3D printing ready to revolutionize manufacturing(2)

Paul Shao, CEO of Trustworthy (Beijing) Technology, a 3D printer company that distributes systems developed by brands including 3Shape and Roland, says the region is quickly finding its way with 3D technology.

"In Asia, the markets in Japan, China and South Korea are more mature in terms of 3D printing, but we can see many regions like Southeast Asia and central Asia are joining the game in trading and applications," Shao says.

A country's 3D printing capacity is closely linked with its competitiveness in traditional manufacturing, he adds.

"Compared with the US, Europe and Japan, China is still at an infant stage in terms of innovative design, precision processing and economic power. We have much space to grow in many key technology areas such as laser and materials. But we are getting closer and closer," says Shao.

The evolution of supply chains is also driving the development of 3D printing. More brands are using just-in-time supply chains that make good use of the technology, getting products manufactured more quickly and into the hands of consumers.

In other regional markets, many of which rely on labor-intensive manufacturing for economic growth, the technology is less mature. Examples are Thailand and Malaysia, two middle-income countries moving up the value chain.

Thailand imports all of its 3D printers from the US, Canada or Germany because it lacks the technology to make its own, despite being a prodigious supplier of microchips.

But as Luo points out, the use of 3D technology in the region is likely to gather more pace.

"3D printing technology has been growing fast in China with more than 100 companies involved in industry, biomedicine, creative (industries), architecture, materials and software. China's 3D printing market has seen more than 40 percent growth for two consecutive years," says Luo.

China's Ministry of Science and Technology has included 3D printing technology in the National High-Tech Research and Development Program, which sponsors research in key high-technology fields. The Ministry of Industry and Information Technology, or MIIT, is accelerating the process to launch support policies.

"The Ministry of Education is planning to bring 3D printers into schools," Luo adds.

In September, MIIT announced it was working on a plan to promote the industry.

"We will see greater usage of 3D printing with increased affordability encouraged through government initiatives," says Andy Leck, managing principal and head of the IP practice at Wong & Leow, a member firm of Baker & McKenzie in Singapore.

"Key examples of these initiatives include the Singapore government's Productivity and Innovation Credit scheme and the investment of $500 million over five years as part of the government's Future of Manufacturing program," he says.

All this attention, however, may be creating a bubble. After a boom in raising capital through 2013, many 3D printer manufacturers have performed badly, particularly in terms of their stock price.

The share prices of some major 3D printer producers have dropped significantly over the past year. US-based ExOne fell from $66 in January to $21 in November, Stratasys slid from $134 to $105 and 3D Systems plunged from $96 to $36. In the same period, Germany's Voxeljet dropped from $47 to $12.

A number of linked companies listed in China's A-share market, such as those involved in robotics, have not performed well, either.

One exception is Guangdong-based polymer materials company Silver Age, which saw its value grow from 6.16 billion yuan ($994 million) in January to 17.45 billion yuan in November.

And if IP issues and fears of a bubble are not enough of a concern, the industry in Asia still faces a couple of other challenges including the high cost of materials and a dependence on imports. Another hurdle is the lack of a mature business model for companies in the sector.