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ADDITIVE

MANUFACTURING
Adding Up Growth
Opportunities for ASEAN
Contents
1 Foreword

2 Acknowledgement

3 Executive Summary

5 Chapter 1: Is ASEAN ready for AM?

35 Chapter 2: Five growth opportunities for ASEAN

45 Chapter 3: Creating value from AM initiatives

55 Conclusion

57 Appendix 1: AM – brief overview

61 Appendix 2: Why thyssenkrupp AM?

68 Appendix 3: Approach & Methodology

72 Appendix 4: About EOS

75 Appendix 5: About NAMIC


Foreword
Additive Manufacturing (AM), also known as 3D printing, is currently at a
technological and economical inflection point with potential to re-invent and disrupt
the ~$12 trillion global manufacturing sector. It can disrupt traditional cost structures
and supply chains, give an equal opportunity to advanced economies to close their
competitiveness gap, and move manufacturing nearer to the end consumers. This
poses a risk for ASEAN to fall behind, and it needs to act now to secure its place in
the age of the Fourth Industrial Revolution.

However, very little empirical research exists on the state of AM in ASEAN including
the current status of adoption, leading markets and sectors, and opportunities. This
lack of data leaves policymakers and business leaders without any guidance to best
prepare for the future.

thyssenkrupp recognized this gap and assembled a multidisciplinary team of


experts to construct a comprehensive perspective on the state of AM in the region
and its implications for policymakers and businesses going forward. This builds
on our rich working experience in the region over the last 150 years, our deep AM
technology expertise in Mulheim, our recent setup in Singapore, and the knowledge
of our experts and partners from EOS and NAMIC across the whole AM value chain.

This whitepaper provides a rich evidence base for policymakers and business
leaders seeking to understand, analyze, and invest in AM in ASEAN. The paper is
structured along three chapters, keeping in mind the diverse interest of various
stakeholders:
• For business leaders: Chapter 1 provides a detailed overview of the AM market
and its potential across ASEAN countries, while Chapter 3 lays down a systematic
approach to analyze the AM value chain and develop a commercially attractive
business model
• For policy makers: Chapter 2 outlines the overall economic opportunity from
adopting AM in ASEAN and the impact it can create across various aspects of the
economy from trade, social development, job creation to sustainability
• For AM enthusiasts: Appendix 1 provides a brief overview of the technology and
its applications today

We invite you to study the findings of this whitepaper and look forward to partnering
with you in driving your AM priorities for the region.

Mr. Jan Lueder Mr. Abhinav Singhal Mr. Terrence Oh Dr. Chaw Sing Ho
CEO Chief Strategy Officer Senior Vice President, Managing Director
RHQ, Asia Pacific, Asia Pacific, Asia Pacific NAMIC
thyssenkrupp thyssenkrupp EOS

1
Acknowledgment
We would like to extend our gratitude to the leadership Our partners
team of thyssenkrupp for their support, guidance, and
sponsorship of this research initiative: We are very grateful to the support provided by our
partners for their constructive input, feedback and
• Mr. Oliver Burkhard, Executive Board Member validation of the findings of this report.
• Mr. Donatus Kaufmann, Executive Board Member
• Mr. Jan Lueder, CEO, Regional Headquarters AP EOS
• Dr. Reinhold E. Achatz, Group Chief Technology Officer
We would like to acknowledge the following business
• Dr. Markus Oles, Global Head of Innovation Strategy
team members for their inputs and ASEAN market
& Additive Manufacturing
perspective:
We would like to acknowledge the contributions of all
• Mr. Terrence Oh, Senior Vice President, Asia Pacific
working team members who contributed extensively to
• Mr. Jack Wu, Sales Director, Asia Pacific
this report, particularly Ken Lip Ong, Eddy P. Irawan,
• Mr. Mark Lee, Area Sales Manager, Southeast Asia
and Tuan Nguyen Vu Duy.
• Ms. Yvonne Lim, Business Development Manager,
We would also like to thank our Communications team Asia Pacific
including Jürgen Wöhrmann, James Chen, and our
We would also like to acknowledge the following
designer ZMWorks for their support in bringing this
members of Additive Minds for their technical inputs:
whitepaper to life including its design and production.
• Mr. Christopher Schmitz, Application Development
Finally, we would like to extend our appreciation to the
Consultant, EOS GmbH
20+ subject matter experts for their time and insights
• Mr. Ho Kei Leong, Application Director Asia Pacific
during the interviews, and our internal experts from the
• Mr. Kenny Lee, Application Consultant Asia Pacific
Mulheim AM Tech Centre.
NAMIC

• Dr. Chaw Sing Ho, Managing Director


• Mr. Mahendran Reddy, Business Development Director
• Mr. Albert Sutiono, Head of Technology & Grant Office

To discuss the report further, please contact the authors.

Abhinav Singhal Avinash Ramachandran Christoph Schimpke


Chief Strategy Officer, Asia Pacific Manager, Strategy Manager, Strategy
abhinav.singhal@thyssenkrupp.com avinash.ramachandran@thyssenkrupp.com christoph.schimpke@thyssenkrupp.com
+65 8139 9327 +65 6890 1616 +65 6890 6006

The report is confidential to thyssenkrupp and may not be published or distributed without its written permission.

2
Executive Summary
The State of Additive Manufacturing in ASEAN Today

1. Penetration in ASEAN
is relatively small
5 - 7% of Asia’s AM spend at
$3.8 billion for 2019
220 - 270 industrial printer
installed base

2. Singapore, Malaysia and


Thailand account for 80%
40%

40%

15%

5%

3. Immense talent driving 4. Huge potential for


local AM innovations AM market in ASEAN
20% ASEAN GDP
in manufacturing
Prosthetics Farming Tools
50 million
ASEAN regional manufacturing workforce

Public housing Membrane


AM near term growth potential
(in line with global average) 3x
3
Opportunities Moving Forward

5. Five growth opportunities


$100 billion in economic value and 3 - 4 million jobs for AM in ASEAN

Reducing Improving Empowering Advancing Increasing


Import competitiveness local Industrie 4.0 & sustainability
dependence of key sectors entrepreneurs skill development through DfAM

6. Few barriers exist: 7. Businesses and governments


need to work together to
Know-how: Many policymakers
and business leaders are not unlock potential
fully aware on how to use
AM, its effectiveness and Regional roadmap for adoption
creating commercial value and scale-up of AM ecosystem

Tech: Material costs and Government funding & support


diversity, printing speed, to build up AM infrastructure,
policies and capabilities
build chamber size, stability
and repeatability of the
Extensive public-private
process, availability of
partnerships with government,
standards and IP institutes, manufacturers and
regulations ecosystem experts

ASEAN is at a cross-roads as AM and the broader Fourth Industrial Revolution drives


fundamental changes to the region's manufacturing competitiveness and its ecosystem.

The time to act is now!

4
5
Chapter

1 Is ASEAN ready for AM?


GE, in partnership with GrabCAD, launched a global 3D printing Design Quest in
2013, challenging the public to redesign a metal jet engine bracket to make it 30%
lighter while preserving its structural integrity and mechanical properties.

The Quest saw participants from 56 countries submit nearly 700 bracket designs.
Of that, the winning entry came from an engineer in Indonesia, M Arie Kurniawan,
who runs a small engineering and design firm called DTech Engineering with his
brother. Kurniawan’s bracket was inspired by the H-beam profile and had the best
combination of stiffness and weight. The original bracket weighed 2,033 grams, but
Kurniawan was able to slash its weight by nearly 84% to just 327 grams – 2.5 times
more than the initial mandate of 30%1.

This winning moment truly embodies the spirit of AM in ASEAN. While the AM
market in ASEAN is still relatively small (5 to 7% of Asia, with Asia estimated to be
AM market has grown approximately 30% of the global AM market in 2019; see Exhibit 1.3), the numbers
over 5x in the last 8 do not do justice to the creativity of AM applications and localized use cases seen
across ASEAN countries, often driven by local entrepreneurs like Kurniawan. Given
years and is expected ASEAN’s contribution to the global manufacturing output at 5% (approximately
$600 billion), the AM market outlook is huge2. AM activity currently accounts for
to double over the less than 0.03% of the manufacturing output, and even when reaching 0.1% (global
average penetration today), it translates into over 3 times growth for the region.
next 3 years
With this potential, we strongly believe that ASEAN is ready for AM.

1 GE Reports, Jet Engine Bracket from Indonesia Wins 3D Printing Challenge - GE Reports
https://www.ge.com/reports/post/77131235083/jet-engine-bracket-from-indonesia-wins-3d-printing/
2 Global manufacturing value add estimated 12 trillion USD in 2018 (HP/A.T. Kearney, 3D Printing: ensuring manufacturing
leadership in the 21st century, https://www8.hp.com/us/en/images/3D_Printing___Ensuring_Manufacturing_Leadership_in_
the_21st_Century_tcm245_2547663_tcm245_2442804_tcm245-2547663.pdf)

6
Overview of AM Market Globally
Sales of AM components have grown at a rate in excess of 25% per year since 1989. In
2019, global AM spend is estimated at $13.8 billion with a 5-year growth outlook averaging
at 23.5% per annum, almost doubling every three years, according to various estimates (see
Exhibit 1.1)3. ~24%
3D printer sales account for the largest share of the market at 40%, followed by other AM average AM
services with 30%, material providers at 15% and software companies making up the rest
(see Exhibit 1.2). market growth
Despite its rapid growth, AM still represents around 0.1% of the global manufacturing output expected
estimated at $12.7 trillion, according to IDC. Conservatively, AM penetration of 1% of the
market equates to an annual revenue of $125 billion in coming years. In earlier cases, we till 2023
have seen that typically, part suitability selection efforts have identified 5 to 10%, as suitable
for AM4.

