The Chinese additive manufacturing (AM) market has been on the rise in the global 3D printing industry, showing significant growth and success stories over the past decade. While the global AM market is facing challenges in maintaining its exponential growth, there are several reasons why we should pay attention to the dynamic and rapidly evolving Chinese AM market.
China’s AM market has experienced continuous growth, fueled by advancements in metal 3D printing technology and its applications in various sectors such as aerospace, biomedical, industrial mold, and power energy. The industry has expanded rapidly in recent years, with a particular focus on metal AM. China’s AM journey has resulted in an increase in output value to over $4.8 billion in 2022, with a CAGR of 32% since 2012, which is 10% higher than the global average. This data is from the Additive Manufacturing Alliance of China.
With over 1,000 AM enterprises in the industry chain, China’s 3D printing ecosystem is vibrant and dynamic. Both startups and established companies are exploring new use cases and expanding their capabilities, transforming the industry from rapid prototyping to a wide range of applications. Despite global financial tightening, the Chinese AM sector has remained an active investment track with significant growth potential. Venture capital investment in Chinese AM startups has seen remarkable growth, with a staggering $930 million influx in 2022 alone. This upward trend in VC investment indicates the industry’s attractiveness to investors and its potential for further expansion. This data is sourced from Nanjixiong.
Several Chinese AM companies have achieved remarkable success and have been listed on the stock market, attracting attention from investors. One outstanding company is Xi’an Bright Laser Technologies Co., Ltd. (BLT), especially in the metal 3D printing segment. BLT’s listing on the Shanghai Stock Exchange (688333.SS) has been met with enthusiasm, and its market capitalization has surpassed that of well-established international players like 3D Systems and Stratasys. The success of BLT can be attributed to the increasing adoption of metal AM in critical industries. According to iResearch, more than 70% of BLT’s equipment is used in aerospace manufacturing. This information is sourced from Yahoo Finance on July 25th, 2023.
Other active players in the Chinese AM market include Farsoon Technologies, Shining 3D, and UnionTech. Farsoon Technologies has been at the forefront of industrial 3D printing, collaborating with major aerospace and automotive manufacturers and going public on the Shanghai Exchange in April this year. Shining 3D’s contributions in the biomedical sector have resulted in patient-specific medical implants and dental aligners. UnionTech’s expertise in large-scale SLA 3D printing has revolutionized the production of prototypes and tooling for various industries.
Despite its impressive growth and success, Chinese AM companies face certain challenges that need to be addressed for sustained development. Price competition among AM companies can impact profit margins, so companies need to focus on quality, unique offerings, and value-added services to stand out in the competitive landscape. While Chinese metal AM machines are competitive for small build sizes domestically, overseas brands still have an advantage in the Chinese market for medium and large build sizes (250-1000 mm). Developing large-scale metal 3D printing technology with enhanced efficiency and reliability is crucial to meet the demands of industries requiring complex and large metal parts. The AM industry also faces a shortage of skilled talent in additive manufacturing technologies, design, and post-processing. Addressing this issue through education and training initiatives will be essential for fostering innovation and sustained growth.
While China’s AM market has experienced rapid growth domestically, expanding its global presence and fostering international cooperation will be crucial for sustained growth. Collaboration with international partners can bring in diverse perspectives, access to new markets, and foster technology exchange, ultimately strengthening China’s position in the global AM industry.
Startups play a critical role in driving innovation within the Chinese AM market. With the continuous flow of venture capital investment into the sector, startups are well-positioned to explore new applications, develop cutting-edge technologies, and collaborate with industries to address specific needs. These startups not only introduce novel solutions but also fuel healthy competition and drive the industry forward.
In conclusion, the Chinese AM market has emerged as a formidable force in the global 3D printing industry, showing exponential growth and success stories. With advancements in technology, a vibrant ecosystem, and increasing investment, the Chinese AM market has the potential for further expansion and innovation. However, challenges such as price competition, the need for large-scale metal 3D printing technology, and a shortage of skilled talent must be addressed to ensure sustained development. By fostering international cooperation and supporting startups, China can strengthen its position in the global AM industry and continue its growth trajectory.
In the ever-evolving world of technology, competition is the driving force behind growth and advancements. This holds true in the additive manufacturing industry in China, where startups play a crucial role as a bridge between research institutions and industrial applications. This synergy has led to a broader and more sustainable ecosystem for additive manufacturing.
The Chinese additive manufacturing market has experienced remarkable and sustained growth, thanks to advancements in metal 3D printing technology and its wide range of applications. As this market continues to expand, its influence on the global additive manufacturing industry landscape becomes increasingly significant.
China has positioned itself well to strengthen its role as a key player in the additive manufacturing domain through active international cooperation and strategic global expansion. Companies like BLT and Farsoon, which have achieved top rankings on the global stock market, have contributed to solidifying the reputation of the Chinese additive manufacturing industry on the global stage.
In future articles, we will explore various additive manufacturing companies in China in greater depth, uncovering their core strengths and the pivotal roles they play in shaping the global additive manufacturing market. By staying up-to-date on all the latest news from the 3D printing industry and receiving information and offers from third-party vendors, you will be well-informed about the exciting developments in this innovative field.
