Understanding the 3D Printer Market from a 2D Perspective

THE PRINTER AND SUPPLIES INDUSTRY’S LEADER FOR NEWS AND ANALYSIS

Understanding the 3D Printer Market from a 2D Perspective

© 2015 Actionable Intelligence » THE PRINTER AND SUPPLIES INDUSTRY’S LEADER FOR NEWS AND ANALYSIS ii

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Actionable Intelligence Whitepaper | UNDERSTANDING THE 3D PRINTER MARKET FROM A 2D PERSPECTIVE

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© 2015 Actionable Intelligence » THE PRINTER AND SUPPLIES INDUSTRY’S LEADER FOR NEWS AND ANALYSIS iii

Table of Contents


Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

2D versus 3D Comparison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Markets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

3D Opportunities and Challenges. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Appendix. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

About Actionable Intelligence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Figure 1: The CoLiDo 3D Printer from Print-Rite . . . . . . . . . . . . . . . . . . . . . . . . . 1

Figure 2: Top 7 Hard Copy Firms Filing 3D Printing Patents and Applications. . . 2

Figure 3: Worldwide 3D Printing Industry Forecast 2014-2020 . . . . . . . . . . . . . . 5

Figure 4: Makerbot Thingiverse is an online community . . . . . . . . . . . . . . . . . . . 6

for sharing 3D-printable objects

Figure 5: The Airwolf3D HDR printer. Source: Airwolf3D . . . . . . . . . . . . . . . . . . . 8

Figure 6: The Objet260 Dental Selection printer. Source: Stratasys . . . . . . . . . . 8

Figure 7: Prosthetic hand produced by the CoLiDo X3045,

which is shown on the right.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Figure 8: Most Common Commercial 3D Printing Technologies . . . . . . . . . . . . 12

Figure 9: Overview of 3D Printing Software . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Figure 10: Overview of the Most Commonly Used Commercial

3D Printing Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Figure 11: 3D Printing Marketplaces for Downloadable Content . . . . . . . . . . . . 14

© 2015 Actionable Intelligence » THE PRINTER AND SUPPLIES INDUSTRY’S LEADER FOR NEWS AND ANALYSIS 1

Executive Summary


If you believe the pundits and market researchers, nearly every home

and many businesses will have a 3D printer within the next five years.

That means rapid growth in sales of 3D printers and consumables.

The Wohlers Report projects the total worldwide 3D printing market to

grow from just over $5 billion this year to more than $20 billion in 2020.

According to MarketsandMarkets, the 3D printing materials sector will

reach $1.052 billion in global turnover by 2019, growing at a CAGR of 20.4

percent from 2014 to 2019. By 2019, the plastics category—which has the

most in common with 2D printing materials—is expected to represent

64 percent of total value ($671 million) and grow at a similar CAGR (20.3

percent), which would place its current value at roughly $250 million.

While some might consider these projections optimistic, 3D printing presents a huge

opportunity even if the predictions are only half right. But what does that mean to resellers

and OEMs of 2D printers and consumables? Let’s face it. People are printing less with their

inkjet and laser devices. Companies that produce, distribute, and sell hardcopy products are

taking a long look at the 3D market as a way to spur growth.

You don’t have to look far to find companies in the hardcopy space that either have made

or are in the process of making the transition to the 3D market. You probably know that 2D

printer heavyweight Hewlett-Packard will bring out its first 3D device, the Multi Jet Fusion,

next year. While other OEMs such as Canon, Epson, and Ricoh have yet to unveil any

hardware, they are all promising to release 3D machines in the near future. Most hardcopy

OEMs have distribution deals with 3D OEMs like 3D Systems and Stratasys.

The major players aren’t the only ones entering the nascent 3D market. Print-

Rite, a well-known vendor of aftermarket printer consumables, has leveraged its

existing infrastructure and technical expertise to design, manufacture, and sell

the CoLiDo line of printers and filaments. Although small compared to hardcopy

OEMs, Print-Rite is an example of a company that ignored the differences

in the 2D and 3D printing markets and made the necessary investments and

commitment to learn what it needed to know to succeed in 3D. The firm is

emerging as an innovator in the 3D space and holds 55 patents or patent

applications on 3D technologies. Print-Rite is currently the third-ranking firm in

the hardcopy market in terms of 3D patents, behind first-place Samsung (107

patents) and second-place Xerox (98 patents), and ahead of OEMs in the 2D

industry such as Canon, Eastman Kodak, and HP.

