D Printing and higher dependency on
manufacturing exports stand to lose the most
France
Share of Manufactured Exports in Total Exports (%)
Nu
mb
er o
f P
aten
ts in
3D
Pri
nti
ng
(Bet
wee
n 2
00
9 a
nd
Jan
20
14
) Note: The size of the bubble for a particular country indicates the Manufacturing Value Added ($ Billions)
US
China
Japan
South Korea
Taiwan
Canada Russia
Australia
Spain
United Kingdom
Hong Kong
The adoption of 3D Printing
in the manufacturing sector
will lead to the disruption of
Global Manufacturing Hubs
as the manufacturing will
get localized (closer to
customers or consumers).
The countries encircled in
Red will get affected the
most.
17
3D Printing—Key Transformational Shifts
Smaller batches of production with high levels of
customization
Lower throughput compared to traditional manufacturing. But
faster time to market
Demand happens parallel to production
Demand Supersedes production
To document, relay and realize demand in real-time
Eliminates the need to store finished products based on forecasted demand; lesser
storage space required
Manufacturers will store only the raw materials to meet on-
Demand production requirements
Low-storage space requirements as raw materials occupy lesser volume than finished products
Hub and spoke model of supply chain will be challenged. Hubs
will lose importance
Global production houses will lose the competition to local
manufacturing centers
Mass Production to Mass Customization
Supply Chain Focus: from “PUSH” to “PULL”
Forecasted Demand to Real-time Demand
Inventory: Finished Products to Raw Materials
Manufacturing: Global to Local
Key Transformational
Shifts
18
What is a Mega Trend?
What is a Mega Trend?
Mega trends are transformative, global forces that define the
future world with their far reaching impact on business, societies,
economies, cultures and personal lives.
Urbanization – City as a Customer
Smart is the New Green
Social Trends
Connectivity and Convergence
Bricks and Clicks
Innovating to Zero
New Business Models: Value for Many
Beyond BRIC: The Next Game Changers
Future Infrastructure Development
Health, Wellness and Well Being
Future of Mobility
19
Top Mega Trends Covered By The Visionary Innovation Research Division
Future of Energy
20
Mega Trends Universe We Track*
*This list is not exhaustive
Frugal Innovation
Woman Empowerment
Macro Micro
From Macro to Micro: Taking Mega Trends from Information to Strategy Implementation
Mega Trend Selected trends that impact your
business and markets
Sub Trend A sub-layer of trends that has a
wide ranging impact
Impact to Your Industry Visualising the roadmap of these critical forces through scenario-
building and macro economic forecasts
Impact on Future Product/ Technology
Analysis of Opportunities and Unmet Needs
To
21
Learn More About “New Mega Trends”
Published Book:
New Mega Trends Implications for our Future Lives
By Sarwant Singh Publisher: Palgrave Macmillan http://www.palgrave.com/products/title.aspx?pid=577423
Join Our Mega Trend Group On Mega Trends: Strategic Planning and Innovation Based on Frost & Sullivan Research
22
List of Topics done by Visionary Innovation Research Group
• Future of Connected Living: Home, Work and City
• Smart Cities
• Future of Retail: Bricks and Clicks
• Future of Logistics
• Future of Mobile and Personal Robots
• Women Empowerment
• New Business Models
• Future of 3D Printing
• Top Technology Buzz To Watch Out For
23
A Wide Variety of Customers Avail our Consulting Services: Testimonials Attached
Workshop/Consulting Clients The session from Frost & Sullivan was an amazing illustration of how much we can still do given the future ahead. Just getting this many people to see a clear vision was a task in itself, never mind providing actionable ideas for us! Super job” CEO – Global Transportation Company
“Frost & Sullivan ran a one-day strategy workshop with Procter & Gamble to help our New Business Creation teams to understand the developing personal mobility market. The workshop consisted of Frost & Sullivan professionals presenting and informing us of the evolving opportunities across the industry value chain and then facilitating group plenary sessions to explore potential opportunities in this market. We found the information provided very insightful, strategic and tailored to our needs and appreciated the facilitation skills and tools used in the workshop, which helped us achieve our goals. We plan to be engaging with Frost & Sullivan in the future on other areas of interest.” Chief Innovation Catalyst Proctor & Gamble
24
For Additional Information
25
Archana Amarnath Program Manager, Visionary Innovation Research Group
(+44) 2079157893
Sarwant Singh Partner & Practice Director, Visionary Innovation Research Group and Automotive & Transportation
(+44) 2079157843
Archana Vidyasekar Team Lead and Senior Analyst , Visionary Innovation Research Group
+91- (0) 80 67028070
Richard Sear Global Vice President: Visionary Innovation Research Group
+1 (0) 210 247 3840