Source: WITHIN Additive Manufacturing (AM) Opportunities in a digitalized production Additive Manufacturing European Conference Brussels, June 23 rd, 2015, V 1.0 Source: FIT
Introduction to Additive Manufacturing Digitalization will boost agility and responsiveness of the manufacturing industry AM is a key enabler for this new trend Engineered Products & High Tech (EPHT) Competence Center Roland Berger Our offices CC EPHT Aerospace & defense AM/Digitalization > Founded in 1969 as a one-man business, we now have successful operations in all major international markets > Largest consulting firm with European/German roots > Among the top 3 players for strategy consulting in Europe, number 1 for restructuring > Team of 250 global partners and 2,500 consultants Energy equipment Long lifecycle products Digital Technologies B2B Electronics > AM is part of the Roland Berger digitalization initiative > Our support for AM can be on strategic level (Corporate AM strategy) as well as on operational level (AM Industrialization strategy) 2
Introduction to Additive Manufacturing Europe's digital business is squeezed between large Asian and US players RBSC'sTerra Numerata shall work as incubator Market capitalization of the top 20 internet firms [2014, USD bn, %] 3
Introduction to Additive Manufacturing Using Additive Manufacturing technology, three-dimensional solid objects of virtually any shape can be made from digital data Definition and advantages Definition > Additive Manufacturing (AM) is a process of making a threedimensional solid object of virtually any shape from a digital model > AM uses an additive process, where materials are applied in successive layers > AM has a 26-year history for plastic objects the capacity to make metal objects relevant to the engineered products and high tech industries has been around since 1995 Key advantages > Direct production from CAD data > Freedom of design > Complexity for free > Part consolidation > Elimination of tooling > Max. material use > Production cost independent from batch size > New manufacturing processes, e.g. in repair, and materials 4
Introduction to Additive Manufacturing From today's point of view the "paths of disruption" only have a minor impact on production This will change in the future! Paths of disruption for Additive Manufacturing Direct production from CAD data Freedom of design Complexity for free Part consolidation Elimination of tooling Prod. cost independent from batch size New manufacturing processes Path of disruption Individual products New geometries & materials Decentralized production Examples > Prototyping > Mass customization Medical products Jewelry Gimmicks > Small series production > Integration of new, enhanced functionalities (more efficient products) in high tech materials > Development of new materials/material properties > New repair strategies > Industrial production on demand > production by quantity > by location (decentralized) > Home printing/production > Outsourcing to partners New business models (B2B, B2C ) Limited impact Strong impact Source: EOS, Roland Berger, NASA 5
Paths of disruption: Individual products Together with modern CAD/CAM technologies AM as former prototyping technology allows rapid processes and indiv. products AM for individual products Examples Implants Prototypes Source: EOS Source: FIT Source: toolcraft > Production of implants in plastic or metal materials > Implant is custom made based on scan data > Rapid production of the implant over night > Typical implants: dental, hip joints, knees, fingers, skull or back bone implants > Production of technical prototypes for test purposes > Integration of new AM design features > Rapid process with direct transformation of CAD data into products no tools required > Small series production, e.g. for Formula 1 Advantages > Economic production of prototypes and small series > Rapid process chain due to direct transformation of CAD data or scan data into products > Flexibility to change designs Life Style Source: EOS, Kerrie Luft Source: ingenieure.de > Ongoing trend in our society towards more customization and willingness to pay for individual products > Often combined scan and print processes are used Key enabler for accelerated product development and testing processes 6
Paths of disruption: New geometries and materials AM offers new opportunities for lightweight design, highly efficient products and materials with improved characteristics AM for individual products Examples Lightweight design Highly efficient products Source: FIT Source: GE Source: Morris Technologies Inc. Source: Rennteam Uni Stuttgart > Design of lightweight components due to "bionic" design with optimized exterior (left) or inner lattice structure (right) > Significant saving potential in combination with light weight materials like Aluminum or Titanium > Ability of AM to "print" complex geometries out of high tech materials, like Hast-X or Inconel, is used to create smarter products. The examples shows gas turbine nozzles with optimized mixing and cooling geometry for more efficient combustion processes Advantages > Lightweight design and new ways of manufacturing even with complex materials > Creation of new materials with enhanced characteristics > Improved geometries for more efficient products New materials Source: IQ- Evolution > The high power cooler for diode lasers (left) combines two different metal materials and offers an outstanding cooling performance in an compact design > Amorphous metals combine high strength and high hardness with high elasticity and high plasticity and further offer high magnetic susceptibility with low coercively and high electrical resistance AM is a key enabler for new high-tech products 7
