HP and GE Additive Reshape the Industrial 3D Printing Landscape: Disruption and Market Dominance

The year 2017 marked a pivotal moment in the industrial 3D printing sector, as a comprehensive study unveiled a significant shift among the largest vendors. New entrants HP and GE Additive, the dedicated additive manufacturing subsidiary of General Electric, dramatically disrupted the established order, successfully positioning themselves among the top 5 largest vendors of industrial 3D printing machines. Their rapid ascent highlights a dynamic industry undergoing profound transformation, driven by strategic investments, technological innovation, and an aggressive pursuit of market share. This shift signals a new era for additive manufacturing, characterized by increased competition, accelerated development, and broader adoption across various industries.

GE Additive’s formidable entry into the market was characterized by a bold and strategic acquisition spree. In December 2016, General Electric moved to acquire Concept Laser, a renowned German manufacturer specializing in metal additive manufacturing technology. This was swiftly followed by the acquisition of Arcam, a Swedish company known for its electron beam melting (EBM) technology, a crucial process for producing high-quality metal components. These strategic purchases unequivocally signaled GE’s profound commitment to accelerating the development and widespread adoption of additive metal manufacturing. The company has since poured millions of euros into further advancing 3D printing technologies and has successfully developed its own large-format 3D metal printers, tailored for high-volume industrial applications. This aggressive approach paid off handsomely, as GE Additive captured a significant 9% of the market share in the second half of 2017, generating an impressive $145 million in revenue—a remarkable 39% increase from the previous year. While still trailing historical leaders such as Stratasys and EOS, which reported $405.5 million and $240.4 million respectively, according to Context, GE Additive’s rapid growth demonstrates its potential to become a dominant force, particularly in the high-value metal additive manufacturing segment. It’s also noteworthy that Stratasys, traditionally focused on polymer 3D printing, has recently announced its intentions to develop a 3D metal printer, indicating the growing convergence and competition across different material segments within the additive manufacturing industry.

On another front, HP has carved out a unique and powerful niche in the additive manufacturing of polymers, primarily with its innovative Multi Jet Fusion (MJF) technology. The study revealed that HP’s sales reached $97.3 million, demonstrating an astounding growth of 7760% over the previous year. This exponential growth propelled HP to a substantial 6% market share, positioning it as a formidable challenger to established giants like 3D Systems. HP’s strength lies not only in its groundbreaking technology, which offers unparalleled speed, quality, and cost-effectiveness for polymer parts, but also in its robust global network of partners and distributors. This extensive ecosystem, combined with overwhelmingly positive feedback from its rapidly expanding customer base, provides HP with a significant competitive advantage. The anticipated launch of their new line of machines is widely expected to further disrupt the market, potentially elevating HP to the very top echelon of the industrial 3D printing landscape, particularly as they continue to refine and expand the applications of their polymer-based additive manufacturing solutions.

Analyst Insights: The Evolving Industrial 3D Printing Market

Chris Connery, Vice-President of Global Analysis at Context, provided crucial insights into the evolving market dynamics. He noted, “Over the year as a whole, long-time market leaders Stratasys and 3D Systems saw revenues from the shipment of machines drop a bit while upstarts GE Additive and HP experienced growth, helping the full Industrial/Professional segment achieve a 23% year-on-year growth in printer revenues.” This statement underscores a significant paradigm shift: while the overall industrial 3D printing market is expanding robustly, driven by increasing adoption across manufacturing sectors, traditional leaders are facing intense pressure from innovative and aggressive new entrants. Connery also highlighted another positive indicator for the industry’s health, stating, “The segment also saw the number of printer units shipped grow for the first time in three years; 11,453 Industrial/Professional printers were shipped in 2017, 5% more than in 2016.” This growth in unit shipments, rather than just revenue, suggests a broader embrace of additive manufacturing technologies across a wider range of industrial applications, moving beyond niche prototyping into mainstream production scenarios. The increasing volume indicates a maturation of the technology and a greater willingness by manufacturers to integrate 3D printing into their workflows for tools, jigs, fixtures, and even end-use parts.

