Interview: What’s Actually Driving AM’s Growth

Dr. Jörg Bromberger, director of strategy and operations at McKinsey, reveals AM opportunities and challenges.

The rise of additive manufacturing can’t be traced to any single event. Dr. Jörg Bromberger, director of strategy and operations at McKinsey, has seen each modern wave of interest transform this technology into a multi-billion-dollar market poised for even more growth. The high costs associated with converting metal alloys into a powder form suitable for 3D printing are a significant factor impacting the overall expenses of AM machines.

According to Dr. Bromberger, an expert on manufacturing and supply chains, the first wave came in 2014 from niche applications that reached mainstream awareness – such as 3D printed skulls for neurosurgeon patients. These unique stories piqued the interest of different industries. The second wave came a year later when governments began fully embracing additive manufacturing as a key part of their development strategy.

The wave we’re in began several years ago when additive manufacturing exploded with aggressive business building in all areas, from materials to technologies to new business models. The challenges and costs of using metal alloys in industrial additive manufacturing machines are significant, emphasizing the financial implications and the skills gap in the workforce necessary for effective implementation.

We interviewed Dr. Bromberger to get insights into what’s fueling additive manufacturing’s growth, improving sustainability, and where the industry is headed.

The additive manufacturing market is not homogenous, and the growth is two-folded.

New entrants contribute the most to growth, with about a 25% compound annual growth rate (CAGR). These companies are driving major performance improvements of AM technologies such as support-free printing for overhanging parts

The established players are growing slower at about a 10% CAGR. These incumbents provided the first generation of machines and have already saturated the market with their machines for existing use cases.

While there are challenges—such as an employee knowledge gap in design and OEMs’ long development cycles—additive manufacturing is on a high-speed development track. For comparison, look at robotics. The modern concepts of robotics were around 70 years ago, but only now has that market reached exponential growth.

What do the experts have to say about additive manufacturing? Get AM insights in interviews with Honeywell Aerospace, Siemens Energy, and Deutsche Bahn.

How will industries benefit from additive manufacturing?

Four major dimensions drive the value of additive manufacturing for different use cases across industries:

Performance: High-value parts with increased performance. For example, topology-optimized brackets in the aerospace industry reduce weight and save costs.

Customization: Mass-customized parts that can be produced without individual production molds in the printer (e.g., implants in the medical sector or customized shoes for consumers).

Time to Market: Faster production and development cycles by rapid prototyping (e.g., automotive engines)

Obsolescence: Reduction of spare part inventories and manufacturing out-of-production parts across asset-heavy industries such as railway and aerospace.

Over the last couple of years, more companies have faced challenges with supply chain resiliency. Does additive manufacturing have the potential to overcome those challenges?

Decentralized production is the dream—sending build files securely around the globe and printing parts on-demand and on-site.

The reality is more challenging. One problem is that the relatively small part scope and the need for machine quality reliability make setting up cost-efficient production centres challenging. There’s also fear of IP theft as additive manufacturing shifts the competence focus from manufacturing know-how to design know-how, increasing the risk of 3D file theft.

I predict a rise in regional production hubs or micro-factories. These will be built close to the point of use, such as at an airport, to benefit the aerospace industry.

Sustainability is a significant point of focus for organizations. How does additive manufacturing help?

The primary way additive manufacturing can help companies reach sustainability goals is through manufactured parts. The aerospace industry, for example, can create lighter parts that reduce fuel consumption.

Regardless of industry, the additive manufacturing process has a limited yet positive impact on sustainability. A large amount of material not used during production can be recycled for use in future production, limiting waste.

So, what do companies need to look for when choosing the right additive manufacturing supplier?

Knowledge is essential. A supplier must be your partner throughout the exploration chain and educate you on the benefits of additive manufacturing. That means support with part identification, starting non-critical use cases for education reasons, and bringing non-critical and critical parts to production.

