A new report from market intelligence firm CONTEXT has highlighted ‘explosive’ growth for entry-level 3D printers. As was evident in CONTEXT’s Q1 2024 report, shipments of industrial, midrange, and professional 3D printers continued to stagnate.
Significantly, entry-level models accounted for 48% of global 3D printer revenues in Q2 2024, replacing industrial systems (38%) as the top-grossing price class.
This reflects the rising market share of more affordable desktop FDM 3D printers, such as those from Bambu Lab. Professional users are increasingly opting for cheaper models which offer many of the features found in higher-end systems.
Shipments in the entry-level price range grew by 65%, with revenues up 58% compared to Q2 2023. Notably, the 7% increase in global 3D printer revenues in Q2 2024 was reportedly entirely driven by the surge in entry-level shipments. China’s domination of the entry-level 3D printing sector is clear. 94% of all sub-$2,500 3D printer shipments in Q2’24 came from four Chinese vendors – Creality, Bambu Lab, Anycubic and Elegoo.
Industrial systems experienced a fourth consecutive quarter of decline, with shipments down 25% year-over-year and revenues down 17%. CONTEXT reports that industrial polymer 3D printer shipments experienced continued weakness in all regions. The professional 3D printer segment also witnessed a sharp revenue decline, down 21% YoY.
On the other hand, China’s domestic Metal Powder Bed Fusion (PBF) shipments continued to perform well, posting 7% YoY growth. Additionally, the success of Formlabs’ Form 4 and Form 4B product launches catalyzed some improvement in the professional 3D printer segment. It remains to be seen whether the recently released Form 4L and Form 4BL 3D printers will have a similar effect on the Q4 results.
Chris Connery, VP of Global Analysis at CONTEXT, believes poor industrial 3D printer performance has caused many Western companies to move forward with “long-coming consolidation.” He added that acceleration in the consumer space has allowed entry-level manufacturers to “thrive in the moment.”
Industrial Polymer 3D printers continue a downward trajectory
Industrial polymer 3D printers in the $100,000+ price range performed poorly in Q2 2024, with global shipments falling 36% YoY. This was reportedly driven by low vat photopolymerisation shipment levels, which decreased by 47% compared to the previous year.
Both Western 3D printer manufacturers and Chinese vendors in this space performed poorly, according to CONTEXT. The latter includes the industrial resin 3D printer market leader UnionTech, which reportedly witnessed a ‘notable’ YoY decline.
3D Systems, the Western market leader for industrial photopolymerization 3D printers, also continued to struggle. Its top customer, a dental firm, has been stymied by weak downstream demand. Ongoing inflation has reduced consumer spending for 3D printing-enabled cosmetic dental procedures.
China dominates the metal 3D printer market
The industrial metal 3D printer market witnessed a mixed performance in Q2. While global shipments were down 7% YoY, they increased by 2% on a trailing twelve-month (TTM) basis. PBF remains the most popular technology in this space, representing 78% of metal 3D printers shipped and 85% of global revenues. It was also the best-performing metal 3D printing category in Q2 2024, with shipments only down 1% Y/Y and flat on a TTM basis.
Notably, China has continued its domination of the metal 3D printer market. Chinese 3D printer manufacturers Bright Laser Technologies (BLT), Eplus3D and ZRapid Tech saw impressive TTM shipment growth of 31%, 29%, and 54%, respectively. BLT was the global leader for industrial metal PBF 3D printers in Q2 2024. Overall, Chinese vendors, which mostly sell domestically, accounted for 53% of all metal PBF 3D printers shipped in Q2, and 32% of revenues.
However, CONTEXT reported that growth in China seems to be decelerating, with only 5% more metal 3D printers shipped in Q2’24 than Q2’23. This is a substantial decrease from the 19%, 38% and 45% YoY growth reported in the previous three quarters.
In the West, Munich-based 3D printer manufacturer EOS retained the top spot for global metal system revenue. Overall, Western manufacturers of industrial and metal PBF 3D printers experienced slight shipment improvements, but the figures were still down 2% YoY. Some companies bucked the trend of falling shipments, with TRUMPF posting a 22% increase, and Colibrium Additive 35% growth.
While Nikon SLM Solutions shipped fewer 3D printers in Q2 2024, they experienced over 30% YoY revenue growth. This was driven by a shift towards the company’s high-cost NXG systems, with accelerated shipments expected to continue in the future.
