3D printing Has the Potential to Revolutionize the Manufacturing Process

3Dprinting transforms a digital model into a tangible, solid, three-dimensional object by laying down thin layers of material. 3D printing has gained popularity because it makes manufacturing more accessible.

The worldwide 3D printing market was USD 14 billion in 2021 and will reach $77.83 billion by 2030, growing at a 21% CAGR from 2021 to 2030.

The popularity of customized products

The success of 3D printing in markets such as hearing aids demonstrates that this manufacturing technique has a comparative advantage in producing products with complex shapes. It also demonstrates that 3D printing is well-suited to producing customized products. In contrast to traditional manufacturing methods, the costs of adjusting the product are extremely low. Customized products can be found in areas such as footwear, eyewear, and jewelry. These are appealing markets for 3D printing companies that make products for others.

Profit margins and customization

Markets for customized products have much higher profit margins than markets for mass-produced, standardized products.

In the 2020 World Investment Report, the United Nations Conference on Trade and Development states that given the state of 3D printing technologies, “the main constraint on the disruptive power of 3D printing is its economic and technical feasibility.” UNCTAD states that “in 2030 3D printing is likely to be still restricted to selected industries or niche segments, unlike automation and digitalization which are expected to impact all industries to some degree.”

3D printing allows for the creation of new products and services.” It remains to be seen how well 3D printing can meet the theoretical demand for new products.

Untapped Potential

3D printing will one day be the leading manufacturing method; industry experts believe that 3D printing will grow significantly in the coming years. Terry Wohlers anticipates that 3D printing will eventually be able to account for at least 5% of manufacturing. It will take roughly 20 years if the annual growth rate of 27% is maintained (2040).

Although the 27% growth forecast is slightly higher than the 25% average growth in the three years before the crisis, we still believe that 27% is a realistic growth rate for several reasons:

The lack of suitable material is being overcome

The lack of sufficient materials has been a major constraint, but experts in the field claim that advancements in building and polymers are resolving this issue. There will be a wider variety of materials, encouraging more businesses to use the new technology.

Entrance of new adopters into the market

The fact that many new companies and, in some cases, new industries are beginning to work with 3D printers suggests that the share of 3D printed products in worldwide manufactured products will continue to grow. For instance, the US military has begun using 3D printers to create missile launcher shelters. In recent years, 3D printers have also been adopted by the power and energy industries.

According to the Wohlers Report 2021, there were 228 suppliers of industrial 3D printers as a whole in 2020. This is a sevenfold increase from 2012.

Adaptability

The growing popularity of customized products will be advantageous for 3D printing because it is much more affordable to produce than traditional machines. One of every six consumers has purchased a customized product at least once.

Wohlers‘ prediction of a 5% future share of 3D printed goods in total manufacturing is reasonable and will reach around 2040. This scenario can only become a reality if 3D printing mass production becomes economically viable.

Reshoring a stimulus for 3D printing

Supply chain disruption is a hot topic not only in boardrooms but also in public policy debates. Over the last decade, politicians in developed countries have increased their calls to bring production back home (reshoring) or to move production to neighboring countries.

Since the virus started to spread, it has been difficult to obtain medical product supplies. But calls for reshoring can be seen in the context of declining support for free trade, declining popularity of globalization, and a new geopolitical order that emphasizes economic competition over global cooperation. While the US and China are at the center of this rivalry, other Western nations like the EU have also been prompted to call for strategic autonomy and technological knowhow protection.

Protectionism is a potential push for 3D printing.

Reshoring may become necessary for businesses if it gains popularity among politicians, causing governments to change the playing field Tariff increases or other trade barrier increases might change the relative costs of producing in developed countries, forcing companies to relocate production sites back home or to countries with which the home country has a free trade agreement.

Various companies have relocated in response to the higher tariffs imposed by the US on Chinese imports. According to the Financial Times, some have returned to the United States, while others have gone to countries such as Vietnam and Thailand.

Most businesses do not believe that reshoring is the best solution to supply chain disruptions. However, as they become more familiar with labor-saving production methods such as 3D printing, it may become an appealing option, especially if politicians increase protectionist policies.