The EMEA region generally covers Europe, Russia, the african continent and the middle East. Europe is one of the birth regions of Additive Manufacturing while in the middle east, Israel is a hotspot for startups in new technologies. This report section covers regional reports of contributing local authors, who each are experts in the characteristicy of the regional Additive Manufacturing landscape.
Before the outbreak of the corona pandemic, strong structures existed in Germany for the further industrial spread of Additive Manufacturing processes. Numerous German companies had aggressive growth plans, e.g. machine manufacturers, raw material suppliers and users, who wanted to develop more and more business cases for the use of additive manufacturing processes. With the outbreak of the Corona pandemic in spring of 2020, this development took a sharp turn, as companies focused their liquid assets on their high-margin and established core business. In addition, the German AM driver industry Aviation has more or less stopped its expansion in the AM sector due to the slump in demand. The overall negative development in the area of applications for Additive Manufacturing processes has led to a drastic slump in demand for machines, which has resulted in job cuts at German machine manufacturers (e.g. 90 out of 420 at GE Additive in Lichtenfels).
In summary, the Corona crisis has dominated the development of AM in Germany 2020 and caused the following effects:
Positive:
Challenging:
Some bright spots in the German AM landscape comprise:
The United Kingdom economy experienced its biggest annual decline for 300 years in 2020, amid the fallout from the coronavirus pandemic. Official figures show that gross domestic product (GDP) fell by 9.9% in 2020, as no sector of the economy was left unscathed by lockdowns and plummeting demand during the pandemic.
UK Additive Manufacturing, which accounts for around 4.5% of all industrial Additive Manufacturing systems installed worldwide, the 5th largest user worldwide, has been impacted like most industries.
However, the pressure of Covid-19 is not the only challenge for the UK economy, there is also the impact of Brexit, where the new trade agreement with the EU is now in place. With these issues to contend with, the UK economy is not forecast to achieve pre Covid-19 figures until the end of 2021. However, on the positive side there has been a high roll out of vaccines in the UK, which could enable lockdowns to be eased earlier than in many other economies, providing early positive growth.
There is evidence that the Covid-19 lockdowns have made some companies review their supply chain, in particular from China. As an example, the UK used to purchase the majority of PPE from China, now the majority is produced in the UK.
What can we expect from Additive Manufacturing in 2021? The recent acquisitions in the industry shows there is still positive financial confidence in the Additive Manufacturing market, which should continue.
We should also continue to see increased industrialised offerings from the Polymer Additive Manufacturing suppliers, with the aim of offering more production solutions to the market.
I believe we will see the continuing trend of industrialisation in the metal Additive Manufacturing sector, with increased speed and performance from suppliers as well as a wider choice of technologies, which in addition to Powder Bed Fusion, will see Binder Jetting and DED, providing a broader balanced range of Additive Manufacturing technologies, with greater solutions for the market.
So, the UK economy will have some challenges in 2021, with Covid-19 and Brexit. However, with a trade agreement now in place with the EU, the UK economy, which is very resilient, will more than likely maintain its global position regarding Additive Manufacturing.
Even if the technology emerged in Japan in 1980, the first patent describing “Additive Manufacturing” was filed by three French engineers working for CILAS ALCATEL a French laser power source manufacturer as soon as 1984. What remains of this prestigious legacy 40 years later?
Our discovery journey starts logically with the technology offer. In terms of hardware, there are mainly one Polymer SLS specialist (PRODWAYS collaborating with FARSOON) and one Metal PBF specialist (ADDUP, a joint venture company between FIVES and MICHELIN). PHENIX has been acquired by 3D Systems and lost autonomy already a long time ago. Nevertheless, since 2016, birthdate of ADDUP – proudly announced and cherished by the successive Industry Ministers – nothing significant happened on that scene. They propose one 350 mm model but some difficulties during market launch and a lack of differentiation against the incumbents limited their penetration to a confidential market share. Combined with the current economical conditions especially in Aerospace, one of the target verticals, this has triggered a significant 20 % workforce reduction in 2020.
On the software scene, ESI, a leader in digital simulation, and DASSAULT SYSTEMES (mainly involved through a marketplace initiative) are recognized players but, for them, 3D printing is only a topic among others in a broader scope of activities.
The growing segment of materials for 3D printing has seen more momentum in the recent past. ARKEMA, a world class chemical company has an ambitious strategy in high end polymers, visible through acquisitions like COLORADO POLYMER SOLUTIONS (resins for SLA) in 2020. Canadian metal powder specialist TEKNA had extended its existing French production activities by a new joint venture with MITTAL controlled APERAM steel specialist. Stuck in its Nickel production difficulties increased by the current aerospace slowdown, ERAMET powder metallurgy supplier remains a follower even if they claim a significant capacity in operations.