FIGURE 1: The CoLiDo 3D Printer from Print-Rite

3D Printing Market Key Facts

» Current Annual

Sales: $5 billion

» Projected Sales in

5 years: $20 billion

» Projected Materials

Sales by 2019:

$1.052 billion



SamsungElectronics

Num

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f pat

ents

0

20

40

60

80

100

Xerox

Source: Actionable Intelligence

Print-rite HP Canon MimakiEngineering

EastmanKodak

Faced with a declining hardcopy market and a growing number of vendors with 3D

technology touting the opportunities it offers, many in the channels that traditionally sell

printers, copiers, and supplies are wondering if they can cash in on 3D. Some have. Case in

point: OEM Airwolf 3D hired a former Toshiba executive, Mark Mathews, as president and

tasked him with using his experience and connections in the 2D market to build a reseller

channel. Many of the 50-plus resellers he has signed have come from the hardcopy market.

Actionable Intelligence has put together this white paper as a primer on the 3D printing

market for the 2D industry. Our intent is to provide enough information to help you decide

whether to explore opportunities in 3D printing and, if so, where you might investigate further.

The paper is divided into three parts:

1. 2D versus 3D Comparison: What are the similarities and differences between 2D and

3D printing in terms of technology, materials, and market perspectives? This section

also explains the state of the art in 3D printing technologies, materials, markets, and

channels.

2. Markets: A look at the size of the 3D printing market and key vertical segments for

these devices.

3. 3D Opportunities and Challenges: A look ahead at possible opportunities in 3D for

the 2D printing industry. We also identify areas in which a 2D company would have

difficulty transitioning.

FIGURE 2Top 7 Hard Copy Firms Filing 3D Printing Patents and Applications



2D versus 3D Comparison

3D printing, which is also referred to as additive manufacturing, is not a new technology.

Stereolithography (SLA), the first inkjet-based form of 3D printing, was invented in 1984

and became commercially available in 1992. A combination of lower costs to acquire and

own equipment, a greater selection of improved and new materials, and a growing base of

knowledgeable resellers is fueling interest in 3D among businesses and consumers.

The term 3D printing is confusing because it implies more similarities with generating

hardcopy than really exist. There are some important similarities between the two, however,

that make the 3D market attractive to companies serving the 2D ecosystem. The three key

intersections of commonality are technology, channels, and consumables. An appendix at

the end of this report further illustrate the differences, which are numerous.

Technology: When you compare the mechanisms that actually image and accommodate

consumables, there are few similarities between 2D and 3D. Sure, some SLA systems have

sourced toner containers from laser printer vendors, and the print heads used to jet binder fluid

are identical to those used in conventional aqueous or solvent 2D printers. Print heads used in

material jetting are identical to those used in 2D UV-curing printers and phase-change ink jet

systems such as the Xerox Phaser and ColorQube products. Specific situations will probably

change once the 3D market gets large enough to support development.

The strongest similarities the technologies share are the expertise and manufacturing capabilities

of companies in the 2D and 3D industries. Designing, building, and servicing 3D printers requires

many of the same technical skills required to manufacture and maintain 2D printers, which is

why companies as diverse as HP and Print-Rite can play in the 3D space. An engineer who

understands how fluids are jetted by the heads in an inkjet printer, for example, will feel right at

home developing print heads for a 3D printer and the consumables the 3D heads will fire. OEMs

report that technicians with experience servicing 2D printers pick up 3D quickly, and certain

hardcopy equipment manufacturers are amassing sizeable patent portfolios for 3D machines.

Channel: Dealers who move hardcopy devices share a common ground with the emerging

3D printer channel, and both groups will readily identify the business model employed

by the other. As was the case a couple of decades ago for hardcopy equipment vendors,

companies in the 3D printer channel are currently making money on the box. Companies

marketing 3D devices also recognize the aftermarket revenue opportunities they provide and

seek to maximize the opportunities that service and supplies sales offer, just as companies

in the hardcopy channels do. Hardware manufacturers like HP and Print-Rite, which have

established hardcopy channels, enter the 3D space far ahead of their newer competitors who

must establish channels as well as bring new hardware to market.

There are some differences in the channels, although perhaps none as great as at the very

low end of the 2D and 3D markets. The 3D OEMs that live there sell direct to hobbyists and

people experimenting with the technology, and most leave it to the customers to find their

own consumables suppliers. Companies selling into the low end of the hardcopy market can

rely on a vast network of retailers, including online and brick-and-mortar outlets that can

move lower-end units along with the supplies for these machines. While it is still too early

for a large low-end 3D market, we have seen some companies make inroads with big-box

retailers like Staples, which is currently selling lower-end 3D devices to consumers.

Designing, building, and

servicing 3D printers

requires many of the

same technical skills

required to manufacture

and maintain 2D

printers, which is why

companies as diverse

as HP and Print-Rite can

play in the 3D space.