Exhibit 1.1
Global AM Market Size Max CAGR:
Billion USD 27.2%
25 Wohler’s Associates
SmarTech
MarketsAndMarkets
20 ReportLinker
IDC Min CAGR:

15
18.2%

Average CAGR:
10 24.7%
7.3
6.1
5.2
5 4.1
3.0

0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Historic data (Wohler’s report 2018) Forecast

Source: 3D Hubs report: 3D Printing Trends Q1 2019

Exhibit 1.2
Global AM market segments

Printers Softwares Materials AM services and others


40% 15% 15% 30%
Source: thyssenkrupp analysis, IDC, 3D Hubs, Wohler’s Associates and AMR Research reports

3 3D Hubs, Q1 2019 AM Trend Report


4 EIU Perspectives, Adding it Up: The Economic Impact of AM https://eiuperspectives.economist.com/sites/default/files/Addingitup_WebVersion.pdf

7
Overview of AM Market in ASEAN
Asia’s AM spend is estimated at $3.8 billion for 2019, after the United States and Western
Europe which account for nearly two-thirds of the overall market ($8.6 billion)5.

Within Asia, China accounts for nearly 50%, Japan another 30%, South Korea at 10 to 12%,
ASEAN at around 5 to 7%, followed by India and ANZ at 3 to 5% each (refer Appendix 3 for
detailed methodology).

Exhibit 1.3
Asia AM market size
Billion USD, 2019 ASEAN
China accounts for
47-50%
5-7% of Asia;
Japan
US 30-32% it is led by
36%
South Korea Singapore,
Asia 10-12% followed by
28% ASEAN Thailand and
Others 5-7%
10% Malaysia which
Australia
EU make up 80%
3-5%
26%
India of the ASEAN
3-5% market
Source: IDC, thyssenkrupp analysis

Within the ASEAN region, Singapore, Thailand, and Malaysia account for around 80% of the
AM market by value and a similar share of the installed industrial printer base6. Vietnam,
Indonesia, and the Philippines account for the next 15% of market value, followed by the rest
of the ASEAN countries accounting for the remaining 5% (see Exhibit 1.4).

Singapore leads the pack with over a third of the industrial printer installed base and
approximately 40% of AM market size alone, driven by a favorable business environment,
and concentrated efforts to grow AM via various R&D centers, universities, polytechnics and
research institutions – including the establishment of the National Additive Manufacturing
Innovation Cluster (NAMIC) in 2015 to translate AM research and development (R&D) into
the industry. While Singapore has largely industrial printers utilized by research institutes
across Marine, Aerospace, Medical, and Dental applications, Malaysia and Thailand are
relying on a mix of desktop and industrial printers for tooling, prototyping, and production
across Automotive, Chemical, Medical, and Dental applications.

However, the ASEAN region stands out for its local innovations and creativity of AM
applications across the 10 markets which are often driven by local entrepreneurs with limited
external support (see Exhibit 1.5).

5 IDC, Worldwide Spending on 3D Printing Will Reach $13.8 Billion in 2019, According to New IDC Spending Guide, https://www.idc.com/getdoc.
jsp?containerId=prUS44619519
6 Value $>100,000; for more information, see Appendix 3

8
Exhibit 1.4
Overview of AM market in ASEAN
Refer to Appendix 3 for detailed methodology & approach

Market Size 2019


Laos
1% Leading1

Myanmar Emerging2
1% Early Stage3

Potential4
Thailand Vietnam Philippines
25% 6% 5%
Cambodia
2%

Malaysia Brunei
15% 1%

Singapore
40%
Indonesia
4%

Singapore Thailand Malaysia Vietnam Philippines Indonesia Cambodia Myanmar Brunei Laos

Manufacturing Value Add5 2017 (Billion USD)


58.3 117.3 83.8 30.4 69.2 231.3 3.0 18.8 2.2 1.2

Industrial Printer Installed base6


100-120 50-60 30-40 10-15 10-15 10-15 <5 <5 <5 <5

AM Penetration7
Medium Low-Medium Low

1 Leading: >30% market share 5 By constant 2010 USD levels


2 Emerging: 10-30% market share 6 Installed base of industrial printers >100,000
3 Early Stage: 3-10% market share 7 Penetration is defined as country AM market size / Manufacturing value add
4 Potential: <3% market share Source: World Bank, thyssenkrupp ASEAN market model

9
Exhibit 1.5
Highlights of AM activity in ASEAN (select examples only)

ASEAN has generated various applications with high future potential,


e.g. printed hands, rocket fuel, farming tools, wastewater membranes

Hand prosthetics for land mine victims (ARC Hub PNH, Cambodia)
Phnom Penh-based startup ArcHub PNH, founded by brothers Ki Chong
and Ki How Tran in 2013, has co-created 3D printed artificial hands for
Cambodian victims of land mine explosions together with a Canadian NGO
Project. Each hand prosthesis takes around 40 hours to print and costs
about $320. ArcHub PNH has also established a collaboration with the Liger
Learning Center, teaching kids how to design and 3D print simple objects.
Additionally, they have been commissioned to create a 3D model of the Farmer’s
Friend Biodigester system for the National Biodigester Programme of Cambodia7.

Farming tool prototypes (Proximity Designs, Myanmar)


In an industrial park outside the capital Yangon, social enterprise
Proximity Designs makes prototypes for specially adapted farming
tools like irrigation systems, solar pumps, and plastic sprinkler
nozzles. After consulting with farmers, the prototype is printed
with a black, hollow cube connected to a computer. The part
is then mass-produced in factories abroad. Farmers’ indicated
costs have gone down by 50% 8.

3D printed commercial buildings


(Yakich Cuizon Corporation, Philippines)
Lewis Yakich, owner of the Lewis Grand Hotel in Angeles City,
added an entirely 3D printed building to its complex. It was
inaugurated in 2015 and subsequently, he signed a contract to
3D print an entire subdivision of 20 homes in November 2015.
He intends to support the public low income housing program by
printing thousands of homes in the near future9.

Large scale production of wastewater membranes


(Nanosun, Singapore)
Nanosun, a startup in Singapore, has developed a self-cleaning, 3D
printed micro-filtration membrane. They secured $12 million of funds
in 2017 and have already deployed solutions in China, Indonesia and
the Philippines. The membrane, placed inside a containerized plant,
uses a patented titanium dioxide nanotechnology and can be mass-
produced. Currently, the company is looking to scale up operations
and expand to more countries in the Asia Pacific region10.

7 Digital Trends, This startup is 3D-printing prosthetic hands for victims of land mine explosions, https://www.digitaltrends.com/cool-tech/cambodian-startup-3d-printing-prosthetic-hands/
8 Myanmar Times, Farmers reap rewards from 3D printing, https://www.mmtimes.com/business/technology/24364-farmers-reap-rewards-from-3d-printing.html
9 3Dprint.com, Lewis Grand Hotel Erects World’s First 3D Printed Hotel, Plans to Print Thousands of Homes in the Philippines Next, https://3dprint.com/94558/3d-printed-hotel-lewis-grand/
10 The Straits Times, Local start-up going places with its water treatment technology, https://www.straitstimes.com/singapore/local-start-up-going-places-with-its-water-treatment-technology

10
3D Café franchise (GCC Group, Vietnam)
Cryptocurrency provider GCC Group launched a branch of its GCC 3D
Café franchise in Ho Chi Minh City, which allows customers to make
commercial printing orders, use the workspaces and its meeting rooms
to develop projects and also to pay for coffee with the GCC currency via
a mobile wallet. The 3D café is also used for GCC’s 3Dprinting program for
schools, intending to educate students with 3D printing technology11.

Recycled bottle caps as raw material for AM (ITB; Indonesia)


Dr. Mardiyati from the Technological Institute Bandung has researched
about plastic bottle waste being used as a filament material for 3D
printing. The recycled thermoplastics come from bottled mineral
water which can be reused by a heating process. The first step
in this process is to collect the bottle cap waste and cut it into
smaller pieces. The small pieces are then inserted into the
extrusion machine. The output – which looks like a roll of yarn –
is the filament for printing12.

Rocket launch with 3D printed fuel


(Gilmour Space Technologies, Singapore)
Singapore/Australian start-up Gilmour Space Technologies launched
the first hybrid rocket to an altitude of 5 km using proprietary 3D
printed fuel in June 2016. The fuel combines hydrogen peroxide (non-
toxic, storable under room temperature), non-toxic liquid oxidizer, and
other proprietary materials. In 2020, it plans to launch the first commercial
hybrid rocket to Low Earth Orbit which is between 640 and 1600 km above the
earth’s surface13.

Cloud-based 3D printer farm in education


(Kasetsart University, Thailand)
In 2017, Kasetsart University in Bangkok set up a Digital Prototyping
Laboratory in collaboration with printer shop Septillion. The lab
includes 17 Ultimaker printers and can be accessed from the
university cloud. The purpose is to run university education
programs and research development. The lab was set up in
three days and the environment cost (without printers) was
less than $2,00014.

11 GCC Group, 3D Cafe - Hybrid Theme Cafe Franchise System, https://www.gcc3dcafe.com/


12 Bandung Institute of Technology, ITB lecturer creates 3D printer filaments from used bottle waste, https://www.itb.ac.id/news/read/56960/home/dosen-itb-buat-filamen-printer-3d-dari-limbah-
botol-bekas
13 e27, Gilmour Space secures US$14M to develop low-cost hybrid rockets for small satellite market, https://e27.co/low-cost-hybrid-rockets-startup-gilmour-space-raises-us14m-20181001/
14 All3DP, Kasetsart University Architecture Students Get Ultimaker Farm, https://all3dp.com/kasetsart-university-architecture-students-get-ultimaker-farm/

11
ASEAN Country
Deep Dives

12
ASEAN Frontrunner

Singapore
Singapore is leading the pack among ASEAN countries,
driven by a favorable business environment and a
concentrated effort to increase AM adoption via various
national initiatives, such as the 5-year investment of $380
million15 into AM and establishing the National Additive
Manufacturing Innovation Cluster (NAMIC) in 2015 which
channels research towards commercial applications.

