The Rise of 3D Printing Star Trek Technology Becomes Real Disruptive Phenomenon
Overview Introduction to 3D Printing 3D Printing vs. Traditional Manufacturing Overview to the Value Chain of 3D Printing Industry How is 3D Printing Monetized Key Business Models Impact of 3D Printing on Future of Supply Chain Impact of 3D Printing on Key Industries and Economies 2
Introduction to 3D Printing While traditional production relies on removal of the material from the solid cast or mold, 3D printing adds the layers of the material on the existing layers. 3D printing is a computer-driven additive manufacturing technology used for producing the final product from a digital model by laying down successive layers of material. Typical 3D Printing Process Design Print Finish 3D printing begins with creating a digital model of the object, usually using CAD software, which is later converted into a.stl file. The 3D printer slices the.stl file into numerous digital cross-sections, and automatically builds the model using materials like thermoplastics & ceramics. The final 3D printed object is then cleaned to remove overhung material and is polished, painted (if required) and made ready for use. Source: Frost and Sullivan 3
3D Printing vs Traditional Manufacturing 3D printing saves on energy by 40 to 65 percent as it eliminates shipping and other logistics activities and enables users to produce objects with lesser material Traditional Manufacturing Traditional Manufacturing vs 3D Printing. Global, 2014 3D Printing Higher Cost of manufacturing & shipping Cost Up to 70% savings due on Prototyping costs Less innovative designs due to cost constraints Design Allows for easy yet inexpensive innovation in design More time to build final product Speed Lesser time taken due to compressed design cycles Creates more waste; subtractive process will compromise on precision Quality Lighter & smaller amount of waste; Higher precision with layer-by-layer manufacturing. 4
Key Attributes of 3D Printing 1 2 3 4 Crowdsourcing Small Batch Manufacturing On-demand Production Mass Customization Key Attributes of 3D Printing 5
Key Attributes of 3D Printing (continued) 2 1 Crowdsourcing Small Batch Manufacturing A website dedicated to the sharing of user-created digital designs A contract manufacturing firm using 3D printing technologies with capability to fulfil small production orders with high cost-effectiveness 3 On-demand Production Helped the reverse engineering of a Ferrari 312P engine by 3D printing the sand molds for the engine 4 Mass Customization Adidas was one of the first companies to install the Objet Connex500 3D printing system from Stratasys. 6
Mass Production vs. Mass Customization 3D printing puts the power into the hands of consumer and interjects the buyer participation in the product design optimizing the production of single units Mass Production Mass Customization Mass production treats large groups of customers as anonymous individuals 1 2 Product Design Factory Customer Build to Order Factory Retailer 1 2 Customer 3 3 Retailer Design Crowdsourcing Leads to Co-creation of Products Emergence of digital platform enabling product engineers, customers, industry outsiders to contribute ideas resulting in more differentiated, better-designed products. Abundance of open source designs will lead to shortening of R&D design cycles. 7
3D Printing Going Mainstream Present Day 3D Printing Goes Mainstream Prices of 3D Printers Home 3D Printers available at leading retail stores for around $1000 Home 3D Printers with wireless and internet capabilities allowing remote control at an average price of $500 Standardization of Raw/Feed Materials Raw materials for 3D printers manufactured or procured and provided by 3D Printer manufacturers Inexpensive feed materials for a broad range of household items now available in the market Accessibility to Services on Mobile Devices Smartphone apps to design 3D models and access online services (Sculpteo) Smartphone/ tablet apps to design products and control 3D printers remotely ( Design-onthe-fly ) Establishment of Regulations/ Standards Alliances formed to enable development of standards Establishment of Global standards for feed materials for 3D printers 2014 2030 8
Ongoing R&D 3D PRINTING TECHNOLOGY READINESS To be Commercialized Commercialized Year of Commercial Impact: Key Application Sectors Consumer Applications Medical, Automotive, Retail Applications Industrial Applications 2014 2015 2016 2017 2018 2019 2020 Hobby (arts and crafts) Jewellery Household printing Printing small to medium medical prosthetics Prototypes for automotive industry (for example, instrument panels) Retail prototypes Rapid prototyping for large industrial applications Components for aerospace (for example, air ducts, hinges, jet engine parts, wing spares, spare parts) and defence research and development Printing chocolate Printing food Printing toys Printing bicycles Clothing and apparel in fashion industry 3D printed furniture Building construction Industrial tools manufacturing Life sciences R&D Digital and memory equipment Digital and memory equipment and rechargeable batteries 3D printed consumer electronics 3D printed semiconductors/ics Smart prosthetics Artificial ears 3D printed organs 3D printed complex metal systems 3D printed energy harvesters for power stations Large aircraft parts 9
