3D Printing Industry Chain Analysis Report

1、 3D printing definition

3D printing, also known as Additive Manufacturing (AM), is an advanced manufacturing technology that covers multiple disciplines. 3D printing is a technology based on computer 3D design models, which uses software layered discretization and CNC forming systems to transform 3D entities into several 2D planes. It uses powder metal, plastic, ceramics, resin, and other adhesive raw materials to construct objects through layer by layer printing. Overall, 3D printing is a combination of information network technology, advanced material technology, and digital manufacturing technology. The manufacturing process spans multiple disciplines, including machinery, materials, software, electronics, design, computer vision, and more.

3D Flow Chart    

The 3D flowchart is similar to the flat printing process, where 3D printing can produce functional products based on 3D information. 3D printing can be simply understood as replacing electronic documents in traditional printing with 3D digital models, printing layer by layer using specialized materials to form a three-dimensional product. Traditional flat printed files only serve the purpose of information transmission and storage, and do not have functionality. Products printed in 3D can achieve preset functions and be directly used as components in industries such as aerospace, military, medical equipment, and automobiles.

2、 Development History of 3D Printing

Throughout the development history of the global 3D printing industry, it can be roughly divided into three stages: technology research and development, mass production applications, and business profitability. 3D printing was born in the early 1980s and has gone through nearly 40 years of development, mainly divided into three stages. The first stage was from 1980 to 1990, during which 3D printing patents, technologies, and prototypes were successively born. In 1982, Charles Hull first proposed the application of optical technology in the field of rapid prototyping, and the following year invented the world's first 3D printing prototype for stereolithography (SLA), known as the father of 3D printing. Since then, various 3D printing technologies and prototypes have emerged continuously.

From 1990 to 2010, as the second stage, influential 3D printing companies gradually emerged in Europe and America, transitioning from the embryonic form of technology and theory to the production of 3D printers and products. World leading companies such as 3D Systems, Stratasys, and EOS have successively launched 3D printing equipment during this stage, covering mainstream technologies such as melt deposition molding (FDM), selective laser sintering (SLS), and metal laser sintering (SLM). In addition, the categories of products produced through 3D printing during this stage are constantly expanding, and downstream application scenarios are also increasing.

 Since 2010, it has been the third stage, and the 3D printing industry has experienced rapid development, with leading enterprises constantly merging and acquiring. In 2012, Stratasys merged with Object, marking the largest merger in the 3D printing industry. 3D System completed acquisitions of Phoenix Systems, Medical Modeling, Bot Object, and other companies from 2010 to 2016. GE in the United States acquired 3D printing giants Concept Laser and Arcam in 2016, and the business scale of each leading enterprise experienced rapid development under the merger and restructuring.

The 3D printing industry in China has lagged behind Europe and America for about a decade, but the gap has gradually narrowed in recent years. The 3D printing industry in China started in the early 1990s. In the 1990s, multiple universities such as Tsinghua University, Xi'an Jiaotong University, and Huazhong University of Science and Technology launched research on additive manufacturing technology with government funding. In 1995, Xi'an Jiaotong University successfully developed a 3D sampling machine. From 2000 to 2010, various universities successively achieved breakthroughs in mainstream 3D printing technologies such as SLA, SLS, FDM, and SLM. Between 2011 and 2016, it was in a stage of technological catch-up, with the number of patents related to the 3D printing industry rapidly increasing from 5 in 2011 to 6564 in 2016, approaching the technological level of European and American countries. After 2016, the number of companies involved in 3D printing business in China surged. In 2019, the first domestic 3D printing company, Platinum, was listed on the Science and Technology Innovation Board, marking the gradual completion of the transition from technology accumulation to commercialization in China's 3D printing industry.

3、 Advantages and disadvantages of 3D printing technology

Compared to traditional material reduction manufacturing technology, 3D printing has advantages such as customization, low loss, and precision manufacturing. The traditional reduced material manufacturing process refers to the process of turning, milling, planing, and drilling raw materials through equipment. Compared to traditional reduced material manufacturing, 3D printing can achieve customized non-standard production during the design process, without the need to prepare molds in advance, and the waste is reduced compared to traditional manufacturing. In addition, some parts applied in the field of precision manufacturing may encounter factors such as inability to produce molds, insufficient manual manufacturing accuracy, and overly complex internal structures during the production process, and can only be produced through 3D printing.

