Trademarked company and product names are the property of their respective owners.

The images on the front cover (from top to bottom) are compliments of Medical Modeling Inc., Tape Wrangler, Morris Technologies, Bathsheba Grossman/Materialise, and FigurePrints. Craig Van Wechel of VW Design designed the cover. The information in this report was obtained from sources that Wohlers Associates, Inc. does not control, but believes to be honest and reliable. The company in no way assumes any part of the risk of the buyer of this report; does not guarantee its completeness, timeliness, or accuracy; and shall not be held liable for anything resulting from use of or reliance on the information, or from omission or negligence. Unless otherwise noted, Terry Wohlers of Wohlers Associates, Inc, authored the sections in this report. COPYRIGHT 2009 BY TERRY T. WOHLERS. ALL RIGHTS RESERVED. Except as permitted under the United States Copyright Act, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without prior written permission from Wohlers Associates, Inc. Printed in the United States of America ISBN 0-9754429-5-3 (250-page report) 1 2 3 4 5 6 7 8 9 10 11 10 09

Wohlers Report 2009

Executive Summary

Introduction

This eight-page executive summary provides a sampling of the information published in Wohlers Report 2009, a 250-page, softbound publication. The report provides an in-depth analysis of the additive manufacturing (AM) industry worldwide. AM refers to a group of technologies used for building physical models, prototypes, patterns, tooling components, and final production partsall from 3D computer-aided design (CAD) data, 3D scanning systems, medical scanners, or video games. Additive manufacturing joins together liquid, powder, or sheet materials to form objects, unlike machining processes, which are subtractive in nature. Additive manufacturing can produce parts that may be difficult or impossible to fabricate by any other method. Based on thin, horizontal cross sections taken from a 3D computer model, AM systems produce plastic, metal, ceramic, or composite parts, layer upon layer. Wohlers Report 2009 was written for product development and manufacturing organizations worldwide. It covers AM industry growth estimates, new developments and business opportunities, emerging applications, research and development, and what the future holds. To support the review and analysis, the report includes 31 charts and graphs, 45 tables, and 154 photographs and illustrations. A complete table of contents is included on the final page of this executive summary.

The industry

After more than two decades of research, development, and use, the industry continues to expand with the introduction of new technologies, methods, and applications. Also, a growing number of industrial sectors and geographic regions are embracing the use of AM. Additive processes have had a tremendous impact on design and manufacturing, and this impact will continue to grow in the coming years. The past 12 months have been an interesting period of time. A wide array of new product announcements, from materials to new equipment, has occurred. The economic downturn became evident in Q3 2008 when equipment manufacturers began to see sales decline. The companies with large installed bases of systems are expected to do better at weathering the storm because of recurring material and service revenues. Twenty-nine system manufacturers and 65 service providers worldwide responded to a survey for this edition of the report. These 94 companies represent an estimated 5,000+ users and customers and provided information based on their knowledge of them. According to the survey, companies are using AM technology increasingly for functional modeling, the number one application of the technology, as shown in the following chart. Meanwhile, direct part production has grown from almost nothing seven years ago to become the second most common application of AM technology.

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Executive Summary

Other Direct part production Tooling components Patterns for metal castings Patterns for prototype tooling Fit and assembly Functional models Presentation models Visual aids 0 200 400 600 800 1000 1200 1400 1600 1800

Source: Wohlers Report 2009

The length of each bar reflects the numerical responses received from the 94 companies. Note that parts from AM processes are frequently used for two or more applications

System manufacturers

In 2008, several companies introduced new AM systems to the market. EOS (Germany), Objet Geometries (Israel), Mcor Technologies (Ireland), MTT Technologies Group (England), and three U.S. companiesOptomec, 3D Systems, and Z Corp.introduced new machines. In Q4 2008, chemicals giant Huntsman Advanced Materials (Switzerland) surprised many when it announced the development of an entirely new additive-manufacturing process and machine. In early 2009, Stratasys introduced the $14,900 uPrint system based on FDM technology. ReaLizer (Germany) and A1 Technologies (England) also introduced systems in 2009. In 2001, 3D Systems was the unit sales leader, with an estimated 415 machines sold that year. Sales then declined significantly the following two years. In 2003, Stratasys took over as the company with the largest installed base and has since extended its lead. Through the end of 2008, Stratasys had sold 11,366 FDM systems, compared to an estimated 4,274 by 3D Systems. With a customer base of 4,975, Z Corp. pulled ahead of 3D Systems in 2008 with the second largest number of installations worldwide.