13
Enabling Local Infrastructure
Singapore pioneering in development
NAMIC was established by the National Research
Foundation (NRF) in partnership with Enterprise Singapore of AM standards & qualifications
and the Economic Development Board (EDB), and hosted
at Nanyang Technological University’s (NTU) research
commercialization institution NTUitive. It identifies and successful in deepening AM application and penetration
develops AM start-ups and technologies, jumpstarts across industrial sectors.
public-private collaborations, and engages as a connector
between research, industry, and public agencies. Since its Established local entities like Sembcorp Industries (which
establishment, NAMIC has reached out to over 1,000 local printed concrete prefabricated bathroom units in less than
and international firms to assist in the commercialization 12 hours22), PSA International, and Keppel Corporation
of AM concepts. It funded more than 100 joint projects have also been active in AM investments, having
between companies and research institutions with a project announced several partnerships to accelerate their efforts.
pipeline exceeding $25 million (including collaborations In 2018, for example, 3D Metalforge - with the Marine and
with SembCorp, DNV-GL, Underwriters Laboratories {UL} Port Authority Singapore (MPA) and Port of Singapore
and startups)16. It also plays an active role in developing Authority (PSA)Marine and Port Authority Singapore (MPA)
standards and qualifications through joint industry and Port of Singapore Authority (PSA) jointly announced
collaborations, together with DNV GL17 and Agency for the creation of a $1.8 million AM facility with focus on
Science, Technology and Research (A*STAR). printing port equipment and customized ship parts like
propellers23. Another specialized startup is Spare Parts 3D,
which partnered with US company Whirlpool to scale up AM
>$380 million investment in AM in after-sales services24.

by the Singaporean government, NAMIC was recently announced as the Asia Pacific
Strategic Partner, one of the only two global sites25, for the
facilitated by NAMIC International Additive Manufacturing Center of Excellence
(AM CoE) – a branch set up under the American Society for
Singapore has a robust ecosystem from R&D (A*STAR, Testing and Materials (ASTM). The AM CoE was set up with
Singapore University of Technology and Design (SUTD), the purpose of establishing AM standards, certification, and
NTU, NUS, and Polytechnics) to corporate R&D labs, qualification for repeatable, consistent parts and processes
service bureaus, and startups. Notably, Singapore has among others.
developed its very own Laser Aided AM (LAAM) & Wire Arc The American Society for Testing and Materials (ASTM)
AM (WAAM) technology18. set up the International Additive Manufacturing Center of
There are also a variety of online course providers such as Excellence (AM CoE) with the purpose of establishing AM
LessonsGoWhere19 and 3D Bots, which offer beginner to standards, certification, and qualification for repeatable,
intermediate courses supported by Workforce Singapore consistent parts and processes among others. It also
(WSG), the National Workforce Development agency. nominated NAMIC as its Asia Pacific Strategic Partner.

Singapore is also very active in organizing AM events, Ship classification society DNV GL set up a global AM center
tradeshows, and conferences for knowledge sharing and of excellence as an incubator and testbed for R&D in the
raising awareness on various AM topics with the Industrial oil & gas, offshore, and marine sectors for an undisclosed
Transformation Asia-Pacific (Hannover Messe event) and amount. Based on the concentrated research, DNV GL is able
Global AM Summits by NAMIC20. to provide class rules and standard work out of Singapore.

Recent Initiatives What is unique in Singapore is the ability to engage on


the entire AM value chain, and not just as an application
Global companies like GE, thyssenkrupp, HP, UPS, Emerson, user. Efforts range from novel AM platform technology
Voestalpine, and DNV GL have set up regional AM centers development to product design to qualification and
based out of Singapore21. Moreover, startups like 3D Metal standards development. As a consequence, Singapore has
Forge, Anatomics, and Spare Parts 3D have been quite positioned itself successfully as a regional AM hub.

15 EDB Singapore, Unleash the power of 3D printing, https://www.edb.gov.sg/en/news-and-events/insights/innovation/unleash-the-power-of-3d-printing-.html


16 CAN, Singapore firms tapping 3D printing tech for new growth opportunities, https://www.channelnewsasia.com/news/singapore/singapore-firms-tapping-3d-printing-tech-for-new-growth-
opportun-7576708
17 DNV GL, Joint industry program in Singapore aims to boost the use of additive manufacturing in the maritime industry, https://www.dnvgl.com/news/joint-industry-program-in-singapore-aims-
to-boost-the-use-of-additive-manufacturing-in-the-maritime-industry-145297
18 EDB Singapore, The future is taking off: Three exciting aerospace innovations from Singapore, https://www.edb.gov.sg/en/news-and-events/insights/innovation/the-future-is-taking-off-three-
exciting-aerospace-innovations-from-singapore.html
19 LGW, 3D Printing Courses in Singapore, https://lessonsgowhere.com.sg/3d-printing-courses
20 NAMIC, Events NAMIC, https://namic.sg/events/dfam/
21 The Straits Times, Manufacturing to get boost from 3D printing, https://www.straitstimes.com/business/manufacturing-to-get-boost-from-3d-printing
22 3dprintingindustry.com, NTU and Sembcorp researchers 3D print concrete bathroom unit in hours - 3D Printing Industry, https://3dprintingindustry.com/news/watch-ntu-and-sembcorp-
researchers-3d-print-concrete-bathroom-unit-in-hours-156303/
23 The Straits Times, Home-grown firm opens 3D printing facility here, https://www.straitstimes.com/business/companies-markets/home-grown-firm-opens-3d-printing-facility-here
24 3dprint.com, Whirlpool Partners with Spare Parts 3D to Create a Digital Inventory, https://3dprint.com/230707/whirlpool-partners-with-spare-parts-3d/
25 ASTM, Additive Manufacturing Center of Excellence, https://amcoe.org

14
AM Country Summary

Singapore ASEAN Frontrunner

Macroeconomics (2017) AM Market Top AM Sectors

GDP real (bn USD) 310.0 Penetration1 Medium Aerospace

Mfg value add (bn USD) 58.3 Installed base 100-120 Chemicals
(industrial printers)
Population (mn) 5.6 Marine, Oil & Gas

Government and R&D MNCs and Startups Enabling Infrastructure

• >380 mn USD government • 20+ MNCs with regional AM • Fully established masters & PhD
investment since 2013 activities e.g., Evonik, DNVGL, programs
Jabil, HP, Emerson, thyssenkrupp
• Established NAMIC2 in 2015, to • WSG4 offering sector specific
translate research from universities • Active startup ecosystem training (e.g. aerospace)
into commercial applications backed by universities inc.,
• Broad range of events/
3D MetalForge, Anatomics,
• Strategic partnerships with NAR conferences (e.g. NAMIC Global
SpareParts 3D, Structo
Labs and University Hospital Additive Manufacturing Summit,
Taiwan, ASTM AM Center of • A*STAR-Rolls Royce-SAESL3 set Industrial Transformation)
Excellence, Mobility Goes Additive up a Smart Mfg Joint Lab (up to
AM Network 60 mn SGD annually)

Key Players

Highlights of AM Projects

• Large scale production of self-cleaning 3D-printed microfiltration membranes for wastewater developed by Nanosun
• Commercial printing of orthotics for local hospitals
• Hybrid rocket launched to an altitude of 5 km using proprietary 3D printed fuel in June 2016 by Gilmour Space
Technologies
• Developed ASEAN’s first Laser Aided Additive Manufacturing (LAAM) and Wire Arc Additive Manufacturing (WAAM)
technologies
• Joint innovation programs (JIPs) launched in Aerospace, Maritime sectors

1 Penetration is defined as country AM market size / Manufacturing value add


2 National Additive Manufacturing Innovation Cluster
3 Singapore Aero Engine Services Private
4 Workforce Development

15
Rising Star

Thailand
Driven by the automotive, chemicals, and healthcare
industry, Thailand is developing a vibrant AM
ecosystem, with evolving Fab Labs, new local
print shops, and more university activities.

16
Enabling Local Infrastructure
The country’s AM infrastructure consists of Fab Labs and
local print shops. Some examples are I am MAKER, Proto
Septillion has evolved from a local
Factory FB, The fast 3D print and ProtoThai. AM is also printer shop into an international
fostered in co-working spaces such as the FabCafe and
HUBBA in Bangkok which offer space for AM, help form 3D printer distributor, with major
a startup ecosystem, and offer occasional workshops26.
Outside the capital, there are other communities like customers in the automotive and
MakerSpace in Chiang Mai which focus on high-tech
manufacturing27.
jewelry sectors
Septillion is a leading local AM printer importer as well as
distributor for 3D printer brands Ultimaker and Formlabs,
among others. It evolved from a neighborhood shop to a local companies such as Septillion (which sold Formlab
major distributor by first selling low-cost systems like the printers to Toyota) for internal R&D, prototyping, and
UP printer. Broadening its portfolio, Septillion is now moving tooling applications.
into full industrial printing distribution with EOS28.
The chemicals sector is the second most active industrial
Kasetsart University launched a Digital Prototyping segment; Singapore’s NTU and Thailand’s petro giant
Laboratory, the first cloud service for a printer farm in PTT Global Chemical signed an MoU in mid-2017 to
Southeast Asia to run university education programs and jointly develop new materials for vehicle components (fuel
research development 29. Design lab & media platform efficiency, reduced carbon dioxide emissions)34.
ProgressTH runs English and Thai courses and workshops
on 3D design and printing30. In the healthcare industry, the National Metal and Materials
Technology Center (MTEC) at the Asian Institute of
New Kinpo Group subsidiary xyzprinting is working with Technology (AIT) set up a medical laboratory to be able
schools to expose students to the new technology and to rapidly prototype human organs with selective laser
additionally diffuses information about AM to a wider sintering35. State-owned Ramathibodi Hospital has also
audience via social media and online platforms. As a means started to print prototypes of hearts and lungs (outsourced
of educational support for the university, it donated 3D printing services from other countries such as Singapore).
printers to the Asian Institute of Technology (AIT)31.
The cement industry has also seen first steps in AM, as
Recent Initiatives Siam Cement Group (SCG) developed a new cement that
is mixed with a special combination of powder materials
NSTDA and Autodesk signed an MOU to advance and fibers36.
manufacturing competitiveness through industry-wide
adoption of leading-edge 3D technologies and digital
manufacturing capabilities and the joint establishment of a
‘Digital Manufacturing Platform’, which is in support of the Siam Cement Group (SCG)
National Digital Economy Master Plan32.
developed new cement based
Automotive is spearheading Thailand’s potential for
AM applications as global Auto OEMs33 like Toyota and on AM
BMW are already utilizing AM and buying printers from

