G00259692

Strategic Technology Trends 3D Printing

Transforms Organizations
Published: 7 February 2014

Analyst(s): Pete Basiliere, Miriam Burt, Zalak Shah, Michael Shanler

3D printing transforms organizations, industries and markets. CIOs, CTOs

and IT leaders must learn about and apply the key 3D printing trends that
are driving changes to their organization.

Impacts

The hype about the consumer 3D printing market masks immediate opportunities for
organizations of all sizes and types.

3D printing technology will have a transformational effect on the retail industry.

3D printing enables marketing and operations management personnel to transition from

restrictive design for manufacturing to manufacturing of the ideal design.

The potential for 3D printing to revolutionize the supply chain means IT professionals must
develop a framework for evaluating its impact.

Recommendations

Advise the business on high-reward 3D printing technologies that transform the organization
while mitigating technical and business risks through trials and test implementations.

Pull together key personnel to evaluate how your products could be redesigned for both one-off
and mass customization.

Develop a framework that includes a means for identifying the product categories that have the
greatest potential benefit and a timeline for when and how 3D printing will affect your
organization's supply chain operation.

When exploring low-cost hardware and software to enable prototyping with 3D printers, keep in
mind the operational costs and technical skills required to sustain it in the workflow.

Strategic Planning Assumptions

By 2018, at least seven of the world's top 10 multichannel retailers will use 3D printing technologies
to generate custom stock orders.
By 2018, 3D printing will result in the loss of at least $100 billion per year in intellectual property
globally.

Analysis
Gartner defines 3D printing as "an additive technique that uses a device to create physical objects
from digital models." 3D printing is not one technology, as many people assume and the general
media often infers. Rather, there are seven different printer technologies, as defined by the
American Society for Testing and Materials (ASTM) International (which refers to 3D printing as
"additive manufacturing"), and used by Gartner (see the technology definitions in Note 1).
Please note that the seven technologies are the ones currently available. Technologies such as
indirect energy deposition and matrix jetting that research labs and universities are working on
today may become commercially available at some point.
Gartner has been covering the 3D printer market as it has emerged during the last six years. While
at first annual shipments were very small, the market is exploding due to new capabilities, better
pricing and expanding 3D printing applications, as well as general media hype about 3D printing.
We forecast that consumer and enterprise 3D printer shipments will grow at a 95.4% compound
annual growth rate (CAGR) and revenue at an 81.9% CAGR from 2012 through 2017. The 3D printer
market will grow from $288 million to more than $5.7 billion by 2017 as consumer 3D-printing hype
accelerates 3D printer purchases by enterprises worldwide.
The primary consumer 3D printer market drivers are declining prices, improved performance and
expanded availability to multiple regions. The primary enterprise 3D printer market drivers are
increased awareness of the viability of 3D printing technologies for prototyping and manufacturing,
coupled with lower costs, improved quality and a wider range of materials.
Although this is still a nascent market, in which the hype outpaces the technical realities, the speed
of development and rise in buyer interest are pressing hardware, software and service providers to
offer easier-to-use tools and materials that produce consistently high-quality results. As the
products rapidly mature, organizations will increasingly exploit 3D printing's potential in their
laboratory, product development and manufacturing operations.

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Figure 1. Top Impacts and Recommendations for 3D Printing

Impacts
The hype about the consumer 3D
printing market masks immediate
opportunities for organizations of all
sizes and types.
3D printing technology will have a
transformational effect on the retail
industry.
3D printing enables marketing and
operations management personnel to
transition from restrictive design for
manufacturing to manufacturing of the
ideal design.

The potential for 3D printing to

revolutionize the supply chain means IT
professionals must develop a framework
for evaluating its impact.

Top Recommendations

Advise the business on high-reward 3D

printing technologies that transform the

organization while mitigating technical and
business risks through trials and test
implementations.

Pull together key personnel to evaluate

how your products could be redesigned for

both one-off and mass customization.

Develop a framework that includes a

means for identifying the product

categories that have the greatest potential
benefit and a timeline for when and how 3D
printing will affect your organization's
supply chain operation.

When exploring low-cost hardware and

software to enable prototyping with 3D

printers, keep in mind the operational costs
and technical skills required to sustain it in
the workflow.