On the commercial side, the 3D channel will

be very familiar to anyone working in the

hardcopy market. In fact, many 3D OEMs

prefer channel partners with experience in

the 2D world because their relationships and

knowledge match well with their needs. And

unlike a startup focused only on 3D, they know

how to run a reseller business and have the

necessary infrastructure in place. Specifically,

hardcopy resellers have the right kind of

sales organizations and are set up to properly

support and service 3D printing equipment.

Entering the 3D printing market does not

require a large financial investment for

hardcopy resellers depending on the markets

they target. If they sell to companies that can

use smaller, less expensive 3D systems--

education, for example--the initial investment

can be as low as $10,000 to $15,000. Selling

more expensive equipment to companies like

manufacturers or engineering firms might

require and investment of $100,000 or more.

Companies that sell 2D printers, copiers, and

office equipment are not the only channel

partners in the 3D market. OEMs that have

a strong manufacturing presence often

partner with industrial equipment resellers.

Larger OEMs also have relationships with

distributors such as Ingram Micro, who

may sell direct to some large accounts and

supply smaller resellers. Specialized 3D-only

resellers are cropping up everywhere as

well, often as hybrid resellers and 3D printing

service bureaus.

As noted earlier, several 2D OEMs have

become channel partners for 3D vendors,

presumably until they have their own

systems to sell. Konica Minolta and Canon

resell 3D Systems printers. Lenovo is

rebranding printers made by XYZPrinting.

Retailers leading the way with 3D include

Staples (3D Systems, Afinia, MakerBot), Best

Buy (Leapfrog, MakerBot, 3D Systems), Home

Depot (Dremel, Afinia, MakerBot), and Sam’s

Club (MakerBot, 3D Systems). Amazon has a

wide range of brands, as would be expected.

Consumables: Like the devices themselves, materials consumed by 3D hardware have very little in common with toner and ink. Remember that 3D consumables are

basically construction materials that need to provide the form, strength, and finish for an intended application. The closest similarity to the 2D printing process is MCor’s ability to color the surface of objects with ink. The binder-jetting mechanisms on powder-based printers have some similarities to hardcopy inkjet print heads. Powder-based 3D materials are produced using polymerization, similar to certain chemically grown toners and for the exact same reason. Because powders used in 3D applications require tiny, uniform particles, they cannot be made using the same pulverizing techniques employed to make ground toners.

Although the materials are distinct and unique, companies with the chemical expertise required to manufacture ink and toners are finding opportunities in 3D. As with the hardware, a hardcopy consumables company can adapt manufacturing capabilities and leverage its materials expertise to get a jumpstart in the 3D consumables business. If you have been to one of the large consumables trade shows lately, you know that a number of them are doing just that.

The 3D consumables market shares one important aspect with hardcopy: the big hardware OEMs are trying to insulate the highly lucrative aftermarket and prevent third-party vendors from marketing supplies. 3D Systems, for example, houses the filament material used in certain 3D devices in a proprietary cartridge. And it’s common for 3D OEMs to prohibit or limit usage of third-party consumables through their service contracts and warranties. Manufacturers often imply that using third-party supplies could void the warranty, and both resellers and manufacturers often state in their service agreements that they will not support machines that use third-party supplies. We expect to see such agreements challenged as the 3D market matures.

Many 3D OEMs prefer

channel partners

with experience in

the 2D world because

their infrastructure,

relationships, and

knowledge closely

match their needs.



Markets As demand for hardcopy declines, the emerging 3D market is enjoying robust growth. To

recap, the 3D printing materials sector is going to reach $1.052 billion in global turnover by

2019, growing at a CAGR of 20.4 percent from 2014 to 2019. By 2019, plastics are expected

to represent 64 percent of total value ($671 million), also growing at a similar CAGR (20.3

percent), which would place its current value at roughly $250 million.

Source: Actionable Intelligence, based on data from the Wohlers Report 2015, Wohlers Associates

Reve

nue

(in b

illio

ns o

f USD

)

$0

$5

$10

$15

$20

$25

2014 2015 2016 2017 2018 2019 2020

There are hurdles 3D must overcome before it reaches its potential. Gartner reports that

60 percent of businesses believe that 3D printing is too expensive to implement at present.

Factored into the expense is the time needed to produce an object—production volumes

need time to scale.

The following are a few vertical markets in which hardcopy dealers currently have a strong

presence and customers are accelerating their usage of 3D printing:

Education: One of the fastest growing markets for 3D printing is education. Many

schools with a STEM (Science, Technology, Education, and Math) program, from

grade school and up, are launching programs to teach 3D printing and design skills to

prepare students for the workforce. The types of applications found in an education

environment vary widely. For instance, students might start by producing very basic items such as

pencil holders and progress to designing and printing complex parts or artistic designs.

