Whitepaper

SALES 3D PRINTING IN THE NETHERLANDS TO 120 MILLION EUROS IN 2017

Worldwide annual sales increase over 37%

The US research agency Wohlers calculated that worldwide

sales in the 3D printing market in 2015 amounted to 4.9

billion euros (5.2 billion dollars). This equals a 25.9 percent

increase compared with 2014. For 2016, they predicted that

sales would amount to 6.7 billion euros; a 37 percent

increase. Wohlers is expecting the high growth rate of the

past few years to continue in the future.

No statistics for the Dutch market

Sales in the Dutch 3D printing market are hard to

estimate as no public statistics are available. We made our

first attempt in 2015. Adding up the sales of machines,

products, services and commodities, we came to a sales

total of 45 million euros. Even today, only estimates can be

made. Many Dutch 3D printing companies have less than

50 employees with a sales total of under 12 million. This

implies that filing their sales totals with the Chamber of

Commerce is not mandatory.

At an industrial scale, production of finished products with metal printers increases in sectors such as aerospace,

aviation, medical appliances, machine builders and other manufacturing industries. Dutch sales grows faster than

forecasted based on successful Dutch 3D printers such as Ultimaker and MetalFAB1. ABN AMRO and Berenschot

estimate the 2016 sales at 100 million and forecast an increase to 120 million euros in 2017.

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Dutch 3D printing market sales is about 100 million euros

Still, the Dutch market can be charted with increasing

accuracy. The online database of 3D-Print Atlas (managed by

the Dutch Chamber of Commerce) provides an impression

of Dutch companies focusing on 3D printing. Based on many

years of experience with the market and extensive meetings

with various parties, ABN AMRO and Berenschot estimate the

Dutch 2016 market sales at 100 million euros. This is more

than double the 2015 estimate. This total adds up the business

and consumer markets and covers the entire value chain.

This includes:

• sales of 3D printing systems;

• printed products (using internal machines

and via Dutch service providers);

• software and services such as training,

maintenance and advice;

• raw materials.

Not every 3D print boosts the economy

Please note that each component of the value chain has

another level. For example, machines are purchased directly

from the supplier or from resellers, whole-salers and online

stores. Part of production is provided via online platforms

such as Shapeways and 3D Hubs. In brief: not all 3D print

activities in the Netherlands add value to our economy.

Some 3D printing is for internal use (for example for R&D),

which is not included in the overview. However, Dutch

manufacturers often use 3D printers for such purposes. 3D

printing is often part of subsidised innovation projects. This

means that the added value of 3D printing in the Netherlands

is slightly higher than indicated in this report.

With these four components, the value chain looks as follows:

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Within the Dutch value chain of 3D printing, three

developments stand out:

1. Desktop printers have advanced well beyond toy status

The 3D printer market can be divided into desktop printers

and industrial systems. Desktop printers with a price ranging

from 1,500 to 7,500 euros are popular with consumers - but

are increasingly also purchased by SME companies - and

even multinationals - to experiment with the possibilities of

this technology. 3D printers are no longer just toys. Instead,

they are becoming reliable machines with excellent software

and service support.

The group of professional buyers is growing. The educational

sector continues to buy 3D printers. This makes for a golden

age for Dutch manufacturers such as Ultimaker. Wohlers

calculated that in 2015, about 278,385 desktop printers were

sold worldwide. Competitor Gartner has a slightly lower

estimate at 219,168 printers, but forecasts that the sales of

printers will double in 2016. We estimate that within the

Netherlands, about 2,000 printers are sold annually, with a

total sales of 3 million euros. That implies that most of the

desktop 3D printers manufactured in the Netherlands find

its way abroad.

2. Metal printers show fastest growth

Wohlers states that worldwide, a total of 12,560 industrial

3D printers were sold in 2015. A 2.3 percent decrease

compared with 2014 (12,860) is mainly caused by lower

sales of large, professional plastics 3D printers. Listed US

manufacturers such as 3D Systems and Stratasys did not

show much innovation, had an internal focus and felt the

impact of new competitors.

