Industrial 3D printer shipments rise 18% as demand recovers

CONTEXT said global industrial 3D printer shipments rose 18% year on year in the first quarter, marking the market's third consecutive quarter of growth after a two-year decline.

Total 3D printer hardware system revenue increased 32% from a year earlier, according to the market intelligence group. Growth came from both the industrial segment and a sharp rise in entry-level machine shipments.

Industrial systems, defined as machines priced above USD $100,000, recorded shipment growth across all major regions. China led with a 29% increase, while North America rose 9% and Western Europe grew 11%.

China remained the largest market for industrial 3D printer shipments, with domestic suppliers meeting most demand. Nine of the world's 10 largest industrial vendors shipped more units than a year earlier.

Demand remained uneven across suppliers and end markets. Some manufacturers reported strong orders tied to defence programmes and military-related production, while others pointed to pressure from inflation concerns, higher borrowing costs and weak economic conditions in Europe.

"The current market presents a disparate demand outlook," said Chris Connery, Vice President of Global Analysis at CONTEXT. "While some vendors report exceptionally strong demand, especially related to global conflicts and defence initiatives, others report challenges associated with the many unknowns including ongoing global conflicts, fears of rising inflation, higher interest rates impacting capital investments, and a sluggish European economic environment. However, the strong performance of the industrial sector, marking its third consecutive quarter of growth after two years of declines, is a clear indicator of the technology's continued integration into volume production."

Metal demand

Within industrial systems, metal printer shipments rose 10% from a year earlier. Powder bed fusion remained the dominant process, accounting for 81% of the industrial metals segment, while unit shipments of metal powder bed fusion machines climbed 24%.

EOS more than doubled its metal system shipments in the quarter. Nikon SLM Solutions increased shipments of its large-format multi-laser NXG systems by 42%, putting it at the top of the segment's revenue rankings.

In China, HBD, Farsoon and BLT all posted strong shipment growth. Farsoon and BLT cited particularly strong demand from the 3C sector, shorthand for computer, communication and consumer electronics.

That demand was linked mainly to production of titanium mobile phone parts, including hinges for foldable phones and titanium smartphone frames. The trend shifted the overall market mix towards lower-priced metal powder bed fusion systems in China, even as some vendors continued to sell more advanced machines.

Some Western suppliers also indicated that demand for metal powder bed fusion systems was running ahead of available supply. That suggests output constraints could shape the market if machine makers struggle to increase production.

Polymer growth

Industrial polymer systems recorded 31% shipment growth in the quarter. The increase was heavily influenced by a surge in shipments from Carbon, driven by demand for lattice-based consumer products.

Excluding Carbon, industrial polymer shipments still rose 14%. Polymer powder bed fusion also expanded, with global shipments up 30%, supported by HP and EOS, both of which doubled shipments from the same period a year earlier.

Drone manufacturing remained an important source of demand for polymer 3D printing systems. Suppliers of industrial material extrusion printers that process advanced polymers, as well as makers of polymer powder bed fusion equipment, cited drone production as a factor behind higher shipments.

Market split

Outside the industrial segment, the middle tiers of the market remained under pressure. Professional and midrange systems were still affected as entry-level printers took share from material extrusion products in higher price bands.

Midrange printers, defined as systems priced between USD $20,000 and USD $100,000, saw global shipments fall 6%. One exception was the polymer powder bed fusion sub-segment, where shipments rose 48% as more vendors entered the category.

Professional systems, priced between USD $2,500 and USD $20,000, saw a steeper decline. Shipments fell 22% and revenues dropped 31%.

At the lower end of the market, entry-level printers priced at or below USD $2,500 accounted for 54% of all 3D printing system revenues in the quarter. Shipments in that category rose 39%, while revenues increased 54%.

Chinese suppliers continued to dominate consumer-focused 3D printing. Bambu Lab held the leading global market share, and together with Creality, Elegoo and Anycubic, the top four suppliers accounted for 88% of all units shipped worldwide in the category.

Flashforge recorded the fastest growth among the leading entry-level vendors, with shipments rising by more than 120%. Demand was increasingly being driven by large print farms in markets from China to the US, using Chinese-built machines for localised output.

The quarter's broad picture was a market led by industrial recovery at the top end and rapid volume growth at the bottom. Entry-level systems generated the largest share of sector revenue, while industrial machines benefited from sustained spending on defence, drones and electronics manufacturing.