Service providers

Service providers, also referred to as service bureaus, have been a fixture in the industry since additive-manufacturing systems were first introduced. They have offered part-building services to organizations that were reluctant to invest in a new technology or could not justify the purchase of a system. Over the past few years, service providers have had to contend with a business climate that places as much emphasis on cost reduction as time to market. They have also faced the challenge of delivering value to their clients in an environment of much lower-cost AM systems that are safe and easy to operate.

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Wohlers Report 2009

Executive Summary

While service providers continue to play a valuable role in the industry, the nature of that role is changing. Many of the services provided in the 1990s by service providers, such as concept models, are largely being done by in-house systems. Most service providers have changed the types of services they provide to adapt to changing demand. A new type of service provider is developing that is targeting consumers. One of the best examples is Netherlands-based Shapeways, a company that is a part of the Philips Electronics incubator program. The relatively new company allows customers to upload a design, and then Shapeways manufactures it using AM and ships it to them. This may sound similar to working with a conventional AM service provider. The difference is that Shapeways is focused on the consumer market. Also, the company offers a portfolio of creator tools that is said to make it easy for customers unfamiliar with conventional design tools to create custom products. Prices range from a few dollars for a ring or key chain to $100 for a semi-custom lamp. Larger pieces can cost more. The following chart shows the percentage of respondents65 service providers worldwidethat added AM equipment for each of the past five years. The percentage of service providers adding capacity in 2008 was lower than in 2005 and 2006, yet it increased from 2007 levels, as shown in the following graph.
65%

60%

55%

50%

45% 2004 2005 2006 2007 2008

Source: Wohlers Report 2009

Laser-sintering systems from EOS and 3D Systems accounted for 28% of systems added in 2008. Systems from Objet Geometries are among the systems that are gaining the most in popularity. They represent only 3% of the installed base, but they accounted for 12% of the systems added in 2008.

Additive manufacturing around the world

Several countries with annual installations of 100 or more AM systems experienced impressive double-digit growth in 2008. China grew by 39.7%, France by 29.2%, Germany by 23.6%, and the UK by 15.6%. The U.S. grew by only 4.4% and Japan declined by a surprising 56.8%. A few countries with relatively small annual installations experienced strong growth from 2007 to 2008. They were Brazil (23 to 42 units), Mexico (22 to 35), Thailand (43 to 67), Sweden (47 to 70), and the Netherlands (40 to 67).

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Wohlers Report 2009

Executive Summary

The following graph shows the number of AM systems sold and installed over the past several years in China. Note that the estimate for 1996 includes all machines installed up to and through that year. Through the end 2008, an estimated 2,472 machines had been installed in the country, compared to 1,986 through 2007.
500 450 400 350 300 250 200 150 100 50 0 96 97 98 99 00 01 02 03 04 05 06 07 08

Source: Wohlers Report 2009

With the exception of Japan, the growth of additive manufacturing in Asia started much later than in the U.S. and Europe. Companies were merely experimenting with the technology in the late 1990s, with most machine installations in Asia occurring at technology transfer centers, universities, and training establishments.

Direct part production

Additive manufacturing is having a profound impact on the way some companies manufacture products. These organizationssome very smallare successfully applying the technology to the production of finished goods. Wohlers Associates believes that this practice will grow and overshadow the use of AM techniques for other applications in the total amount of money spent. In the future, many organizations will use AM to manufacture a wide range of custom and limited edition products and replacement parts. Companies will also use AM for short-run and series production for part quantities ranging from a few to thousands. Direct part production from AM systems is indeed growing, with the dental market starting to follow the hearing aid market in its adoption of the technology. The difference is that the dental market is many times larger. Direct metal sintering/melting is being viewed as a viable, production-capable process in the biomedical and aerospace markets. A wide array of organizations is investigating these processes. For the first time, a large and impressive number of custom consumer products from AM are available for purchase from multiple sources. For example, FigurePrints, a company founded by former Microsoft vice president Ed Fries, produced 1,700 custom products using AM for players of World of Warcraft in October 2008. This came only 10 months after the company launched the manufacturing service. In

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Wohlers Report 2009

Executive Summary

November, another consumer-oriented service, JuJups.com by Genometri (Singapore), began making custom Christmas ornaments with additive-manufacturing technology. Companies in the additive-manufacturing business are optimistic about the future growth of AM for part production applications. Companies representing thousands of users and customers of AM technology from around the world responded to a survey on the subject. They believe that AM part production will represent 35.9% of their business in five years, as shown in the following graph. In 10 years, the same companies believe that it will represent more than half (50.5%) of their business. The survey respondents said that AM part production was 15.6% of their business in 2008.