Schematic diagram of material reduction manufacturing technology process

Comparison between 3D printing and some traditional processes

Based on the above 3D printing characteristics, the future development direction is mainly towards customization and the production of complex structural components. The cost side of 3D printing is less sensitive to economies of scale, unlike traditional manufacturing processes that achieve cost reduction and efficiency increase with increasing production. Therefore, 3D printing has a significant competitive advantage before the breakeven point, and usually these products have at least one of the characteristics of customization or high complexity. Customized products are usually produced in small quantities and cannot be scaled up through traditional processes. Their application fields are mostly aerospace, military, medical, cultural and creative education, etc. In terms of complex structural components, the unit price is often higher than 3D printing after mass production through manual or traditional processes, or it is difficult or even impossible to achieve production through traditional methods, such as some special hollow parts, mixed metal parts, biocompatible and biodegradable artificial organs, etc. The application fields are mostly aerospace, military, automotive, medical, etc.

The relationship between output and cost in 3D printing production process

4、 3D Printing Technology Classification

At present, the mainstream 3D printing classification dimension is divided into metal 3D printing and non-metal printing based on the different materials used, and further distinguished by different technical characteristics.

Due to its high barriers, high value, and large future application space, metal 3D printing has received higher attention than non-metallic 3D printing. Among them, the mainstream technologies used in metal 3D printing include Selective Laser Melting (SLM), Electron Beam Melting (EBM), and Laser Near Net Forming (LENS). The printing raw materials are mostly metal powders such as iron, titanium, nickel, and steel, and are mostly used in areas with high performance requirements for products such as aerospace, military, and medical equipment;

The mainstream technologies used in non-metallic 3D printing include selective laser sintering (SLS), photocuring (SLA), melt deposition molding (FDM), three-dimensional printing (3DP), material spray molding (PJ), etc., which are mostly used in the manufacturing of non-standard products such as industrial molds, entertainment creativity, and medical supplies. Some of these technologies (SLS and 3DP) can also use metal powders as raw materials for printing, but the mainstream materials in the market are plastics, resins, nylon, ceramics, and other materials, so they are still classified as non-metallic printing.

Metallic material

Heavy industrial products usually rely on high-temperature and corrosion-resistant metal materials. In order to meet the needs of heavy industrial products, 3D printing was first developed and invested the most in metal powder. Metal powders generally require high purity, good sphericity, narrow particle size distribution, and low oxygen content. At present, the metal powder materials used for 3D printing mainly include titanium alloy, cobalt chromium alloy, stainless steel and aluminum alloy materials, in addition to precious metal powder materials such as gold and silver used for printing jewelry. Titanium alloy is widely used in cold end compressor components of aircraft engines, as well as various structural components of rockets, missiles, and aircraft due to its high strength, corrosion resistance, and heat resistance. In addition, stainless steel powder is widely used for its corrosion resistance, and 3D printed stainless steel models have high strength and are suitable for printing larger items.

At present, countries such as Europe and America have achieved laser direct forming of small-sized stainless steel, high-temperature alloys, and other parts. In the future, laser rapid forming of large metal components made of high-temperature alloys and titanium alloys will be the main direction of technological research.

Engineering plastic

Engineering plastics refer to industrial plastics used as industrial parts or shell materials, which have excellent strength, impact resistance, heat resistance, hardness and aging resistance. Engineering plastics are currently the most widely used type of 3D printing materials, including ABS materials, PC materials, nylon materials, etc.

PC-ABS material is one of the most widely used thermoplastic engineering plastics. It possesses the toughness of ABS and the high strength and heat resistance of PC materials, and is mostly used in the automotive, home appliance, and communication industries. The strength of samples made with this material is about 60% higher than that of traditional components. In industry, PC-ABS material is commonly used to print thermoplastic components such as conceptual models, functional prototypes, manufacturing tools, and final components. PC-ISO is a white thermoplastic material certified by medical hygiene, with high strength, widely used in the pharmaceutical and medical device industries, for surgical simulation, skull repair, dentistry and other professional fields.

