AMPOWER has published its latest report, an exceptionally comprehensive collection of proprietary first-hand data and analysis on the additive manufacturing industry.
3D Printing Industry readers can access an exclusive 10% discount on the 2025 AMPOWER Report using the code 3DPI2025.
Data on the additive manufacturing sector is often fragmented, with some companies reluctant to share split figures across geographies, technologies, and industrial verticals. “The problem with data is that there are different sources,” said AMPOWER Managing Partner, Matthias Schmidt-Lehr. Forecasting from startups compounds the issue. In early years, emerging companies frequently set ambitious targets.
AMPOWER’s report draws on a network of large, established users of additive technologies for more realistic projections. Aerospace, defense, energy, and medical sectors are highlighted as core markets, each featuring clear roadmaps for how they deploy additive production.
The resulting report, published today, shows the industry has a current market size of EUR10.72 billion, growing at 13% CAGR by 2029. For comparison, the 2023 figures were a market size of EUR10.50 billion, with 13.9% CAGR until 2028. By machine sales, the leading AM technology is metal Powder Bed Fusion at 39% (2023: 40%).
Headline figures from the AMPOWER Report:
Market slowdown in 2024 – 2% growth as customers postponed equipment investments
Strong material consumption – +17% growth in tons, signaling increased utilization
Industry consolidation – Fewer new startups, a shift toward profitability, and strategic refocusing
Sector-driven demand – Aerospace & Defense, Energy, and Medical remain key growth areas
AMPOWER findings suggest that equipment revenues may flatten, but materials show more promising growth, bolstered by higher machine utilization among end users. The part-manufacturing service bureau market is said to be under strain, particularly those offering one-off and prototype parts. Contract manufacturers with smaller client bases and steady production orders fare better, while broader prototyping services face tougher conditions and competition from low-cost suppliers. Meanwhile, Chinese service providers are gaining traction among overseas customers with simpler application requirements.
When will AM growth resume?
Some industry observers anticipated slowing growth for additive manufacturing, but a more pronounced flattening from 2023 to 2024 has emerged. “I did not expect a flat line or even a decline in total market volume,” said Schmidt-Lehr. He suggested that enthusiasm seen over the past year had not translated into sustained growth, with some companies deferring capital investments amid uncertain market conditions.
Several factors appear to be driving this pause. One is the need to absorb prior machine acquisitions. Many users had previously expanded their machine fleets in anticipation of increasing production needs, but that capacity now exceeds immediate demand. Schmidt-Lehr noted that “companies purchased machines without actually utilizing them” and that today’s priority is “increasing utilization and productivity” rather than additional equipment spending.
Despite slower equipment sales, material usage is reportedly on the rise. Schmidt-Lehr says this points to healthy machine utilization levels, particularly in sectors with a clear roadmap for production, such as energy, aerospace, and defense. While overall additive manufacturing remains on a long-term growth trajectory, near-term challenges persist for businesses experiencing declines in sales and confronting management changes.
Analysts attribute part of the uneven landscape to macroeconomic factors, including interest-rate shifts and widespread political transitions, which have weighed on capital expenditure decisions. Regional variances also figure prominently, with additive machinery sales in North America holding firmer than in Europe. The general sentiment among industrial users remains positive, but many are pausing new equipment investment until current assets are fully deployed.
Several market forecasts have suggested that equipment sales for additive manufacturing may rebound strongly in the second half of 2025. AMPOWER’s Managing Partner takes a cautious view: “Yes, our data still shows there will be continuous growth, which reflects the customer feedback and supply chain feedback. But this is based on interviews in January and the beginning of February. Recent geopolitical shifts may bring additional uncertainties to the equation.”
Market uncertainties extend beyond traditional economic cycles. Trade tariffs and protectionist policies have limited influence on sectors such as metal AM, Schmidt-Lehr says, because leading players in the United States typically produce locally. However, potential project delays across industries could slow machine purchases. Machinery manufacturers are also wary. Given fluctuating demand and ever-shifting policies, several have become reluctant to issue forward-looking statements.
AMPOWER’s data points to an evolving competitive landscape. Growth is no longer fueled by nascent entrants expanding the overall market. “We are definitely out of this startup phase,” Schmidt-Lehr says. “It’s all about fighting for the piece of cake you want to achieve.” This heightened competition is likely to spur a wave of acquisitions and mergers, reshaping a sector that has historically featured a steady flow of new businesses.
Schmidt-Lehr adds that the new AMPOWER study is an “important milestone,” providing the strategic groundwork for companies seeking to identify and defend their market share. As flat or declining figures become a reality, established firms may look to consolidate positions or explore inorganic growth, rather than rely on an industry-wide surge in demand.