Major 3D Printing Technologies Although all 3D printers use the basic additive fabrication method, that involves building the part one layer at a time, they differ on the types of material and techniques used A stereolithography apparatus uses liquid plastic, a perforated platform, and UV laser to print 3D objects Stereolithogra phy (SLA) Fused Deposition Modelling (FDM) The system uses thermoplastic material which is melted to a semi-liquid state and extruded according to computercontrolled paths Small particles of plastic, glass, or ceramics are fused together from a high power laser to form a solid 3D object Selective Laser Sintering (SLS) Major 3D Printing Technologies Electron Beam Melting (EBM) A focused beam of high energy electrons is used to melt the metal powder layer by layer in high vacuum as per the predefined dimensions A economical process where layers of adhesive-laminated paper or plastic sheets are glued together and cut to create complex shapes Laminated Object Manufacturing (LOM) Selective Laser Melting (SLM) Similar to electron beam melting, this method creates complex objects by completely melting the metal powder using high powered laser beam Source: Frost & Sullivan analysis. 10
What s Next? 4D Printing Physical programming of macro-sized 3D materials to self-assemble themselves into predetermined structures and shapes A Possible Scenario for 4D Printing Industrial 4D Printing Self Assembling Materials 3D Printing Exploring materials and understanding reaction to external elements 2013 2015 Environmental Manufacturing Industry application will be explored with cost of technology more suited for industrial applications 2035 Holds potential to revamp manufacturing introducing a new field of environmental manufacturing in which ambient sources of energy, water or even light will be used as impetuses to selfassemble 2045 Ongoing Research on 4D Printing Space Exploration 4D printed parts can be sent to space and programmed to selfassemble into an object at the desired location. Construction/ Architecture Materials that could be programmed to adapt and change shape in response to environment or situation. Example: Pipes that expand when demand increases Medical Ongoing research on developing a nano robot built from DNA strands in the form of a clamshell basket, with double-helix "locks" that are only opened when the robot comes into contact with specific cancerous cells. 11
Value Chain of 3D Printing Industry The 3D printing industry value chain is extremely fragmented with no clear one-stopshop solution provider offering end-to-end solutions 3D Printing, Value Chain Participants 1 Design Software Providers 2 3D Printer Manufacturers 3 Service Providers 4 Developer/ User Community Types of Services 2D to 3D converter Animation to 3D models Product specific platform (Jewelry, sake set, etc.) Home 3D Printers Industrial 3D Printers Self-replicating 3D Printers (RepRap) Online 3D Printing of user designs Creating figurines out of 2D pictures Design crowdsourcing Online marketplaces for user products Portal to hire designers Examples: Autodesk, CATIA, 3DView, SolidView, Rhino Example: 3D Systems, Stratasys, Arcam AB, Z Corporation, MakerBot. Example: Shapeways, Ponoko, Sculpteo, 3DMe by Cubify Example: Thingiverse, Crowdsourcing.org, Cad Crowd, DesignCrowd.com Integrators working across the value chain 12
How is 3D Printing being Monetized Key Business Models 1 In-House 3D Printing The manufacturer has the in-house capability as well as the infrastructure to manufacture components using 3D printing technology. Example: General Electric 2 Contract Manufacturing Model A 3D manufacturer who contracts with a firm to manufacture components using 3D manufacturing, an outsourcing model. Example: GPI Prototype & Manufacturing Services 3 3D Printing as a Service Online business model where the orders are received online and the finished products are mailed to the customers. Example: Shapeways 4 Retail 3D Printing Portable 3D printers available in the retail market which can be used to manufacture products at home Example: Cubify 13
3D Printing Business Model Comparison In-house 3D Printing Contract Manufacturing Model 3D Printing as a Service Retail 3D Printing (Home use and Hobbyists) Time to Set up VERY HIGH: R&D and plant set-up (10-25 years) MEDIUM : Plant Set-up (1-3 years) MEDIUM: Online ecosystem and key partnership (1-2 years) VERY LOW: 3D printer, familiarizing with design platform (0-2 months) Level of Investment VERY HIGH: R&D and plant set-up MEDIUM: Plant set-up MEDIUM: Online platform LOW: Home 3D printer and raw material Level of Customer Interaction VERY LOW: Zero interaction before production; Only sales interaction HIGH: Build-to-order based on customer design and preference MEDIUM: Production based on customer design received online HIGH: Customer is the user or is strongly connected with the user. Use of Online Technologies LOW: in-house design team, face-to-face sales interaction MEDIUM-LOW: in case of taking online orders (online design) HIGH: online orders, online design, online payment. MEDIUM-LOW: Accessing design from crowdsourcing communities Requirement of Logistics MEDIUM-HIGH: Mass procurement of raw materials and supply of finished products MEDIUM: Small-batch procurement of raw materials, and supply of finished products HIGH: Supply of finished products to individual customers LOW: No requirement except in case of retail home delivery. 14
