Turning Point: IDC’s View of 3D Print/Additive Manufacturing Tim Greene June 2018 © IDC IDC Forecast View: U.S. 3D Print Market Value ($M) Hardware Materials Services $10,000 20% CAGR $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 2016 2017 2018 2019 2020 2021 2022 © IDC 2 IDC Forecast View: U.S. 3D Printer Shipments 250,000 Fused filament (FFF/FDM) Stereolithography (SLA) Binder Jetting Powder bed Fusion 16% CAGR Select Deposition Lamination (SDL) Material Jetting 200,000 Directed Energy Deposition 150,000 100,000 50,000 - 2015 2016 2017 2018 2019 2020 2021 © IDC 3 Fundamental Value Propositions of 3D Printing for Manufacturing 1. Mass personalization • Customized version of existing products • New products © IDC 4 Fundamental Value Propositions of 3D Printing for Manufacturing 2. Design Freedom • Customer-focused, collaborative design • Ergonomic advantages on manufacturing floor • Unmakeable shapes © IDC 5 Fundamental Value Propositions of 3D Printing for Manufacturing 3. Managing the Supply Chain Traditional supply chain Design Iterate Production Warehouse Distribution Customer A leaner zero-inventory supply chain enabled by 3D printing Design Iterate Production Distribution Customer © IDC 6 Fundamental Value Propositions of 3D Printing for Manufacturing 4. Enabling flexible manufacturing & reducing equipment down time • Short to medium-sized production runs • Parts for tools & testing Crossover equipment Cost per piece point • Changing the 3D print crossover point 0- 10-100 100 – 1,000+ 10 1,000 Number of pieces © IDC 7 Fundamental Value Propositions of 3D Printing for Manufacturing 5. Speed • Iterate economically • Capacity • Automation = Always-on = Faster cycle times • Reduced post-processing . Stratasys Carbon SpeedCell Continuous . 3D Systems Figure FormLabs Build 3D Four FuseCell Demonstrator © IDC 8 Fundamental Value Propositions of 3D Printing for Manufacturing 6. Intelligence of the system • Manage & control multiple devices • Cloud connected • Two-way communication © IDC 9 Forces Driving 3D Printing: Cost & Speed Are Top 3D Printer Frustrations Please indicate your company's top frustrations with 3D printing technology © IDC 10 Turning Point 2018 – Polymer-based 3D Printing . Features grow by leaps and bounds • Speed Speed . Carbon, 3D Systems’, Stratasys, Formlabs, HP . Rise, Essentium HSE • Color . HP, Mimaki, XYZ Printing • Materials for industry-specific solutions Materials Build size . Dental, Aerospace, Automotive • Larger build sizes . BigRep, Cosine, Raise 3D Color © IDC 11 Turning Point 2018 – Metal-based 3D Printing . Metal printing systems proliferate in 2018 • Desktop Metal – Studio system “10X” cheaper than comparable laser- based systems • Formalloy – Laser Metal Deposition – 2 – 100 times faster • GE Additive Arcam EBM Spectra H - 50% increase in build speed, 39% larger build volume. • MarkForged – Now shipping the MetalX - 10x less expensive than alternative metal additive manufacturing technologies • SPEE3D – Supersonic 3D deposition – 100 – 1,000 times faster than laser- based 3D printing • XJET – Nanoparticle Jetting – 5-times faster (no powder) • Optomec - $600K LENS system down to $200K © IDC 12 Forces Driving 3D Printing: Governments Investing in 3D Printing Argentina, Australia, Brazil, Canada, Chile, China, Finland, France, Germany, India, Japan, Mexico, New Zealand, Netherlands, Pakistan, Poland, Russia, Singapore, South Africa, South Korea, Spain, Sweden, Taiwan, UAE, UK, USA © IDC 13 3D Printing/AM Customers & Industries . Companies & Service providers to range of industries • Aerospace & Defense - $800B • Architectural & Engineering - $65B • Automotive - $620B • Education - $4.4T • Energy - $6T • Entertainment - $1.6T • Eyewear - $95B • Footwear - $215B • Jewelry - $443B • Healthcare - $8T • Packaging - $400B © IDC 14 Forces Driving 3D Printing: 3D Printing Adoption in Some of the World’s Biggest Manufacturers . Adidas . Johnson & Johnson . Airbus . Lockheed Martin . Align Technologies . Medtronic Automotive . Arthrex . NASA . Aurora Flight Sciences . New Balance . ASICS . Nike . BAE Systems . Northrop Grumman Aerospace . Bell Helicopter . Puma . Bombardier . Raytheon . BMW . Reebok . Boeing . Rolls-Royce Footwear . Finmeccanica . Safran . Ford . Siemens . Daimler . Sketchers . DJO-Global . Smith & Nephew Orthopedic . GE Additive . Sonova . GKN Aerospace . Stryker . GM . United Technologies . Honeywell . Zimmer Biomet © IDC 15 Key Takeaways . Print technology and materials advancing quickly – new price/performance levels achieved • 3D Printing Technologies are diversifying, but materials deposition still represents 80+% of shipments in 2022 . Digital transformation in manufacturing facilitated by advances in 3D printing • 3D printing/AM will push market to more than $9B in U.S. value by 2022 . Very significant market forces like government & PE investments, and global manufacturers driving change/adoption in the 3D printing market © IDC 16 For More Information Thank you! Tim Greene Research Director [email protected] Twitter https://twitter.com/@IDC LinkedIn https://www.linkedin.com/company/idc www.idc.com © IDC 17.