Additive Manufacturing with Metal Powders – 2017A DIGITAL PRESENTATION OF MARKET TRENDS IN METAL ADDITIVE MANUFACTURING

• L E A D I N G P R O V I D E R O F I N D U S T R Y A N A LY S I S R E P O R T S A N D C O N S U LT I N G S E R V I C E S F O R T H E 3 D P R I N T I N G A N D A D D I T I V E M A N U FA C T U R I N G I N D U S T R Y

• B R O A D E S T A N D D E E P E S T M A R K E T R E S E A R C H C ATA L O G U E O N 3 D P R I N T I N G A N D A D D I T I V E M A N U FA C T U R I N G I N T H E W O R L D

• C O V E R A G E O F O P P O R T U N I T Y A R E A S A C R O S S T H E I N D U S T R Y W I T H I N -D E P T H S T U D I E S A N D M A R K E T D ATA

• P U R P O S E - B U I LT P R O P R I E TA R Y A D D I T I V E M A N U FA C T U R I N G M A R K E T O P P O R T U N I T Y M O D E L S F O R R E L I A B L E F O R E C A S T I N G O F 3 D P R I N T I N G B U S I N E S S O P P O R T U N I T I E S

• C L I E N T R O S T E R I N C L U D E S T H E L A R G E S T 3 D P R I N T E R F I R M S , M AT E R I A L S F I R M S A N D I N V E S T O R S I N T H E W O R L D

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AEROSPACEAUTOMOTIVEMEDICAL DENTALEDUCATIONELECTRONICSJEWELRY OIL & GASSERVICE BUREAUS

MATERIALS

BIOMATERIALS CERAMICSCOMPOSITESMETALSNICKEL ALLOYSPOLYMERSPRECIOUS METALSSTAINLESS STEELTITANIUMALUMINUM

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PERSONAL 3D PRINTERSPROFESSIONAL 3D PRINTERSPRODUCTION 3D PRINTERSSOFTWARE3D SCANNERS

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S C O T T D U N H A M , V I C E P R E S I D E N T O F R E S E A R C H

Scott Dunham is Vice President of Research at SmarTech Publishing.He has authored more than a dozen in-depth market research studieson various aspects of the 3D printing industry and consulted for majorcompanies in the sector giving him one of the widest perspectives onthe technology in the world. He has spoken at Additive Aerospace,Additive Disruption, Rapid, and Inside 3D Printing.

With six years in technology based market research, five devoted to3D printing, Scott has expertise in identifying opportunities in the 3Dprinting industry and years of research experience in the areas ofadvanced manufacturing and 3D printing.

Scott holds a BA in Marketing & Research from the University ofKentucky’s Gatton School of Business and Economics.

Metal Additive Manufacturing in 2017 – A Pivotal Year

Historic Change: Unlocking Demand for Real AM Solutions

Growth Accelerators

Growth Decelerators

The AM market is entering a period unlike any in its history.

Growth is fragmented across segments, uneven, with a measurable slow down from explosive start of the decade.

Yet, reports market wide present a picture of unprecedented demand for additive manufacturing solutions.

How will competitors unlock this pent up demand, and where does the disconnect exist?

Metal Additive Manufacturing – Growth Outlook by Industry Segment

Medical and Aerospace are rapidly becoming established markets for metal additive manufacturing technologies and applications.

Over the coming decade, SmarTech has identified three additional markets for metal additive manufacturing that are likely to grow to major opportunities.

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100.0%

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Year

ove

r Yea

r Gro

wth

(Pow

der S

hipm

ents

)

Projected AM Metal Powder Shipment Growth, by Industry, 2015-2026(e)

Aerospace

Medical

Automotive

Dental

Service Providers

Oil and Gas

Other Applications

Metal Additive Manufacturing – Primary Market Size to Date

Steady growth from 2015-2017 is expected, with revenue generating growth trailing pent-up demand for metal AM solutions.

2017 primary market growth of between 20 to 25 percent expected for third year in a row, after 50 to 100 percent growth in 2013 and ‘14.