Market Leaders by Units Shipped: A Different Perspective

While revenue figures often dominate discussions of market leadership, examining the number of units shipped offers a different, yet equally important, perspective on market penetration and adoption. In 2017, the market leaders in terms of units shipped were Stratasys, 3D Systems, EnvisionTEC, and EOS. Interestingly, Carbon and HP found themselves tied for fifth place in this metric. This distinction highlights different market strategies; companies like Stratasys and 3D Systems, despite a slight decline in revenue, continued to ship a high volume of machines, indicating a strong installed base and potentially catering to a broader range of professional users. HP’s joint fifth position in unit shipments, coupled with its astronomical revenue growth, suggests that its Multi Jet Fusion machines, while potentially higher in unit value, are rapidly gaining traction and being deployed in significant numbers across the industrial landscape. This dual perspective – revenue growth driven by high-value solutions and unit shipments reflecting widespread adoption – paints a comprehensive picture of a diverse and competitive industrial 3D printing market.

The Flourishing Desktop 3D Printing Market

Beyond the high-stakes industrial sector, the desktop 3D printing market continues to flourish, albeit with a different set of dynamics. In terms of value, it remains considerably smaller than its industrial counterpart. However, its significance cannot be understated, as it accounts for a staggering 95% of all 3D printer sales today in terms of sheer volume. This massive disparity is largely attributed to the increasing affordability and accessibility of desktop printers, which have democratized 3D printing for hobbyists, educators, small businesses, and design professionals. The market is still led by XYZprinting, a prominent manufacturer known for its wide range of consumer-friendly 3D printers. However, Context reported that XYZprinting only experienced a modest 1% growth in 2017, indicating potential stagnation or increased competition. This market leader could soon face serious challenges from rapidly growing contenders such as Monoprice, a retailer that has successfully leveraged its supply chain to offer highly competitive desktop 3D printers. Even more impressive is the meteoric rise of Prusa Research, the company behind the universally acclaimed open-source 3D printer, which recorded an astounding 523% growth. Prusa’s success underscores the power of the open-source community, continuous innovation, and a strong focus on print quality and user experience, setting new benchmarks for reliability and performance in the desktop segment. This vibrant segment continues to serve as an important entry point into additive manufacturing, fostering innovation and pushing the boundaries of what is possible for a broader audience. You can find the full study that details these market shifts here for further insights.

The Driving Forces and Future Outlook for Additive Manufacturing

The impressive growth witnessed in the industrial 3D printing sector, particularly with the entry and rapid expansion of players like HP and GE Additive, is indicative of several underlying forces. Industries such as aerospace, automotive, medical, and consumer goods are increasingly recognizing the transformative potential of additive manufacturing for rapid prototyping, complex geometries, customized parts, and on-demand production. The ability to produce lighter, stronger, and more efficient components is a critical advantage, especially for sectors striving for innovation and sustainability. Furthermore, advancements in materials science, including new metal alloys and high-performance polymers, are continuously expanding the application range of 3D printing. The integration of artificial intelligence and machine learning into 3D printing processes is also optimizing design, print parameters, and post-processing, making the technology more reliable and efficient. Looking ahead, the additive manufacturing industry is poised for continued robust growth. We can anticipate further consolidation among smaller players, more strategic partnerships, and an increased focus on end-to-end solutions that encompass not just the printing process but also design software, post-processing equipment, and quality assurance. The competition, especially between established leaders and innovative disruptors, will likely spur even faster technological advancements and drive down costs, making industrial 3D printing accessible to an even wider array of manufacturers globally. The convergence of different printing technologies and materials, such as HP’s eventual move into metal and Stratasys’s efforts, suggests a future where diverse applications are served by increasingly sophisticated and versatile additive manufacturing solutions.

What are your thoughts on the remarkable growth trajectory of HP and GE Additive in the fiercely competitive 3D printing market? How do you envision the future of additive manufacturing with these powerful new players setting the pace? We invite you to share your insights and predictions in the comments section below, or engage with us on our vibrant Facebook and Twitter pages! Don’t miss out on the latest advancements and industry news; be sure to sign up for our free weekly Newsletter, delivering all the crucial updates in 3D printing directly to your inbox!