April 17, 2024 -- The fourth quarter of 2023 was a difficult period for many system manufacturers in the global 3D printer space, with shipments of 3D printers in three series of the four major price classes declining compared to the same period last year, in addition to entry-level 3D printing systems, according to the latest market intelligence from CONTEXT, a global strategic partner of 3D Science Valley.
According to Chris Connery, Global Head of Analytics at CONTEXT, traditionally, about 30% of all 3D printers sold each year are shipped in the fourth quarter. This trend reversed in the fourth quarter of 2023, as uncertainty through inflation constrained asset investment in the fourth quarter. Despite the uneven regional economic growth and recovery, many aspects of the world's major economies remain positive. For example, China's strong GDP growth forecasts and stronger-than-expected real GDP growth have injected vitality into the development of the global 3D printing market.
Global 3D printing system shipments in 2023 (number of units), source CONTEXT
Proportion of 3D printing equipment shipments by country (units)
© Context
Industrial-grade system
This price category remains key, accounting for more than 50% of all 3D printing system revenue in 2023. Global shipments of industrial-grade 3D printing equipment in the fourth quarter fell 13% year-over-year, primarily due to a 25% decline in polymer systems, although metal 3D printing equipment grew strongly, with shipments of industrial metal 3D printers actually up 4% due to the growth of the powder bed fusion (PBF) market in China and the increase in global sales of directed energy deposition (DED) systems. For the full year, total shipments of industrial 3D printing systems were significantly impacted by lower capital expenditures (due to higher interest rates), resulting in a 9% decrease in total shipments of industrial 3D printing systems compared to 2022.
l Industrial metal 3D printing system
Although shipments of directed energy deposition (DED) systems increased by 30% year-over-year in the fourth quarter of 2023, powder bed fusion (PBF) remains the most common metal technology in its class, accounting for 72% of industrial metal additive manufacturing (AM) equipment shipments in 2023. Global shipments of PBF systems declined 1% overall in the fourth quarter of 2023, but shipments in China increased year-over-year, masking lower shipments of metal PBF systems in North America and Europe.
Chinese suppliers had a weak performance in the third quarter of last year, but rebounded in the fourth quarter, with shipments of metal PBF system 3D printers up 25% from a year ago, mainly to their home regions. In fact, during this period, the four major shippers of metal PBF printers - BLT-BLT, Huashu Hi-Tech, Eplus3D-Yijia 3D and HBD-Hanbang - were all Chinese companies, and three of them increased year-on-year: BLT-BLT increased by 3%, Huashu Hi-Tech increased by 23%, and the shipment volume increased by 100% year-on-year Eplus3D-Yijia 3D.
Currently, more than half (52%) of the industrial metal PBF printers shipped worldwide come from Chinese suppliers. Unit shipments from Western suppliers in this space are down 20% from 4Q22. For the full year of 2023, shipments of industrial-grade metal 3D printing systems decreased by 3%, although directed energy deposition (DED) increased by 15% and binder jet metal 3D printing increased by 2%.
Mid-range systems
In the fourth quarter of 2023, unit shipments of mid-tier systems increased 16% sequentially, but decreased 7% year-over-year. Companies in this category have seen their own developments, with half of their suppliers seeing year-over-year declines in their shipments, while the other half of suppliers are flat or growing. Top performers in the quarter included Luen Thai Technology, which saw strong and growing domestic reductive photopolymerization shipments throughout the year, Flashforge WaxJet 3D printers with increasing demand, and Nexa3D, which benefited from the acquisition of XYZprinting's polymer powder bed fusion product line.
For the full year, the category leaders are Stratasys, UnionTech, and Formlabs. UnionTech-Luen Thai Technology and Formlabs led the growth in this category. While the two vendors have impressive year-over-year growth in this category (88% and 123%, respectively), the segment as a whole grew only marginally by 2% year-over-year. One of the drivers for this category in 2023 is Formlabs, which has successfully created an entry-level market for new polymer powder bed additive manufacturing, while UnionTech is focused on their product innovation and services, focusing on meeting market needs in vertical segments.
Professional-grade system
The last quarter of 2023 is another difficult period for equipment suppliers in this price range. While shipments of professional-grade 3D printers increased 21% in the fourth quarter from the third quarter, they fell for the ninth consecutive quarter year-over-year. In times of high global inflation, share change is not so much within the price category as it is competition between that category and the entry-level price category. Professional buyers have recognized that entry-level products that were once considered consumer-only offer similar features to models in this category.
Full-year shipments of professional-grade systems fell sharply, -33% year-over-year, with the exception of startup Nexa3D), and product strategies to add functionality proved less effective in 2023 as inflation changed the buying habits of end markets. Major vendors that have historically focused on this price point are now ready to expand their product lines and plan to turn the market around in 2024.
Entry-level system
Q4 2023 saw global shipments of nearly 1 million units (993,000 units) of entry-level 3D printers, setting a new quarterly record!While Creality's 38% year-over-year growth in shipments for the quarter was impressive, Bambu Lab's 3,000% growth was particularly prominent and was one of the main drivers of the category's overall performance. If these two suppliers are excluded from the data, the increase in shipments in this price class is only 2%. Some companies, such as Flashforge, also saw decent growth (36%), while others saw a decline in shipments.
Annual shipments of 3D printing equipment in 2023 increased by 19% compared to 2022, with 94% of entry-level 3D printers shipped in 2023 coming from Chinese suppliers (up from 88% in 2019), while 89% came from just four suppliers: Creality, Anycubic, Elegoo, and Bambu Lab.
prospect
As the first quarter of 2024 comes to a close, many remain conservative about their forecasts for 2024, and according to Context's Chris Connery, while industry is waiting for the dust to settle on how global interest rates will change, and investments in equipment in particular will remain cautious, many are seeing strong signs of pent-up demand. Among them, GE Additive Manufacturing has announced that it will dedicate a significant portion of its $650 million 2024 spending to additive manufacturing. Other U.S. companies have reported increased demand from defense customers due to new investments from the federal government.
In China, Luen Thai Technology announced plans to further expand its product portfolio in 2024, in addition to expanding its product line from polymers to metal 3D printing equipment.
Forecasts for total global shipments in 2024 show single-digit percentage growth across all price segments (5% industrial, 4% mid-range, 3% professional, 8% entry) and rise to double-digit percentage growth by 2025 (2024-2025 forecasts are 16% industrial, mid-range 12%, professional 13%, and entry-level 11%).
* Price tier: Industrial ($100,000 or more), Mid-range ($20,000–$100,000 each), Professional ($2,500–$20,000 each), Entry-level ($2,500 per unit< including hobbyist kit)
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