Sculptor 1X

3D Printing Market Data and Projections

Joining us this morning my name is dhruvin, dhruvin patel. and I will take you through our blog.

Today which will focus on starting your own 3d printing services. so our agenda for today will discuss a little bit about its really printing market and the projection for the next day a few years I the potential customers and the industries for those of you who are looking to start their own business why customers are using 3d printing today for both services and in house and then we deal it with a dive in a little bit to how to start your own business. how to a what should be your target customers how to target the derive the technology we'll discuss a little bit about the overhead in the RO and an ROI example and what kind of support we can help we can provide you guys to be successful.

3D Printing market Data and Projections.

So about the 3d printing market there's a huge buzz around this industry today as you all know and there's a reason for that.

This is a very fast-growing market we're talking about 30% YOY over here for the last year's the future looks very bright for this industry as well i by wallace report which is one of the known an industrial let's say one of the known market research in the

3d printing industry researchers predict that the market will continue to grow by 33% to around 51 billion in 2020

and when we're talking about that we're talking about services consumables and of course print ourselves today 70% of the market is traditional prototyping (feat, form, function, marketing and sales) prototypes that's what the 70% of the customer using the printers today

30% of the market today is manufacturing support and end use parts and I will discuss it in a bit later the manufacturing segment is actually growing faster than the prototyping segment so we see more and more companies that introducing 3d printing to the manufacturing flow and the end end use parts and an important fact is that the adoption rate in the USA is is faster than in Canada which means that we have great potential here in Canada for this industry

3D Printing - Potential Customers

So we're going to be our potential customers and there's a growing demand in from a full services on variety of customers such as

Product design companies - Need concept modeling fitting for modeling functional, modeling, marketing, sales prototypes that will reduce the time to market and the development cycle dramatically

Manufacturing customers - big demand for jigs and fixtures customized evening pictures in the manufacturing flows tools and dyes functional prototypes and even envious part we will touch it in a second

Entrepreneurs/ students -  in looking to start their own businesses looking to make a prototypes the first prototype of their product in order to take decision much early get some funds and and even to use it for a Kickstarter

Other small 3d printers owners - that have the consumer product that you know they need they need bigger parts they need more quality parts or maybe different materials that we don't have we use services as well and of course education and visit Institute

But looking to make a prototype and the end sparks industries such as

  •     Footwear,
  •     Toy,
  •     Dental,
  •     Architectural,
  •     Animation,
  •     Entertainment consumer,
  •     Good consumer
  •     Electronics,
  •     Aerospace,
  •     Automotive,
  •     Medical,
  •     Medical equipment,
  •     and many more can be our customers and are using 3d printing today

A little bit about the application what our customers are using the printed form

  •     Fitting & Function
  •     Design Verification verifications that's a part of Trek a bikes
  •     Use parts in intaglio for airplanes for example
  •     Custom prosthetics and we will touch about the sweet spot of 3d printing but anything to be customized 3d printing is the best solution today

Injection molding in prototype may - so you actually can print the molds in too deep into the imprint of and use it for injection modes of depth injection and parts up to 100 different Android parts from a single mode

Jigs and fixtures - for the manufacturing floor and when we touch it in

Entertainment - parking lots of movies were made with the three fingers today and TV shows as well so that's a growing industry for this technology

Medical devices and surgical - so you know the technology today and the resolution of the policy debts of the printer is great and advanced dramatically in the last few years or today surgeons can plan and prepare for surgery which really painting organs so that they can get from MRI scans sports or since cast

metal industry that's another fast-growing industry and for 3d if I'm through thinking and technology here for example its Teeth liners so there's a few companies of using 3d printing the stone models for every forming creating the misalignment which is much faster than mini machines used to using in the past

3D Printing Impact

Now we are being affected by 3d printing on a daily basis so every every product that we we are touching the building heavy part of the design or the manufacturing of this part right could be our speakers or iPad, iPhone, car seats, even our car dashboard it's all been used all those companies used 3d printing in the design cycle or during the manufacturing cycle
the sweet spot of 3d printing this rhythm of the painting is anything that related to customization and in complex and of course low volume quantities you know if you need one or if you need five so that's that's the right spot to the printing
High volume manufacturing it's still going to be more efficient to go with all many caption details like exactly injection molding for example. 3d printing is going to be efficient if we need to do complex geometries and no lower quality of parts.

