The Dynamic Ecosystem of Additive Manufacturing: Key Investments, Acquisitions, and Market Developments

This month’s ECO3D delves into the vibrant and rapidly evolving landscape of business and economic news within the 3D printing sector. The industry continues to demonstrate significant growth and innovation, marked by a flurry of strategic investments, high-profile acquisitions, and important corporate announcements. Both emerging startups and established industry leaders are actively shaping the future of additive manufacturing, with a clear focus on expanding capabilities, reaching new markets, and refining existing technologies. This comprehensive summary highlights the most impactful developments, offering insights into the financial health and strategic directions of key players across the global 3D printing spectrum.

3YOURMIND Secures $12M Investment to Drive Industrial 3D Printing Efficiency

Berlin-based 3D software specialist, 3YOURMIND, has successfully completed a significant funding round, raising $12 million to fuel its ambitious expansion plans. The company, which has already established a footprint in the US market, intends to leverage this substantial investment to open a new office in the bustling hub of New York City. This strategic move is not only aimed at strengthening its presence in North America but also at accelerating the development of cutting-edge software tools and programs designed to enhance the ease of use and overall efficiency of industrial 3D printing processes. 3YOURMIND is a pioneer in offering solutions that streamline the entire additive manufacturing workflow, from order management and quoting to production planning and quality assurance. The investment round was spearheaded by UVC Partners and saw participation from prominent industry players, including TRUMPF and AMV, a sister company of the renowned 3D printer manufacturer EOS. This collective support underscores a strong belief in 3YOURMIND’s vision to digitalize and optimize the additive manufacturing supply chain, making industrial 3D printing more accessible and economically viable for a broader range of enterprises.

ANSYS Acquires 3DSIM, Strengthening Additive Manufacturing Simulation Capabilities

ANSYS, a global leader in engineering simulation software, has announced its acquisition of 3DSIM for an undisclosed fee. This strategic move brings together two powerhouses in the simulation domain, with 3DSIM specializing in software solutions specifically designed to simulate 3D printing processes. 3DSIM’s innovative products, such as their flagship exaSIM software, empower users to accurately predict and pinpoint potential areas of stress, distortion, and failure during additive manufacturing production. This predictive capability is crucial, as it allows engineers to optimize designs and process parameters virtually, thereby avoiding costly and time-consuming physical build failures before a single part is printed. By integrating 3DSIM’s advanced tools, ANSYS aims to offer its diverse customer base a comprehensive, end-to-end additive manufacturing simulation workflow through its extensive software suite. This acquisition signifies ANSYS’s commitment to delivering holistic solutions that cover every stage of the product lifecycle, from design and materials selection to manufacturing and performance validation, ultimately accelerating the adoption and reliability of additive manufacturing across various industries.

Proto Labs Expands Capabilities with $120M Acquisition of Rapid Manufacturing Group

Proto Labs, a leading global digital manufacturing service known for its rapid prototyping and on-demand production capabilities across various technologies, has announced the acquisition of Rapid Manufacturing Group for $120 million. Rapid Manufacturing Group is a reputable custom parts supplier with specialized expertise in traditional manufacturing methods, including CNC machining and sheet metal fabrication. This significant acquisition is a strategic move for Proto Labs, enabling it to substantially broaden its product offerings and enhance its CNC machining capabilities. By integrating Rapid Manufacturing Group’s extensive experience and capacity, Proto Labs can now provide an even more comprehensive range of services to its customers, offering greater flexibility and choice for their manufacturing needs. This move aligns with the growing trend of digital manufacturing platforms seeking to offer a holistic solution that combines the speed and complexity of 3D printing with the robustness and scalability of conventional manufacturing, thereby serving a wider array of industry demands and production volumes.

Australian University of Wollongong Receives $347K Grant for 3D Bioprinting Facility

In a significant boost for medical innovation, Australia’s University of Wollongong has been awarded a substantial grant of A$347,000 (equivalent to approximately $262,358 USD) for the establishment of a state-of-the-art 3D bioprinting facility. This funding represents a critical investment in the future of regenerative medicine and biomedical engineering. The new facility will empower the university’s researchers and scientists to push the boundaries of bioprinting technology. Their primary focus will be on the development of novel 3D printable bioinks, which are crucial for creating functional tissues and organs, as well as advancing new bioprinting systems capable of more precise and complex structures. This initiative is expected to foster groundbreaking research in areas such as tissue engineering, drug discovery, and personalized medicine, positioning the University of Wollongong at the forefront of this exciting and potentially life-changing field of additive manufacturing.