60 50 35.9 40 30 15.6 20 10 0 2008 2013

50.5

2018

Source: Wohlers Report 2009

The future

Methods of additive manufacturing are creating new markets for limited edition and one-of-a-kind products. Also, additive manufacturing is causing some companies and individuals to rethink the way products are developed and brought to market. Whats more, a new type of manufacturer is emerging that is not operating from a traditional manufacturing facility. This new manufacturer is producing custom and personalized products on demand. Almost anyone, located almost anywhere, can now become a manufacturer. The only basic requirements are an Internet connection and access to one or more additive-manufacturing systems. Consequently, some large and interesting trends are becoming apparent that will impact the future of product development and manufacturing.

Acknowledgments

The author appreciates the individuals and organizations that contributed to this report. Special thanks go to David Bourell, Andy Christensen, Rob Connelly, Ping Fu, Ismail Fidan, Tim Gornet, Tom Mueller, Joel Segal, and the team at the University of Texas at El Paso for their significant contributions. The author sincerely thanks the 29 system manufacturers and 65 service providers that provided valuable input. And finally, the author thanks the following contributors for their kind and helpful support.

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Wohlers Report 2009

Executive Summary

Mukesh Agarwala Nadra Angerman Hidefumi Aoyama Daniel Attanasio Paulo Jorge Brtolo Joseph Beaman Alain Bernard David Bourell Dena Braun Tim Caffrey Ian Campbell Andy Christensen Rob Connelly Deon de Beer Mike Durham Igor Drstvenek Ismail Fidan Joe Frascati Boris Fritz Ping Fu Ian Gibson Tim Gornet Andrzej Grzesiak Joan Guasch Tsuneo Hagiwara Richard Hague Ola Harrysson Berndt Holmer Neil Hopkinson Marjorie Adele Ingle Luca Iuliano Olivier Jay Troy Jensen Jason Jones Rik Knoppers Kai Loose Toshihiko Maeda Frank Medina Greg Morris Tom Mueller Randall Newton Charlie Norton John Obielodan Phil Reeves Pete Sayki Joel Segal Michael Siemer Brent Stucker Gordon Styles Chris Tuck Jukka Tuomi Jonas Van Vaerenbergh Ryan Wicker David Wimpenny

3D Product Development (India) Angerman Communications Group Aspect (Japan) Daimler AG (Germany) Institute Polytechnic of Leiria (Portugal) University of Texas at Austin Ecole Centrale de Nantes (France) University of Texas at Austin Alchemy Models Seventh Son Creative Services Loughborough University (England) Medical Modeling Inc. FineLine Prototyping Vaal University of Technology (South Africa) Absolute Geometries University of Maribor (Slovenia) Tennessee Tech University Prototype Productions, Inc. Northrop Grumman Geomagic, Inc. National University of Singapore (Singapore) University of Louisville FhG Institute for Mfg. Eng. & Automation (Germany) ASCAMM (Spain) CMET Inc. (Japan) Loughborough University (England) North Carolina State University IVF Industrial Research and Development Corp. (Sweden) Loughborough University (England) University of Texas at El Paso Politecnico di Torino (Italy) Danish Technological Institute (Denmark) Piper Jaffray De Montfort University (England) Promolding (The Netherlands) Daimler AG (Germany) NTT Data Engineering Systems Corp. (Japan) University of Texas at El Paso Morris Technologies Express Pattern CADCAMNet NCP Leasing, Inc. Utah State University Econolyst (England) SICAM University of Nottingham (England) Mydea Technologies Utah State University Star Prototype (China) Loughborough University (England) Helsinki University of Technology (Finland) Katholieke Universiteit Leuven (Belgium) University of Texas at El Paso De Montfort University (England)

The author thanks the Society of Manufacturing Engineers (SME) for its support and sponsorship of this publication. The Rapid Technologies and Additive Manufacturing Community (RTAM) of SME is the worlds largest individual technical membership organization on the subject. RTAM technical groups focus on niche technology interests that include materials and process standards, medical applications, tooling, 3D imaging and reverse engineering, nanomanufacturing, and production applications of additive manufacturing. RTAM and its technical groups provide members with opportunities to learn about the latest advances and share best practices with others who have similar interests. For more information on RTAM, visit sme.org/rtam or call SME at 800-733-4763.

