After a sluggish 2023, driven by persistent inflation and geopolitical tensions, 2024 has seen some recovery.Economic growth climbed from about 2.8 percent in 2023 to a modest 3.2 percent as central banks managed to bring down inflation rates.The overall economic mood was reflected in the additive manufacturing (AM) market, where companies remained cautious about significant capital expenditures on AM equipment.In turn, 3D printing service providers experienced increased demand as companies outsourced manufacturing to manage economic uncertainties and reduce inventory risks.
At the same time, AM software became a focal point as these tools promised increased efficiency at a lower cost.All of this was demonstrated by some of the biggest news in 3D printing over the course of the year.Among the most significant were the financial issues faced by original equipment manufacturers (OEMs) and service bureaus, hardest hit by the slow economic recovery.Dire Straits and Management ChangesMost recently, Nexa3D, a maker of masked stereolithography and polymer powder bed fusion (PBF) machines, essentially confirmed rumors that it was facing financial turmoil.
After it bailed on exhibiting at Formnext 2024 at the last minute, the firm sent out a message stating that it was restructuring its operation.However, Nexa3D is only one among many of the OEMs in similarly dire straits.Velo3D filed a document with the U.S.Securities and Exchange Commission (SEC) indicating that it had until December 16, 2024, to deal with its debts in one way or another.
The once-promising manufacturer of metal PBF machines has been crucial for Ursa Major and the Department of Defense (DoD)’s solid rocket motor program, but financial difficulties have nearly wiped the company out.Economic stagnation put other SPAC firms on the chopping block, with competitors Markforged and Desktop Metal hoping for solstice under the ownership of Israeli OEM Nano Dimension.However, a boardroom shakeup there has led to the resignation of six legacy board members in favor of chairpersons from activist investor Murchinson.In turn, the future for Markforged and Desktop Metal are not clear.
It wouldn’t be surprising to this author if the value of those firms was driven down so low that AM stalwarts Stratasys and 3D Systems could acquire them.Additively manufactured small motor cases and components for tactical missile applications made by Ursa Major.Image courtesy of Ursa Major.Some firms were totally left in the dust, such as desktop PBF pioneer Sintratec, which announced bankruptcy, despite its significant hardware development.Other firms that were given a lifeline this year, including voxeljet, which was acquired by Anzu Partners and Nanoscribe, sold by BICO and picked up by LAB14.
There were also important management changes. VulcanForms took on a new CEO, as did 3DEO, while Divergent 3D executive Michael Kenworthy moved over to Seurat.After 32 years, Ramon Pastor, who spearheaded HP’s AM business, decided to retire.Service Bureau DisruptionWhile service bureaus have been absorbing some of the burden for 3D printing that might have otherwise been performed in-house with new hardware, not all have been able to survive the economic environment.One of the biggest stories of the year was the bankruptcy of Shapeways, which had long struggled with the shift from consumer-focused 3D printing to industrial manufacturing.
Nevertheless, once its executive team resigned, it was rescued by its European management and seems to be on a promising path forward.Industrially focused from the start, Zeda was another service bureau that struggled with the financial markets.The company is auctioning off $20 million in equipment, including high-value metal 3D printers.If it can offload those assets, Zeda aims to focus on its medical 3D printing business going forward.
At the same time, the ADDMAN Group acquired Keslowski Advanced Manufacturing, demonstrating that some service bureaus, particularly driven by specialty production for defense and industry, have continued to grow.International Movement and Government SupportAll of this pressure, combined with an “American Made” legislative and funding policy in the U.S.has seen a number of European firms establish or grow manufacturing operations in the U.S.We discuss this trend in more detail in a recent PRO article on the re-election of President Donald Trump.Though the pain of U.S.
and European companies was almost-audibly felt, China’s 3D printing market continued to expand, driven by the growth of public firms BLT and Farsoon.Farsoon, with a market cap of CNY 10.98 billion, achieved a profit margin of 21.75%, a return on equity of 9.98%, revenues of CNY 629.7 million, net income of CNY 136.98 million, and a cash reserve of CNY 1.13 billion.BLT, boasting a higher market cap of CNY 12.963 billion, trails Farsoon in profitability with a 10.62% margin and a 4.02% return on equity.