Photosensitive resin material

Photosensitive resins are generally liquid, which can immediately cause polymerization reaction and complete solidification under certain wavelength of ultraviolet light irradiation. They can be used to make high-strength, high-temperature resistant, and waterproof materials. The Somos 19120 material is pink and is a casting specific material. After forming, it can directly replace the wax film prototype of precision casting, avoiding the risk of mold development, and has the characteristics of low ash retention rate and high accuracy. Somos Next material is a white material that is a new type of PC material with excellent toughness. It can basically achieve the performance of nylon material made by selective laser sintering (SLS), with better accuracy and surface quality. The components made of this material have the best rigidity and toughness to date, while maintaining the advantages of exquisite workmanship, precise size, and beautiful appearance of light cured three-dimensional modeling materials. It is mainly used in automobiles, home appliances Electronic consumer goods and other fields.

Ceramic material

Ceramic materials have excellent properties such as high strength, high hardness, high temperature resistance, low density, good chemical stability, and corrosion resistance, and are widely used in industries such as aerospace, automotive, and biology. Under traditional processes, complex ceramic parts need to be formed through molds, which have high processing costs and long development cycles, making it difficult to meet the continuous updating needs of products. And 3D printing uses selective laser sintering (SLS) to process ceramic powders, which can eliminate tedious design steps and achieve rapid product molding.

This material has certain defects. SLS uses a mixture of laser sintered ceramic powder and a certain type of adhesive powder. After laser sintering, the ceramic product needs to be placed in a temperature controlled furnace for post-treatment. Moreover, ceramic powders exhibit high surface tension in the liquid phase during direct laser sintering, resulting in significant thermal stress and the formation of numerous microcracks during rapid solidification.

Other materials

In recent years, colored gypsum materials, artificial bone powder, cellular biological materials, and food materials such as sugar have also been applied in the field of 3D printing. Colored gypsum material is a full color 3D printing material. Based on the forming principle of layer by layer printing on powder media, 3D printed products may have fine particle effects on the surface after processing, resembling rocks in appearance, and may have fine annual ring like textures on the curved surface. Therefore, they are widely used in fields such as anime dolls. The fresh meat printed by the University of Pennsylvania in the United States is first produced using laboratory cultured cell media to generate substitute substances similar to fresh meat, using water-based sols as adhesives, and then combined with special sugar molecules. There are also biological inks made from human cells that are still in the conceptual stage, as well as similarly special biological paper. When printing, biological ink is sprayed onto the biological paper under the control of a computer, ultimately forming various organs.

In terms of food materials, currently, the sugar 3D printer can directly produce various shapes, beautiful and delicious desserts by spraying heated sugar. The existing specialized materials for additive manufacturing include four categories: metal materials, inorganic non-metallic materials, organic polymer materials, and biomaterials. However, the limited variety and insufficient performance of a single material seriously restrict the application of additive manufacturing technology. At present, leading enterprises in the industry and some material companies have expanded into the field of specialized materials, breaking through a batch of new polymer composite materials, high-performance alloy materials, bioactive materials, ceramic materials and other specialized materials. Related enterprises combine nanomaterials, carbon fiber materials, and other materials with existing material systems to develop multifunctional nanocomposites, fiber reinforced composites, inorganic filler composites, metal filler composites, and polymer alloys. This not only endows materials with multifunctional characteristics, but also expands the application fields of additive manufacturing technology, making composite materials one of the development trends of specialized materials.

3D printing types distinguished by different process technologies

Comparing SLM technology with other technologies is a more convenient way to understand 3D printing classification. The current process technology of SLM is mature and has high universality. SLM technology can be compared with other technologies to understand the current mainstream technology. The upper half of the SLM printing machine is a laser, and the lower half is a metal powder bed laid on the substrate. The forming method is to melt and solidify the metal on the metal powder bed, cool and solidify before forming. Repeat this operation layer by layer to print the finished product. The remaining metal and non-metal 3D printing technology can be seen as a transformation and innovation based on SLM technology.

