3-D printing adds new dimension to startups(2)

Chinese companies and individuals have thronged to the 3-D printing field with the belief that it is the next "big thing", similar to the development of the semiconductor, computer and the Internet. In addition, the area is very new, meaning there is less competition and that whoever moves fast can gain an upper hand over rivals.

The market for 3-D printing in 2012, consisting of all products and services globally, grew 28.6 percent year-on-year to $2.2 billion, according to a report by Wohlers Associates, a consulting firm that specializes in 3-D printing research.

The industry is expected to continue strong double-digit growth over the next few years. By 2017, Wohlers Associates believes that the sale of 3-D printing products and services will approach $6 billion worldwide. By 2021, the industry is forecast to reach $10.8 billion.

As a country with the biggest population and that manufactures the lion's share of the world's products, China may have the potential to become the world's top 3-D printing market, said Luo Jun, secretary-general of the China 3D Printing Industry Alliance.

The growth rate of China's 3-D printing sector is likely to be much higher than the global average and will probably hit 100 percent compound annualized growth in five years, said Luo.

The inspiring performance of the world's two leading 3-D printing companies - Stratasys and 3-D Systems - also has motivated Chinese participants. The two US-based companies both achieved an annual compound growth rate of more than 20 percent in recent years. As of June 2013, Stratasys reportedly had more than 8,000 customers globally and had shipped a total of 32,245 systems worldwide.

The promising prospects also have prompted mergers and acquisitions in the global 3-D printing sector. The Rock Hill, South Carolina-based 3D systems purchased 33 companies from August 2009 to May 2013, covering a wide range of industry offerings that includes materials, systems, software and digital content.

The world's 3-D printing market is expected to accelerate its expansion pace. It took the industry 20 years to reach $1 billion. After five more years, the industry generated its second $1 billion. And it is expected to double again, to $4 billion, in 2015, said the Wohlers Report.

Technology improvement has allowed 3-D printing players to explore more new fields. The jewelry industry makes some of the smallest, most precise metal castings on the basis of 3-D printing. And real estate companies have created property models to show customers and even expect to build residences based on 3-D printing.

With the exception of Japan, the growth of 3-D printing in Asia started much later than in the US and Europe. China began experimenting with the technology in the late 1990s and has made several breakthroughs in some areas.

Wang Huaming, a professor at Beihang University who took first place at the 2012 National Technological Innovation prize, based on his 3-D printing of large-scale titanium alloy components for aircraft.

The National Natural Science Foundation of China awarded a key program to Tsinghua University to support research for applying 3-D cell printing to cancer research.

Several Chinese companies also have gained recognition in the global 3-D printing industry. Established in 2003, Beijing Tiertime Technology Co Ltd manufactures the UP! Desktop 3-D printers. The product was ranked by MAKE, an American bimonthly do-it-yourself magazine, as the 3-D printer with "best overall experience" and "easiest setup".

Beijing Tiertime claims to be Asia's biggest 3-D printer manufacturer and the first Chinese company to sell 3-D printing machines overseas.

Another leading enterprise is Beijing Longyuan Automated Fabrication Systems Co Ltd, which offers systems that use thermoplastic materials, foundry sand and metal powder. The company targets customers in aeronautics, auto and healthcare. Its revenue reached 30 million yuan ($4.84 million) in 2012.

But the level of development of China's 3-D printing sector is still low, and the global market share for Chinese systems is small. Less than 5 percent of the world's 3-D printing systems were manufactured by Chinese producers in 2012, according to Wohlers Associates. US companies occupied 73 percent of the global market share, and European firms claimed about 10 percent.

SiuFung Chan, PwC's China Consulting Partner, said he holds a neutral position toward China's 3-D printing development. The country may need three to five years before its 3-D printing business really takes off or attracts more technology adopters, he said.

"First, the equipment cost has not come down to a very competitive level. High cost naturally inhibits a larger production scale," said Chan.

Meanwhile, end users demand quality assurance for innovative 3-D printers. But neither the Chinese government nor other third-party organizations have issued standards for the printers' qualifications, Chan pointed out. "If 3-D printing products are certified, the mass market is more likely to accept them."