26 Bk.asia-city.com, Fabcafe: Originally from Japan this co-working space offers 3D printing and 2D laser cutting machines, https://bk.asia-city.com/bangkok-places/co-working-space/fabcafe
27 Bangkokpost.com, Regulation hits 3D printers, https://www.bangkokpost.com/tech/local-news/898164/regulation-hits-3d-printers
28 3D Printing Media Network, Septillion Goes from Neighborhood Shop to Major 3D Printer Distributor in Thailand, https://www.3dprintingmedia.network/septillion-goes-neighborhood-shop-major-
3d-printer-distributor-thailand/
29 Ultimaker, Increasing educational potential in Thailand using 3D printing, https://ultimaker.com/en/stories/50789-increasing-educational-potential-in-thailand-using-3d-printing
30 ProgressTH, About ProgressTH, http://www.progressth.org/p/about-progress-thailand.html
31 The Nation, Thailand is ASEAN entry point for disruptive 3D printers, http://www.nationmultimedia.com/detail/Corporate/30331432
32 3dprintingindustry,com, Autodesk Join Hands to Advance Digital Manufacturing in Thailand - 3D Printing Industry, http://3dprintingindustry.com/news/autodesk-join-hands-to-advance-digital-
manufacturing-in-thailand-80214/
33 3D Printing Media Network, Septillion Goes from Neighborhood Shop to Major 3D Printer Distributor in Thailand, https://www.3dprintingmedia.network/septillion-goes-neighborhood-shop-major-
3d-printer-distributor-thailand/
34 News NTU, NTU Singapore and Thai petrochemical giant PTTGC to develop new 3D printing materials for the automotive industry, http://news.ntu.edu.sg/Pages/NewsDetail.aspx?URL=http://
news.ntu.edu.sg/news/Pages/NR2017_Jun20.aspx&Guid=355a1c2b-5089-437c-93a6-1fd8b94979d7&Category=All
35 Ipsos Business Consulting, 3D Printing: The genesis of a new realm of possibility in manufacturing and supply chain, http://www.ipsosconsulting.com/pdf/Ipsos-Business-Consulting-3D-Printing.pdf
36 3Dprint.com, Thai Company SCG Develops Custom 3D Printable Cement for 3D Printing Houses and Structures, https://3dprint.com/131560/scg-3d-printable-cement/

17
AM Country Summary

Thailand Rising Star

Macroeconomics 2017 AM Market Top AM Sectors

GDP real (bn USD) 422.9 Penetration1 Low-Medium Automotive

Mfg value add (bn USD) 117.3 Installed base 50-60 Healthcare
(industrial printers)
Population (mn) 69.0 Consumers

Government and R&D MNCs and Startups Enabling Infrastructure

• Exemptions from import & • Toyota uses Formlab printers for • xyzprinting works with high
operating taxes for machinery, internal development in auto schools to expose students and
AM R&D centers and foreign land donates printers
• Local printer shop Septillion
ownership policies
moved to industrial printing and • Courses on AM in English and
• MST2 signed MoU with Autodesk expands to other countries Thai
to establish a joint ‘Digital
• Qmakr shifted from regular • Co-working spaces like FabCafe,
Manufacturing Platform’
printing to 3D and focuses HUBBA connect interested
• NTU and PTT Chemical signed on industrial and medical people
an MoU to jointly develop new applications
• Chevron organized the “Enjoy
materials
Science: Young Makers Contest”

Key Players

Highlights of AM Projects

• MTEC AIT set up a medical PR laboratory to showcase selective laser sintering for rapid prototyping of human organs
to aid pre-operative planning
• Siam Cement developed a new cement that is mixed with a special combination of powder materials and fibers that
allow it to quickly be printed into non-traditional shapes in 2016
• Kasetsart University established in 2017a Digital Prototyping Laboratory the first cloud service for a printer farm in
Southeast Asia to run university education programs

1 Penetration is defined as country AM market size / Manufacturing value add


2 Ministry of Science and Technology

18
Spearheading in the Medical Industry

Malaysia
Malaysia is focusing efforts into the healthcare sector (facial
implants, dental crowns) with skilled technical workforce dedicated to
process customized orders (e.g. segmentation of MRI scans done by
Materialise’s biomedical engineers)37. It has witnessed some printing
software provider partnerships and also hosts several printing
(mostly desktop) and training material capabilities.

19
Enabling Local Infrastructure in the industry (28% of all companies have already used it)
and the Ministry of Health set the aspiration to be a Medical
Malaysia’s printing infrastructure is still developing. There Tourism Hub in ASEAN43. Universiti Kebangsaan Malaysia
are multiple 3D printer distributors (e.g. Pebble3D Sdn Medical Centre has had the first successful facial implant
Bhd), filament suppliers, & spare part distributors (e.g. using additive manufacturing44.
3D Gadgets). There is also a variety of printing shops like
Makespace, 3DCIPTA or 3D Printer Sdn Bhd, and Craft Lab
which hold workshops and has some printing capabilities
for prototypes38. Additionally, global printer networks like MIDA have supported GKN to set up
3D Hubs or makexyz have a presence across major cities.
a $30 million AM facility in Johor

In Malaysia, a 3D printed facial The government and the Malaysian Investment


Development Authority (MIDA) are looking to expand into
implant structured has been aerospace, supporting British Aerospace supplier GKN to
applied to a patient to correct the invest $30 million in its first AM repair and engine research
facility in Johor45. The facility is expected to employ 300
damage caused by an accident people by the end of 2020.

3D Printing and Software providers are strongly investing


in Malaysia:
Training materials and courses offered are limited. The
Penang Skills Development Centre started to offer certified • US-based printer manufacturer Stratasys partnered with
AM practical workshops, general courses, and certifications the University of Malaya’s CBMTI46 on 3D Printed Training
on AM39. Local startup 3D Printer Sdn Bhd is nurturing the Simulators for Neurosurgery47.
community by providing platforms for training and learning • The MOSTI48 signed an MoU with software provider
3D designs, equipped with training facilities for the public to Autodesk to set up AM labs called “3D Smart Maker”
enjoy hands-on experience40. countrywide to foster advanced manufacturing skills49.
Belgian company Materialise held 2 hackathons in 2016 • Materialise announced the opening of an AM Center
to foster innovation & community41, and shop i.materialise in Selangor to be a competence center for digital light
announced “The AM Event in Kuala Lumpur: Art, Design processing (DLP) technologies50.
and Architecture” in 2014. In June 2019, the University
Putra hosted the first ASEAN Conference on 3D Print in
Even though there are no AM incubators, startup
Medicine, focusing on neurovascular, cardiovascular, oral,
Pebblereka created the PrintLab community and Build Your
and dental applications42.
Lab platform which allow for pricing inquiries, creating
Recent Initiatives own solutions for printing, and getting access to local and
global printer promotions51. The general focus of startups
Malaysia is mainly active in the medical and healthcare and printing services companies like P3D Mainatec, 3D
sector with many products now being 3D printed (e.g. gadget, and 3D Printer Sdn Bhd is concept creation, rapid
hearing aids, dental crowns). There is a high adoption rate prototyping, and even some focus on industrial production.

37 Open Biomedical Initiative, Materialise launches latest version of its 3D medical image printing software, http://www.openbiomedical.org/materialise-launches-latest-version-of-mimics-
innovation-suite-for-3d-medical-image-printing/
38 Craftlab, Products and Services, https://craftlab.com.my/
39 PSDC, Additive Manufacturing: Certified 3D Printing Practical Workshop, http://www.psdc.org.my/training/industry-40/additive-manufacturing-certified-3d-printing-practical-workshop
40 3D Printer Sdn Bhd, Home, https://www.3dprinter.com.my/
41 Materialise, Materialise Malaysia Hackathon 2016: Bigger, Better, Bolder, https://www.materialise.com/en/blog/materialise-malaysia-hackathon-2016-bigger-better-bolder
42 Asean 3D, ASEAN conference on 3D print in medicine, https://asean3d.com/
43 Marketing-Interactive, Medical tourism: How Malaysia can make its mark as a hub, https://www.marketing-interactive.com/medical-tourism-how-malaysia-can-make-its-mark-as-a-hub/
44 3Dprint.com, Malaysian Surgeon Performs Country’s First Facial Implant Using 3D Printing
45 3Dprintingindustry.com, GKN Aerospace’s first repair facility in Malaysia focused on 3D printing - 3D Printing Industry, https://3dprintingindustry.com/news/gkn-aerospaces-first-repair-facility-in-
malaysia-focused-on-3d-printing-141875/
46 Center of Biomedical Technology Integration
47 3Dprint.com, CBMTI Makes Big Strides in Neurosurgery with 3D Printed Training Simulators, https://3dprint.com/141291/cbmti-stratasys-3d-printers/
48 Agency of Ministry of Science, Technology and Innovation
49 MIMOS, MOSTI’s first 3D printing lab takes shape – MIMOS Berhad, http://www.mimos.my/paper/mostis-first-3d-printing-lab-takes-shape/
50 Materialise, Materialise Malaysia Inaugurates Excellence Center for 3D Printing Development and Research, https://www.materialise.com/en/press-releases/materialise-malaysia-inaugurates-
excellence-center-for-3d-printing-development-and
51 PrintLab Malaysia, Products, http://weareprintlab.com/our-products/malaysia

