I’m reading an analysis of 2023 3D printer sales and there are some very interesting implications.
A summary report was recently issued by CONTEXT, which is an analysis firm tracking sales of 3D print equipment, from industrial to professional to what they call “entry level” devices.
The first surprise was that they believe only 33% of total industry revenue comes from publicly traded companies. These companies, which we track weekly on our leaderboard, are highly visible and, judging by the press they get, would seem to be the leaders. But evidently that’s not necessarily the case.
There are multiple private companies that make up the bulk of 3D print activity, such as UnionTech, Farsoon, Eplus3D, BLT, Meltio, Spee3D and others. The public doesn’t know the revenues of these companies, but they are where most of the revenue and growth occurred in 2023.
CONTEXT reports that sales of industrial systems was flat or down in general, and that is consistent with discussions happening now in the industry: the technology is simply not suitable for major manufacturing operations yet. While it has been successful in niches, the 3D printing processes are not yet financially and technically able to scale.
This is not good news for many of the companies competing in that space, particularly those that accepted enormous VC investments. This is most likely what’s souring the financial markets around 3D printing. Because of this situation it’s become difficult for any company to raise funds, even those with more appropriate solutions.
CONTEXT reports dramatic drops in midrange sales for major players, such as Stratasys, 3D Systems and Markforged, which jives with their poor stock price performance in the past year.
In their report it appears that the professional market has taken the biggest beating. This segment has been invaded by low-cost vendors such as Formlabs, which offer similar equipment at far lower costs than earlier players. This segment has also been affected by lower cost entry level equipment that has been deemed sufficient by many buyers that would otherwise have acquired professional equipment.
The one bright spot seems to be the entry level segment, where desktop 3D printers dominate. CONTEXT reports that Creality is still the biggest player, but that others including Bambu Lab and Elegy are catching up.
When looking at the entire spectrum of 3D printing markets, it’s very clear that the trigger for change has been the introduction of new technology at lower prices. Equipment from Bambu Labs and Creality have shattered the very concept of “professional” 3D printers, which previously were defined as a device costing more than US$5,000 in many reports. That no longer makes sense, and the ripple effect has traveled up through the market segments.
Meanwhile, the top of the market, the industrial segment, seems to be stalled. I believe it’s waiting for a similar development: new technology at lower price points. That would unlock the financial equation and enable 3D printing to scale at that level.
Via CONTEXT