On the demand side, the industrial penetration remains a big players’ game. In aerospace, Safran – traditionally very much influenced by GE – has put in place an aggressive internal initiative to become a part producer especially for engines and AIRBUS is running a competence center dedicated to actively support its supply chain in this matter. This makes aerospace a key driver for 3D printing in the France, which is currently a drawback due to the post COVID-19 slowdown. SAFRAN for example was obliged to reduce some collaborative actions and focused on internal actions, nevertheless keeping the goal to launch in 2021 a dedicated Additive manufacturing center in Bordeaux addressing all topics from R&D to manufacturing through training (first stone laid in spring 2020). In November NAVAL GROUP military shipyard launched a mine hunter with a one ton WAAM self-printed large propeller.
All large industrial groups such as ALSTOM, SNCF, AIR LIQUIDE, ORANO or L’OREAL are actively looking at potential use cases and have implemented some of them. The indisputable flagship in this regard is definitely MICHELIN which is efficiently printing every year 1 million steel parts for tire molds in two dedicated factories. In automotive, the two French manufacturers are not as far advanced as their German competitors. But things could change on PEUGEOT side with the FIAT CHRYSLER merger and the recent strategy move towards added value and EV at RENAULT. Nevertheless, the effective penetration seems to be everywhere triggered by a strong prerequisite which is the achievement of a convincing paper-based business case before any investment. 3D printing learning cost cannot be mainly justified as being an investment in the future. Interestingly, all international 3D hardware, software and servicing players are seeing the French industrial market as disappointing and less active than other European ones like Germany, Italy, UK or the Nordic countries.
In this landscape the service bureau area remains limited in size and largely dependent on large industrial customers who are unfortunately more inclined to practice through purchasing policies rather than win-win collaborative approaches. The service players remain medium or small sized and they are subject to a significant consolidation trend: PRODWAYS acquired Initial already some time ago, ADDUP acquired POLYSHAPE EOY 2018 and SCULPTEO entered BASF portfolio beginning 2020.
In this context what is the role of the institutional environment? Back in 2014 the Ministry of Defense has ordered a strategic study to analyze the French situation and identify opportunities for actions from the public sector. This ministry has become and remains a significant innovation driver through research and purchasing contracts. The Ministry of Economy has pushed the emergence of a dedicated organization called “Alliance for Industry of the future” (AIF), another word to describe industry 4.0. This one is gathering 33 members, mainly industrial associations, and acts as a public/private partnership to coordinate the various initiatives and bring expertise to SMEs. At the beginning it proved to be a very useful forum to bring together all involved parties, but this role disappeared during the two last years. In addition, the government controlled economic development bank (BPIFRANCE) is financing corporate industrial projects through loans and research consortia through subsidies. Together with the regional councils, AIF is also managing a publicly financed expertise network with the goal to support 10,000 SMEs in their industry 4.0 deployment (therefore potentially including 3D printing).
The public sector is also very much involved though academic research and engineering schools. Here many competences are in place with a high diversity in size and visibility. The main finding is that there is no similar single expertise center like the German FRAUNHOFER INSTITUTE, the closest to this model being CEA (National atomic institute). As an example, when MICHELIN launched publicly funded SOFIA (“solutions pour la fabrication industrielle additive métallique”) research consortium, they had to partner with 9 different academic entities in order to gather all needed knowledge segments. This scattering of the public research organization appears to be a weakness. In this landscape some more applied research organizations are to be mentioned: CETIM (metal industries center of competence) and some Region financed “poles de compétitivité“ like Jules VerneIn Nantes, Materialia in Grand Est and Aerospace Valley in Bordeaux/Toulouse. The Additive Factory Hub launched beginning 2018 in Saclay (South of Paris) by several partners, which was supposed to become a technical center of reference for the industry, has been slowly ramping up and did not reached its objectives so far.
The leading role and influence capacity of French experts in the international work -performed by ISO and the European Norming Committee in cooperation with ASTM – to develop the new norms regarding additive manufacturing needs to be mentioned. The French regulating body has created a pilot norm regarding the industrial implementation of metal 3D printing and associated risks with the goal to be balanced enough to foster the industrial penetration in SMEs. Since France is – together with Germany and US – one of the proposing parties for new regulations, this national regulating document could have a more global translation in the near future.
All in all, there are good signs that the French “sleeping beauty” could wake up and the current COVID crisis has shown very interesting initiatives in this regard, especially from the public hospital group in Paris (APHP) and the armed land forces. Even with a part of hype they have the merit to give more visibility on the technology and they brought several industrial groups to a more efficient collaboration behavior than usual, showing a possible cure to an identified weakness.
Israel has a long history of development of new technologies in AM starting with the establishment of CUBITAL, one of the original industry pioneers, in the 1980s. That early interest has spawned a cluster of knowledge, entrepreneurship and innovation in AM over the years in systems, materials and software.
The flagship of the Israeli AM ecosystem is STRATASYS, which was created by a merger of industry pioneer STRATASYS with Israeli startup company OBJET. The company appointed a new CEO in January 2020. Facing a tough year due to the restrictions of COVID-19, the company used the global slowdown to streamline its internal operations, including the laying-off 10 % of its global workforce, announced in June. In December, the company agreed to acquire U.S.-based photopolymer system manufacturer ORIGIN for USD 100 million in cash and shares. In early 2021, the company added to its Vat Photopolymerization portfolio by acquiring UK Stereolithography system developer RPS for an undisclosed amount. Internally, the company is developing a metal printer, but despite indications that it would come to market in the past year, its development has not been completed.