3D Printing Key Supply Chain Models Manufacturer Owned Production 1 B2B Raw Material Additive Manufacturer Product Integrator/ Traditional Manufacturer Consumer Manufacturer Owned Production 2 B2B Raw Material Additive Manufacturer DESIGN SUPPORT Product Integrator/ Traditional Manufacturer Consumer 3D Printing Hub B2B Raw Material Additive Manufacturer IN CUSTOMER S VICINITY Product Integrator/ Traditional Manufacturer Consumer 3D Retail Market B2B2C Raw Material Traditional Retail Store Online Retail Consumer 15
3D Printing Industry Adoption Map Early Adopters Late Adopters Customization Classification Aerospace Cost per product Automotive* Healthcare Automotive** High Levels Energy Metals C&I Slow adoption presently due to low durability of the 3D printed materials Sports & Entertainment Consumer goods (Novelty Products) Medium Levels Low levels Textiles Personal Accessories Consumer goods Expected Production Speed C& I - Construction and Infrastructure * Specialty vehicles and parts **Low powered vehicles and parts 16
3D Printing and its Impact on Key Economies Number of Patents in 3D Printing (Between 2009 and Jan 2014) Countries with lesser investment in 3D Printing and higher dependency on manufacturing exports stand to lose the most Note: The size of the bubble for a particular country indicates the Manufacturing Value Added ($ Billions) US The adoption of 3D Printing China in the manufacturing sector will lead to the disruption of Global Manufacturing Hubs as the manufacturing will get localized (closer to customers or consumers). Japan The countries encircled in Russia Australia Red will get affected the South Korea Canada United Kingdom Spain most. Taiwan France Hong Kong Share of Manufactured Exports in Total Exports (%) 17
3D Printing Key Transformational Shifts Mass Production to Mass Customization Smaller batches of production with high levels of customization Lower throughput compared to traditional manufacturing. But faster time to market Supply Chain Focus: from PUSH to PULL Demand happens parallel to production Key Transformational Shifts Demand Supersedes production Forecasted Demand to Real-time Demand Eliminates the need to store finished products based on forecasted demand; lesser storage space required To document, relay and realize demand in real-time Inventory: Finished Products to Raw Materials Manufacturers will store only the raw materials to meet ondemand production requirements Low-storage space requirements as raw materials occupy lesser volume than finished products Manufacturing: Global to Local Hub and spoke model of supply chain will be challenged. Hubs will lose importance Global production houses will lose the competition to local manufacturing centers 18
What is a Mega Trend? Top Mega Trends Covered By The Visionary Innovation Research Division What is a Mega Trend? Urbanization City as a Customer Bricks and Clicks Future Infrastructure Development Mega trends are transformative, global forces that define the future world with their far reaching impact on business, societies, economies, cultures and personal lives. Smart is the New Green Social Trends Innovating to Zero New Business Models: Value for Many Health, Wellness and Well Being Future of Mobility Connectivity and Convergence Beyond BRIC: The Next Game Changers Future of Energy 19
Mega Trends Universe We Track* Frugal Innovation Woman Empowerment *This list is not exhaustive 20
From Macro to Micro: Taking Mega Trends from Information to Strategy Implementation Macro To Micro Mega Trend Selected trends that impact your business and markets Analysis of Opportunities and Unmet Needs Sub Trend A sub-layer of trends that has a wide ranging impact Impact on Future Product/ Technology Impact to Your Industry Visualising the roadmap of these critical forces through scenariobuilding and macro economic forecasts 21
Learn More About New Mega Trends Published Book: New Mega Trends Implications for our Future Lives By Sarwant Singh Publisher: Palgrave Macmillan http://www.palgrave.com/products/title.aspx?pid=5774 23 Join Our Mega Trend Group On Mega Trends: Strategic Planning and Innovation Based on Frost & Sullivan Research 22
List of Topics done by Visionary Innovation Research Group Future of Connected Living: Home, Work and City Smart Cities Future of Retail: Bricks and Clicks Future of Logistics Future of Mobile and Personal Robots Women Empowerment New Business Models Future of 3D Printing Top Technology Buzz To Watch Out For 23
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