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are manufactured using 3D printer at an expo in Shanghai, Sept 29, 2014.
[Photo/IC] |
After decades of development, 3D printing is now ready to
revolutionize manufacturing
In October, the southern Chinese city of Changsha launched an industrial
park. What sets it apart from other manufacturing centers is that it is poised
to play a key role in the growth of Chinese technology.
The development is China's first hub for 3D printing technology, and was
established with an immediate goal to produce 100 3D printers, and to triple the
number of devices by 2016. Taking Changsha's lead, the cities of Wuhan and
Zhuhai have announced plans to develop similar industry hubs.
Other countries in the Asia-Pacific region are also focusing on this
fast-growing technology.
Over the next five years, Singapore plans to invest $500 million to boost
skills in advanced manufacturing, focusing heavily on 3D printing.
Companies in Japan are already marketing inexpensive desktop 3D printers,
while South Korean conglomerates are widely using the technology.
After decades of development, 3D printing has emerged as a viable and
affordable technology, increasingly used by both the private and public sector.
While problems remain, it could eventually revolutionize the manufacturing
sector that many countries in Asia depend on for economic growth.
"3D printing has been around since the 1980s and has been expanding into mass
production and specialized manufacturing since then," says Maria Smith, head of
law firm Baker & McKenzie's trademarks practice in Hong Kong.
"The business is growing rapidly. In 2013, the (global) market size was
estimated at $2.5 billion. It is projected to reach $16.2 billion by 2018."
3D printing, also known as additive manufacturing, has already been used to
produce cars, buildings, guns and even artificial body parts.
"In the medical field, Chinese scientists have gone a step further, using
live tissue to create organs and print ears, livers and kidneys," adds
Smith.
As it becomes increasingly accessible and affordable to consumers, the
technology is making it possible for products to quickly reach the market with
less labor-intensive production required.
But these benefits are also a cause for concern. As 3D printing allows for
the quick and easy copying of products, it is, in turn, presenting fresh
challenges for regulators that have yet to adapt to the technology and for
companies seeking to protect their intellectual property rights.
Once prohibitively expensive, the technology that makes 3D printing possible
has evolved substantially.
Hewlett-Packard in October introduced a 3D printing technology 10 times
faster and 10 times more precise than existing technologies. The Multi Jet
Fusion 3D printer is set to launch in 2016.
In November, General Electric announced its plans to invest $32 million in
developing an additive manufacturing facility in the United States－a factory
that operates using 3D printers.
In Asia, XYZprinting, a company backed by Taiwan's electronic manufacturing
conglomerate Kinpo Group, launched the world's first allin-one 3D printer with
built-in scanner.
The da Vinci 1.0 AiO, weighing around 20 kilograms and resembling a large
microwave, is available to buy for $799 through e-commerce websites including
Newegg.com and Amazon.
A 3D printer introduced in late 2014 and developed by China Aerospace Science
and Industry Corp is due to be mass-produced and available later this year.
Li & Fung, a Hong Kong-based consumer goods design, logistics and
distribution company, has in recent years run a series of 3D printing
initiatives. In 2013, it carried out Asia's first in-store 3D printing retail
experience at a Toys R Us outlet in Hong Kong. Li& Fung has also explored
the possibility of teaming up with other companies like Samsung Electronics Co
to drive the technology further.
"With nearly 30 years of development, 3D printing technology is already quite
mature," says Luo Jun, secretary-general of the World 3D Printing Technology
Industry Alliance.
"It has been widely used for design in creative industries and printing teeth
or bones in the biomedical field," adds Luo, who is also executive-president of
the China 3D Printing Technology Industry Alliance. "Manufacturing and the
aerospace industry use it to print complex moldings and components, or
customized buildings."
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.
