The industry's fate is largely determined by the manufacturing sector's product development
Los Angeles, CA (PRWEB) February 27, 2012
The 3D Printing and Rapid Prototyping Services industry has leaped ahead in recent years, driven by rapid technological developments, falling costs and new applications for 3D printing technology. Over the five years to 2012, revenue is expected to grow at an average annualized rate of 7.2% to total $662.4 million. Industry revenue decreased 10.7% in 2009 due to recession-related declines in demand, but it bounced back in 2010 (11.6%) and 2011 (18.3%), as downstream markets recovered. Revenue is expected to grow 18.5% from 2011 to 2012. The industry's fate is tied to the manufacturing sector. Most companies use 3D printing to create prototypes, since most 3D printing is limited to certain materials. “Developing a prototype is an essential part of product development, and manufacturers are often weighed down by the time and costs involved in the traditional prototype manufacturing process,” said IBISWorld industry analyst Nima Samadi. “Because of this, during good economic times, manufacturing activity is major driver of industry revenue.”
There have been a number of startups founded over the last few years that use 3D printing to manufacture compelling and customized consumer products, sustaining demand for 3D Printing and Rapid Prototyping Services industry services. For example, online startups like Shapeways and Ponoko have developed a cost-effective way to create 3D printed products for consumers. The consumer market is still in its infancy, but has a tremendous amount of growth potential. Industry products have been increasingly used in the medical field; they are used to create customized medical devices and medical devices that more accurately replicate the human form. These products include hearing aids, orthopedics, dental implants as well as future applications, such as 3D-printed organs and blood vessels. Aerospace manufacturers comprise another market that has the potential for strong future growth for 3D printer manufacturers. According to Samadi, the aircraft industry's continual desire to reduce the weight of their aircraft to maximize fuel-efficiency will drive future demand for 3D-printed products. Over the five years to 2017, industry demand and revenue are forecast to surge forward as 3D printing and rapid prototyping explodes in popularity and more customers from a wide array of industries join the 3D printing revolution.
The 3D Printing and Rapid Prototyping Service s industry carries a low market share concentration, as the top two firms are expected to account for roughly 22.3% of industry revenue in 2012. The low concentration can be attributed to a number of factors. For example, technological advancements and falling costs of 3D printing services have increased consumer demand for the product overall, but there are still new markets and new customer bases that can discover more about this industry's services. As such, the industry is still relatively fresh, and its swift growth over the past five years indicates the industry's rapid penetration into a still largely untapped market. This trend presented substantial opportunities for new entrants looking to cater to a niche industry or carve out a regional customer base. The industry is already moving in this direction, with enterprise numbers expected to grow roughly 4.4% over the five years to 2012, with establishment numbers rising 4.1% over the same period. IBISWorld expects industry concentration to grow over the next five years despite the influx of new companies entering the market because the larger, established firms may attempt to merge or acquire niche, new companies that have created a fresh market base or carry key technology. For more information, visit IBISWorld’s 3D Printing & Rapid Prototyping Services report in the US industry page.
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IBISWorld industry Report Key Topics
Firms in this industry offer 3D printing and rapid prototyping, which is the automatic construction of physical objects using additive manufacturing technology. The competing technologies in the marketplace are differentiated by the way layers are built to create parts. Some melt or soften material to produce layers, while others lay liquid material thermosets that are cured. In the case of lamination systems, thin layers are cut to shape and then joined together.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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