However, it outpaces Farsoon in revenue at CNY 1.22 billion and holds a stronger cash reserve of CNY 2.37 billion.This may be why governments like those in the U.S., Canada, and U.K.continue investment into and military spending on AM.According to the “Additive Manufacturing in Military and Defense 2024” report from AM Research, the DoD spent nearly $1 billion on 3D printing in 2024.
This was driven by several “firsts,” including the delivery for the first digital spare in combat; the first competitive contract by the Defense Logistics Agency for 3D printed parts; and federal approval to Stifel for its AM Forward fund.In Canada, nGen announced a significant funding opportunity for advanced manufacturing projects and, across the sea in the U.K., the Ministry of Defence bought two metal 3D printers for Royal Navy maintenance, repair, and overhaul (MRO) use.The energy sector saw increased adoption of AM.For instance, world-leading standards and regulatory firm DNV hosted its first ever AM Energy Summit.
Vallourec 3D printed a downhole part using wire arc AM to American Petroleum Institute standards.The UAE’s state oil company, ADNOC, partnered with Immensa to create a digital inventory to DNV standards as well.Nuclear company Westinghouse additionally achieved the serial 3D printing of a nuclear reactor part.Much of this is being driven by reshoring, nearshoring, and rising energy costs.
As geopolitical conflicts lead to supply chain disruptions, the price of shipping fuel and goods becomes more expensive.One way to reduce both those disruptions and the cost that ripple across economies is to produce things as locally as possible.For this reason, it’s no surprise that there is continued interest in recycling of metal waste into 3D printing powders, evidenced by 6K’s $82 million investment round and the opening of a new plant and headquarters by Continuum.Startup GrowthThough not at the same momentum as in the past, the AM sector has continued to grow, with a number of new startups emerging —such as Fluent Metal, Addimetal, and Verne AM—and more established startups securing significant funding.
Chromatic Materials, Mantle, Axtra3D, Freeform, Conflux, UpNano, Mosaic, Addionics, Aspect Biosystems, Inkbit, Equispheres, Magnus Metals, Wayland Additive, Spectroplast, nTop, Scrona, Arris Composites, and others all reaped investments to drive forward novel AM processes, materials, and applications.Startups continued to release new products, as well, demonstrating their overall success and expansion.For instance, Caracol unveiled a directed energy deposition (DED) 3D printer, while Supernova launched its first suite of products for viscous resin 3D printing.ValCUN also made numerous announcements related to product sales, investments, and overall expansion.One key area that could have outsized potential for the AM sector is the use of artificial intelligence (AI).
In the fall, Interspectral received funding for its AI-driven quality control technology.This was followed at the very end of the year by the news of Backflip, a startup from Markforged founder Gregory Mark, that came out of stealth with $30 million dedicated to converting text and images into 3D printable models.Perhaps weaving together these two ideas was 1000 Kelvin, which updated its AMAIZE platform to automate nearly the entire 3D printing workflow.Due to the ability to automate the complex process of designing and 3D printing a part successfully the first time, along with automatic quoting and toolpath optimization, AI could be a game-changer for the sector.
If OEMs and service bureaus alike adopt the technology, it’s possible that fates faced by the likes of Zeda and Shapeways could have been avoided.Whereas Anzu Partners was able to rescue AM pioneers like voxeljet, it’s possible that AI could rescue the industry as a whole.By this time next year, we may no longer be talking about where the 3D printing sector went wrong, but what AI will automate next.Subscribe to Our Email NewsletterStay up-to-date on all the latest news from the 3D printing industry and receive information and offers from third party vendors.