Schools want machines that are durable, easy to use, and inexpensive to maintain and that

use mainstream technology and materials. They often rely on local resellers for sales, service,

and support. All this is great news for firms selling printers and copiers and the consumables

used in these machines. Because local school districts and other educational organizations

are among the largest generators of hardcopy, 2D equipment and supplies vendors tend to

have long-standing relationships with them in place. Hardcopy dealers are finding they have a

competitive advantage when selling 3D equipment into the education vertical.

FIGURE 3Worldwide 3D Printing Industry Forecast 2014-2020



Home/hobby: A cottage industry

of low-end 3D printer and

materials makers have sprung up

to support the so-called “maker

movement” that has embraced 3D printing.

Individuals purchase inexpensive printers—

mostly based on FDM technology—to

produce items such as art, replacement

parts, toys, or utilitarian objects (tools,

dishware, smartphone cases, and so on).

Hobbyists are willing to experiment with

materials, and there is a wide range

available to them because OEMs at the low

end typically do not limit where customers

can buy consumables. They can even buy

their own extruders that create filaments

from a wide range of recycled plastics.

A key barrier to growing

the 3D printing home/

hobby market outside of

the maker movement is

the skill level required to

produce even a simple

object from scratch.

You need to learn how

the hardware works

and which materials to

use for a given project.

Then there’s the process

for digitizing the object

you want to create. This requires that you

either create it using some kind of 3D design

software or you digitize an existing object to

copy using a 3D scanner.

Ultimately, the consumer market will become

one where people simply download ready-

made designs to print, or they can use online

services to have custom projects designed

for them. Many are currently available today

for free or for a small fee (see Figure 11 on

p. 14), and some of these services also host

vibrant communities where designs and

ideas are shared.

These communities are a key driver of

innovation in the 3D market. They are

constantly pushing the limits not only in

terms of what the current hardware can

produce, but also how that hardware should

evolve. For example, a number of OEM

companies have emerged from the maker

community, typically launching through

crowd funding.

Hobbyists and DYIers tend to buy

inexpensive (under $1,000) printers direct

from the manufacturer, or they can download

files from which they can build their own 3D

printer using a friend’s machine. While this

market is dominated by direct sales and big

retailers, resellers should reach out to the

local DYI community as they are often a

hiring pool for 3D talent.

Manufacturing: 3D printers

are most often used in rapid

prototyping, according to Gartner,

where manufacturers test a part or

product for fit and function. It is also used to

create casts or molds from which products are

made by more traditional processes. The value

of 3D printing in manufacturing is that it greatly

shortens the time from design to having a

working physical prototype in hand. Once an

initial design for a new device such as a valve

is completed, it might take several weeks to

have a physical example made by traditional

methods. With 3D printing, that valve prototype

could be produced within a day.

Very few businesses use additive

manufacturing exclusively because of

limitations on speed, quality, and expense.

We are seeing specialized parts production in

industries such as aerospace and automotive.

At the high end, industrial 3D printers can

cost $500,000 or more, and those purchases

are made directly through the manufacturer

or through a large distributor or reseller.

At the mid and low range, however, there

is a great deal of opportunity for resellers.

Machines here range in price from a few

thousand dollars to about $100,000.

As they do with educators, most hardcopy

equipment dealers have relationships with

manufacturers. This makes the manufacturing

vertical another great opportunity for

potential 3D printer sales. In many cases,

According to Gartner

Group, 3D printers are

most often used in rapid

prototyping, which

involves manufacturers

testing a part or product

for fit and function.

FIGURE 4: Makerbot Thingiverse is an online community for sharing 3D-printable objects



hardcopy dealers support their manufacturing

customers with a range of hardware, including

desktop devices and copiers along with

wide-format machines for printing mechanical

drawings and CAD output. In these instances,

the hardcopy dealer is already a trusted

advisor that expands its product offerings to

include 3D devices.

Service bureaus: Regardless of

whether they are manufacturing

companies or non-profit

establishments such as schools,

many businesses cannot justify acquiring

industrial 3D printing systems (and hiring the

staff to run them) because the systems are

too expensive or not needed. When these

organizations need to create a prototype or

model, for example, they often turn to a

service bureau. In the commercial sector,

service bureaus currently represent a

significant portion of the overall 3D printing

market in terms of systems sold and

materials consumed. For example,

Solidscape recently agreed to supply 1,000

printers to a new service bureau in China.