Source: Gartner (February 2014)

Impacts and Recommendations

The hype about the consumer 3D printing market masks immediate opportunities for
organizations of all sizes and types
Gartner forecasts that the 3D printer market will soar from $288 million to more than $5.7 billion by
2017. However, the complex ecosystem of software, hardware and materials will inhibit widespread
consumer acceptance through 2017. As a result, our consumer 3D printing Hype Cycle technology
1

profile indicates five to 10 years will pass before consumer use of 3D printing is mainstream and
widespread. One major reason is that despite bundled 3D printer hardware, software and supplies,
most consumers do not have the awareness, tools or skills to easily create a 3D-printed part.
Ironically, the tremendous hype around consumer 3D printing has awakened the management of
many organizations to the revolutionary potential that the technology offers them. To date, many
people inside organizations assumed that 3D printing requires an expensive capital investment
(which it was, often costing hundreds of thousands of dollars per printer) and required significant
staff talent and resources (which it did, as designers and engineers had to learn how to design

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differently). However, the hype around consumer 3D printing has unmasked the fact that the price
point and functionality of 3D printing has changed significantly during the last five years. Most
businesses are only now beginning to fully comprehend all of the ways in which a 3D printer can be
cost-effectively used in their organizations, from prototyping and product development to fixtures
and molds that are used to manufacture or assemble an item to drive finished goods.
Recommendations:

Talk with your engineering and manufacturing management and staff to learn and expand on
what they know about 3D printing and its potential in your organization and do not be
surprised to learn they have been not only aware of the game-changing potential of 3D printing
but also waiting for the opportunity to show you how the organization will benefit.

Collaborate with your marketing personnel to understand your typical customer's understanding
of 3D printing the technologies, the potential benefits and how the items your firm produces
with 3D printers will profit them.

3D printing technology will have a transformational effect on the retail industry

Advances in 3D scanners and design tools, as well as the commercial and open-source
development of additional design software tools, have made 3D printing technology more
accessible to both retailers and customers alike. Local, multinational and online retailers are already
selling 3D printers to consumers, and retail locations dedicated to 3D printers have also sprung up.

However, it is the escalated hype around consumer 3D printing in the general media that has
generated worldwide consumer interest in purchasing 3D printers for use in the home, buying 3Dprinted replacements for items no longer available otherwise, as well as designing and ordering
personalized 3D-printed gifts and accessories.
Gartner believes that consumers will use this technology to drive a transformation of the retail
industry by encouraging digitalization of the retail business. By this we mean that consumers are
forcing the offline and online channels to work in concert to deliver the key retail business process
of ensuring stock availability in new and innovative ways. This will also lead to new operating
models. For example, retailers could:

Operate dedicated areas in larger stores for 3D printing. In these stores, retailers could offer
"on-the-spot" 3D printing for certain items that may be out of stock on the store floor, either for
pick up at the same store, for pickup at a more convenient store or third-party pickup location,
or for home delivery.

Operate new store formats dedicated to 3D printing for fulfillment customers who could use an
online portal to order items that could be "centrally" produced at the dedicated 3D printing
stores. This would be akin to a service bureau to which customers email their 3D models, and
physical parts are mailed back to them.

Either of these operating models could offer replicating services of 3D-printed items from standard
or customized 3D computer-aided design (CAD) models. The retailer may even be able to provide

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full service, from using 3D scanning to scan an object and then using 3D printing technology to
produce one or more copies for the customer.
The demand for this type of custom manufacturing reflects two increasingly important retail trends:
consumers' expectations of stock availability, and their desire for "personalized" and "customized"
products, services and shopping experiences. 3D printing will shake up all retail segments, some
sooner than others. That said, consumers' use of this technology will also result in a "blurring" of
the retail industry with certain types of manufacturing but will not replace all of manufacturing.
Rather, retailers' 3D printing will complement and supplement the traditional manufacturing
processes.
Recommendations:

Educate your customers on how 3D printers can "build" products. Most consumers are
confused about how the technology actually works and what they can use it for until they
physically see and handle 3D prints.

Monitor developments in 3D printing technology and conduct feasibility studies to determine

the most appropriate materials, printing methods and 3D model formats to support your
business model:

Test customized product ideas with focus groups, and test 3D print creation, ordering,
production and accounting workflow.

Explore the use of 3D printing technology by experimenting with low-volume manufacturing

of high-margin custom-designed pieces (for example, fashion jewelry or eyeglass frames).

Investigate how 3D printing technology can support stock availability and adjustments,
including how to deal with returns of 3D-printed products.

Work with the legal advisors and compliance officers to:

Make your intellectual property available for use by consumers with minimal risk of
unauthorized use or misuse.

Manage the risks of violating or infringing copyright and patent laws, particularly with regard
to the intellectual property associated with CAD designs.

Investigate whether you may be held liable for the catastrophic failure of consumer-printed
items based on files that you made available.

3D printing enables marketing and operations management personnel to transition

from restrictive design for manufacturing to manufacturing of the ideal design
"Design for manufacturing" is a practice routed in cost-reduction and process improvement
initiatives of the late 1900s. The basic idea is to take the original design and adapt it to the
manufacturing techniques needed for high-volume production of quality items. Typically, these
items are created from parts made with subtractive or formative manufacturing processes, such as
whittling away at blocks of metal with computer numerical control (CNC) machines or forming the

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item with injection molding or casting equipment. Manual or automated assembly of disparate items
is also often required, resulting in additional design compromises.
3D printing enables "manufacturing of the ideal design" envisioned by your marketing organization
based on customer needs. Freed from the constraints imposed by compromised high-volume
manufacturing practices, the designer employs additive manufacturing, in which the item is
essentially built from the ground up, to print the ideal solution to the customer's problem or unmet
need. Because 3D printing today is constrained by slow production speeds and limited material, the
"ideal design" is typically produced as a single unit or in very small lots.
Recommendations:

Invest as little as $1,500 in 3D printer hardware and software to enable rudimentary prototyping
with 3D printers in order to graphically illustrate how existing designs may be subtly or
dramatically altered to better solve your customers' problems.