The strategic approach to value creation with 3D printing
Industry insiders are questioning the wisdom of “selling 3D printing” as a broad offering, instead favoring application-focused models. “It becomes more difficult to sell 3D printing,” said Schmidt-Lehr. “You either win with cost, or you win with quality and focus.” A wave of machine manufacturers have pivoted to specialized sectors, demonstrating a move away from one-size-fits-all solutions. He cites how Formlabs has established itself through simple, budget-friendly systems such as the Formlabs Fuse, while high-end equipment suppliers now concentrate on aerospace, energy, and healthcare.
Schmidt-Lehr confirms that additive manufacturing has made strides toward the maturity levels seen in CNC processes. He cites energy-sector clients achieving 95% machine availability and 75-80% utilization rates—figures that would have been unthinkable only a few years ago. Alongside this operational progress, growing material consumption underlines a commitment to making full use of existing installed capacity.
Although current economic trends have dampened expectations, projections still favor expansion in the mid-term. “We do still project growth, and the reason for that is mostly the application users who keep mentioning that what they’re currently doing in AM keeps unlocking new applications,” Schmidt-Lehr added. Aerospace, defense, energy, medical, and industrial tooling could see the greatest gains, given that most companies in these areas say they are far from exhausting additive’s potential.
This measured optimism contrasts with an older vision for AM of universal devices suitable for any manufacturing task, or what might be called replicator syndrome. In the way CNC technology evolved to serve distinct niches, additive methods appear to be charting a parallel course—operators either compete on cost and simplicity or pursue specialized markets that promise higher margins and product differentiation.
Updates on AM progress in key vertical markets
“One reason for the decreased equipment revenue last year,” said Schmidt-Lehr, “was not only the flat line in number of equipment but also the decreased pricing.” On the metals side, the market is diversifying at both ends: sub-100k machines targeting dental and other niche segments and large-scale equipment for aerospace applications dominated by Chinese providers.
Aerospace and defense remain robust in metals, but full-scale commercial aircraft programs are hampered by protracted development timelines. Defense work, often linked to spare and sustainment parts, still leans heavily on R&D. Steady, if incremental, demand also stems from medical and dental, which Schmidt-Lehr describes as “very reliable,” pointing to consistent implant and dental applications that helped offset weaker performance elsewhere. Heat exchangers are another bright spot in metals, with software advancements, such as generative design for lattice structures, expanding design possibilities, and boosting system-level performance. Notably, enterprises, including nTop, are unlocking these applications.
Polymers have seen consumer-driven growth, including applications in sports equipment and protective gear, helped by affordable desktop selective laser sintering devices. As Schmidt-Lehr put it, these polymer machines can match prior industrial specifications at a fraction of the cost, prompting users to substitute larger or legacy systems with smaller, targeted solutions that excel at prototyping and mid-volume runs.
A Deeper Dive into the 3D Printing Start-up Segment
Additive startups appear to be operating in a more cautious funding environment, according to the new AMPOWER analysis. “We had the highest peak in 2022 with about four to 4.2 billion Euros invested in startups,” said AMPOWER Managing Partner, Matthias Schmidt-Lehr. “Now, in 2024, we see about 1 billion euros in documented investment rounds.” He attributes the drop to investors increasingly favoring ventures that address specific industrial challenges rather than those that market 3D printing as a catch-all solution.
Schmidt-Lehr sees incremental innovation dominating among established players, with beam shaping (nLight, EOS/AMCM) and thick-layer printing in metals, or dual SLA/DLP (Axtra) systems in polymers, being prime examples. “We have small, incremental innovations everywhere,” he noted. “Companies are buying their sixth, or seventh machine, and they don’t want to be met with any more surprises. They want a reliable system, not necessarily brand-new technical features.”
Hardware developers targeting niche applications, such as printing tungsten carbides for fusion reactors or producing fuel-cell components, appear to have the best funding prospects. Some startups even avoid the 3D printing label to emphasize end-market integration. Schmidt-Lehr believes this underscores the importance of demonstrating clear economic returns for users rather than simply showcasing an innovative additive process.
Learning from History
Asked how the sector might look if rebooted from day one, he responded: “I don’t know if it would look so much different. It’s not a technology designed for one specific application.” He points out that 3D printing stretches across a wide spectrum of materials, industries, and uses—from high-end aerospace parts to routine prototypes.
This range has required developers and service providers to court many verticals at once. Some have thrived on niche solutions, while others chased universal approaches. Schmidt-Lehr believes the industry’s early focus on pursuing every possible market was inevitable. “You’re forced to market a new technology across all kinds of verticals before you identify the use cases that are scalable and make money,” he said.
He added that if the industry could use current knowledge from the start, it might well concentrate on proven lucrative segments. Yet he doubts the overall playbook would shift dramatically. The breadth of additive’s applications remains both its defining strength and its biggest hurdle, shaping a path that is inherently more complex than traditional manufacturing technologies.
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Featured image shows the AMPOWER Report 2025. Image via AMPOWER.