SLM process equipment diagram

Metal 3D printing:

1. EBM technology: Replacing the upper half of the laser with an electron beam and printing in a near vacuum environment is called EBM technology;

2. LENS technology: Adding a metal powder nozzle to the upper part to replace the metal powder bed in the lower part is called LENS technology.

Non metallic 3D printing:

1. SLS technology: Add powder binders with relatively low melting points to the lower part of the metal powder bed and form them through bonding, which is SLS technology;

2. SLA technology: Replace the upper half of the laser with ultraviolet laser, and the lower half of the metal powder bed with a liquid photosensitive resin pool. By irradiating the photosensitive resin to achieve photocuring and molding, this is SLA technology;

3. FDM technology: Replacing the upper half of the laser with a hot melt nozzle, while the lower half only retains the substrate, the material is directly melted and extruded through the hot melt nozzle, which is FDM technology;

4. 3DP technology: Replace the upper half of the laser with a sprayable, non heating, adhesive adhesive, and the half is a material powder bed. After bonding the powder, it is formed, which is 3DP technology;

5. PJ technology: The upper half of the laser is replaced with photosensitive polymeric materials and ultraviolet lamps, while the lower half only retains the substrate. By irradiating the photosensitive material, photocuring is achieved, which is called PJ technology.

Source: 3D Hubs, Joye3D, Wikipedia, 3D Science Valley, Institute of Physics, Chinese Academy of Sciences, "Introduction and Application of 3D Printing Parts Manufacturing Process," Guolian Securities Research Institute

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Source: 3D Hubs, Joye3D, Wikipedia, 3D Science Valley, Institute of Physics, Chinese Academy of Sciences, "Introduction and Application of 3D Printing Parts Manufacturing Process," Guolian Securities Research Institute

SLM is currently the mainstream solution for metal printing, and its product cost-effectiveness is relatively superior. Products printed through metal 3D generally have excellent performance, which can meet the demanding performance requirements of industries such as aerospace, military, and medical. However, they also face high overall printing costs (ranging from tens of thousands to hundreds of thousands), limited product size, and slow production efficiency. Among them, SLM printing has a relatively superior cost-effectiveness, with the advantages of high density, high strength, high accuracy, and high utilization. At the same time, the cost is relatively low compared to EBM and LENS, and the technology is mature. It is currently the mainstream solution for metal 3D printing.

Source: 3D Hubs, Joye3D, Wikipedia, 3D Science Valley, Institute of Physics, Chinese Academy of Sciences, "Introduction and Application of 3D Printing Parts Manufacturing Process," Guolian Securities Research Institute

SLS, SLA, and FDM are currently commonly used technologies in non-metallic printing. Products printed through non-metallic 3D printing generally have weaker performance than metal 3D printing in terms of strength, accuracy, and surface roughness, but can meet the needs of general industrial manufacturing and creative product production, while the cost is relatively low. SLS, SLA, and FDM technologies are relatively mature both domestically and internationally, and the downstream demand for printed products is high. They are currently commonly used non-metallic 3D printing solutions. The SLS process has advantages such as wide use of materials, high accuracy, high production efficiency, and no need for supporting structures, and the technology is relatively mature. The disadvantage lies in the adhesive molding method, which has gaps in the finished product, poor mechanical properties, and may face reprocessing. Additionally, the overall cost is relatively high in non-metallic 3D printing.

The SLA process benefits from the light curing molding method, resulting in higher product accuracy, superior surface quality, and the advantages of waterproofing and heat resistance. The disadvantage lies in the inherent defects of the resin material, which results in relatively poor strength and stiffness, and the production process requires supporting structures.

The FDM process eliminates the need for important components such as lasers in the equipment structure, resulting in low equipment cost and fast printing speed. At the same time, the printing raw material is thermoplastic material, which has loose requirements for the use environment and is suitable for office or home environments. However, there are drawbacks such as low precision of printed products and inability to print complex components, so FDM technology is widely regarded as the preferred solution for desktop level 3D printing.