Quality is critical. A reliable and repeatable printing process requires many parameters that must be optimized for the serial production of an individual part. Regular providers rarely offer industrial-grade quality, instead seeking to maximize the utilization of mix-and-match build jobs. Suppliers must understand this trade-off and provide the right solution for the correct part requirements.

Next, on-time delivery is key – especially for the spare parts segment and urgent use cases.

Naturally, the cost is at the forefront. Attractive prices are essential to challenge conventionally manufactured solutions. However, designs must be improved for additive in co-creation with suppliers to reach cost objectives. Companies need to focus on developing products specifically designed for additive manufacturing to find truly valuable use cases. Simply printing conventionally manufactured parts is only a short-term solution.

What trends are on the horizon for the medical devices industry in additive manufacturing?

I have several predictions.

First, the industry will shift from buying machines with capital expenditures to contractual manufacturing. This will enable OEMs to integrate new technology entrants into their supply chains and use the right technologies for the right use cases. This shift can make the technology more cost-effective by reducing the upfront investment and spreading costs over time.

Next, future growth will be equally driven by high-performance metal and less-expensive polymer parts. Metal parts will significantly lower production costs and lead times, offering a competitive edge in the high-end metals market.

Finally, consortiums and partnerships will enable new supply chain opportunities and address the need for end-to-end integration to industrialize additive manufacturing fully. However, the high costs associated with procuring and maintaining such machines, including expensive materials and ongoing service contracts, remain challenging.

Industry Adoption and Applications

The adoption of additive manufacturing (AM) is rising across various industries, including aerospace, automotive, healthcare, and construction. Companies leverage AM to produce complex geometries, reduce material waste, and increase efficiency. For instance, aerospace companies use AM to produce lightweight components, such as turbine blades, which can lead to significant cost savings and improved performance. AM creates customized implants, prosthetics, and anatomical models in the medical devices industry, improving patient outcomes and reducing recovery times.

Construction companies are also embracing AM to produce building components, such as walls and roofs, that can be assembled on-site. This approach can reduce labour costs, increase efficiency, and minimize waste. Additionally, AM is being used to produce consumer products, such as customized phone cases and jewellery, that can be made quickly and at a lower cost than traditional methods.

Overcoming Technological Obstacles

Despite the growing adoption of AM, several technological obstacles remain. One of the main challenges is the slow speed of AM machines, which can limit their use in high-volume production applications. Another challenge is the limited integration of AM machines with traditional manufacturing systems, making it difficult to incorporate AM into existing production workflows.

To overcome these challenges, manufacturers are investing in research and development to improve the speed and efficiency of AM machines. They are also developing new software and hardware solutions that integrate AM with traditional manufacturing systems. Additionally, manufacturers are exploring new materials and processes to improve AM’s performance and cost-effectiveness.

Expert Insights on AM’s Growth

Industry experts predict that AM will continue to grow rapidly in the coming years, driven by increasing demand for customized products, improved efficiency, and cost savings. According to a report by McKinsey, the AM market is expected to grow from $5.2 billion in 2020 to $180-490 billion by 2025.

Experts also predict that AM will significantly impact traditional manufacturing, enabling companies to produce complex geometries, reduce material waste, and increase efficiency. However, they also note that AM is not a replacement for traditional manufacturing but rather a complementary technology that can be used to improve existing production processes.

Future Outlook for AM

The future outlook for AM is promising, with increasing adoption across various industries and applications. As the technology continues to improve, we can expect to see more widespread adoption of AM in high-volume production applications, such as aerospace and automotive.

Additionally, we can expect to see more innovation in developing new materials and processes that can improve AM’s performance and cost-effectiveness. Integrating AM with traditional manufacturing systems will also become more prevalent, enabling companies to leverage AM’s benefits while still using conventional manufacturing methods.

Overall, the future of AM looks bright, with increasing adoption, innovation, and growth expected in the coming years.