20
AM Country Summary

Malaysia Spearheading Medical

Macroeconomics (2017) AM Market Top AM Sectors

GDP real (bn USD) 364.6 Penetration1 Low-Medium Industrial / Tooling

Mfg value add (bn USD) 83.8 Installed base 30-40 Healthcare
(industrial printers)
Population (mn) 31.6 Oil & Gas

Government and R&D MNCs and Startups Enabling Infrastructure

• MIDA 2 supported GKN3 to invest • Materialise announced opening • Courses offered by PSDC and
30 mn USD in an AM repair/ of an AM Center in Selangor for NobleProg
research facility in Johor digital light processing
• Variety of print shops like 3D
• Stratasys partners with CBMTI4 • Variety of printing shops like Printer Sdn Bhd or Makespace
on 3D Printed Training Simulators Makespace, 3DCIPTA or 3D
• Makerspace Fab Space KL
for Neurosurgery Printer Sdn Bhd
helping people to convert ideas
• MOSTI5 signed MoU with • VAGLER (Sweden/Malaysia) into 3D prints
Autodesk to set up AM labs released a printer series
• University Putra to host the
called “3D Smart Maker exclusively for educational/
“ASEAN Conference on 3D Print
school market
In Medicine”

Key Players

Highlights of AM Projects

• Pebblereka jointly with PrintLab set up the Build Your Lab platform allowing to enquire printer information, pricing and
get access to promotions
• MinNature Malaysia printed the world’s largest 3D printed miniature wonderland, covering 17,000 square feet,
involving over 80 people and taking 8 months to complete in 2014
• e-NABLE is a charitable group run by volunteers which crowdsources the production of 3D printed prosthetic hands
for people in need

1 Penetration is defined as country AM market size / Manufacturing value add


2 Malaysian Investment Development Authority
3 British Aerospace supplier
4 University of Malaya’s Center of Biomedical Technology Integration
5 Ministry of Science and Technology

21
Raising Awareness

Vietnam
In Vietnam, AM is being applied to the automotive,
electronics, and consumer goods industries. The
ecosystem has progressed beyond the early stage
and is moving towards an established state. Both
public and private sectors are actively trying to
digitalize the economy by investing money in it.

22
Enabling Local Infrastructure
The government is strongly fostering initiatives related to HCMC University of Technology
the Fourth Industrial Revolution (Robotics, AM, Internet
of Things, and AI), setting up a draft of how to make its has integrated AM into 4 research
economy ready, and cooperating with the World Economic
Forum (WEF) to open an IR 4.0 Affiliate Center52.
programs from 2018-2025
The most active industries are automotive (e.g., Vinfast,
Ford, Bosch, Friwo, Furukawa), electronics (e.g., Intel,
international 3-day event for exchanging knowledge and
VNPT, Konica Minolta, Samsung), and consumer goods
showcasing new products)54.
and home appliances (e.g., Unilever, Elmich, Siamp,
Zwilling J.A. Henckels, Sun House). It is also common for The Saigon Hi-Tech Park Incubation Center assists startups
companies in Vietnam to import printers from their home to make creative products and solutions. One of these is
countries (e.g., Japan, Korea) and use it for developing in- Meetech Technology JSC, which is already able to invest
house applications. in the production and trade of technology equipment and
services by itself. Currently, it will partner with a major
Vietnam has good skills fostering mechanisms in place as
cinema chain to provide selfie and 3D rending solutions55.
there are university faculties dedicated to AM in most cities
across the country, such as Ha Noi, Ho Chi Minh City, and Recent Initiatives
Da Nang. Course material is also available, mainly from
websites of top universities and from foreign companies like The HCMC University of Technology pioneers research in
Singapore’s Creatz 3D Vietnam Company, which organized AM, focusing on four important research programs from
the workshop “Shaping the industrial revolution 4.0 with 3D 2018-2025 where it explores the use of plastic combined
printing technology”, held at the end of 2017 and sponsored with metal powder and focuses on the mechanics,
by Stratasys and Zeiss53. construction, and bio-medicine sector56.

Several events on additive manufacturing are organized in Local companies like 3D Maker, Scantech 3D, and Meetech
Vietnam, the major ones being the 3D PRINT FIESTA (held Technology JSC which have knowledge and technology
annually and hosted by OMG Events Management Co. Ltd.) support of foreign partners are assembling and distributing
and the 3D Printing Technology Expo Vietnam 2019 (an AM desktop systems as well as providing AM solutions55.

52 Vietnam.net, Vietnam and WEF signed a cooperation agreement on CMCN 4.0., https://vietnamnet.vn/vn/thong-tin-truyen-thong/viet-nam-va-wef-ky-thoa-thuan-hop-tac-ve-cmcn-4-0-504707.html
53 Meslab, Workshop “Shaping the industrial revolution 4.0 with 3D printing technology”, https://meslab.vn/2017/09/report-hoi-thao-dinh-hinh-cuoc-cach-mang-cong-nghiep-4-0-voi-cong-nghe-3d/
54 Eventseye, 3D PRINTING TECHNOLOGY EXPO VIETNAM 2019 (Ho Chi Minh) - Rapid Prototyping - CAD/CAM - Design - Modelisation - Applied Computer & Industrial Engineering, https://www.
eventseye.com/fairs/f-3d-printing-technology-expo-vietnam-26405-1.html
55 The Saigon Times, 3D printing tech can be commercialized in Vietnam, https://english.thesaigontimes.vn/57367/3D-printing-tech-can-be-commercialized-in-Vietnam.html/
56 Vietnam.net, Developing 3D printing in VN: Printing machines cheap, but materials lacking - News VietNamNet, https://english.vietnamnet.vn/fms/science-it/206447/developing-3d-printing-in-
vn--priting-machines-cheap--but-materials-lacking.html

23
AM Country Summary

Vietnam Growing awareness and


high industrial potential

Macroeconomics (2017) AM Market Top AM Sectors

GDP real (bn USD) 175.3 Penetration1 Low Automotive

Mfg value add (bn USD) 30.4 Installed base 10-15 Consumers
(industrial printers)
Population (mn) 95.5 Electronics

Government and R&D MNCs and Startups Enabling Infrastructure

• CIEM2 crafted a strategy on the • Several MNCs in automotive • FabLab-MakerSpace in Da Nang


4th IR with specific targets and (Vinfast, Bosch), electronics and other cities
action plans (Intel, Samsung) and consumer
• Engineering faculties of
goods industry using AM
• HCMC Dept. of Science & universities in HCMC, Ha Noi, Da
Technology included AM into • Local companies with support Nang with courses
4 research programs from of foreign partners to assemble
• RepRap Vietnam largest provider
2018-2025 and distribute printers (e.g.
of components for commercial
Scantech 3D)
• Saigon Hi-Tech Park Incubation printing
Center assists startups for
• Events like 3D PRINT FIESTA and
new products
3D Printing Technology Expo
Vietnam

Key Players

Highlights of AM Projects

• GCC Group launched a 3D Café in HCMC in 2018 that allows customers to make printing orders use the workspaces
to develop projects and meanwhile pay for coffee with the GCC currency using a mobile wallet
• Startup 3D Maker leverages Japanese industrial equipment parts from Misumi and TSK for its printers to design the
process, manufacture and distribute printers
• Vietnam-based Digitrax 3D presented the Digitrax MH5 5-Extruder printer which is equipped with five extruders and
can print five objects at the same time

1 Penetration is defined as country AM market size / Manufacturing value add


2 Central Institute for Economic Management
3 World Economic Forum

24
Getting Ready

Philippines
The Philippines is in the early stages when it comes to
AM, having few initiatives like the construction of the first
commercial building in 2015, setting up a government-led
AM center, and having a growing Fab Labs community.

25
Enabling Local Infrastructure Regarding awareness of high school students on the topic,
printing solutions distributor Norde International is selling
The Philippines’s AM scene recently gained a boost with the Desktop 3D printers to digitally fabricate prototyping
rise of new Fab Labs in Bohol, Cebu and Manila, increased projects tailored to students65.
presence of global printer networks like 3D Hubs and
makexyz, and the first domestic printer network Puzzlebox57 The local community has established some events
3D; the latter hosts workshops and provides courseware, and conferences like the 3D Printing & Digifab Expo &
and has worked with top universities, local companies and Conference66 which was held in 2015 and 2017, and the
international customers. Annual Philippines 3D Printing Community Exhibition.

Recent Initiatives
More and more startups are founded, like Shapecloud.
DTI, DoST set up a government- ph (online printing services platform), 3D2GO (end-to-end
printing services), and Kezar Innovations (holding of various
led AM center of excellence in AM startups). Another positive example is SparkLab67, a
partnership between Norde International Distributors and
2019 with 2 facilities Thinklab to create a co-working hub. It invites freelancers,
designers, and startup entrepreneurs to collaborate and
trade ideas and attend weekly workshops and classes on
additive manufacturing.
The DTI58, DoST59, and NEDA60 are the main drivers to On the regulatory side, NEDA recently passed a norm
strengthen the AM footprint on the archipelago. While DTI to give foreign companies more rights to develop local
is aiming to increase the country’s printing infrastructure manufacturing capabilities68.
via funded Fab Labs61 (e.g. in Cebu), DoST just opened a
new research-focused manufacturing center (AMCen) with In the healthcare sector, the first agreement was signed in
focus on aerospace and defense, biomedical/healthcare, 2015 by the LCP69, engineers from the TIP70, representatives
and automotive, and with two facilities -- one for lab-scale from the GINA71, and Pharma Canada Ltd. to develop
for design, materials development and testing, and another technology to 3D print artificial tracheae (windpipes72).
for metal-based parts and materials62. Going forward, the plan is to extend research to other body
parts.
The overall availability of training, skills, and qualified
personnel is low, as there is no central institution to Lewis Grand Hotel signed a contract to 3D print an
coordinate efforts. However, some universities have started entire subdivision of 20 homes in November 2015 after
integrating AM into their engineering, design, or technology successfully printing the world’s first commercial building in
related courses (e.g. UP63 in Cebu64). Angeles City the same year73.