MASSIVIT, a developer of large format extrusion printers based on a proprietary photopolymer gel, was founded by veterans of OBJET/STRATASYS, HP and other companies in 2013. The company went public on the Tel Aviv Stock Exchange in February 2021. It raised NIS 169 million (EUR 42.2 million). During 2020 the company signed a private label agreement with Japanese printing firm MIMAKI.
NANO DIMENSION manufactures systems for producing 3D-printed PCBs. Traded on Nasdaq, the company raised about USD 1.5 billion in secondary public offerings during the year. It is expected to use the funds to make acquisitions.
A number of AM companies raised venture funding in the past year. Ceramic and metal system developer XJET, originally founded by ex-OBJET executives, raised USD 16 million in August. NANOFABRICA is developing a VPP system for producing micro-scale parts for micro-mechanical and medical applications. It raised USD 4 million from MICROSOFT and other investors in May. It shipped its first beta machine in January 2021. LARGIX is developing an ultra-large-format printer for producing oversized industrial polyurethane and polypropylene objects. It raised USD 1.5 million from investors that included plastics firm PLASSON. POLYMERTAL raised USD 1.5 million in VC funding to develop its metal coating process for polymer AM parts.
TRITONE has developed a process called Moldjet that prints molds filled with a variety of metal pastes, to produce green MIM-like parts. It shipped its first two beta units in 2020 and early 2021: One was installed at Israeli aerospace component supplier RUNOUT; the second was supplied to FRAUNHOFER IFAM in Dresden, Germany.
Israel is home to many companies developing AM-related software solutions. These include LEO LANE, CASTOR, ASSEMBRIX, PRINTSYST and newly established parts ordering platform JIGA.
Food printing is a fast-developing area in Israel. MEATECH is developing a technology to print steak from cultured meat cells. It raised USD 7 million in a public offering. SAVOREAT raised NIS 42.6 million (EUR 0.7 million) in an IPO on the Tel Aviv Stock Exchange to develop its alternative-meat platform. REDEFINE MEAT raised USD 29 million in February 2021.
The AM service market grew. ARAN R&D installed another EOS polymer PBF system, bringing their total to four. It also began operating the beta version of NANOFABRICA’S Tera 250 system early in 2021. KANFIT installed an SLM 290 system for aluminum parts, to add to its titanium capacity.
Numerous universities continue to engage in advanced research in AM. Leading the field is the Hebrew University’s 3D and Functional Printing Center and the Israel Institute of Metals located at the Technion-Israel Institute of Technology in Haifa.
Due to COVID-19 restrictions all in-person AM events were postponed for the year.
AM has been making a lot of headlines in the UAE media. His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, launched the Dubai 3D Printing Strategy.
It is unclear the extent to which Dubai’s 3D Printing Strategy will be adopted but the Strategy serves as a unique initiative with the goal of exploiting AM for the service of humanity and promote the status of the UAE and Dubai as a leading 3D printing hub. The focused areas of technology are in:
For these opportunities to be realized requires a commitment from the government to translate its vision into an actionable plan and build layers of accountability through policies and targets. Rather than solely looking at government policies as an enabler to AM, there is a strong case for the application of AM technology in UAE’s industrial manufacturing sector. The UAE’s mandate to be self-reliant creates the conditions to produce locally.
The UAE has a population closing on 10 million people, which is considered small compared to industrial nations such as the USA, China, Germany and others. However, a country such as the UAE has a very modern infrastructure and boasts one of the most dynamic economies in the world. It has been built on the premise of entrepreneurship, trade, logistics and more recently production hub for the region. How is this relevant to AM? The combination of a modern infrastructure, a dynamic economy, a rapidly growing educational sector and a government that is forward thinking, attracts top tier talent and individuals that are energetic, motivated and driven. This will ultimately lead to innovation and that, coupled with the government’s target of increasing the manufacturing sector contribution as percentage of GDP from 11% at the end of 2014 to 25% by 2025, opens the door for AM to take center stage.
The government’s target of increasing the manufacturing sector contribution to GDP will present huge opportunities for applying AM technology to a growing market. The UAE is still in the nascent stages of adopting AM technology, and, as a result, the application of AM in industrial manufacturing remains a highly untapped segment. The UAE aims at attracting USD 75 billion worth of investments in the manufacturing sector by 2025.
There is tremendous opportunity in applying AM technology for the production of spare parts and components in the local manufacturing sector. The UAE manufacturing sector is worth approximately USD 38.5 billion. Based on global estimates by UPS, capturing as little as 5% of the local manufacturing sector through the use of distributive technology could place the total addressable market size of additive manufacturing at USD 1.9 billion.
Published: 25 March 2021
Source: AMPOWER 2021, authors as described