Pull together key IT, marketing and operations personnel to evaluate how your products could
be redesigned for both one-off and mass customization.

The potential for 3D printing to revolutionize the supply chain means IT professionals
must develop a framework for evaluating its impact
The hype surrounding 3D printing has led some pundits to predict traditional manufacturing
processes and supply chains will become obsolete. While there is no doubt that 3D printing will
revolutionize manufacturing and supply chains, the timing of that revolution depends very much on
the market and products under consideration. For example, while there are some 4,000 engineered
plastics used in traditional manufacturing processes today, less than 200 are available for use in 3D
printers. Even if an engineered plastic material can be printed with, for example, a material extrusion
printer, without development and testing, there is no guarantee the finished 3D-printed part will
have the same performance characteristics and finish quality as the one it is replacing.
Nevertheless, 3D printing has already transformed certain industries. More than 90% of hearing aid
shells, whether for the microphone, electronics and speaker (in-the-ear aids) or speaker only (with
the microphone and electronics behind-the-ear and the speaker in-the-ear) are produced with 3D
printing today. Major changes brought by the practical application of 3D printing technologies to the
automotive and dental industries are well underway and just beginning for the aviation industry. IT
professionals must look into the feasibility of adopting the technology to their business and what
implications the technology may have on existing supply chain operations as well as new products.
Recommendations:

In conjunction with marketing, research and development, and manufacturing personnel, IT

professionals must develop a framework for evaluating the impact of 3D printing on their
organization's existing products and potential markets.

The 3D printing framework must include a means for identifying the product categories that
have the greatest potential benefit and a timeline for when and how 3D printing will affect the
organization's supply chain operation.

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Gartner Recommended Reading

Some documents may not be available as part of your current Gartner subscription.
"Predicts 2014: 3D Printing at the Inflection Point"
"Market Trends: 3D Printing, Worldwide, 2013"
"Forecast: 3D Printers, Worldwide, 2013"
"How 3D Printing Disrupts Business and Creates New Opportunities"
"Use the Gartner Business Model Framework to Determine the Impact of 3D Printing"
"Predicts 2014: Digitalization in Retail Means M-Commerce Grows, E-Commerce Slows,
Personalization Misfires and 3D Printing Transforms"
Evidence
Our report is based on discussions with 3D printing technology provider management teams,
conversations with consumers and enterprise buyers, and market and technology trend reports and
qualitative insights offered by Gartner analysts.
1

"Hype Cycle for Imaging and Print Services, 2013"

These firms are among the retailers selling 3D printers or output from 3D printers at the time of our
report's publication: 3D Factory (Israel), Amazon, Ideaz 3D (Mexico), iMakr (London), Maplin,
Microsoft, Office Depot, Staples, UPS, Walmart and its Asda subsidiary.
Note 1 Definitions
Digital business The creation of new business designs by blurring the digital and physical
worlds. Digital business is ushering in an unprecedented convergence of people, business and
things, creating new revenue opportunities in its wake.
Digitalized business "Most businesses use IT to digitize manually intensive analog processes
into information-enabled services. ... A digitalized business, however, uses technology directly in
the delivery of value or creation of revenue. ... Digitalizing the business is a new paradigm for
directly integrating business and technology with value creation and revenue generation." For more
information, see "Digitalizing the Business."
Binder jetting An additive manufacturing process in which a liquid bonding agent is selectively
deposited to join powdered materials.
Directed energy deposition An additive manufacturing process in which focused thermal
energy is used to fuse materials by melting as they are being deposited. "Focused thermal energy"
means that an energy source (such as a laser, electron beam or plasma arc) is focused to melt the
materials being deposited.

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Material extrusion An additive manufacturing process in which material is selectively dispensed

through a nozzle or orifice.
Material jetting An additive manufacturing process in which droplets of build materials, such as
photopolymers and wax, are selectively deposited.
Powder bed fusion An additive manufacturing process in which thermal energy selectively fuses
regions of a powder bed.
Sheet lamination An additive manufacturing process in which sheets of material are bonded to
form an object.
Vat photopolymerization An additive manufacturing process in which liquid photopolymer in a
vat is selectively cured by light-activated polymerization.
More on This Topic
This is part of an in-depth collection of research. See the collection:

The Top 10 Strategic Technology Trends for 2014

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