Service bureau customers are typically any

business that needs a model or prototype, a

cast or mold, a part reproduced for a repair,

or a proof of concept. For example, a local

design firm might use a service bureau to put

its concepts into physical form to show its

clients. For that design firm, it might be more

cost effective to pay a service bureau than

to invest in 3D technology, especially since

the service bureau probably has a range of

3D capabilities to meet specific material and

finish requirements.

In some cases, using a service bureau to

3D print an object offers no advantage in

cost, time, or quality. For example, it takes a

similar amount of time to create an average

architectural model using a 3D printer as it

does to create it by hand due to the time the

software needs to prep the digital models.

Some elements cannot be produced using

3D printing because of their complexity or

quality requirements. But the technology is

rapidly maturing and 3D printing is offering

more and more advantages over traditional

production methods.

While many service bureaus are unique to

manufacturing processes, there is one type

that currently offers 3D products, and 2D

hardcopy vendors supporting the print-

for-pay market know it well—reprographic

providers. Certain reprographics providers

are now using 3D printing to expand beyond

their traditional 2D large format printing

business and are creating 3D signs and

graphics with text and images.

We are hearing that some companies

currently marketing 3D machines are

also acting as service bureaus. Potential

customers looking at 3D machines

may, for whatever reason, decide not

to make a purchase, but they still need

the output 3D machines deliver. With

access to the machines printing 3D output

in their showrooms, some of the more

entrepreneurial dealers are leveraging these

machines and acting as service bureaus.

These dealers realize that in addition to

making money through prototyping, they are

building solid relationships with customers

who will come back and purchase hardware

in the future.

There is also a growing number of online

3D printing service websites, such as

Shapeways and i.materialise. Some large

retail chains and other service providers

have also announced their intentions to test

the market for 3D printing services. Staples

not only sells a range of 3D printer brands,

it also provides 3D printing services in

stores with Innovation Centers. UPS offers

3D printing services at 56 of its UPS Store locations at this writing.

For example, it takes a

similar amount of time

to create an average

architectural model

using a 3D printer as

it does to create it by

hand due to the time

the software needs to

prep the digital models.

Some elements cannot

be produced using 3D

printing because of their

complexity or quality

requirements.



Just as more print-for-pay work has moved

online, we expect to see more 3D services

bureaus pop up on the web. The opportunity

for resellers is with the smaller local service

bureaus. The larger national providers will

likely deal directly with the OEMs.

Architecture and engineering

(CAD/CAE): 3D printing is

making inroads with architects

and engineers as a means to

create models of things like specific design

feature such as a window frame, single

building to shopping malls, or proof-of-

concept engineering designs. Let’s say an

architectural firm wants to create a model of

an office building it designed. Simple parts of

that model might be more cost effective to

produce by hand--the traditional method.

The most complex parts might need to show

great detail and a particular finish and would

be most effectively produced by a high-

quality 3D printing system. Other less

detailed parts might be produced using less

expensive 3D printers.

Like manufacturing firms, hardcopy vendors

often sell an assortment of machines to

architects and engineers including printers

and copiers as well as wide-format prointers

and scanners so adding 3D printers to the

package is a natural fit.

As noted earlier, 3D technology that

supports architectural firms is just coming

on the market. While in some cases 3D

printing creates higher-quality models, the

advantage is offset by slow production

speeds. For example, architects

typically outsource model creation

or use junior staff to create them

by hand—basically like a craft

project. That process could take

30 hours. The preparation time

to set up the same model to be

printed in 3D, however, could take

50 hours or more.

This is primarily a software issue. It takes

time to process and translate a CAD image

into a format that a 3D printer understands.

Industry insiders expect improvements that

could reduce processing time to just a few

hours within the next year.

3D printing output also often does not yet

meet architects’ and engineers’ exacting

standards. There is a loss of detail for intricate

designs, and getting the desired finish or color

can sometimes be difficult. For this reason,

an architect or engineer might use 3D printing

for specific pieces that are best suited for the

technology and use traditional model building

techniques for the rest.

Healthcare (including dental):

Not many local clinics, dentist

offices, or hospitals have 3D

printing capability on-site, but

this could change quickly. As machines

become more capable and precise, they are

being used to create prosthetics or dental

crowns much more quickly and far less

expensively than by traditional means. In

fact, in its latest earnings report, Stratasys

cited “significant expansion” in the dental

vertical for its Polyjet sales. More practices

are using 3D printing for custom orthodontic

products, according to the report.

The manufacture of clear braces is already

being taken over by 3D printing. With the

traditional process, each set of braces is

made individually from unique molds. With

3D printing, many braces can be combined

from scans and produced in one pass on a

3D printer.