5、 3D Printing Industry Policy

Policies support the rapid development of the industry. 3D printing technology, as an important part of industrial upgrading, has received sufficient attention from the national level. Policies have been intensively introduced since 2015, demonstrating strong continuity and fast response speed. At the same time, from the perspective of policy effectiveness, the results are significant, and the main goals have been achieved, and industry standards are gradually improving.

In the 2021 "14th Five Year Plan", the importance of additive manufacturing has been further elevated and listed as a key task. The plan emphasizes the need to strengthen key core technology research. Subsequently, various ministries and local governments responded quickly, and multiple provinces and cities such as Shanghai, Guangdong, Jiangsu, and Chongqing clarified the important position of additive manufacturing in the overall development of high-end manufacturing in their core policy documents. Local governments combined local needs and advantages to develop the additive manufacturing industry chain according to local conditions.

In terms of industry standards, in 2020, multiple departments such as the National Standardization Administration Commission and the Ministry of Industry and Information Technology issued the "Action Plan for Leading Additive Manufacturing Standards (2020-2022)", proposing to build a new standard system for additive manufacturing based on national conditions and international integration, and accelerating the implementation of industry related standards. There are currently 30 national standards for additive manufacturing in China, of which 21 have been established in the past three years, gradually achieving standardization and safeguarding the development of the industry.

六、3D printing industry chain pattern

1、Industry Chain Graph

2. Distribution of Industrial Chain Value

(1) Overall market for 3D printing

In terms of global 3D printing market space, according to the report "Wohlers Associates 2022", the compound annual growth rate of additive manufacturing market size from 2015 to 2021 was 19.77%, with the global additive manufacturing market size reaching $15.24 billion in 2021, a year-on-year growth rate of 19.5%. It is expected that the additive manufacturing market size will reach 29.8 billion US dollars in 2025, with a CAGR of approximately 18.2% from 2021 to 2025; After the constraints of the epidemic have dissipated, coupled with the continuous expansion of downstream application scenarios, Wohlers predicts that the additive manufacturing market size will reach $85.3 billion by 2030, with a CAGR of approximately 21.1% for 2021-2030 and 23.4% for 2025-2030.

Metal additive manufacturing will usher in rapid development. Metal 3D printing generally has higher production costs, product quality, and technical requirements than non-metallic 3D printing, and its downstream universality is weaker than non-metallic 3D printing. In recent years, with the continuous optimization of metal 3D printing technology, product quality has approached or even surpassed traditional manufacturing processes, and the market size has gradually expanded. SmarTech Analysis data shows that the global metal additive manufacturing market size in 2019 was $3.3 billion, and it is expected to continue a high growth trend in the future. By 2024, the market size will expand to $11 billion, with a CAGR of 27.2% from 2019 to 2024, significantly faster than Wohlers' expected overall growth rate of the additive manufacturing industry (approximately 21.1% from 2021 to 2030).

 Global Additive Manufacturing Industry Market Size from 2015 to 2030      Global Metal Additive Manufacturing Market Size from 2019 to 2024  

Source: Wohlers, Guolian Securities Research Institute             Source: SmarTech Analysis, Guolian Securities Research Institute

From the perspective of the proportion of segmented items, according to Wohlers' 2021 data, 3D printing services, 3D printing equipment, and 3D printing raw materials account for 40.9%, 22.4%, and 17.1% of the segmented product scale, respectively, with market sizes of 6.23 billion, 3.41 billion, and 2.59 billion US dollars. From the perspective of market share of raw materials, polymer powder, photosensitive resin, polymer wire, and metal materials are the main raw materials, accounting for 34.7%, 25.2%, 19.9%, and 18.2% respectively. It is worth noting that the sales of polymer powder increased by 43.3% year-on-year, surpassing photosensitive resin as the most commonly used additive manufacturing material. Downstream demand for powder bed based process technologies such as SLS and SLM has increased.

