ShortCut: Additive Manufacturing | Page 2

The capabilities of SLS and SLM are highly sought after in the automotive industry, with complex customisable parts such as alloys and interiors being very well suited. SLS in particular has huge potential in consumer goods and fashion. Leading players such as Nike, Adidas, and Under Armour are all applying AM on small-volume mass production for their sports shoe lines. Challenges in perception The Chinese AM market is highly competitive, but there are opportunities. On the lower end of the market, the technological barriers are not high for new players, but the market is saturated. Whereas at the higher end, leading technological expertise is essential, yet the number of competitors is significantly lower. Local players at the lower end are anticipated to increase their market share as they catch up technically while maintaining a low product price and developing a customercentric service. Despite these opportunities, the biggest challenge for the industry is customer perception, as there is a hesitancy for AM to be considered for larger scale production. This is mainly because mass AM is currently slower and more costly than alternatives, but also because customers aren’t aware of AM’s full benefits. goetzpartners finds that the most successful AM suppliers in the face of these educational issues spend a lot of effort educating downstream clients on how to apply the technology, and often provide consulting services as well. Pick the right moment goetzpartners expects the unit cost of AM production to decline by 25 per cent CAGR over the next five years. As the technology develops to become an increasingly cost-effective option, AM MNCs should work to identify the inflection point at which their service offers a compelling volume for mass production. AM multinational companies should target industries with strongly emerging interest in AM method’s capabilities, i.e. automotive, electronics, and robotic part suppliers. Regarding low AM maturity status, corporations should start approaching local manufacturers 2-3 years in advance to build their knowhow in 3D printing and become technologically competitive. 4 STEPS TO AM SERIAL PRODUCTION MASS PRODUCTION ON A TINY SCALE China as leading AM market The Chinese AM market will grow by an estimated 18 % from 2015 to 2025 – the largest increase worldwide. The biggest demand for AM is in the aerospace and healthcare sectors – where AM maturity is highest. AM maturity in healthcare Within healthcare, AM offers dentists a more precise process than traditional plaster method when making teeth, and one that is also far more cost-effective. Although price is still a challenge for the AM market today, goetzpartners estimates that AM production is cheaper than traditional injection moulding methods when the production volume is 50,000 or less. THE AUTHORS SCALE PRODUCTION · Certify process and evaluate limits · Optimize volume, location and time 4 DESIGN FULL PRODUCTION PROCESS · Including post-treatment and inspection 3 GÖTZ V. STEYNITZ Partner, goetzpartners DEVELOP USE CASES · Optimize AM product design and material 2 BUILD AM READINESS · Training · Product screening and selection 1 COMPETITIVENESS YUKAI CHEN Partner, goetzpartners Special thanks goes to: Daisy Li, Manager, goetzpartners © goetzpartners, September 2018 · All rights reserved, including text, images, graphics and other content of this publication.