Prosthetics is another area that 3D printing

is radically changing. The prosthetic hand

in the photo, for example, was printed on a

relatively inexpensive 3D printer, the CoLiDo

X3045. The cost to do so was a fraction

of what it would have been with traditional

manufacturing methods.

FIGURE 6: The Objet260 Dental Selection printer. Source: Stratasys

FIGURE 7: Prosthetic hand produced by the CoLiDo X3045, which is shown on the right.

FIGURE 5: The Airwolf3D HDR printer. Source: Airwolf3D



3D Opportunities and Challenges

It is clear that there are opportunities for hardcopy companies to leverage their knowledge,

relationships, and infrastructure in the 3D market. The following are some of the key areas.

Customers: For the channel and OEMs, there is significant overlap in the hardcopy

customer base that is turning to 3D printing in various market segments. It’s not just about

having a foot in the door of these segments—it’s also about understanding the customers’

business. Hardcopy vendors find they don’t have a very steep learning curve if they are

already selling into verticals migrating to 3D.

Hardcopy OEMs considering the 3D market should also look at the customers they already

have. Note that even though you might already sell into the right verticals, you probably

do not know who the 3D decision makers are for those customers. Hardcopy sales tend to

happen through IT or the CIO’s office. An engineering or design department often makes

the purchase decisions for 3D. You will have to leverage your existing contacts within your

existing accounts to find the best contacts for 3D sales.

Your customers will have incentive for dealing with you for 3D system sales. It is much

simpler for them if they have one service provider and one contract for both hardcopy and 3D

equipment.

Service and support: Most of the 3D OEMs are young companies, and their service and

support capabilities have not matured to those of a Hewlett-Packard or Konica Minolta. While

those vendors might respond to a factory service request within 24 hours, a 3D OEM might

take 48 hours or longer. Support and maintenance represents a significant portion of total

revenue (25 percent).

Hardcopy resellers have advantages that will help them provide good service and support to

3D customers. Service technicians who have worked with printers, copiers, or other office

equipment can easily pick up skills needed to service 3D printers. Many OEMs provide

service training to resellers. In larger markets, especially ones with good maker communities,

you can hire people with 3D service experience from the local talent pool.

Just as important, your existing customers know and trust you, whereas a startup 3D reseller

will have to take time to build credibility. Leverage that trust to set realistic expectations for

service and support.

Training: For resellers, retailers, and OEMs, your customers’ learning curve for 3D systems

will be significantly steeper than it is for your typical office printer or copier. If they are unsure

of how they might apply 3D printing in their business they might be confused by the range

of options. This is good news for office equipment dealers who are already viewed by their

customers as technology experts. The ability to instill a sense of confidence in customers

through training and tutorial material will be a great advantage.

Introductory training courses designed to give an overview of 3D printing and its use will

to a long way toward making your hardcopy customers comfortable with the technology. It

gives resellers an opportunity to address any questions about performance or capabilities

and get the customers thinking about the technology in the proper perspective. Walk your

customers through the entire application process so they see where 3D technology adds

For the channel

and OEMs, there is

significant overlap in

the hardcopy customer

base that is turning to

3D printing in various

market segments.



value, and show them where and how

they can compensate for the technology’s

shortcomings.

Infrastructure: 3D printing is a new industry,

and any new company just starting out in that

industry, such as OEMs, channel players, or

materials/consumable manufacturers, will

have to build up their infrastructure to be

successful. Infrastructure includes facilities,

workforce, channel, and supply chain.

Resellers in the 2D industry already have

this infrastructure. Yes, they will need

to retrain staff, adapt some processes,

and work with new partners in the supply

chain. While such change in an existing

organization might not be easy, it’s a lot

easier than building from scratch.

While each 3D printing market is different,

they all have inherent challenges that a

customer might object to. A reseller can

easily and effectively address all of them by

understanding the applications for which its

customers will use 3D printing. This will allow

them to put the limitations into the proper

perspective. With performance questions, for

example, which is better: waiting two weeks

for a model to be made by traditional means,

or 12 hours on a 3D printer? Walk your

customers through the entire application

process so they see where 3D technology

adds value, and show them where and how

they can compensate for the technology’s

shortcomings.

These are the challenges:

While each 3D printing market has its own

unique aspects, they will all encounter the

following challenges.

Speed: “Fast” is not a word often associated

with additive manufacturing, and it’s not

just the printing process itself that is slow.

FDM printers, for example, move the print

head at a rate ranging from 10 to 300 mm

per second. Creating digital models and

converting them to files that the equipment

understands is also time-consuming. Until

speed issues are addressed, additive

manufacturing will be limited to custom jobs

and small production runs in the commercial

market. For the consumer market, slow

printing will be a barrier to adoption.