Proportion of Global Additive Manufacturing Industry Segmentation in 2021        The proportion of raw materials in the global additive manufacturing industry in 2021

Source: Wohlers, Guolian Securities Research Institute                   Source: Wohlers, Guolian Securities Research Institute

In the 3D printing industry, equipment companies often involve raw materials, equipment components, and downstream service businesses, while enterprises specializing in raw materials and equipment components typically have a relatively low proportion of 3D printing business. Therefore, it is more desirable to observe the overall industry through the market competition pattern of 3D printing equipment enterprises.

In terms of domestic competition pattern, the current domestic 3D printing equipment market is relatively scattered. CR3 is composed of domestic Liantai Technology, American Stratasys, and German EOS, accounting for approximately 44.3% in total. Except for Liantai Technology, domestic mainstream equipment manufacturers such as Huashu High tech and Platinum have relatively high market share, with 6.6% and 4.9% respectively.

In terms of global competition pattern, due to factors such as low value of desktop level 3D printing equipment, large shipment volume, and numerous participating enterprises, the competition pattern is usually observed based on the proportion of industrial level 3D printing equipment (priced above $5000) shipment volume. The current industrial level leaders are mainly Stratasys and 3D Systems in the United States, with industrial level shipments of 16.6% and 12.8% in 2019, respectively. Domestic industrial grade non-metallic equipment enterprises Liantai Technology and Xianlin 3D have entered the top ten, with shipments accounting for 2.4% and 2.0% respectively.

Considering that the classification dimensions of 3D printing equipment are relatively diverse, they can be divided into metal and non-metal based on raw materials, as well as industrial and desktop based on value and application fields. By refining the classification of major participating enterprises according to different dimensions, the industry competition pattern can be better observed. Metal 3D printing equipment is mostly industrial grade equipment, usually characterized by high single item value, high gross profit margin of equipment and service sales, and low shipment volume.

In China, the revenue of enterprises mainly engaged in metal 3D printing is around 100 million to 500 million yuan. The listed company only has Platinum (a subsidiary of Yinbang Group, Feierkang, which is involved in metal 3D printing business). In addition to Platinum, companies such as Huashu High Tech and Xinjinghe have certain technological competitiveness.

Overseas, major metal 3D printing companies have all been listed, with 3D Systems having the highest revenue, equivalent to approximately 4 billion yuan. Non metallic 3D printing includes both industrial and desktop equipment, typically with low value and lower gross profit margin on equipment and service sales compared to metal equipment, but with higher shipment volume and overall revenue for the company.

Capital level: In China, major enterprises are not listed and are mostly in the stage of listing or primary market financing. Among them, Chuangxiang 3D is a desktop level leader with a revenue of over 1 billion yuan, making it the highest revenue enterprise in the domestic 3D printing industry. Liantai Technology is a leader in industrial grade non-metallic equipment with a revenue of 435 million yuan.

Overseas, major companies in the industry have all gone public, with 3D Systems and Stratasys being the leading non-metallic companies with revenue of approximately 4 billion yuan.

In terms of the domestic 3D printing market space, Wohlers data shows that from the perspective of additive manufacturing equipment installation, the Chinese market accounts for about 10.6% of the global market, ranking second in the world. According to the calculation of China Commercial Industry Research Institute, the scale of the domestic additive manufacturing market in 2021 was 26 billion yuan, with a year-on-year growth rate of 25.0%, doubling the industrial scale compared to 2018. It is expected that the industrial scale will exceed 50 billion yuan by 2024, and the CAGR from 2021 to 2024 will be maintained at around 24.0%, significantly higher than the global growth level. The domestic additive manufacturing industry may enter a period of rapid development, with broad potential for future growth.

Figure of the proportion of installation of additive manufacturing equipment in 2021 Forecast of the size of China's 3D printing market from 2017 to 2024

Source: Wohlers, Guolian Securities Research Institute Source:          Source: China Commercial Industry Research Institute, Guolian Securities Research Institute

Driven by the gradual large-scale application of 3D printing products and the release of some backlog of 3D printing equipment demand, the growth rate of China's 3D printing industry has accelerated in 2021, with the industry scale increasing to 21.65 billion yuan. With the further expansion of the application scale of 3D printing products in existing scenarios and the continuous exploration of new scenarios and applications, it is expected that the scale of China's 3D printing industry will exceed 40 billion yuan by 2023.