Mixed Financial Results for Stratasys, 3D Systems, and Arcam in the Third Quarter

The third quarter of the financial year brought a mix of challenges and strategic advancements for some of the leading players in the 3D printing industry. Stratasys, a pioneering manufacturer of industrial 3D printers, reported gross sales of $155.9 million but posted a net loss of $10.2 million. While still a loss, this figure represents a significant improvement compared to the $21 million loss incurred in the same period last year, indicating a positive trajectory towards financial recovery and improved operational efficiency. Similarly, American printing giant 3D Systems also shared its third-quarter results, revealing a 2% decline in revenue to $152.9 million compared to 2016. Despite these short-term setbacks, 3D Systems maintains a confident outlook, asserting that it is “on track” and has successfully created “the appropriate structure for future sustainable growth.” Both companies are evidently navigating a competitive market, focusing on optimizing their business models and investing in new technologies to secure long-term success. Meanwhile, Arcam, a Swedish company renowned for its Electron Beam Melting (EBM) technology for metal 3D printing, recorded a net loss of 36.1 million Swedish kronor, roughly equivalent to $4.3 million USD, in the past quarter. However, in a contrasting positive development, Arcam also managed to significantly increase its total revenue to $20.7 million, marking a substantial 27% increase over its performance in 2016. This demonstrates the company’s ability to drive sales growth and market penetration despite facing profitability challenges, likely due to ongoing investments in research and development, and expansion initiatives. These varied financial outcomes reflect the dynamic and evolving nature of the additive manufacturing market, where investment in innovation and strategic positioning are crucial for future success.

Dassault Systèmes Demonstrates Strong Growth and Expanding Global Reach

Dassault Systèmes, the esteemed French manufacturer of industry-standard software solutions like SolidWorks and CATIA, reported impressive financial results for the period spanning July to September 2017. The company posted total sales of €751.4 million, representing a healthy 2% increase compared to its performance in 2016. This growth underscores Dassault Systèmes’ enduring strength and vital role in providing critical design, simulation, and manufacturing software across various industries, including the additive manufacturing sector. A particularly notable achievement is the company’s expanding global footprint, with an impressive 60% of its revenue generated from markets outside of Europe. This geographical diversification highlights its successful strategy in penetrating international markets and catering to a worldwide customer base. Furthermore, Dassault Systèmes has attracted more than 15,000 new SolidWorks users since the beginning of 2017, reflecting the continued demand for its robust and intuitive design software. This steady user base expansion, combined with strong financial performance, solidifies Dassault Systèmes’ position as a key enabler of digital transformation and innovation in manufacturing, including the intricate design workflows required for advanced 3D printing applications.

Markforged Raises $30M, Accelerating Carbon and Metal 3D Printer Development

Markforged, a leading US-based company at the forefront of carbon fiber and metal 3D printing technologies, has successfully closed a significant funding round, raising an additional $30 million. This latest investment builds upon the $27 million already secured earlier this year, demonstrating strong investor confidence in the company’s disruptive approach to additive manufacturing. The new funding round attracted high-profile investors, including tech giant Microsoft and automotive holding company Porsche SE, whose participation underscores the broad industry appeal and potential of Markforged’s technology. This capital injection will primarily be utilized to further develop and refine its advanced carbon and metal 3D printers, with a particular focus on simplifying the additive manufacturing process to make it more accessible and user-friendly for a wider range of industrial applications. The investment is particularly promising given Markforged’s remarkable performance, having increased its revenues by an astounding 300% in the second quarter of this year. This explosive growth highlights the increasing demand for its robust and precise printing solutions, capable of producing strong, functional parts from composite materials and metals directly on the factory floor.

Candid Secures $15M to Expand 3D Printed Clear Aligner Market

Candid, an innovative additive manufacturing startup, has successfully raised $15 million in a new funding round. This substantial investment is earmarked for the continued development and market expansion of its transparent 3D printed dental aligners, often referred to as clear gutters. Candid’s business model is revolutionizing the orthodontics market by offering a convenient, at-home solution for custom dental aligners. Instead of requiring multiple visits to a dentist for impressions, Candid enables users to create a precise fingerprint of their teeth directly from home, which is then used to 3D print personalized, clear aligners. This streamlined process makes orthodontic treatment more accessible, affordable, and less time-consuming for consumers. With this fresh capital injection, the American startup is strategically positioned to introduce its personalized aligner solutions into new markets, challenging traditional dental practices and democratizing access to modern teeth alignment solutions through the power of advanced 3D printing technology.

MakeX Launches Migo 3D Printer on Kickstarter, Exceeding Funding Goals

MakeX has achieved remarkable success with the launch of its Kickstarter campaign for the Migo, a new FDM (Fused Deposition Modeling) 3D printer. This innovative and compact machine quickly captured the attention of the maker community and beyond, raising over €100,000 – significantly surpassing its initial funding objective. The Migo is designed with user convenience and portability in mind, featuring an integrated handle and weighing a mere 2.5 kg, making it exceptionally easy to transport and set up anywhere. This focus on accessibility and mobility caters to a growing demand for consumer-friendly 3D printers that do not compromise on performance. Available in two distinct sizes, the Migo offers versatile print volumes: a compact 100 x 120 x 100 mm or a larger 150 x 150 x 150 mm for the big version. The overwhelming success of the Kickstarter campaign not only validates MakeX’s product design and market strategy but also underscores the continued enthusiasm for affordable, reliable, and portable 3D printing solutions that empower creators and educators alike.