57 PUZZLEBOX 3D - 3D Printing Philippines, http://www.3dprint.ph/puzzlebox-3d/


58 Department of Trade and Industry
59 Department of Science and Technology
60 National Economic and Development Authority
61 CDN, DTI-7 considers establishing another Fab Lab in region, https://cebudailynews.inquirer.net/120499/dti-7-considers-establishing-another-fablab-region
62 PCIEERD, DOST takes lead in 3D printing research, http://pcieerd.dost.gov.ph/news/latest-news/340-dost-takes-lead-in-3d-printing-research
63 University of the Philippines
64 First Academy, 3D Printing Made Easy With Shapecloud, http://firstacademy.net/3d-printing-easy-shapecloud/#.XKL9k1UzZaQ
65 Sunstar Philippines, 3D printing made available to Dabawenyos, https://www.sunstar.com.ph/article/163387
66 Business Inquirer, The Philippines’ very own 3D Printing Expo-Conference is here, https://business.inquirer.net/223447/philippines-3d-printing-expo-conference
67 Gineersnow, Filipino Innovators Find Home in New Creative Hub Called SparkLab, https://gineersnow.com/engineering/design/filipino-innovators-find-home-new-creative-hub-called-sparklab
68 Philippine Information Agency, RFINL to drive up manufacturing sector – NEDA, https://pia.gov.ph/news/articles/1014752
69 Lung Center of the Philippines
70 Technological Institute of the Philippines
71 Genomic Institute of Asia
72 3Dprint.com, Philippines Researchers Sign Agreement to 3D Print Wind Pipes For Transplant, https://3dprint.com/45716/trachea/
73 3Dprint.com, EXCLUSIVE: Lewis Grand Hotel Erects World’s First 3D Printed Hotel, Plans to Print Thousands of Homes in the Philippines Next, https://3dprint.com/94558/3d-printed-hotel-lewis-grand/

26
AM Country Summary

Philippines Getting Ready

Macroeconomics (2017) AM Market Top AM Sectors

GDP real (bn USD) 303.9 Penetration1 Low Construction

Mfg value add (bn USD) 69.2 Installed base 10-15 Biomedical / Dental
(industrial printers)
Population (mn) 104.9 Aerospace / Defence

Government and R&D MNCs and Startups Enabling Infrastructure

• DoST2 opened a new research- • Incubator AnimoLabs partners • Fab labs in Cebu, Bohol and
focused manufacturing center with DLSU5 and the government Manila providing trainings
(AMCen) in 2019 to offer a platform for prototyping
• Norde International selling
• DTI3 is aiming to increase the • HP launched printer models6 in printers to high schools to
country’s printing infrastructure 2018 and also offers an open digitally fabricate prototyping
via funded Fab Labs materials platform projects
• NEDA4 updating Negative • LCP7, TIP8 and GINA9 and Pharma • Puzzlebox 3D founded first
Investment List to attract Canada Ltd. teamed up to print local printer network and has
more foreign manufac-turing artificial tracheae (windpipes) universities and major companies
knowledge as customers

Key Players

Highlights of AM Projects

• Lewis Grand Hotel signed a contract to 3D print an entire hotel building in 2015 for the first time, the architect plans to
design government houses on a large scale
• Kezar Innovations in Batangas offers a range of services – educational toys printing service, a restaurant
sustainability rating app, a printing service and a mobile app development service provider
• SparkLab is a partnership between Norde International Distributors and Thinklab to create a co-working hub. It invites
freelancers, designers, and startup entrepreneurs to collaborate and trade ideas and attend weekly workshops and
classes on AM

1 Penetration is defined as country AM market size / Manufacturing value add 6 HP Jet Fusion 3D 4200 and HP Jet Fusion 4210
2 Department of Trade and Industry 7 Lung Center of the Philippines
3 Department of Science and Technology 8 Technological Institute of the Philippines
4 National Economic and Development Authority 9 Genomic Institute of Asia
5 De La Salle University

27
Early Stage

Indonesia
Indonesia is similar to the Philippines as it
is also in the early stages of AM adoption,
using it mostly in non-industrial sectors
(low-cost printers). The first sectors
exploring the technology are medical and
automotive, mainly for prototypes.

28
Enabling Local Infrastructure
There are multiple printer manufacturers (UGM announced
to produce 1,000 HALTech 3D printers annually, CentraLab
focuses basic 3D printers: GF-C02) and also several UGM plans to produce 1,000
3D printer distributors of international brands like EOS/
Leapfrog (Solusi 3D), UP/XYZ (Raja 3D), and JinHua WanHao low-cost printers per year in the
(PT. Inovasi Tiga Dimensi). UGM plans to manufacture
1,000 low-cost 3D printers per year74. The research has near future
reached the production stage and the printer has now been
used by several universities, colleges, polytechnics, and
vocational schools.

Inspira Academy announced to build a 3D printer factory in


Recent Initiatives
2019, investing $6.7 million which is expected to lower prices Regarding public-private collaborations, the PT PP
for printers. It launched the #100inovatorIndonesia program (construction stated owned enterprise) is partnering with
which looks for 100 local innovators who will be provided with US-based construction printer Apis Cor to move towards a
free 3D design and print education75. digital construction system82.
A bustling additive manufacturing marketplace and GE is using AM locally to produce aircraft and motorcycle
community, Imajin allows designers to showcase products spare parts without quality complaints and plans to offer
and connect with potential customers and well as network products to the automotive and machine industries83.
with printing partners in major cities (Jakarta, Bandung,
Surabaya)76. Several startups have come up with different use cases,
such as human replica with 40 cameras to do a full-body
ITB77 is active on AM R&D developing 3D Print filament from 3D scan (SugaCube84), custom design jewelry sold online
recycled plastic bottle caps78. Centralab provides training (Orori85), and medical automotive & industrial prototypes
courses, while Inspira Academy claims to be the first and only with high precision SLA 3D print (Pabrik3D86).
educational institution; ACA Pacific Indonesia CAD Training
Center, on the other hand, offers education on software like A prominent example is Solusi 3D, which has printed
SketchUp79. On the academic side, the Faculty of Engineering prototypes for larger customers in automotive (Daihatsu,
of the University of Gadjah Mada (UGM) conducted a training Isuzu), construction equipment (United Tractors), and
on AM for 50 vocational school teachers at the end of 2018, industrials (SKF). It is also an authorized distributor of UP
while the University of Pelita Harapan (UPH) offers a course Plus Printers, TPM Systems, EOS Systems, and Leapfrog
on rapid prototyping in a lab with MakerBot printers80 81. Printers since 201087.

74 Universitas Gadjah Mada, UGM Lecturer Pioneer of 3D Printer in Indonesia | Universitas Gadjah Mada, https://ugm.ac.id/en/news/17720-ugm-lecturer-pioneer-of-3d-printer-in-indonesia
75 Beri Satu, Inspira Academy Builds the First 3D Printer Factory in Indonesia, https://www.beritasatu.com/digital/536952/inspira-academy-bangun-pabrik-3d-printer-pertama-di-Indonesia
76 Ekonomi, Imajin.id, a 3D Design Industry Selling Platform, https://ekonomi.bisnis.com/read/20180316/84/750714/imajin.id-platform-jualan-industri-design-3d
77 Institut Tecknologi Bandung
78 Bandung Institute of Technology, ITB lecturer creates 3D printer filaments from used bottle waste, https://www.itb.ac.id/news/read/56960/home/dosen-itb-buat-filamen-printer-3d-dari-limbah-
botol-bekas
79 Centralab - Produksi dan Jual 3D Printer Indonesia Terbaik, https://www.centralab.co.id/buy-3d-printer/
80 Universitas Gadjah Mada, 50 Vocational Teachers in Indonesia Participate in 3D Printing Training at UGM, https://ugm.ac.id/id/berita/17255-50-guru-smk-se-indonesia-ikuti-pelatihan-3d-
printing-di-ugm
81 Universitas Pelita Harapan, Rapid Prototyping, https://produk.sod.uph.edu/gallery/rapid-prototyping.html
82 Housingestate.id, PT PP Develops Printers to Build Houses, http://housingestate.id/read/2017/12/13/pt-pp-kembangkan-printer-untuk-bangun-rumah/
83 Indonesia-investments, GE Indonesia to Sell 3D Printers in Indonesia per Q3-2018 | Indonesia Investments, https://www.indonesia-investments.com/news/todays-headlines/ge-indonesia-to-sell-
3d-printers-in-indonesia-per-q3-2018/item8837?
84 SugaCube, https://www.sugacube3d.com/
85 Tech in Asia, Connecting Asia’s startup ecosystem, https://www.techinasia.com/indonesia-jewelry-ecommerce-orori-3d-printing
86 Pabrik 3D - Jasa Print 3 Dimensi - PT. Citra Niaga Abadi Tama, https://www.pabrik3d.com/
87 Solusi3d.com, Mesin 3D Printer, 3D Scanner, Jasa 3D Printing, Jasa Print 3D. Best in Indonesia., https://solusi3d.co.id/

29
AM Country Summary

Indonesia Rising awareness

Macroeconomics (2017) AM Market Top AM Sectors

GDP real (bn USD) 1,091.5 Penetration1 Low Automotive

Mfg value add (bn USD) 231.3 Installed base 10-15 Consumers
(industrial printers)
Population (mn) 264.0