Many companies have introduced high-efficiency, large-sized, multi-laser metal 3D printers in recent quarters. This phenomenon has been referred to as the ‘laser wars,’ with Westen and Chinese vendors competing to incorporate increasing numbers of lasers into their high-end metal 3D printers. Yet, according to CONTEXT, Nikon SLM is the only firm currently shipping them in volume.
Falling fortunes for midrange and professional 3D printers
Shipments of Midrange 3D printers costing between $20-100K fell 6% YoY, with all modalities except vat photopolymerization down in Q2 2024. All midrange shipments collectively fell by 10% on a TTM basis.
As with the industrial metal sector, most midrange 3D printer vendors that are performing well are Chinese and selling domestically. In Q2’24, shipments from Chinese companies increased 18% YoY, with global shipments falling 15%. While all Western midrange-3D printer vendors saw shipments decrease, the opposite was true for Chinese companies UnionTech, ZRapid Tech and Flashforge. UnionTech shipments grew 12% YoY, with Flashforge 3D printer shipments experiencing an impressive 90% growth.
The professional 3D printer segment has witnessed several quarters of substantial YoY shipment decline. This seems to have slowed In Q2, with only a 10% YoY decline for systems costing between $2,500 and $20,000. According to CONTEXT, this improvement was driven by the strong performance of Formlabs. Yet, Shipments were down 28% on a TTM basis, with much of the demand shifting to more affordable, entry-level 3D printers.
The professional segment has traditionally favoured FDM 3D printers over vat photopolymerisation 3D printers 65/35. However, A more equal shipment distribution closer to 50/50 was seen in Q2’24. This further emphasises the market growth of cheaper entry-level FDM 3D printers, with professional extrusion system shipments falling by 21%. Resin 3D printer shipments, on the other hand, increased by 6%.
Chinese companies dominate the entry-level 3D printer market
Entry-level 3D printers costing under $2,500 continued to excel in Q2’24, experiencing ‘explosive’ growth. Shipments increased 34% sequentially, with 65% YoY growth and a 45% improvement on a TTM basis.
Chinese 3D printer manufacturer Creality continued to dominate much of the competition, accounting for 47% of all entry-level systems shipped in Q2’24. It experienced 64% YoY shipment growth, which increased 45% for the half-year period.
However, Creality’s impressive growth rate was dwarfed by that of Bambu Lab, which registered 336% YoY shipment growth. Thanks to the company’s staggering rise, it now possesses 26% of the global market share for entry-level 3D printers.
A positive outlook for the future of 3D printing
CONTEXT’s Q2 2024 report reflects a difficult quarter for Western 3D printing companies. During this period, Stratasys, Velo3D and Markforged all announced layoffs, with Shapeways filing for bankruptcy. Questions surrounding 3D printing industry consolidation have also been posed, with Nano Dimensions set to acquire Desktop Metal and Markforged.
Despite these uncertainties and CapEx spending delays driven by high interest rates, most 3D printer OEMs continued to report high levels of interest and engagement. Connery believes industrial 3D printers are set to see strong shipments once the cost of money decreases, “much in the same way that markets opened up immediately post Covid.” Over the long term, Connery believes the industrial segment will grow the most, with a five-year forecast CAGR of 19% driven by lower cost of capital and a move to “volume serial production.”
He pointed to the half-point interest rate cut announced by the US Federal Reserve last month, its first cut in four years. This will reportedly be welcome news for many in the industry, with a further “three to four such cuts” expected in the second half of the year. This, according to Connery, “will allow businesses to begin to significantly improve.”
Consequently, the 2024 forecast for industrial 3D printers has been downgraded, with recovery now expected for the latter half of 2025. However, unit shipments are still expected to rise by 1% YoY, and revenue by 6%, largely driven by Chinese demand for metal PBF 3D printers. Short-term forecasts have also been lowered for midrange and professional systems, with fewer units expected to ship than last year. Single-digit to low double-digit growth is predicted for 2025.
The positive performance of Chinese 3D printer manufacturers is likely to continue. According to CONTEXT, several Chinese industrial and entry-level OEMs are set to go public. There is some concern that recent shipment growth has been driven by market product pushes ahead of their flotation. However, the lack of regional or channel inventory build-up suggests that all current demand is real demand.
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Featured image shows the global 3D printer shipments by price class in Q2 2024. Image via Context.