Why customers are using 3d printing today

let's start with prototyping so we're not prototyping which will be printing is much cheaper than any other option today and of course faster so when when you have an in-house 3d printers or if you cheaper faster and more convenient than services it's usually going to be the old manufacturing technique to get your prototyping so you can take decision early in the design process and you can test your design in a faster also what you can do is you can you can test four or five different design in the same time for the printer can print for you overnight and then you have four four five different designs which test in the morning
by using 2d printing a four prototypes and manufacturing application company is increasing the quality reducing the time to market to product development which is very important for companies and can be they can be more competitive like
most of the companies use services for two or three years before they invest in an in-house printer which is very important for a folks regular that they need to start your own brain to the own business thread bikes for example they spend two hundred seventy 5K a year before they purchase the first printed today they have three printers in-house and as we said the adoption rate in tanda is slower than in the US so most of the company we've gathered today are looking for services and are not ready yet to purchase printers
Companies that purchase printers continue to use the services for overflow and different technologies we have different technologies and it's hard to find a technology going to three hundred percent review of your application so usually what happened company's purchase printers at answer of their needs and then the remaining 20% they will still use services for that and of course if they need a capacity or they have overflow W services as well
there are paths and beyond and geometries that you cannot do with other technologies but it can be only with additive manufacturing and that's another big advantage of this industry

Agriculture: AGCO - Prototyping

let's discuss about some examples we talked about prototyping and the value of prototyping for companies I would like to talk to you about this example from the advocate agriculture market this is a company named echo and they they look to they were looking to design their a white printer of 900 series and they used to to prototype out of aluminium and that was very costly for them it's both about between 5075 a thousand bucks and the thing about this the cultural market is very seasonable a business and they usually develop the products in the default to the spring the testing period is very short only during the spirit the spring period and then they roll the product out so they have something between 5 to 7 weeks to test the product before the valley down in the past they used to get one prototype in seven weeks and today which really printing did not only save money about five thousand bucks per prototype by I think the most value for them was the saving of time instead of one a product in seven weeks they can get 5 for that they can test iPhone prototypes in 5 weeks and get the decision much earlier so that's that was the most valuable thing for them for using a 3d printing for prototype.

Jigs and Fixtures: Benefits

jigs and fixtures a modem or the manufacturing applications so let's let's look about this AG this jig is the size of your hand you can fit in your hand, it's made up of three different parts the you know the regular way or the old way to make this jig supposed to go to join to make it three different parts and
Let's compare this jig from the traditional way to the 3d printed way.


