Issue link: https://digital.copcomm.com/i/739236
28 cgw s e p t e m b e r . o c t o b e r 2 0 1 6 and Rising to Opportunity Sliding Down the Curve THE ADDITIVE MANUFACTURE MARKET APPEARS HEADED FOR NEW GROWTH BY KATHLEEN MAHER technology grew, leading to the de- velopment of new printing technol- ogies, new start-ups, new materials, and lower prices. The two industry leaders – Stratasys and 3D Systems – fought each other using acquisi- tions, and they made the critical error of playing to the crowd, promising 3D printers on every desk and in every kitchen and garage. That didn't hap- pen. And so the shakeout happened, at least in terms of perception. And, disappointed stock investors have punished the segment. To say all that, though, is to totally miss the point. While attention has focused on the leading companies and the false promise of consumer 3D printing, investment money has flowed into the industry, spawning R&D leaps fueled by Moore's Law jet-propelling everything from super- computing to mobile processors and sensors. The additive manufacturing market is richer and more diversified than ever. Analyst Terry Wohlers of Wohlers Associates puts the additive manufacture business at $5.2 billion in 2016, based on research for the company's "Wohlers Report 2016." Wohlers points out that consumer 3D printing is a misnomer, and a true consumer 3D printer does not yet ex- ist. Even so, desktop printers and that low-cost segment are doing quite well. In fact, says Wohlers, most of the 3D printers sold in the last three years – the years of the supposed consumer crash – were low-end printers priced at under $5,000, with an average selling price of $1,055. "Our research shows that an estimat- ed 278,000 desktop machines were sold last year," he says. At this time, Wohlers is tracking 62-plus producers of industrial 3D printers, in addition to many companies that offer low-cost 3D printers. However, most of the money is be- ing made at the high end, with indus- trial 3D printers that have an average selling price of $97,370, according to "Wohlers Report 2016." Currently, in all segments, there is healthy, recur- ring revenue from sales of printers in the form of an aermarket for materials and services. So far, most of the established 3D printer companies have built proprietary systems around the machines, soware, and mate- rials that allow them to control the market for materials and enjoy high margins. The printers using common- ly available off-the-shelf materials are more oen low-end printers. Also in the last three years, there have been significant changes that promise further industry shake-up, and as is so oen the case, the shake up is coming from standards. In the decades that have passed since the introduction of this technology, there 3D PRINTED DRESS BY DESIGNER NOA RAVIV. COURTESY STRATASYS T he great reckoning has come for 3D printing, or more precisely, the great reckoning has come for investors betting heavily on 3D printing. For the past eight years or so, the 3D printing market has enjoyed a nice run-up as public awareness of the