Growth in metal AM services by industry expected to thrive during this period of muted primary market growth. 2014 2015 2016 2017

Total Primary Market $564.3 $764.2 $987.9 $1,208.3AM Hardware $445.0 $575.2 $712.3 $823.5AM Powders $119.3 $189.0 $275.7 $384.8

$564.3

$764.2

$987.9

$1,208.3

$-

$400.0

$800.0

$1,200.0

$1,600.0

$2,000.0

Reve

nue(

$USM

)

Total Primary Metal AM Market Size, by Category, 2014-2017

New Competitors & Disruptive Print ProcessesAssociatedCosts

Build Volume & Scalability

PartPerformance

Precision & Complexity

Metal Laser Powder Bed Fusion 3 5 7 9

Metal Electron PBF 4 5 7 8

Directed Energy Deposition 4 8 7 4

Metal Binder Jetting 6 7 5 8

Nano Particle Jetting 3 5 7 10

Atomic Diffusion AM 8 5 5 8

Tiled Laser Manufacturing 3 8 7 8

New metal additive manufacturing print processes are entering early stages of commercial impact

Still others are still under development, but show long term promise

New methods seek primarily to reduce overall costs, while adding potential for increased precision or greater flexibility in application

These processes continue to create a market scenario that can be difficult to navigate

Significant Changes to Metal AM Technology Taking Effect in 2017

Though new processes show promise and expand the cost spectrum for metal AM, the widely adopted laser powder bed fusion process is advancing with the need for serial manufacturing solutions.

These changes will significantly disrupt the dynamics of the metal AM market in 2017 and 2018 as end users will now be split into choosing an ‘integrated’ or ‘distributed’ style system.

Integrated Architecture (Classic) Distributed Architecture (New)

Decoupled production & processing units

Consolidation and the Redefining of Market Stakeholders

The next phase of metal additive manufacturingwill be enabled by expertise development inexisting processes. This is spurring major endusers in the market to take a more direct stakethrough acquisition.

GE’s landmark dual acquisition, as well asusers such as Michelin developing its ownhardware internally for external sale, areexpected to be highly beneficial to the market.

Hardware supply will not be constrainedsignificantly as a result of internal machineconsumption. Internal demand will continue tospur growth, but with benefits to the externalmarket.

1.7% 1.6%2.1%

3.2%3.8%

3.2% 3.2%2.5%

2.0%1.3%

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2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

% o

f Tot

al A

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nit S

ales

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M U

nits

Analysis of General Electric AM Activity on Hardware Market, 2017-2026

GE Machine Consumption Projected CL+Arcam Sales

% of total AM hardware market

Consolidation and the Redefining of Market Stakeholders Industrial laser and machine tool manufacturers are also keen to take a leading role in the market, and are making acquisitions and developing their own pure-play additive processes to compete directly in powder bed fusion and more direct additive markets.

Hybrid additive and subtractive laser manufacturing systems are also becoming commonplace, but their long term viability is still yet to be proven.

Company Additive Products Technology

Trumpf TruLaser Cell 7000 Series (DED),TruPrint 1000, 3000, and 5000 (PBF)

TruLaser series combines directed energy deposition additive production with laser cutting and welding, TruPrint series is pure play additive with powder bed fusion

Matsuura LUMEX Avance 25 & 60 Powder Bed Fusion with integrated subtractive milling

Sodick OPMLab 250L and 350L Powder Bed Fusion with integrated subtractive milling

Fryer/Optomec LENS Hybrid Metal 3D Systems Directed energy deposition technology integrated into a vertical CNC milling system

DMG Mori Lasertec 65 Directed energy deposition technology integrated into 5-axis CNC milling system

Mazak INTEGREX i-400AM Directed energy deposition technology integrated into 5-axis CNC milling system

Adira Unknown Developing ‘Tiled Laser Melting’ process utilizing both PBF and DED additive processes, as well as integrated laser cutting

OR Laser ORLAS CREATOR Pure metal powder bed fusion

Consolidation and the Redefining of Market Stakeholders A rapid amount of maturation all happening at once is a net positive for the industry, but has presented some growing pains which we expect will continue in 2017.

The next generation of stakeholders in the market are multinational, multi-billion companies with extensive manufacturing experience and ties to specific industry segments.

GE Michelin(End Users)

MazakDMG MoriTrumpf(Machine Tool Leaders)

AlcoaCarpenterGKN(Suppliers)

Historic Metal AM Ecosystem

Trends in Metal Additive Manufacturing Materials

Increase in Production Applications and Effects on AM Materials

The industry shift in production applications for AM, particularly in aerospace, but also on the horizon in energy, automotive, and industrial equipment, are creating some constraints in the supply chain for metal powders.