a nice example for jigs and fixtures pictures I came from my BMW




So by switching to 3d printing from aluminum they save 58 percent on the cost and 92 percent on the only the times well right so instead of 18 days went down to 1.5 days and and the cost went down from 420 to 176 and and of course reduction a reward so when using 2d printing you reduce your risk for recovery works and any kind of error that might happen later on.
So the summary of benefits of the three cases that we went through the DMV the BMW Fixture  its fact 58 percent reduction in cost 92% reduction lead time label production and it's more safe and anomic to use echo they reduce 85 percent in the protein boat every time which was the most important thing for them 40 to 70 percent reduction in direct cost 70 percent fewer parts that needed for this prototype and the and stroke strong customer value proposition and the picture itself 49 percent later production and 70 90 95 percent cost reduction
So now when we understand a little bit the 3d printing industry and the value that this industry can bring to customers let's say drill down to the flipping business so how can we start the successful business and what do we need to do to get a successful business
The first thing that I always recommend customers we target target your potential market don't go and say hey you know I'm going to provide services to all the industries cause it's not going to be it's not going to happen you need to decide what your customer needs and you need to understand exactly what kind of application will be you know what would be good for them and the advantages of using for depending for those application
for example and if we target the manufacturing industry or automotive industry so we know exactly what kind of application they automotive industry needs and by doing that we will look for the right to divide the defendant technology that will answer this those needs and those pains that these guys have the same thing with medical same thing within education so you know it's important to put the side budget what's the market that I'm going to look after you know after that it's a we need to find the right solution the right solution it's the right technology we have different kind of technologies of 3d clipping other today that SLA SLS there's PolyJet technologies, inject technologies, there's a fuel deposition modeling the FDM technology so it's important to understand what will be the right technology for the industry than going after and
Then of course I need to get the or I need to have the right design tools so it could be card or even magics to fix files if I need to I need to train my employees and we can help with that you know we have trainings in-house and hot end on-site but it's important my it is the people are going to use the video we know how to take advantage of physically you know expensive equipment and provide the right service to the customers
Last thing is of course marketing and sales so we know it's important to do the right launch event social media 3d print hub which is an online service website and ext. so in a week we can help a juggling a market adapt and end sells and come up with the right business strategy
let's say look about a real life example
this is drilling be a bit is a bit that we pitted one of our oil and gas customers so this this this bit was made out of ABS plastic and the size of this bit is seventeen point seven point nine inches on the x-axis 7.75 from the y-axis and thirteen point four on the z-axis so what was our overhead what is going to be your overhead if you would like to print this part let's start with the printer let's assume that in buying a printer for a 200k and we're looking on five years depreciation average use time 2000 hour of a year which is basically five days five days a week and a 40 hours a week multiple 52 so the cost for printing our will be the cost of the finger divided by two hours which is in five years which is 20 bucks an hour
so you know when we want a quota Part A we start with it with the printing time depending on the speed on this specific printer was 27 hours we have of course different kinds of printers might be faster but you know let's take this example for now and then let's open our direct cost which are the material in the support the average cost for the material is five parts per cubic inch and this material this part uses seventy-seven point twenty six cubic inches modern material and 31:42 a cubic inch of support material so the cost of the monomer there are 386 and the cost of the support material would be 156
Then the labor we know we have some labor to prepare them they had a powerful printing and a little bit of post-processing so overall the good thing about really finding that very light in labor most of the stuff are you know hands-free given the support they move all is hands-free so the the label for this say this part was not so much but 30 minutes and we calculate based on 40 bucks an hour so the labor here is 20 bucks
so our total cost is $1,500 let's assume that we are looking to get 50% margin so the induced induced by it will be $2250 - that's how we're going to move on a price this part for the customer
Now let's see how we can justify the equipment based on this part and that that's an example of both these different kinds of case study that we can go diff. kind of our wider you can go and we'll be glad to help with that but based on this file let's assume that we are targeting customer who needs a part which can fit to an envelope of 16 by 14 by 16 inches and need a variety of thermoplastic materials can be nylons can be abs plastic polycarbonate and high-tech material like the open we can go to 200 in C so we estimate the bidding cost including cleaning station tax and shipment to be 200k at least to own this printer for five years going to be a little bit less than four grand amounts average margin for this part is 1691 it's the revenue - of course the direct costs that you just discussed before number of monthly printing hours to break even for this specific part is 108 hours a month now the potential is much higher right so we have if we take six days a week and 22 hours a day because as we said the printer can walk we know unattended so we can run about overnight you can run part over over a weekend and you don't have to babysit the printer so let's say the maximum margin we can get from six days a week is 18 for 80 - our monthly cost so it's a it's a margin of a 14 and a half K if you multiply it by 12 we get a revenue of actually you know a profit of 175 K which means that the return of the investment going to be a little bit more than a year but it's very close to a year that's an example of the conferred with meant for this specific industry


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