Recent updates to the International Data Corporation (IDC) Worldwide Semiannual 3D Printing Spending Guide is predicting that the rapid expansion of the 3D printing industry is expected to continue without slowing down. The research used for the updated spending guide was collected from more than 20 3D printing use cases in 20 industries throughout 8 different global markets. According to the IDC analysts, global revenues for the 3D printing market will explode to a massive $35.4 billion by the year 2020. With 2016 revenues expected to reach $15.9 billion that means the industry will nearly double within the next five years. Overall the compound annual growth rate for the global market during their 2015 through 2020 forecast period is an astonishing 24.1%.
As you would expect, 3D printing hardware and 3D printing materials will still account for the largest sector in the industry, representing almost 50% of the forecast worldwide revenues; however, growth is actually predicted to be faster within other sectors. Demand for computer-aided design (CAD) software is expected to triple over the next 5 years, with the market for on-demand 3D printing services expected to show similar growth. This is primarily due to the ongoing increase in businesses using 3D printing technology and service providers to produce prototypes and customized, low-volume manufactured consumer products.
“Customer spending on 3D printing capabilities is following the market away from mass market consumer printers towards holistic solutions that enable higher-end – and more profitable – use cases. As the market for printers, materials and services matures, IDC expects new 3D printing capabilities to enable a next-wave of customer innovation in discrete manufacturing, product design, and life sciences,” explained IDC Vice President of Customer Insights and Analysis Christopher Chute.
Despite a healthy consumer 3D printer market, manufacturing has been the primary cause of 3D printing industry growth. Specifically discrete manufacturing, or the manufacturing of distinct, identifiable items like consumer products, electronics and automobiles (as opposed to indistinct products like oil, minerals or bulk foods) will generate 56% of worldwide 3D printing revenues in 2016. This year Automotive Design alone will result in $4 billion in revenues for the production of prototypes and low-volume parts or tooling. The Aerospace and Defense industry will also be responsible for a significant segment of the year’s revenues at $2.4 billion.
“IDC expects the worldwide 3D printing market to continue its rapid expansion over the next several years, driven by the need to reduce manufacturing cycle times and to reduce prototyping costs. This growth will be fueled by an explosion of 3D printer manufacturers from around the world, seeking to capitalize on the anticipated growth in this market with faster printers that offer better quality output at lower prices,” says the Program Vice President of IDC’s Imaging, Printing and Document Solutions research Keith Kmetz.
Dental applications are also expected to have a strong showing in 2016, with healthcare and professional services being the second and third largest 3D printing revenue generating industries during IDC’s 2015-2020 forecast period. However the largest revenue growth is expected in the retail sector which will explode into the fourth position by 2020. The only market within the 3D printing industry that isn’t expected to grow so dramatically is the consumer 3D printing, primarily desktop 3D printers. IDC believes that market to already be mature and not expected to grow significantly beyond its current levels. Discuss further in the 3D Printing Market Projections Through 2020 forum over at 3DPB.com.