Is the 3D Printing Market Consolidating?

Over 2021, we saw a flurry of mergers and acquisitions throughout the additive manufacturing industry. It seemed that the industry was maturing and consolidation would continue, especially into 2022. However, a recent report from IDTechEx suggests this might not actually be the case. In 3D Printing Hardware 2022-2032: Technology and Market Outlook, written by Sona Dadhania and Dr. Richard Collins, the authors suggest that contrary to expectations over the years, the 3D printing market has not yet consolidated and possibly will continue not to due to extreme expansion of the market, especially when it comes to innovative technologies and new companies.

IDTechEx does acknowledge that in 2021 there were a number of mergers and acquisitions suggesting consolidation in the industry. Going over the history of the industry and the expectation of consolidation, the company commented, “In the 2020s, a recent flurry of mergers and acquisitions have brought 3D printing observers to again expect the market to consolidate in the near future. In 2021, IDTechEx noted well over 40 mergers or acquisitions taking place in 3D printing, which seems to support that claim.” However, in the report, the company suggests that even if there has been consolidation, it is not enough to counter the expansion that has also dominated the market throughout 2021.

The technology market share in 2021 between seventeen technology segment. Increasing innovation and more 3D printing technologies are both pointed to by IDTechEx as reasons why we cannot say the AM market is consolidating (image source: IDTechEx)

Why is the market not consolidating?

According to the authors, you can consider that the additive manufacturing market is not consolidating based on two driving trends in the industry, namely innovation and investment. This may seem counter-intuitive because both of these trends are crucial to the success of a market, yet apparently they are also preventing it from consolidating like many other healthy markets have done in the past. But for IDTechEx, both investment and innovation are driving growth which is also bringing in new companies, even as some of the more establish ones consolidate. This factor contributes to expansion of the market overall.