For performance, make sure your customers

focus on the time spent on the entire process

and not just the time on the printer. Also,

the technology is improving rapidly. Work

with OEMs so you can talk about planned

performance improvements.

Ease of use: The low end of the 3D printing

market has seen significant improvements

of late in ease of use, from creating and

editing digital files to setting up and using

the hardware. Commercial 3D printing

products are also getting easier to use, but

their higher level of sophistication means

you need people with specialized skills to

produce the desired results, or you need to

retrain designers, engineers, or machinists

on the new software and technology.

The learning curve for experienced technical

professionals, however, is not very steep. By

offering training, a reseller can easily show

customers that their time to productivity with

3D printing may be faster than expected.

Physical volume of objects produced:

The maximum size that a 3D printer can

handle is limited. At the low end, that means

a build area as small as 5 × 5 × 5 inches.

Commercial units can handle build sizes as

large as 39.3 × 31.4 × 19.6 inches. No matter

what hardware is being used, users are also

limited to the dimensions available even if

the object being produced is less than the

available cubic inches. Larger objects can

be created by breaking them up into smaller

pieces to be assembled, but this adds time

and labor to an already lengthy process.

Addressing this limitation is a matter of

understanding the customer’s application

and matching them with the right 3D

equipment. You might also have to do a proof

of concept project to show that the system

can handle their application.

There is always a

lag time between a

technology’s readiness

for a market and the

market’s readiness for

it. As companies and

professionals learn more

about what 3D printing

is and what it can do,

adoption rates will rise

significantly.



Cost and quality of materials: With all

the different technologies and multitude

of materials available for a relatively small

number of low-volume applications (compared

to 2D printing), 3D printing materials are still

very expensive. For filaments, cost is typically

given by weight, and prices range from

about $19 per kilogram for ABS to more than

$150 per kilogram for more exotic materials.

Powders can be more expensive, especially

those that are metal-based. Titanium, for

example, can run from $200 to $400 per

kilogram. And for many applications, 3D

printing materials do not yet match those used

for more traditional manufacturing methods in

terms of finish, strength, and durability.

This is another area where it will pay for a

reseller to be a trusted advisor. Educate your

customers on the available materials and keep

tabs on new developments. The 3D printing

materials market is very dynamic and new

options appear almost daily. Match customers

with the materials suppliers with the product

most appropriate for their applications.

Total operating cost: When you consider

the relatively small 3D printing market and

its low sales volume, cost of materials, and

skilled labor expense, the cost of owning

and operating a commercial additive

manufacturing system can be high.

For this reason, many resellers offer 3D

printing services in addition to equipment

sales. This way, potential customers can

not only learn what to expect in terms of a

finished product, but get a sense for whether

buying 3D equipment is cost-effective.

Fear and uncertainty: Nobody wants to

invest in a technology that will be obsolete

soon or is not right for their application.

Many customers are also reluctant to buy

from an unfamiliar vendor, especially if they

think a similar option will soon be available

from a trusted source. These are exactly

the dilemmas facing companies that are

considering 3D printing systems. They are

asking questions such as the following:

» Why buy now if next year I can get a

similar system that’s 20 percent faster

for the same price?

» With so many options for printing

technology and materials, how do I

make the best choices for my business?

» Should I buy from a company that’s

been in business for less than five

years, or do I wait for 3D systems from

Hewlett-Packard/Epson/Ricoh/etc.?

One final point: the challenges listed

earlier highlight the growing pains of a

young industry. It will become more settled

over time, but with a young market the

greatest opportunities are at the beginning

of the growth curve, not when it’s stable

and peaking. Any company entering the 3D

market now should be prepared to be patient.

The 3D industry is undertaking efforts to

bring stability and consistency to the market.

Groups such as the 3MF Consortium is

working to define a common 3D printing

format that will allow design models to be

used across other applications, printers, and

platforms. 3MF is supported by Hewlett-

Packard, Autodesk, 3D Systems, and many

other significant players in the 3D community.

Autodesk’ Spark platform provides a way

to make it easier for software to prepare,

optimize, and deliver 3D models, and it is

supported in Microsoft Windows 10. And

key standards bodies such as the National

Institute of Standards and Technology and

Underwriter’s Laboratory are working with

industry groups on 3D printing standards

as well.

It will take time to learn and know 3D

technology and the market as well as you

know the hardcopy market. The same is true

of the customer base. There is always a lag

time between a technology’s readiness for

a market and the market’s readiness for it.

As companies and professionals learn more

about what 3D printing is and what it can do,

adoption rates will rise significantly.

Groups such as the 3MF

Consortium is working

to define a common 3D

printing format that will

allow design models to

be used across other

applications, printers,

and platforms.