(2) 3D printing area distribution

The 3D printing industry in China is mainly distributed in the Beijing Tianjin Hebei region, the Yangtze River Delta region, the Pearl River Delta region, and the central and western regions.

(3) Proportion of 3D printing value chain

The scale of 3D printing equipment in China accounts for 45.0%, while the scale of 3D printing services and materials accounts for over 25%.

Proportion of 3D printing industry chain links

Proportion of internal value chain in each link

3D printing material value chain

The current mainstream 3D printing classification dimensions are metal and non-metal, further subdivided according to specific processes. Due to its high barriers, high value, and large future application space, metal 3D printing has received higher attention than non-metallic 3D printing. Metal 3D printing mainly involves selective laser melting (SLM), electron beam melting forming (EBM), laser near net forming (LENS), etc. Non metal 3D printing mainly includes selective laser sintering (SLS), light curing forming (SLA), melt deposition forming (FDM), etc.

3D printing raw materials are one of the important factors affecting the quality of 3D printing products and the material foundation for the development of 3D printing technology. 3D printing raw materials can currently be mainly divided into metal materials and non-metallic materials. Data shows that in the entire 3D printing market in China, alloy aluminum alloy and stainless steel account for 20.2% and 10.0%, respectively, accounting for 9.1%, totaling 39.3%. The rest are mostly non-metallic materials including nylon, PLA, ABS plastic, resin, etc.

3D printing equipment value chain

At present, the mainstream equipment brands in the Chinese market include Liantai, Huashu, Platinum, 3D Systems, GE, Stratasys, HP, etc. According to data, Liantai has the largest market share in the 3D printing industry, reaching 16.4%, followed by Stratasys and EOS, accounting for 14.8% and 13.1% respectively.

With the continuous accumulation of technology in domestic 3D printing enterprises, the gap with foreign advanced levels is rapidly narrowing. In some fields such as large-sized forming, excellent enterprises are constantly emerging, represented by Platinum, Huashu High Technology, Liantai Technology, etc., with strong comprehensive strength and belonging to the industry leader.

3D printing service value chain

3D printing has been widely used in aerospace, automotive, medical and other fields, and is gradually being attempted to be applied in more fields. In 2021, 3D printing is mainly applied in aerospace, automotive, consumer and electronic products, medical/dental, academic research and other fields. The three major application fields represented by aerospace, medical, and automotive have broad space. From the perspective of the downstream application market share of 3D printing, the three areas with the highest proportion are aerospace, medical, and automotive, with a proportion of 16.8%, 15.6%, and 14.6%, respectively. Among them, the applications in aerospace are mostly metal 3D printing, and SLM, EBM, and LENS processes are all used. The medical and automotive industries involve both metallic and non-metallic 3D printing in their application processes, with mainstream processes involved. According to the report released by Ernst&Young, the current aerospace and defense sectors have a high penetration rate for 3D printing and have a high future development limit.

From a business model perspective, downstream applications of 3D printing can be divided into military and civilian ends.

In terms of military applications, 3D printing has a wide range of applications in the fields of aerospace and military industry, mainly selling customized 3D printing products. It is mainly used in missiles, military aircraft, and engine components, such as the rudder, combustion chamber, and inlet in missiles, grille blades in military aircraft, and cold and hot end blades in engines. Military products often adopt negotiated pricing, with generally high profits.

In terms of civilian use, it is mainly used in fields such as automobiles, healthcare, cultural and creative education, and 3D printing equipment is relatively sold more. Taking Platinum as an example, in 2021, a total of 140 units of Platinum equipment were sold, with military equipment sales accounting for approximately 43% and civilian equipment sales accounting for 57%, respectively. However, in terms of value, the unit price of platinum military equipment is higher, ranging from several million to tens of millions per unit, higher than the price range of several hundred thousand to one million for civilian use. Overall, the current military downstream demand is high, with high requirements for the maturity of metal 3D printing technology; There are many downstream industries for civilian use, with broad potential for future growth. Applications include both metal and non-metallic processes. In addition to process maturity, it is also necessary to consider the upgrading of the industrial chain and consumption processes.