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Wohlers Report 2009

Executive Summary

About the author

Industry consultant and analyst Terry Wohlers is president of Wohlers Associates, Inc., an independent consulting firm he founded nearly 23 years ago. Through this company, he has provided consulting assistance to more than 150 organizations in 21 countries. Wohlers has been quoted in countless domestic and foreign publications including BusinessWeek, Chicago Tribune, Discovery News from the Discovery Channel, The Economist, FORTUNE, Forbes, Los Angeles Times, Scientific American, and The Wall Street Journal. In 2007, Wohlers was voted the #1 most influential person in rapid product development and rapid manufacturing by the UKs TCT Magazine, in its Top 25 Influential People survey. More than 1,000 industry professionals from around the world voted. Wohlers has authored more than 350 books, articles, and technical papers on rapid product development and manufacturing. He has given 65 keynote presentations on five continents in cities ranging from Helsinki and Pretoria to Beijing and Kuala Lumpur. His appetite for adventure has motivated him to climb the Great Wall of China, hike the rain forests of New Zealand, dive among sharks in Belize, and bathe in the Dead Sea. He has ridden elephants in Thailand, encountered lions in Africa, and explored the ancient pyramids of Egypt. Wohlers received an Honorary Doctoral Degree of Mechanical Engineering from Central University of Technology in Bloemfontein, South Africa in 2004. Nelson Mandela, former president of South Africa and Nobel Peace Prize winner, was presented with this honorary degree in 2002. In 2005, Wohlers became a Fellow of the Society of Manufacturing Engineers (SME), a distinction granted to less than 1% of the membership, making it one of the most prestigious honors presented by the Society. In 2009, he began his sixth year on SMEs Manufacturing Enterprise Council, a group that was created in 1999 to guide the development of SMEs technology portfolio. Wohlers initiated the Bright Minds Mentor Program for high school students in the U.S. in 2004. Each year, the program brings nearly 50 students to SMEs RAPID Conference & Exposition where practicing professionals and industry leaders serve as mentors to them.

How to order the report

An order form for Wohlers Report 2009 (ISBN 0-9754429-5-3) is available at wohlersassociates.com. You may also order by phone, fax, or mail. Visa, MasterCard, American Express, and Discover are accepted. In the U.S. The report is $475, which includes Priority Mail shipping. To order one or more copies, provide credit card details, or send a check for the total amount. Outside the U.S. Payment by credit card is preferred. The price is $495, which includes Priority Mail International shipping to most locations. If you are not fully satisfied with the report, you will receive a refund.

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ACKNOWLEDGMENTS ABOUT THE AUTHOR FOCUS OF THIS REPORT INTRODUCTION TO ADDITIVE
MANUFACTURING

Table of Contents
Laser consolidation

New machines Selective laser printing

INDIRECT TOOLING APPROACHES

RSP Tooling Reconfigurable Tooling Systems Other options

OBJET GEOMETRIES
New machines Material developments New chief executive

PART 8: RESEARCH AND DEVELOPMENT

PATENTS TECHNOLOGY DEVELOPMENT
Metallic materials Biomanufacturing

ALTERNATIVES
CNC-machined tooling Hybrid tooling

PART 1: BACKGROUND
HISTORY OF ADDITIVE
MANUFACTURING

Introduction of non-SL systems Introduction of 3D printers New generation machines The past 12 months Early inventions

INDUSTRIES AND REGIONS

BENEFITING FROM THE TECHNOLOGY

OPTOMEC PHENIX SYSTEMS POM REALIZER SINTERMASK SOLIDICA SOLIDO SOLIDSCAPE STRATASYS
Indirect sales strategy Dimension activity Fortus systems RedEye

NANOMANUFACTURING
NanoEngineer-1 Examples Approaches to nanomanufacturing Nokias Morph Worlds smallest radio

PART 6: DIRECT PART PRODUCTION

TRANSFORMATION IS UNDERWAY WHEN TO USE AM FOR PRODUCTION
Elimination of tooling Quality and repeatability Industry standards

U.S. GOVERNMENT-SPONSORED R&D

National Science Foundation Meso, micro, and nanoscale technology Applications of existing AM technology Medicine Education National Institutes of Health Department of Defense NASA

How companies are applying AM processes Installations by country

COST ANALYSIS AND ECONOMICS

Production implications Strategic implications

APPLICATIONS
Custom manufacturing Communication Engineering changes Powerful ideas and proposals Concept models Verifying CAD databases Styling and ergonomics Fit and functional testing Prototyping Metal castings Requests for quotes Tooling Unlimited potential