APWORKS and TOYAL Partner to Advance Scalmalloy 3D Printing Powder

APWORKS, a specialized subsidiary of Airbus, renowned for its expertise in advanced material development for additive manufacturing, has announced a significant partnership with TOYAL, a global leader in aluminum production. The collaboration focuses on further developing and producing Scalmalloy powder for use in additive manufacturing processes. Scalmalloy, a high-performance scandium alloy, is gaining considerable traction due to its exceptional strength-to-weight ratio and excellent processability, making it highly compatible with various Selective Laser Melting (SLM) machines. The strategic aim of this partnership is to scale up the production and availability of this advanced material, providing immense benefits to critical sectors such as the automotive and aerospace industries. By combining APWORKS’ deep knowledge of aerospace applications and additive manufacturing with TOYAL’s extensive experience in aluminum alloy development and large-scale manufacturing, this alliance is set to accelerate the adoption of Scalmalloy, enabling the creation of lighter, stronger, and more complex components for high-performance applications, thereby pushing the boundaries of what is achievable with metal 3D printing.

Divergent Secures $65M Investment to Expand Revolutionary Automotive Manufacturing

Divergent, the visionary automaker known for its groundbreaking approach to vehicle manufacturing using additive processes, has received a substantial $65 million investment. This new funding augments the $23 million the company had previously secured in 2014, signaling strong confidence in its innovative strategy. Divergent, the American company behind the radical Blade car and the Dagger motorcycle – both partially designed and produced using additive manufacturing techniques – plans to utilize this significant capital injection to develop a second advanced manufacturing plant. This new facility is envisioned to house an array of high-tech machinery, including cutting-edge, large-format 3D printers. Divergent’s core mission is to transform the traditional car manufacturing paradigm by leveraging 3D printing to create lightweight, structurally optimized chassis and components, leading to more sustainable and efficient vehicles. This investment is crucial for scaling up their revolutionary production model, which promises to significantly reduce materials, tooling costs, and environmental impact in the automotive industry.

Arconic & Airbus Forge Strategic Partnership in Metal 3D Printing for Aerospace

Arconic, a global leader in advanced materials and engineering, particularly specialized in aerospace 3D printing materials and components, has entered into a landmark agreement with Airbus. This strategic partnership is focused on the supply of crucial nickel and titanium components, meticulously created through additive manufacturing processes, for Airbus’s commercial aircraft fleet. This alliance represents a powerful convergence of two of the most influential companies within the aerospace sector, combining Arconic’s expertise in developing high-performance, 3D printable metal alloys and components with Airbus’s unparalleled leadership in aircraft design and manufacturing. The agreement not only underscores the increasing industrial adoption of metal additive manufacturing for critical, flight-ready parts but also signals the beginning of a much more prosperous and integrated future in the development and application of advanced metal additive manufacturing solutions for the aerospace industry. This collaboration is expected to accelerate the innovation cycle, improve supply chain efficiency, and unlock new possibilities for lighter, stronger, and more fuel-efficient aircraft designs.

XYZPrinting Forges Worldwide Deals, Expanding Global Market Presence

Chinese 3D printing powerhouse XYZprinting made significant waves at FormNext 2017, signing several strategic deals aimed at expanding its brand and product portfolio across global markets. These collaborations are set to bolster XYZprinting’s presence, particularly in Western markets, and diversify its technological offerings. Firstly, the company finalized a crucial deal with Spanish company Sicnova 3D for the development and distribution of the JCR600, indicating an expansion into more industrial or specialized FDM solutions. A similar agreement was established with DWS, a recognized specialist in advanced Stereolithography (SLA) and Digital Light Processing (DLP) technology machines, allowing XYZprinting to broaden its reach into resin-based 3D printing. Furthermore, XYZprinting forged a partnership with Nexa 3D, one of the companies led by Avi Reichental, the former CEO of 3D Systems. This particular collaboration is focused on developing highly specialized 3D printers tailored for the dental sector, tapping into the burgeoning market for dental aligners, models, and surgical guides. Collectively, these agreements are instrumental in making the XYZprinting brand more widely known and accessible in the Western market, affirming its ambition to be a leading global player across various segments of the additive manufacturing industry, from consumer-grade to professional and specialized applications.

The latest edition of ECO3D paints a vivid picture of an additive manufacturing industry characterized by vigorous investment, strategic consolidations, and relentless innovation. From significant funding rounds empowering software developers and material specialists to groundbreaking acquisitions expanding service portfolios and vital partnerships driving aerospace advancements, the sector continues to push boundaries. While some industry giants navigate financial challenges, their commitment to sustainable growth and R&D remains strong. The rise of bioprinting, the democratization of dental solutions, and the ongoing quest for more efficient and robust metal printing underscore the multifaceted nature of this revolutionary technology. These developments collectively highlight a maturing market that is increasingly specialized, integrated, and poised for transformative impact across diverse global industries. Stay tuned for further updates as the additive manufacturing landscape continues to evolve at a breathtaking pace.

Last month’s article, ECO3D October, is available here.

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