In contrast, sales of metal printers accelerated in the past

few years. Wohlers states that worldwide, a total of 808

metal printers were sold in 2015. Worldwide, a 47 percent

increase was measured compared with 2014 (when just 550

metal printers were sold). The numbers are limited, but

with a price tag between 500,000 to over 1 million euros per

machine, the revenue quickly adds up. Henny ten Pas (sales

manager AM/Industrial 3D-Printing at Bender Additive

Manufacturing BV) sees that the increase of metal printers

in the Netherlands is running behind countries such as

Germany. On the positive side, there is extensive enthusiasm

for investing and experimenting together. Ten Pas: “Compa-

nies should come to concrete action quicker, otherwise they

risk getting behind at an international level.”

Traditional machine manufacturers embrace metal printing

Metal printer manufacturers such as EOS, Arcam, Concept

Laser, Renishaw and SLM are growing fast. Traditional

builders of metal processing machines, such as Trumpf,

Mazak and DMG Mori, are also extending their product line

with 3D metal printing and laser cladding. This increases

competition. In the dental and prosthesis market, metal

printing is applied extensively, just like for other medical

purposes. In the aviation industry, players such as Airbus and

GE are increasingly using printed metal components. For

GE, 3D printing has already become so important that the

company acquired printer builders Arcam and Concept Laser

in late 2016 at a total of 1.3 billion dollars. With increased

attention for metal printing, we expect it will not take long

for printers to be sold at prices under 100,000 euros. At the

Formnext event, Fraunhofer showed a concept of a 30,000

euro machine.

Now also Made in Holland

With the introduction of the MetalFab1, the first Dutch metal

3D printer was created. Additive Industries of Eindhoven sold

four models at a price of around 1.3 million euros. The buyers

included Airbus and some automotive suppliers. Another

buyer was Kaak Group, manufacturer of industrial bakery

machines in Terborg, using the MetalFAB1 for manufacturing

prototypes, spares and functional components. Via the K3D

Print Centre, other companies can make use of the professio-

nal printer.

Many industrial 3D printers in old factory halls

We estimate that in total, about one hundred industrial

printers are located in the Netherlands, including about

forty metal printers, used for example by suppliers of medical

applications. This would include Smit Röntgen, FMI

Instrumed, Mundo and Xilloc. RDM Makerspace makes use

of a WAAM machine for welding up parts up to 7 metres

into metal.

Large plastics printers are mainly located with service

providers such as Shapeways, Oceanz, 3D Systems, VDM and

PartsOnDemand. Dental laboratories and hospitals such as

Radboudumc also use their own 3D printers. Larger

professional machines are used in over fifty FabLabs and

Makerspaces, such as 3D Makers Zone Haarlem,

Innovatiecluster Drachten, ICER and Gate2.

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An increasing number of academies and higher vocational

institutions use professional printers. Examples include

Fontys Eindhoven (Objexlab), Windesheim Zwolle

(Technocampus), Saxion Enschede (3D Printlab) and the

collaboration between UMC Utrecht and ProtoSpace.

All this gives an impulse to the adoption of industrial 3D

printing, even though our contacts indicate that commercial

roll-out is still challenging. Most printers in the FabLabs and

Makerspaces are still based on national subsidies or regional

development funds.

3D printing can support ‘digital manufacturing’

3D printing is growing - but not without barriers. Cost effi-

ciency, speed and product quality are still challenges for the

production method. This means that the business case for

mass production is often not perfect. In specific markets, such

as aviation, aerospace and the medical and dental sector, the

revers is true. 3D printing of parts is increasingly interesting

in machine manufacturing, in particular for companies who

do not outsource any components of their production. In the

Netherlands, most machine manufacturers are ‘head to tail’

companies. This implies that the big opportunities are mainly

relevant for their suppliers.