Paths of disruption: New geometries and materials Bionic Design is the design key leavers for ultimate weight reduction and minimized life cycle cost Bionic Design in the context of AM Inspired by nature Water lily Bone of a bird > Natural organism contain no solid parts, but a surface of varying thickness and beneath a lattice structure > Material is only applied were it absolutely needs to be > Design determined by functionality and persisting environment solves real world problems Micro cooler (A) Engine block (B, C) Finger implant (D) > Components with bionic design have superior weight to stability ratio, can be flexible and sturdy at the same time > Applicable to maximize surface (A), to maximize strength (B) or to minimize material use (C) > Used for implants with osseointegration (D) Complex bionic design structures can be only manufactured by AM, Within, EOS 8
Paths of disruption: Decentralized production "Mobile" production and repair are of high interest for e.g. military applications, decentralized production will impact service business AM for decentralized production Examples Mobile printing AM for repair Container vessel triple E class 3D printed tools and fighter plane nose Example: Containerized print center for ground forces > Decentralized production of spare parts on container vessels, oil platforms, space stations, aircraft carriers or in containerized solutions for the ground troops > Limitations with regard to materials and post processing need to be considered > Cheap and fast printing of simple plastic assembly tools by the maintenance staff, e.g. bending tools, gauges etc. Advantages > Rapid availability of spare parts even in remote locations > Fast and cheap production of support tooling for maintenance > Further decentralization of production Decentralized production Professional AM Factory by RedEye > AM supports in general the decentralization of production as the production cost are independent from the lot size, but still AM production cost are significantly higher > Labor cost nearly of no relevance > Decentralized production of e.g. spare parts in 3 rd parties or OEM AM factories definitely is a near future application AM will impact the future supply chain design 9
AM technologies AM covers a wide range of "printing" technologies and materials offering multiple business opportunities Overview Additive Manufacturing technologies Production Technologies (DIN 8550) Bio Printing Master Forming (Urformen) Dimension Forming (Umformen) Cutting (Trennen) Joining (Fügen) Coating (Beschichten) Change of material properties (Stoffeig. ändern) 1 Materials Plastic Ceramic, glass Metal Materials > Cell suspension > Cell-encapsulating hydrogels > Microfluidic fill-in for cells > Bio-filaments Physical condition Liquid Solid, pastrious materials Powder 2 Technology Powder Bed Fusion 3 Application Personnel Printers 7 different technologies Prototypes, Mock ups VAT Photopolymerization Series Production Technology/Application > Inkjet printing > Acoustic bioprinting > Laser-induced bioprinting > Laser-guided bioprinting > Extrusion-based deposition 10
AM technologies AM covers a wide range of materials and applications Large range of technologies and applications with plastic materials Additive Manufacturing technologies landscape Application/ Quantity Series production/mass customization Material Jetting 1) Material Extrusion Plastics Binder Jetting Powder Bed Fusion Binder Jetting Powder Bed Fusion Metalls Direct Energy Deposition Binder Jetting by laser Prototypes Mock-ups by electronic beam Personnel Printers 1) Stereolithography UV curable Plastic Plastics Foundry sands, lost wax castings, ceramics, metals Metal Material 11
AM technologies Additive Manufacturing is a step up from rapid prototyping Series production manufacturing readiness level differs by application Series production manufacturing readiness level Aerospace Tooling Automotive Medical Source: FIT Source: SLM Solutions Full-rate production Low-rate production Pilot line capability demonstrated Capability in operational environment demonstrated Systems produced (simulated environment) Basic capabilities shown (simulated environment) Technology validated in laboratory environment Manufacturing proof of concept developed Manufacturing concept identified Basic manufacturing implications identified > Fuel injection > Structural elements > Blades > Tooling inserts > Air ducts > Formula 1 components > Crowns and copings > Artificial hip joints > Medical instruments Examples ; expert interviews 12
AM market From 2004 to 2014 the AM industry showed a significant growth of around 20% (CAGR), from 2010 even more than 30% (CAGR) Global AM market 120 100 Machine 80 tool 60 market 1) [EUR bn] 40 20 0-20 -40-60 AM market -80 [EUR bn] -100 66.7 54.2 57.8 59.7 46.0 48.0 41.1 35.5 7.7 29.3 33.5 33.0 Services ~10% metal AM AM Systems 30.0% 50.0% 20.0% 4.5 3.1 Materials 96 98 00 02 04 06 08 10 12 13 14 18e 23e Comments > Total AM market includes AM Systems (~ 30%), like machines, system upgrades and aftermarket business Services (~ 50%), like contract manufacturing, training, consulting services etc. Materials (~20%) used in all kinds of AM systems > Compared to the machine tool market for 60 EUR bn the AM market is still small > Based on 2012 the market is expected to quadruple within the next 10 years 1) World machine tool production excl. parts and accessories Source: Expert interviews; VDMA, Roland Berger et al. 13