Government and R&D MNCs and Startups Enabling Infrastructure

• Government launched “Making • GE Additive offers Metal 3D printed • UGM3 plans to manu-facture
Indonesia 4.0” to foster all 4 IR automotive and aircraft parts 1,000 low cost printers per year
technologies and conducts also training for
• Startups like Pabrik3D with
vocational school teachers
• Construction SOE2 PT PT worked prototypes for automotive,
together with Apis Cor to develop industrial sector • UPH4 offers a course on
3D Print for construction sectors rapid prototyping in a lab with
• Inspira Academy invested $7
MakerBot printers
• Technological Institute Bandung million to build a printer factory,
researching to produce AM expecting to make printers more • #100inovatorIndonesia program
filament material from recycled affordable looks for 100 local innovators for
bottle caps free 3D design and print training

Key Players

Highlights of AM Projects

• Solusi 3D has created prototypes for customers in Automotive (Daihatsu, Isuzu), Construction equipment (United
Tractors) and Industrial sector (SKF)
• SugaCube produced a 3D printed human replica in 2019, using a studio with 40 cameras
• Researchers from the Universitas Indonesia created disk spacers for spinal surgeries by 4D printing them, meaning
the spacers are able to adapt to changing environment conditions

1 Penetration is defined as country AM market size / Manufacturing value add


2 Stated Owned Enterprise
3 University Gadjah Mada
4 Universitas Pelita Harapan

30
Social entrepreneurship

Cambodia
AM Country Summary
Macroeconomics (2017)
GDP real (bn USD) 18.2
Mfg value add (bn USD) 3.0
Population (mn) 16.0

AM Market
Penetration1 Low
Installed base (industrial printers) <5

Top AM Sectors
Social entrepreneurship

Government and R&D


• Startup ARCHub was commissioned to create a 3D
model Farmer’s Friend Biodigester system for the National
Biodigester Programme of Cambodia

MNCs and Startups


• Startup Doydoy develops construction toys for entertainment
and educational purposes
• Humanitarian foundation Golden West produces accurate
ordnance models to educate on disposing mines

Enabling Infrastructure
• Few makerspaces exist, e.g. TRYBE
• Local website Aniwaa provides general education about AM
• ARC hub founder teaches 3D design and entrepreneurship at
the Liger Learning Center to selected 11-12 year old students

Key Players

Highlights of AM Projects
• ARCHub co-created 3D-printed artificial hands for victims of
land mine explosions
1 Penetration is defined as country AM market size / Manufacturing value add

31
Printing farming tools

Myanmar
AM Country Summary
Macroeconomics (2017)
GDP real (bn USD) 79.5
Mfg value add (bn USD) 18.8
Population (mn) 53.4

AM Market
Penetration1 Low
Installed base (industrial printers) <5

Top AM Sectors
Agriculture

Government and R&D


• No specific information available

MNCs and Startups


• Startup Life and Challenge works with government and
jewelry customers, printing for research facilities and
personalized jewelries, also distributor for Artec 3D,
MakerBot or Nyomo
• Social business Proximity Designs, uses 3D printers to
design specially adapted farming tools

Enabling Infrastructure
• Korean FabLab K-Lab to provide a walk-in workshop
about 3D printers
• Phandeeyar innovation lab held “Innovation Marketplace”
competition to bring civil society organizations and
technologists together

Key Players

Highlights of AM Projects
• Proximity Designs, uses 3D printers to design specially
adapted farming tools, in consultation with the farmers
(design creation and then sending off to factories abroad
where the final part can be mass-produced
1 Penetration is defined as country AM market size / Manufacturing value add

32
Education sector

Brunei
AM Country Summary
Macroeconomics (2017)
GDP real (bn USD) 13.5
Mfg value add (bn USD) 2.2
Population (mn) 0.4

AM Market
Penetration1 Low
Installed base (industrial printers) <5

Top AM Sectors
Education

Oil & Gas

Biomedical

Government and R&D


• Research project on 3D printed prosthetic hands
(Universiti Teknologi Brunei)

MNCs and Startups


• Startup Dyvan helps students from higher institutions to
print prototypes
• Startup Maxtra aims to increase awareness about AM and
has mainly customers such as the Ministry of Health or
the Mashhor Group

Enabling Infrastructure
• DotRoot dealer for Korean Momentum printer and with
broad customer base across public and private sector

Key Players

Highlights of AM Projects
• Ministry of Health, Universiti Teknologi Brunei researching
in AM applications in Medical and Healthcare sector (e.g.,
printed prosthetic hands)
1 Penetration is defined as country AM market size / Manufacturing value add

33
Limited activity

Laos
AM Country Summary
Macroeconomics (2017)
GDP real (bn USD) 11.9
Mfg value add (bn USD) 1.2
Population (mn) 6.9

AM Market
Penetration1 Low
Installed base (industrial printers) <5

Top AM Sectors
Social entrepreneurship

Government and R&D


• Makerspaces exist to promote local entrepreneurs and
educate students

MNCs and Startups


• Very limited information available

Enabling Infrastructure
• Laos community in Luang Prabang and Mashpee High
school students use Makerspace to generate 3D printed
drafts and prototypes for education purposes2

Key Players

Highlights of AM Projects
• ANU and Monash University assessing feasibility to print
virtual maps of archaeological sites like the Plain of Jars
in Central Laos. These 3D models created by drones
can be printed as a life-sized version and displayed in
museums avoiding the disruption of actual archaeological
site

1 Penetration is defined as country AM market size / Manufacturing value add


2 http://laosscienceteachers.weebly.com/3d-printing.html

34
Chapter

2 Five growth
Opportunities for ASEAN
In the previous chapter, we outlined how while the AM market is still small in
ASEAN, it does not truly reflect the immense talent and creativity of AM applications
prevalent in the region, which are often driven by local entrepreneurs with limited
external support. We believe ASEAN has a wealth of opportunities for AM and can
leapfrog with structured investments and support.

The ASEAN region is an immensely dynamic market made up of ten economies at


different stages of development and with diverse investment landscapes. AM, while
still in its early stages in ASEAN, has tremendous potential to disrupt the region and
AM has potential create newer opportunities for economic growth, promote local entrepreneurship,
and reduce external dependence. According to a research conducted by McKinsey
to contribute up & Company, ASEAN could experience productivity gains from the Fourth Industrial
to $~100 billion Revolution (including the Internet of Things, Artificial Intelligence, AM, big data, and
others) between $216-627 billion per year till 2025, which will account for 5 to 15%
of incremental of its projected real GDP for that year88.

value generated Of this, we believe AM has potential to impact 1.5 to 2% of the projected real GDP in
2025, adding up to approximately $100 billion of incremental value generated over
by 2025 the next 6 years (see Appendix 3 for Methodology).

There are five specific opportunities where AM can create additional value for the
ASEAN region. These are:

1. Reducing import 2. Improving 3. Empowering local


dependence competitiveness of entrepreneurs
key sectors

4. Advancing 5. Increasing
Industrie 4.0 & sustainability
skills development through DfAM

$~100 billion of incremental value at stake

88 McKinsey Digital Capability Center Singapore, Industry 4.0: Reinvigorating ASEAN Manufacturing
for the Future, https://www.mckinsey.com/~/media/mckinsey/business%20functions/operations/
our%20insights/industry%204%200%20reinvigorating%20asean%20manufacturing%20for%20
the%20future/industry-4-0-reinvigorating-asean-manufacturing-for-the-future.ashx

35
36
Exhibit 2.1
AM cumulative contribution to ASEAN GDP by 2025
Billion USD

Estimated AM value
14-18 28-32 9-13 33-37 7-11 n/a 100 add in billion USD

97-366 220-625
Maximum
contribution
Minimum
contribution
7-39
20-53
24-48
25-45
47-74

Infrastructure Manufacturing Agriculture Healthcare Consumer Others Total


& Retail
Source: McKinsey Global Institute, thyssenkrupp estimate

1. Reducing import dependence

AM has huge potential to disrupt the current trade flows of goods. To manufacture an
intermediate product or a final product the traditional way, various components are produced
separately and then assembled. A 3D printer, on the other hand, works in a completely AM can reduce
different way; the part can be printed as a whole, layer by layer, making the assembly process
almost entirely obsolete. For example, Airbus 3D printed a hydraulic housing tank in one piece ASEAN’s
instead of their traditionally manufactured part composed of 126 components, significantly
reducing the complexity of the supply chain and lowering the overall trade volume and overall import
logistics cost89.
dependence
ASEAN countries traded $3.2 trillion in goods and services in 2017, of which imports
accounted for about $1.6 trillion. More than 40% of these imports involved machinery & by 2%
equipment90 accounting for at least $600 billion in value. Even if 5% of these components
can be locally printed (in line with the most conservative estimate), it will result in 2% reduced
import dependence for the region generating $30 to 50 billion in potential economic value
every year (see Exhibit 2.5). Furthermore, effect on trade doesn’t stop with its influence
on goods. Services such as harbor services, trade finance services, and transport depend
heavily on trade in goods and will also be impacted.

Using AM, local and regional players can set up a digital warehouse or a virtual inventory
space, which can act as an online library of 3D part designs and be retrieved and printed on-
demand. This also helps in reducing the lead times involved in securing critical spare parts
and minimize loss of production days for plant operators.