New technologies, such as Multijet Fusion by HP, have the

potential of significantly improving the business case. The

cost of materials currently amount to about 40 to 80 percent

of the cost of printed components. Using cheaper nylon and

using materials more efficiently than the current SLS tech-

nology allows, companies may save up to 80 percent on use

of materials. If the company prints smart parts - for example

with sensors, watermark or production guidelines - 3D

printing could offer significant added value. Certainly when

manufacturing such parts locally at request. This would be a

pivotal change in the production chain. According to Jan Floor

van Egmond, Managing Director of Landré, HP uses the new

digital production chain with intelligent components as a

basis to play a role in the market with 3D printers. The market

trend is from prototyping to production.

Still excellent for Rapid Prototyping

Printing prototypes is an economically responsible way to

quickly come to an optimal finished product together with the

client. Making product adjustments tangible in the develop-

ment phase facilitates co-creation. Industrial service provider

ERIKS indicates that Rapid Prototyping immediately resulted

in some client contracts. Printing tooling such as stamps

and moulds is up and coming too. Promolding (P3D) in The

Hague offers 3D printed plastics moulds that can be used for

manufacturing series up to fifty pieces within three days. The

delivery time of expensive aluminium moulds is normally a

number of months.

3. The role of raw materials

The 2016 Wohlers Report estimates global sales in raw

materials for 3D printing at 726 million euros (769 million

dollars) in 2015. Traditionally, the raw materials market is

dominated by a small group of suppliers and OEM’s often

demanding that only materials that come with their machi-

nes can be used. This means that only a small set of mate-

rials is available for each technology. However, we currently

see that many suppliers are letting go of linking sales of

machines and materials.

Apart from a few major players, the Dutch filament and raw

materials market mainly consist of producers and resellers of

materials for FDM printers. With the low entry barriers and

high player density, the market for FDM filament for desktop

printers is highly competitive. Innofil3D, ColorFabb, Dutch

Filaments and Real extrude their own filament in the Nether-

lands, selling worldwide via resellers. Their filament and also

imported filament is offered through many popular websites,

such as 3D Ninja, 123inkt and Coolblue.

The Dutch firm DSM Somos produces raw materials for VAT

photopolymerisation, without exclusive combinations with

a machine platform. Such materials are increasingly used

for functional applications. This is highlighted by the recent

acquisition of the Dutch firms Vertex Dental and NextDent

by 3D Systems. NextDent is active in the growing dental 3D

printing market, producing various certified resins for dental

laboratories.

Falling behind in new applications and materials

For new industries and applications, an increasing range of

innovative materials and alloys are developed. These are fully

in line with needs, are cheaper and easier to print.

Performance materials such as PEEK, fibre-enhanced polymers

and metallised substances are emerging. Behind the screens,

major suppliers of metal powder are preparing their products

for new production processes. The Dutch materials market

currently lags behind in this trend.

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Circular economy plays an increasing role

One of the claims of 3D printing is the sustainable character.

After all, you use only the material required for the finished

product – nothing more, nothing less. Currently, the materials

are still used in small volumes and the impact is not huge.

However, with the forecasted increase in 3D printing, this

aspect will certainly become a factor in the future.

Worldwide, the Netherlands have a leading position in

recycled filament. For example, Better Future Factory (BFF)

offers with the brand Refil a range of different types of

recycled filament, produced from items such as dashboards,

PET bottles and fridge interiors. This makes BFF the world

market leader. Another player in the market is Relay 3D,

upcycling SLS powder. In addition to Refil and Relay, ReFlow,

Dutch Filament and Vink Plastics are active in recycled

filament.

Challenge: keeping the lead in 3D printing

To ensure we keep our lead, we need significant investments,

for example in education. Few educational programmes are

specifically focused on 3D printing. Retraining fully qualified

engineers is not extensively done at this time. In the

curriculums of vocational, bachelor and masters level educa-

tion, 3D printing does not have a firm place yet, although the

application of 3D printers in technology and medical sectors

is increasing. Learning to think in terms of the new manufac-

turing technology is necessary.

Educational institutions should be embracing 3D printing in

a much broader sense. “We need more than just Ultimakers

in the schools for an introduction to 3D printing. The stu-

dents must learn to work with industrial machines, ensuring

real fulfilment of the finished product requirements”, says

Jan Floor van Egmond, the Managing Director of Landré.

