The 3D printing process constructs a three-dimensional object with the help of a computer-aided design model. In this technology layer by layer, the material is added to form an object/parts and hence called as additive manufacturing. 3D manufacturing is 40 years old technology with emerging applications (refer Exhibit 1) in the fields of medical, aerospace, pharmaceuticals, automotive, fashion, electronics, logistics, food & beverage, etc.
There are three main types of additive manufacturing technologies, namely, fused deposition modeling (FDM), stereolithography (SLA), and selective laser sintering (SLS).
The Medical & dental sector, along with the aerospace sector (refer to Exhibit 2), is currently at the forefront of 3D manufacturing technology adoption. Currently, the medical industry utilizes 3D manufacturing technology to print tissues, organs, implants, prostheses, etc. In the automotive sector, 3D printing technology is mainly used for the prototype building, in which desktop printers are used to produce complex automotive parts with increased speed. Before 3D printing technology, prototyping was an expensive and time-consuming process. Companies in the automotive sector are working on manufacturing a wide range of cost-effective parts. Some companies–such as XEV, Kor Ecologic and Stratasys, and Oak Ridge National Laboratory–are working or have developed 3D printed cars, where 80-90% of the parts are manufactured using 3D printing technology cars.
3D printing is gaining traction in the automotive industry. Many automotive OEMs and part manufacturers are cautiously investing in this technology. In the current scenario (as of 2019), 3D printing is mainly deployed for prototyping applications in the automotive industry. However, the technology is gaining greater traction in the manufacturing of custom parts in the luxury and sports cars segment. 3D printing technology is playing a vital role in the manufacturing of complex automotive parts such as battery covers, air ducts, mirror sockets, suspension wishbone, etc.
Prototyping
The majority of the 3D printer in the automotive sectors are deployed in prototyping applications. According to industry experts, “3D printing technology is rapidly replacing conventional prototyping methods. The application of 3D printing technology, in prototyping, has resulted in time-saving for new design developments (iterations in the design process). Currently, 20-30% of the automotive companies (OEMs and part manufacturers) are using 3D manufacturing technology in prototype building.
In the last five years, many leading automotive OEMs (such as BMW, Volkswagen, and Mercedes-Benz) have adopted 3D manufacturing technology for prototype building. Below are a few examples where leading OEMs have adopted 3D printing technology.
Custom/personalized parts
Numeric control manufacturing processes are best suited for mass production applications due to this cost of customization/personalization of automotive parts (which includes body parts, seats, steering wheels, etc.) is expensive compared to standard parts. However, 3D printing technology can be used effectively to produce custom automotive parts. With the help of 3D printing technology, many automotive parts can be customized as per customer preference might boost the performance/ experience of customers. In the case of vintage vehicles and luxury cars, many of the spares can be printed with 3D printing technology.
Complex parts and tools
When producing complex parts and tools, 3D manufacturing has an advantage over conventional (numerical control based) manufacturing technology. 3D manufacturing can produce highly complex parts (turbochargers, gear shifters, water connectors for engines, brake caliper, etc.), which are hard to produce by conventional manufacturing technology.
In addition to this, 3D printing can be useful in solving the inventory problem of many automotive OEMs. Manufacturing of complex automotive parts such as suspension systems, nozzles, valves, and tools requires a considerable amount of time, energy, and cost. Besides, automotive OEMs are spending a significant amount on maintaining an inventory of these complex parts and tools, which resulted in increased production cost. Therefore, many automotive OEMs are looking towards 3D printing technologies to manufacture parts and tools on-demand, resulting in lower inventory.
Spare parts for Classic Cars
The availability of spare parts at the right time is a challenge for automotive manufacturers and service providers. Demand for spare parts is highly volatile and unpredictable; also, the cost of manufacturing spare parts (intermittently manufacturing spare parts as demand arises) is high. However, the unavailability of spare parts hampers service business and customer sentiment. There is another segment – ‘Classic Cars’, which requires spare part support for around 30-40 years after the production of cars had stopped. So, many OEMs are utilizing 3D printing technologies (Refer to Exhibit 6) to print spare parts for classic cars in cost-effective manners.
3D printing technology is finding applications in prototyping, custom and personalized part manufacturing, intricate parts and tools, and spare parts for classic vehicles. All these factors have positively contributed to the growth of 3D printing technology in the automotive industry. The 3D printing technology market in the automotive industry is expected to grow at a CAGR of 20% from 2019-2020 to reach USD 4,500 million by 2025 (refer Exhibit 7).
The 3D printing technology market’s growth mainly depends on the supply chain of raw materials and spare parts for the 3D printer. Key economies around the world (such as the US, China, Germany, Japan, South Korea, and the UK) are focusing on strengthening the 3D printing technology’s supply chain.
Mass production of parts manufacturing
3D printing technology is mainly used to manufacture custom/personalized parts, complex parts, and spare parts for classic/vintage cars. Production of these parts with conventional numeric control manufacturing technology (CNC) would be expensive. Due to this, many OEMs and part manufacturers are utilizing 3D printing technology. However, the production of general/regular parts with 3D printing technology would be costly compared to CNC technology. CNC technology is cost-effective for mass production of parts & tools, and the strength/quality of these parts & tools are better compared to 3D printing technology.
According to industry experts, ‘3D printing cost is reducing as technology is maturing. In the next ten years, the cost of parts manufactured by both the technology might be similar, and users might select technology based on their needs (cost might not be the major factor). 3D printing technology can be widely used for mass production of general spare parts (plastic, composites, glass, and metal spare parts) in the next ten years.
3D printed parts at remote locations
Currently, remote/rural location clients are served by third-party service providers/distributors, and due to this spare part, prices in those areas are relatively on the higher side. In many instances, spare parts are not readily available with these service providers/distributors, which negatively impacts customer sentiments. These customers prefer non-genuine spare parts for their vehicles, which affect the performance of the vehicle.
OEMs and part manufacturers can set printing equipment in remote areas to tackle these problems that can print spare parts on demand.
Mass manufacturing of cars
Currently, automotive OEMs are focusing on manufacturing complex and customized parts using 3D printing technology. The 3D printing technology is costly and has numerous technical flaws (such as reduced strength, finishing, high time to print parts, etc.) compared to CNC manufacturing technology. However, key 3D printing companies such as HP, Protolabs, and 3D systems are collaborating with automotive OEMs and part manufacturers to overcome technical flaws (refer to Exhibit 8). In the next 10-20 years, automotive OEMs can manufacture cars (mass production with a large number of parts produced from 3D printing technology) with 3D printing technology.
According to industry experts, ‘3D printing technology is expected to be utilized at high-precision and high-speed for direct production and mass production of various parts and components in the automotive sector. In the next five years, the application of 3D printing technology for mass production is expected to grow at a higher pace, post which the technology will mature by 2030.
As per FutureBridge, 3D printing technology for mass production is still at its nascent stage. The cost of 3D printing technology needs to be reduced to produce cars on a mass scale. It might take 15-20 years from now to manufacture cars using 3D printing technology. However, part manufacturing on a mass scale would still be a possibility in the next 5-10 years from now. Besides, there will be a possibility to manufacture smaller two-seater electric cars in a similar time frame on a large scale, as companies such as XEV (an Italian car manufacturer) are already planning to mass-produce a two-seater electric car using 3D printing technology.
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