3D Printing Services – Procurement Best Practices & Sourcing Strategies

DESCRIPTION

3D Printing Services Market Global Size:

ELINT Market Research’s recent report estimates that the global 3D printing services market is anticipated to be $19 billion in the year 2022. In addition, its future forecasts say that this industry will develop at a CAGR of 20-25% until 2026.

As per the promising statistics, the 3D services market is strongly expanding as multiple industries are utilizing various new 3D printing technologies to create personalized designs for their products.

Moreover, nowadays, one substantial factor appearing rapidly that is influencing 3D market dynamics is the selection between buying or leasing 3D printing supplies. Among these two choices, the equipment leasing option is most preferred for high-volume production needs.

This approach gives companies a chance to utilize sophisticated 3D printing facilities with very little initial expenditure. However, for low-volume use cases, contract manufacturing of 3D printing services becomes the most suitable option.

Market Definition:

Nowadays, the 3D printing services market stands out because of its revolutionary effect on manufacturing processes among different sectors. With the help of such amazing 3D designs, manufacturers can easily build prototypes, and customized components and test their product functionalities before launching them on a large scale. This way they can enhance their product during the manufacturing stage and can keep making changes to it until it becomes according to consumer preferences.

Additionally, due to the smart 3D printing services market, multiple enterprises are now able to access strong additive manufacturing skills without having to make large initial equipment investments.

Major 3D Printing Services Market Drivers:

1. Evolution of Technology –

In recent years, constant evolutions have occurred in 3D printing industries such as precision in layouts, enhancement in printing speed, material abilities, etc., which are the major global drivers for growth in this sector. These developments draw the attention of companies from a variety of industries and they are convinced to invest in the market.

2. Expanding Need for Prototyping –

Multiple companies invest in the prototyping aspect during their product development phase which is a significant cause for the 3D service global market. With the help of prototypes, businesses can easily make timely modifications during the manufacturing stage and release the final product after completion.

Global 3D Printing Services Market Challenges:

1. Lack of Materials –

Even with continuous improvements in the 3D printing market, it might still be difficult to recreate certain materials with particular qualities using the 3D printing technology available today. This is a major challenge in front of industry players. This restriction could restrict the variety of applications, particularly in fields where high-performance or specialist materials are needed.

2. Post-Processing Demand –

There’s a chance more post-processing procedures would be needed in 3D printing procedures, which would lengthen the production process and increase costs. It’s still difficult to develop standardized and effective post-processing methods. This challenge can prove as a barrier to getting the required mechanical qualities, surface finish, and precision in 3D-printed products.

3. High Cost of 3D Equipement –

Purchasing 3D printing technologies and tools might come with a considerable initial expense. This is a prominent challenge in front of small and medium-sized businesses (SMEs) and companies that have tight budgets, so they can face difficulties as a result.

3D Printing Services Market Opportunities:

1. Personalized Designs –

The foremost opportunity for the 3D printing market is providing customized and personalized designs of products. This technology has the capacity to create exclusive things, including surgical devices to household items for customers.

2. Initiatives in Educational Field –

Educational industries can use 3D printing approaches to train and upskill their students. This initiative could prove as a great opportunity for this 3D design industry. Hence, different 3D techniques-based training programs and collaborative educational collaborations can assist in educating people.

3D Printing Services Market Segmentation:

1. Technology Integration

Day by day multiple intelligent 3D technologies are evolving, depending on which we can segment the 3D printing market. Such innovations include Stereolithography (SLA), PolyJet, Fused Deposition Modeling (FDM), and Selective Laser Sintering (SLS), each of which provides unique abilities to organizations.

2. Material Type –

Different kinds of materials are compatible with 3D printing methods which we can consider as the key factor for segmentation. These material types include plastics, ceramics, metals, etc., and organizations choose the type of material as per their requirements.

3. Different End-User Sectors –

3D printing services are used by numerous sectors including healthcare, consumer products, education, automobile, aerospace, etc. These businesses employ 3D techniques as per their unique needs.

Cost Impact in 3D Printing Services Market:

The cost variations in the 3D printing services market have complicated consequences, especially when it comes to return on investment. When a 3D printer is mainly employed for prototyping, the ROI could be achieved quite quickly.

However, when we are using 3D printing for the mass production of parts, it might prove to be costly compared to the traditional manufacturing processes. Even yet, we can still achieve positive returns in the prototype printing stage in less than two years duration.

Emerging Engagement Strategies in 3D Printing Services Market:

The engagement strategies landscape is undergoing significant changes, especially because of the rise of manufacturers’ and distributors’ alliances on a worldwide and regional scale.

In earlier times, there have been many specialized suppliers providing a wide range of 3D printing services to different industries in the market. However, a growing trend of manufacturer-distributor engagement model combines the vast reach and supply networks of local partners with the understanding of those producing cutting-edge 3D printing techniques.

This partnership not only guarantees that end customers have simpler access to the newest technologies but also enables 3D printing solutions to expand into a wider market.

Warranty Period for 3D Printing Services Market:

In the 3D printing market, equipment’s warranty period is an important factor that ensures the sustainability and longevity of tools. Generally, the warranty duration extends for one year, which guarantees users about manufacturer’s commitment.

Further, the spare parts warranty is decided at 3 months, which is also flexible. This means the manufacturers can adjust the warranty period according to users’ needs.

High Market Growth Regions in 3D Printing Services Market:

The 3D printing services industry continues to grow quickly, and it is especially well-known in significant domains including North America, Europe, and Asia. These strong market growth geographies show that how widely 3D printing services are utilized in a variety of industries on a indeed global scale.

Bargaining Power in the 3D Printing Services Market:

The bargaining power of buyers is greatly influencing the dynamics of the 3D Printing Services market. The high bargaining power is arising due to the increased need for 3D printing services which present an alluring blend of low cost and good quality. Hence, we can say that in a time, when businesses prioritize efficiency and affordability, purchasers retain significant negotiating power when it comes to advantageous conditions.

KPIs in the 3D Printing Services Market:

Key performance indicators are essential components within the market in evaluating the success and significance of 3D printing services. The foremost KPI is the response rate, which helps service providers manage customer inquiries and requests. A high response rate is a signal of excellent client satisfaction.

Another vital KPI is the flexibility with material switching through which distributors adapt products according to the different consumer needs and preferences.

Further, the next KPI in the list is flexibility and upgradation with technologies, which shows that organizations adopting technological evolutions in their products and customers are getting complete access to those out-of-the-box solutions.

Consequently, the last KPI is customer relationship quality which assists in assessing the strength of the relationship between distributor providers, and their clients.

Key Vendor Qualification Criteria in the 3D Printing Services Market:

Key qualification criteria are the foundation for making well-informed decisions when reviewing prospective suppliers in the 3D printing services market. The first criterion is the experience and expertise of vendors, which showcases that industry players must choose those suppliers who possess proven track records and huge market experience.

The second vital standard to select suppliers is evaluating the technology upgrades and materials they offer, so their customers can utilize the latest 3D printing technologies.

Further, the third parameter that businesses should check is the availability and compatibility of software, which means vendors must have user-friendly software interfaces that fulfill customers’ needs.

The last quality that vendors should check is how many design and support skills they are providing so that their users can contact them anytime they find any inconvenience.

Leading Market Suppliers of 3D Printing Services Market:

Some of the major suppliers of the 3D printing services market include 3D Systems​, Voxeljet​, Stratasys​, SLM Solutions​, ExOne​, Concept Laser​, (GE Additive Company), Markforged Inc., Renishaw​, Trumpf​, Arburg​.