Wohlers Associates

Industry Briefing
July 2005

Strong Industry Growth

In early 2004, the rockets were ignited and liftoff was imminent. This year was met with a spectacular launch. All data shows that the rapid prototyping industry is once again on a steep, upward trajectory. Revenues and unit sales are strong and material sales are better than ever. And the number of parts being produced annually is astounding.

Sales of 3D printers nearly doubled, with machine sales ascending to unparalleled heights. Stratasys is again leading the pack. Z Corp. has secured second place in the annual unit sales race for the second year in a row, and 3D Systems is mounting a strong comeback. A large installed base is more important than ever as companies build businesses around recurring revenues from consumables. Also, the larger the customer base, the easier it is to sell future products and services.

The services segment of the industry is healthier than it has been in years. In 2003, service providers staged a moderate turnaround. In 2004, they mounted an impressive comeback.

Competitive pressures are forcing prices of machines and materials to drop further, even as capabilities continue to improve. If you are unsure whether you should purchase a machine, now may be the time. The alternative is to wait for lower prices, but that might mean lost opportunities.

The range of industries and applications associated with additive fabrication has made an impression on private and institutional investors, as well as analysts and members of the press. With rapid manufacturing as the next frontier, companies are positioning themselves and their products for a growing wave of activity. In the future, the technology will be applied in ways that are difficult to fathom today. So fasten your seat belt and hold on, because we are in for an exhilarating ride.

The previous information was taken from Wohlers Report 2005, 256-page global market study. The report's table of contents, as well as additional information on the market and industry, are available at http://wohlersassociates.com.

Wohlers Talk: Growth of Rapid Manufacturing

Tecnologia & Design is an Italian company that used laser sintering from EOS to manufacture hundreds of ski boot buckles. The parts passed fatigue and impact testing and were indistinguishable from conventionally produced buckles. Polishing was automated by abrasive tumbling. The company found that they could manufacture 600 sets of buckles faster and less expensively than with injection molding.

Rapid manufacturing—the direct production of finished goods from additive fabrication—dominated discussions at the Rapid Prototyping & Manufacturing 2005 Conference and Exposition in May. Many other topics were discussed, but most attendees could not stop talking about the future implications of RM.

According to Wohlers Report 2005, rapid manufacturing is showing an interesting, though not totally unexpected, upward growth trend. Organizations that use additive processes to manufacture end-use parts indicate that activity has increased from 3.9% in 2003 to 6.6% in 2004, and now to 8.2% in 2005. I believe that rapid manufacturing will grow to become the largest application of additive fabrication in the future. The second most popular application will be the production of models from 3D printers for early concept review and design validation. Mainstream prototyping applications—rapid prototyping as we know it—will decline to the number three position.

Note: Wohlers Talk is a web log (blog) that offers views, perspective, and commentary related to rapid product development and other topics of interest. Sixty-nine commentaries have been published since February 2003. To view them, visit http://wohlersassociates.com and click "Wohlers Talk."