• Tightening of powder characteristics

• Increasing requirements for traceability

MAT

ERIA

L RE

QU

IREM

ENTS 20182016

Global Powder Capacity

This is creating a field of potential opportunities for both existing and new supply chain players to capture market share and establish a position

AM Powder Opportunities by IndustryForecasted growth in AM powder by alloy groups below shows significant opportunities in aerospace, but also through providers of metal additive manufacturing services via emerging markets

2016 2022 2026

Titanium Medical Medical Medical/Aero

Nickel Aero Aero Aero

Steels Service Service Auto

Cobalt ChromeMed/Dental/Aero Aero Aero

Aluminum Service/Others Service/Aero Others

Others (refractory)Service Aero Aero

Copper Service Service Service28.7%

39.8%

40.1%

45.9%

49.3%

51.2%

61.5%

70.0%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%

Other Industries - Aluminum

Medical - Precious Metals

Jewelry - Titanium

Dental - Precious Metals

Aerospace - Copper

Automotive - Aluminum

Oil and Gas - Cobalt Chrome

Oil and Gas - Refractory

10 year CAGR 2016-2026 (%)

Fastest Growing AM Alloys, Selected Industries, 2016-2026

Lightweight Metals – Future OutlookLightweight metals in aluminum and titanium are expected to expand in overall share of printed volume through more widespread printing of structural parts in aircraft and automobiles. Titanium aluminides are already being used in small quantities today, but could significantly increase.

5.1%6.4% 7.0% 7.5% 8.2% 8.3% 8.9% 9.4% 9.7% 10.3% 11.1% 11.5% 11.7%

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2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Perc

ent o

f Tot

al P

rint V

olum

e

Thou

sand

s of C

ubic

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es

Projected Metal Powder Print Volume, Thousands of Cubic Inches, by Alloy Group 2014-2026(e)

Titanium Aluminum % of total print volume Al % of total print volume Ti

SmarTech Publishing Knows Metal Additive Manufacturing

Additive Manufacturing with Metal Powders – 2017

Report Features:

• 148 pages of written analysis and market data• Entirety of ecosystem coverage – powders, machines, applications, and markets• Forecast data by….

• Hardware market share (units sold) for 2016 by metal AM technology subgroup• Powder supplier market share for 2016 • Powder revenue opportunities, shipments, and volume estimates by 8 primary alloy groups• Powder revenue estimates by region (NA, EU, AP, Rest of World)• Powder shipments and revenues by key adopting industry segment• Metal AM system sale and installation data by technology, installation by geography, revenue

opportunities by technology

SMARTECH PUBLISHING WAS THE FIRST TO PUBLISH EXTENSIVE STUDIES OF THE ADDITIVE MANUFACTURING METAL MARKET BY METAL TYPE

AREAS OF COVERAGE: METALS

ADDITIVE MANUFACTURING WITH METAL POWDERS 2017: AN OPPORTUNITY ANALYSIS AND TEN-YEAR FORECAST:

The metal additive manufacturingsegment has continued on a path ofexplosive growth. This report exploresthe imminent shift from tacticalmanufacturing of low-volumecomponents and prototypes to serialproduction and integration intoestablished manufacturingenvironments.

THE PRODUCTION MANAGER’S COMPLETE GUIDE TO:3D PRINTING WITH METALS:

This guide is an accessible entry pointfor production managers into the worldof metal additive manufacturing. It isfocused on the requirements andpractical aspects of implementingmetals printing including providingdirection on equipment choice,process integration and materialsselection.

SMARTECH PUBLISHING WAS THE FIRST TO PUBLISH EXTENSIVE STUDIES OF THE ADDITIVE MANUFACTURING METAL MARKET BY METAL TYPE

AREAS OF COVERAGE: METALS

OPPORTUNITIES FOR NICKEL ALLOYS IN ADDITIVE MANUFACTURING – 2017

The first ever multi-market deep dive research study into AM with nickel alloys utilizing powder based 3DP. Covers current and future potential for short run and serial production utilizing AM. Over the next decade, nickel alloys will become the second most demanded material for AM processes.

TITANIUM OPPORTUNITIES IN ADDITIVE MANUFACTURING – 2017

Up to the minute report on AM titanium market opportunities. With revenues exceeding all other alloy groups in the next decade, titanium is becoming the largest opportunity for metal AM, with its high strength to weight ratio, biological inertness, and other desirable properties when combined with AM.

C O N TA C T U S

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