Appendix


Printing Technology

How It Works Materials Used Key Vendors

Stereolithography (SLA)

An ultraviolet light beam “draws” the object to be printed on the surface of a light-sensitive polymer, where it is solidified. The process continues on a layer-by-layer basis until the object is complete.

Liquid polymers 3D Systems

XYZPrinting

Fused Deposition Modeling (FDM) or Fused Filament Fabrication (FFF)

An extrusion nozzle heats and melts a solid material, typically in the form of a coiled plastic filament or metal wire. It then deposits the material in successive layers, which immediately harden. The nozzle can move both horizontally and vertically via stepper and servo motors.

Plastic, metal, or plastic/carbon coiled filaments

Stratasys

Makerbot (owned by Stratasys)

Print-Rite

3D Powder (3DP) Uses inkjet printing technology similar to that found in 2D printers to deposit liquid binder onto thin layers of powder. The process repeats in a cross-section pattern. When the printing is complete, excess powder is removed for reuse.

Powder, typically gypsum, and a liquid binder

3D Systems

3DP Unlimited

Selective Laser Sintering (SLS)

A thermal beam fuses selected areas within a reservoir of powder.

A range of pow-dered material

Sharebot

Sinterit

Material Jetting Liquid droplets of build material are selectively deposited into a build tray, where it is cured using ultraviolet light.

Wide range of plastics and composites

Stratasys Polyjet

3D Wax Printing Uses wax in a direct-write ink-jet system to do rapid prototyping or to create master molds for proof-of-concept castings.

Solid wax Solidscape (owned by Stratasys)

Selective Deposition Lamination (SDL)

Uses paper to build objects layer by layer by successively applying adhesive to a designated area and placing one sheet of paper above the other, with each sheet being cut into the appropriate shape. Ink may also be used to color the object being built.

Paper, adhesive, and ink

MCor Technologies

FIGURE 8: Most Common Commercial 3D Printing Technologies



Software Type What It Does Examples

3D Model Creation Allows you to design objects to produce and then create a file to prepare for a 3D printer.

AutoCAD

Solidworks

Rhino 3D

Post-Modeling Software

Three classes of software that prepare your model for printing:

• Slicing takes a 3D model and translates it to individual layers that are then sent to the printer for printing.

• Support structure is software that generates code that the printer uses to create a support structure for the object being created.

• Optimization and printing analyzes the code for the model being sent to the printer to make sure it is rendered as efficiently as possible.

Cura

KISSlicer

3DPrinterOS

Scanning Software Allows you to capture a file from a 3D scanner to copy an existing physical object.

Typically comes with the scanner

FIGURE 9: Overview of 3D Printing Software

Material Description Printer Type

Solid plastics Typically sold as a coiled filament. Most common groups are nylon, ABS, and PLA.

FDM

Liquid resin A photo-sensitive polymer that is either jetted and cured or cured in a vat, in both cases by UV light.

Material jetting and SLA

Metals Most commonly used in 3D printing are stainless steel, gold, silver, and titanium, typically in powder form.

Metal laser sintering (variation of SLS)

Gypsum powder Stored in a reservoir where binding material is jetted into it to form an object.

3DP

Paper Paper is layered using adhesives and cut to shape.

SDL

Ceramics Used in powder form with a binder. Porcelain is a common variety.

3DP

Carbon Most often found in composites sold in filament form.

FDM

FIGURE 10: Overview of the Most Commonly Used Commercial 3D Printing Materials



Marketplace Description URL

Autodesk 123D A community where you can share models, apps, projects, and tools. Paid premium membership gives you greater access to resources.

http://www.123dapp.com/Gallery/content/all

3D Part Source Find 3D models for parts and industrial components by form and shape.

http://www.3dpartsource.com/

GrabCAD A platform for collaborating on CAD-based 3D models with more than 910,000 available CAD models.

https://grabcad.com/

CGTrader A fee-based marketplace where designers and hobbyists can buy and sell 3D designs.

http://www.cgtrader.com/

i.materialise An online service bureau that sells ready-made designs.

http://i.materialise.com/

Instructables A resource clearinghouse for the maker community that includes many 3D models.

http://www.instructables.com/

Create This A fee-based marketplace where designers and hobbyists can buy and sell 3D designs.

http://www.createthis.com/

Makerbot Thingiverse

Many creative commons (free to use) 3D models and designs.

http://www.thingiverse.com/

Yeggi Search engine for 3D-printable models. http://www.yeggi.com/

FIGURE 11:3D printing marketplaces for downloadable content


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Understanding the 3D Printer Market from a 2D Perspective

Technology

Transcript of Understanding the 3D Printer Market from a 2D Perspective