Important application areas and market share of additive manufacturing in 2021        

The current maturity and future development potential of 3D printing applications

Source: Ernst&Young, Guolian Securities Research Institute             Source: Huajing Industry Research Institute, Guolian Securities Research Institute

Application Area - Aerospace

Metal 3D printing has high growth potential in the aerospace and military industries. The raw materials used in the aviation industry are mostly titanium alloy, aluminum lithium alloy, ultra-high strength steel, high-temperature alloy and other materials, which generally have the characteristics of high strength, stable chemical properties, and difficulty in forming and processing. Traditional processes face high technical barriers when processing these metals. The rapid development of metal 3D printing has brought new development ideas to the aerospace industry. Metal 3D printing processes such as SLM, EBM, and LENS are widely used in the aerospace field, greatly promoting the flexibility of aerospace structural design and achieving a fundamental transformation from "manufacturing constraint design" to "functional leading design". Meanwhile, due to the low price sensitivity of the aerospace industry, 3D printing has taken the lead in the field.

Multiple advantages have assisted the rapid development of metal 3D printing in the aerospace industry. The advantages of metal 3D printing in the aerospace field include four aspects: firstly, the design of complex structures can be achieved, which can produce complex structures that are difficult to produce by traditional processes, and secondly, different parts of parts can have different properties through composite materials. Against the backdrop of China's relatively backward traditional forging and casting technologies in Europe and America, the importance of this advantage is highlighted, Alternatively, 3D printing technology can be used to achieve "overtaking on bends" in high-end manufacturing; The second is to shorten the research and development cycle, eliminating the need to manufacture production molds, and saving time for error correction, modification, and optimization during the research and development process; The third is to optimize the performance of components, achieving lightweight, reducing stress concentration, and increasing service life through hollow interlayer, integrated structure, hollow lattice structure, and irregular topology optimization structure; Fourthly, it can improve the utilization rate of materials and reduce manufacturing costs.

Application Area - Medical

Due to individual differences in the human body, traditional manufacturing of medical devices is mostly standardized in style or size. 3D printing, with its customizable characteristics, is gradually being widely used in the medical field. Its main application directions include manufacturing medical models, surgical guides, surgical/dental implants, rehabilitation equipment, etc. (main materials include plastic, resin, metal, polymer composite materials, etc.), as well as biological 3D printing of human tissues Organs, etc. With the continuous improvement of the future economic level and precision medical requirements, the development of 3D printing technology in the medical industry will have a huge space. The smart medical industry chain will focus on the construction of information infrastructure to the "Internet plus+medical health" system, and use artificial intelligence, communication, big data and other technologies to gradually open up the links of "medicine, insurance". Smart medicine has become the "new momentum" to promote the rapid development of China's digital economy. It is expected that the industry will continue to develop rapidly in the future, and the scale of smart medical applications in China can reach 93.66 billion yuan by 2023.11.5

Application Area - Automotive

With the innovation and upgrading of 3D technology, its application in the field of automotive manufacturing will gradually deepen, from conceptual model printing to functional model printing. Currently, it is gradually applied in the manufacturing of functional components and expanding towards the direction of building complete vehicles. The main applications of 3D printing in the field of automotive manufacturing include automotive design, component development, interior and exterior decoration applications, and the main technologies include SLS, SLM, etc. With the increase in car ownership and production, the huge market size of the automotive industry will continue to provide broad space for the application of 3D printing technology. In January 2023, the national automobile production and sales completed 1.594 million and 1.649 million units respectively, a year-on-year decrease of 34.3% and 35%, respectively.

In 2022, the automotive market situation showed an improvement, and the production and operation status of enterprises gradually improved. In 2022, the operating revenue of China's automobile manufacturing industry reached 9289.99 billion yuan, a year-on-year increase of 6.8%. The total profit was 531.96 billion yuan, a year-on-year increase of 0.6%.