3D SYSTEMS
Equipment Other developments

ENVIRONMENTAL CONSIDERATIONS INDUSTRIAL DESIGN

Impact of AM for part production Need for customer interaction

VOXELJET Z CORP.
ZPrinter 650 Newest materials Other developments

APPLICATIONS AND INDUSTRIES

Aerospace Military and marine Motorsports Automotive Machinery Medical and dental Consumer products Furniture and home accessories Art and jewelry Gifts, awards, and trophies Museum displays

COLLEGE AND UNIVERSITY

EDUCATION AND RESEARCH

INVESTOR UPDATE
Revenues and earnings Outlook

PART 4: ASIA AND EUROPE

ASIA
Perspective on China Another perspective on China Major technology players Chinese machines Korean machines India

Educational activities in additive manufacturing Research and teaching Institutions with capabilities in AM Future trends and contributions

PART 2: INDUSTRY GROWTH

REVENUE GROWTH AND FORECASTS
Products and services Long-range forecast Annual revenue growth percentages Material sales Revenue from service providers Secondary market Revenue from other services

PART 9: WHERE ITS ALL HEADED

THE IMPACT ON MANUFACTURING
AM is driving change Barriers to growth

CHALLENGES AND REQUIRED

RESEARCH

JAPAN
Additive manufacturing in Japan Changing stereolithography landscape Other AM processes Laser sintering in Japan Japanese service providers The future

Processes Materials Organization, management, and supply chain issues

GROWTH IN MEDICAL APPLICATIONS

Orthopedic implants Dental applications Biomanufacturing

FUTURE GROWTH POTENTIAL

PART 7: OTHER DEVELOPMENTS

GROWTH OF CAD SOLID MODELING
Major trends CAD/PLM revenues Seat count estimates Operating systems Whats next?

OTHER POSSIBILITIES NEW KINDS OF PRODUCTS

Lightweight structures Electronics Clothing and protective gear

UNIT SALES GROWTH AND

FORECASTS

AM IS REACHING THE CONSUMER

Game avatars and collectables 21st century thing maker

Long-range forecast Unit sales growth percentages Market shares Systems sold by region Market shares by manufacturer Unit sales by manufacturer and year 3D printer sales

EUROPE
Germany United Kingdom Italy France Spain Sweden The Netherlands Denmark Finland Belgium Portugal Slovenia

MATERIALS
LS powders SL resins PolyJet resins Other materials Coatings and other treatments Part production

SUMMARY WANT TO LEARN MORE?

APPENDICES
APPENDIX A: GLOSSARY OF TERMS APPENDIX B: SYSTEM AND MATERIAL
MANUFACTURERS

SERVICE PROVIDERS
Growth trends Popular processes Changing conditions The future Maturation of companies Consumer-oriented service providers Outlook

MEDICAL APPLICATIONS
Anatomical models, surgical models, etc. Medical imaging as input to medical models Medical image-processing software AM materials suited to medical modeling Additive methods suited to medical modeling Personalized metal implant production Acetabular cups DMLS for surgical instruments

OTHER REGIONS
South Africa Groups and associations

PART 3: SYSTEM MANUFACTURERS

ACCUFUSION ARCAM CONCEPT LASER DESKTOP FACTORY DWS ENVISIONTEC EOS
New EOSINT P 800 Ancillary design improvements New materials Partnerships

PART 5: METAL PARTS AND TOOLING

DIRECT METAL PARTS
Laser-based, powder-bed systems Powder deposition systems Other approaches Materials testing and international standards

Canada China England France Germany Ireland Israel Italy Japan Korea Sweden Switzerland United States

APPENDIX C: U.S. SYSTEM

SPECIFICATIONS

APPENDIX D: SYSTEMS
MANUFACTURED OUTSIDE THE U.S. APPENDIX E: MATERIAL PROPERTIES APPENDIX F: METAL FABRICATION COMPARISON MATRIX

INDIRECT METAL PARTS

Investment casting Sand, V-Process, and plaster mold casting LS, ProMetal, and ZCast Die casting

3D SCANNING AND REVERSE

ENGINEERING

EX ONE FAB@HOME HUNTSMAN MCOR MTT

TOOLING SOLUTIONS HIGH-PERFORMANCE TOOLING DIRECT TOOLING APPROACHES

DMLS

3D-scanning hardware Processing software Applications Hardware technology and limitations Software technology Conclusions

APPENDIX G: 3D SCANNING
SYSTEMS

APPENDIX H: 3D SCAN PROCESSING

SOFTWARE

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