Furthermore, there is room for larger, possibly industrial-

specific service providers. We can see that companies are

open-minded about 3D printing. Often they are deterred by

the high buying price of professional printers. In many cases,

chain partners are assessing the opportunities together. If

you want to be leading in the world market, this is the sort of

thing that should be done more often. Suitable incubators in

this respect include Addlab, Innovatiecluster Drachten, the

Fieldlabs (Makerszone, UMCU, Multi-Material3D) and know-

ledge centres such as AM Systems.

Looking for an earning model

The sales forecasts are rosy, but the forecast of returns

on investment are significantly lower. In particular

service providers, who have to make a living on selling

3D printed products, seem to find it challenging to

increase their profitability. We can see a number of

causes for this challenge.

Unclear pricing

Current and future customers do not have a clear

impression of the price of a high-quality 3D printed

product. They have trouble estimating the added value

of a 3D printed product compared with a traditionally

manufactured product.

Specialist technology requires a broader perspective

3D printing is generally not a straight replacement for

injection moulding. This also precludes straight cost

comparisons. A business case must often be based on

a broader perspective, including user benefits.

Better explanation required

3D printing is more than just producing. For maximum

leverage of the technology, the buyer should assess

more than just the current specifications and costs of a

product. The buyer should be open to a new

manufacturing method that cannot be compared with

injection moulding or milling. Buyers must be able to

determine the added value of 3D printing. If service

providers want to provide better assistance in this

context, it would be best to stress the differences.

Limited number of sales markets

We have seen that 3D printing is mainly applied in

medical technology, automotive and aerospace. These

sectors are based on many small series of industrial

production. Also, these are end markets, with relatively

high margins. Service providers should also focus more

on machine manufacturers and tooling production as

this concerns relatively large end markets in which the

adoption rate of 3D printing is still relatively low.

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Conclusion

To be fair: on the total Dutch GDP of about 697 billion

euros in 2016, the 100 million put in by 3D printing is a

tiny drop. However, it is a market with strong growth rates

and 3D printing is increasingly developing into a mature

industry. In this report, we conclude that there are three key

developments in the 3D printing market:

• The sales of Dutch and other desktop

printers continues to increase.

• The attention of Dutch companies for

metal printers is on the increase.

• Manufacturers of filament (raw materials for 3D

printers) are making leaps in innovation.

It is remarkable that some leading Dutch companies are

famous for 3D printing in the world market. Companies such

as Ultimaker (desktop printers), Additive Industries (metal

printing) and Better Future Factory (recycled filament) have

developed into relevant international players in their field of

expertise. Also 3D Hubs and Shapeways offer platforms that

are leading worldwide in allowing companies to offer and

share production capacity.

Berenschot is an independent, thoroughly Dutch management consulting firm with an international orientation. Since 1962, the firm has had an office in Brussels, Europe's capital. We are also a member of the E-I Consulting Group, a European network of leading independent consultancy firms. As a company, we have led various projects in Africa, Asia, Europe, South America, the Caribbean and Suriname. Berenschot has also offices in Africa and in the Caribbean.

Berenschot Groep B.V.Europalaan 403526 KS UtrechtT +31 (0)30 291 69 16E contact@berenschot.nlwww.berenschot.com

However, the Netherlands will have to make some efforts to

make it a true 3D printing country:

• Investing in education, allowing early introduction of

students to 3D printing and getting to understand new

ways of product design and product development.

• More collaboration between companies, education and

science in order to come up with innovative applications.

• Investing in larger, industry-specific service

providers with cost-efficient performance based

on efficiency in production capacity.

David KempsSector Banker Industrie, ABN AMRO david.kemps@nl.abnamro.com+ 31 6 30 33 20 43

This research was performed and written in cooperation with Roderick Vos (ABN Amro) and Nanning de Jong and Hans van Toor (Berenschot). We thank our discussion partners: Jeroen Wiggers (Innofil), Jan Floor van Egmond (Landré), Henny ten Pas (Bender) and Jonas Martens (Better Future Factory).

Onno Ponfoort Practice Leader 3D Printing, Berenschot o.ponfoort@berenschot.nl +31 6 150 14 751