AM market In 2014, around 540 metal AM systems were sold worldwide More than 80% of the machines for PBF by laser are from Germany Metal AM system manufacturers 2014 EXONE R 36 T BJ M 28 E 245 RENISHAW R 443 T PBF(LS) M 26 E 3345 3D SYSTEMS R 10 1) T PBF(LS) M 15 3) E 45 1) VOXELJET R 16 T BJ M 14 E 200 ARCAM R 36 T PBF(EBM) M 42 E 228 TRUMPF R 6 2) T DED M 9 E n.a. EOS R 138 T PBF(LS) M 100 3) E 507 SLM SOLUTIONS R 33 T PBF (LS) M 62 E 164 CONCEPT LASER R 18 1) T PBF (LS) M 111 E 59 1) REALIZER R n.a. T PBF(LS) M 15 E 7 1) Comments > Around 540 metal AM systems have been sold in 2014 > Leading metal AM system manufacturers are located in Germany with a combined market share of ca. 60% > Recent consolidation (e.g. 3D Systems acquired Phenix Systems, DM3D acquired POM) > Other small companies include Beijing Longyuan (CHN), DM3D (USA), Fabrisonic (USA), Irepa Laser/BeAM (FRA), Insstek (KOR), Matsuura (JPN), OPM Lab (JPN), Sciaky (USA), Optomec (USA), Wuhan Binhu Mech. & Elect. (CHN), Sisma (ITA) 1) 2013 2) Revenue 2012 for laser deposition seg. 3) RBSC estimate R Revenue [EUR m] 2014 T Technology M Metal AM systems sold in 2014 E Employees 2014 DED = Directed energy deposition PBF = Powder bed fusion LS = Laser sintering EBM = Electron beam melting BJ = Binder jetting Source: Press research, Bloomberg, Orbis, Dafne, Wohlers Associates, Roland Berger 14
AM market Many service providers for metal AM contract manufacturing exist worldwide strong demand from the aerospace industry Service providers for metal AM contract manufacturing (selection) Axis Prototypes 3T PRD CRDM Laser Lines Material Solutions C&A Tool Engineering Directed MFG ExOne Fineline Prototyping GPI Prototype & Manufacturing Services InterPRO Laser Reproductions Linear Mold and Engineering Morris Technologies Solid Concepts Layer Wise RPC Group INITIAL Ecoparts Advanced Manufacturing Services FIT Citim BKL Lasertechnik Blue Production FKM Sintertechnik PTZ-Prototypenzentrum toolcraft Alphaform Edelstahl-Rosswag Additional information > Worldwide, more than 90 companies provide metal AM manufacturing services > Most companies are small (<100 employees) and independent > Approx. 10% of service providers have advanced capabilities for designing difficult applications like aerospace components > Companies have different backgrounds and different business models 15
3D-printing Especially for B2C business the internet offers different platforms for "online 3D-printing" services Overview: Selection of 3D printing platforms and revenues 2014 Amazon.com Inc. R n.a M MP E n.a Offload studios Inc. R 0.1 M P E 1 3D systems Corp. R USD 354 m M MP E n.a i.materialize (Materialize NV) R 81.4 M MP E 1,244 Shapeways Inc. R c.22 M MP E >140 Sculpteo R n.a M MP E 10 Rapidobject GmbH R 0.3 M MP E n.a Impression-3D R n.a M P E n.a Trinckle 3D GmbH R n.a M MP E 9 Rinkak (Kabuku Inc.) R n.a M MP E n.a Comments > Many small companies offer platforms for 3D-printing > The selection of providers indicates that most prominent platforms are based in Europe and North America > The majority of the players offers printing of metal and plastic parts, only a few focus on plastic parts only Ponoko 2) R n.a M MP E n.a R Revenue [EUR m] 2014 M Material E Employees 2014 M = Metal P = Plastic MP= Metal and Plastic 1) 2013 2) Ponoko was founded and is based in New Zealand, but is represented in the US and in Europe as well Source: Bloomberg, Press research, company websites, OneSource, Roland Berger 16
Summary Still Europe has a leading role in Additive Manufacturing but competition from Asia and the US is arising rapidly Summary and recommendations > AM is a key enabler for accelerated engineering processes, highly efficient products and new agile supply chains and further of high strategic relevance for the European industry > The market for AM is still expected to grow significantly throughout the upcoming 10 years. Technical applications for prototyping, small series production and "smart" AM products will be the key driver > Europe still has a leading role which is challenged by new machine OEMs from Asia and the US. With regard to product and process development the US have a leading position Further support by the EU is required to > Support the European AM equipment suppliers in further developing their product and service portfolio. Most of them are small medium size (SME) enterprises competing against large national conglomerates > Make AM an essential part of engineering education at the universities and in parallel to develop AM design and manufacturing skills in the industry > Develop an European AM supplier infrastructure, that can fulfill the industry demand for the AM components, e.g. for the aerospace industry 17
To identify the latest trends around AM and digitalization, Roland Berger continuously conducts research and publishes studies Recent Roland Berger digitalization studies and publications Predictive Maintenance Digitalization and I 4.0 Big Data Semiconductors Additive Manufacturing Cyber Security 18
Please contact us if you have any further questions Dr. Bernhard Langefeld Principal Engineered Products/High Tech OpernTurm, Bockenheimer Landstraße 2-8 D-60306 Frankfurt Tel.: +49 160 744 6143 bernhard.langefeld@rolandberger.com 19
Source: toolcraft