89 LEO Lane, From Multiple to Singular – Consolidating Parts with Additive Manufacturing, http://www.leolane.com/blog/
multiple-singular-consolidating-parts-additive-manufacturing/
90 ASEAN Economic Community, ASEAN Economic Community Chartbook 2017, https://www.aseanstats.org/wp-content/
uploads/2018/01/AEC_Chartbook_2017.pdf

37
Exhibit 2.2
ASEAN trade balance (2016)
Trillion USD

40% Machine-related1

Exports Imports
1.7 3.3 1.6 30% Materials

1 Machinery includes electrical machinery and equipment and parts thereof; sound recorders and
reproducers, television image and sound recorders and reproducers, and parts and accessories of such
30% Others articles, nuclear reactors, boilers, machinery and mechanical appliances; parts thereof, vehicles other
than railway or tramway rolling stock, and parts and accessories thereof
Source: ASEAN Economic Community Chartbook 2017

2. Improving competitiveness of key sectors

The ASEAN region has been historically attractive to different manufacturing methods just for a single vehicle.
multinational companies driven by the domestic demand AM in turn can help reduce supply chain & logistics costs
of its 600 million consumers, an export base driven by of managing spare parts and improve their availability,
maritime trade routes, and low operating costs. However, enhancing overall competitiveness for OEMs and capturing
with advancement in technology and automation a greater share of the value pool.
demand for low wage, labor-intensive manual tasks, this
attractiveness is expected to decline, and labor costs will We already see initial investments and activity across major
not be a sufficient differentiating factor anymore. sectors of ASEAN’s manufacturing economy (Exhibit 2.3):

Aerospace: Focus has been on repair and engine research


and capability building in ASEAN. British aerospace
ASEAN will be a $4 trillion supplier GKN invested $30 million in a facility in Malaysia93.
Singapore-based ST Engineering cooperated with Moog to
economy by 2025 improve aftermarket services by developing AM technology
with digital transaction capability 94. In addition, NAMIC
and EOS Additive Minds set up a joint industry innovation
Nevertheless, AM has the potential to strengthen ASEAN’s program focusing on training engineers on AM parts
competitive position in already established global value design95.
chains across automotive, electronics, marine, offshore &
Automotive: Common applications include tooling,
oil & gas, and chemical sectors. Further, AM can also help
prototyping, and spare parts printing. Some of the active
ASEAN accelerate growth in aerospace, medical devices &
players in the region include Toyota (Thailand); Vinfast,
healthcare, and consumer sectors in line with proven global
Bosch, and Ford (Vietnam); and GE (Indonesia). ST
applications and keep the region on the growth path of $4
Engineering established an Additive Manufacturing Centre
trillion GDP by 202591, becoming the fifth largest economy
which provides 3D metal printing for design, scanning,
worldwide.
modelling and simulation, production, post-processing,
For example, ASEAN’s automotive aftermarket is expected testing, and certification96.
to grow at 9.6% on average from 2015 to 2030, amounting
Electronics: Intel, VNPT, and Konica Minolta (Vietnam) have
to $55 billion92. However, the price and availability of
been utilizing AM and working with the local company 3D
genuine parts and lower-quality imported parts pose
Maker. Konica Minolta introduced a new 3D printer series
challenges for OEMs to benefit from the market. Another
for Singapore and Malaysia, with plans to expand to other
factor is the supply chain complexity of managing over
ASEAN countries97.
30,000 different components in some cases, produced with

91 World Bank, https://data.worldbank.org/indicator/ny.gdp.mktp.cd


92 PwC report, The Future of ASEAN – Time to act, https://www.pwc.com/gx/en/gr
93 3Dprintingindustry.com, GKN Aerospace’s first repair facility in Malaysia focused on 3D printing - 3D Printing Industry, https://3dprintingindustry.com/news/gkn-aerospaces-first-repair-facility-in-
malaysia-focused-on-3d-printing-141875/
94 ST Engineering, Moog and ST Aerospace to collaborate on industry’s first: blockchain and 3D printing-enabled total digital transaction, https://www.stengg.com/en/newsroom/news-releases/
moog-and-st-aerospace-to-collaborate-on-industry-s-first-blockchain-and-3d-printing-enabled-total-digital-transaction/
95 Equipment News, Tapping On Additive Manufacturing, https://www.equipment-news.com/tapping-on-additive-manufacturing/
96 ST Engineering, Driving Future Technologies and Capabilities, https://www.stengg.com/en/innovation/advanced-engineering-centre/
97 The Neo Dimension, Konica Minolta Debuts JETVARNISH 3DS and iFOIL S, https://theneodimension.com/3540-2/

38
Marine and offshore: Singapore-based startup 3D advanced additive manufacturing center at its Singapore
Metalforge announced the opening of a $1.8 million facility campus in 2017, with the goal of spurring innovation to
in 2019 to print metal-based objects in a joint effort with the address customers’ engineering design challenges and
Maritime and Port Authority of Singapore (MPA) and global accelerating speed to market for new, rigorously-tested
port operator PSA International98. The facility is intended products100.
to focus on printing port equipment and customized ship
parts like propellers. DNV GL has been appointed as the Healthcare/Medical: AM has already been utilized
lead researcher of the first phase of a new Singapore- for printing facial implants in Malaysia, human organ
based program to study the feasibility of AM in the maritime prototyping in Thailand, and windpipes in Philippines.
industry 99. In a joint industry program initiated by the Also, dentistry is gaining more traction as dentures and
Maritime and Port Authority of Singapore (MPA), DNV GL is various resins become more popular to be printed with
teaming up with ten member companies of the Singapore AM technology. Favorable policies from government (e.g.
Ship Association (SSA) to examine how spare parts allowing for insurance support for 3D printed body parts or
produced by 3D printers can help the capital-intensive organs) can further accelerate penetration and adoption in
industry to cut costs and downtimes. the sector. Singapore-based Structo, a 3D printer company
for the dental market, raised an undisclosed amount in a
Oil & Gas and Chemicals: DNV GL set up a global AM series C funding in 2018, while Singapore-based Osteopore,
Technology Centre of Excellence in Singapore. It serves as manufacturer of 3D printed bioresorbable polymer implants,
an incubator and testbed for R&D in the oil & gas industry announced it has supplied more than 10,000 implants to
and will also research on offshore and marine topics. customers101.
Automation solutions provider Emerson also opened an

Exhibit 2.3
AM can improve competitiveness of key ASEAN sectors
AM Adoption Drivers
Weight Reduced inventory/ Lower Faster time Higher
Sector Relevance in ASEAN Customisation
reduction complexity cost1 -to-market quality

Automotive 5th largest exporter of goods

Largest export sector,


Electronics equivalent to 25% of total
exports in goods

Marine and Expected to be 4th largest


Offshore sector in ASEAN by 2030

Singapore top 10 global


Oil & Gas
chemical exporter, Malaysia
and Chemical
3rd largest LNG exporter

Expected to contribute
Aerospace $100 billion to ASEAN GDP
by 2030

Healthcare 3rd largest population


worldwide after China and India

Comsumer 3rd largest expenditure share


Goods on Consumer Goods at
26.3% of GDP

1 Refers mainly to materials, transport costs


Source: PwC study: The future of ASEAN – Time to act, EY report: If 3D printing has changed the industries of tomorrow, how can your organization get ready today?,
EDB, thyssenkrupp analysis

98 The Straits Times, Home-grown firm opens 3D printing facility here, https://www.straitstimes.com/business/companies-markets/home-grown-firm-opens-3d-printing-facility-here
99 DNV GL, Joint industry program in Singapore aims to boost the use of additive manufacturing in the maritime industry, https://www.dnvgl.com/news/joint-industry-program-in-singapore-aims-
to-boost-the-use-of-additive-manufacturing-in-the-maritime-industry-145297
100 Emerson, Emerson Opens Additive Manufacturing Center in Singapore, https://www.emerson.com/en-sg/news/corporate/singapore-additive-manufacturing
101 The Business Times, Frankenscience or fearless medicine?, https://www.businesstimes.com.sg/brunch/frankenscience-or-fearless-medicine

39
3. Empowering local entrepreneurs

ASEAN still lacks adequate infrastructure development in many parts of the region (e.g.
roads, ports, and shipping facilities), limiting the ease of transporting goods from factories
Fablabs and making goods & services inaccessible for parts of the population especially those
residing in remote areas. Utilizing AM, companies can set up small scale manufacturing or
operate like printing hubs with much lower capital and complexity in remote cities, towns, and villages.
The flexibility to manufacture products near points of consumption reduces not only the
small factories, supply chain costs of accessing these remote places, but also the risks of political unrest
enabling locals or natural disasters. This can hugely benefit remote areas in ASEAN with lesser developed
infrastructure. It also helps create jobs and increases people’s welfare.
to print 3D
AM also provides an opportunity for smaller companies to enter the market on an even
prototypes footing with existing, capital-intensive incumbents. And given the right conditions, they can
eventually scale up and steer the technology towards the next generation of more distributed
and localized production and consumption.

ASEAN has an excellent environment for entrepreneurship with high technology affinity and
favorable demographics (60% of ASEAN’s population is below 35 years)102. Governments
and institutes can accelerate local entrepreneurship by setting up fabrication laboratories
(Fab Labs), centers of excellence103, and tech innovation hubs, which allow entrepreneurs to
use AM technology and rapidly manufacture products in order to address local needs (such
as farming tools, domestic tools, toys, and the like). An exemplary region is Africa104, where
more than 100 Fab Labs already exist. They operate like a small-scale factory equipped
with industrial-grade fabrication, electronics tools and software, all being used to print
prototypes of designs by entrepreneurs to address local problems (e.g., anti-theft products
for motorcycles often stolen in the city).

Entrepreneurs can also tap into rising levels of private funding available in the region, with
technology accounting for the highest share at 60%. A good example is Nanosun, which
secured over $10 million in funding since its incorporation105. Regionally, venture capital and
private equity investment soared to record levels with 524 venture capital deals in 2017, four
times the level of 2012106. More than 1,300 companies in Southeast Asia have received a
first round of seed financing since 2011, and it is expected by 2024 that the region will give
rise to at least 10 unicorns107. In fact, NAMIC organized for the first time this year a dedicated
fundraising event for AM108 - the Startup Innovation Forum in Singapore – to provide expert
guidance, mentorship, and support with seed funding for most attractive AM startups.

102 Strategy-business, Sustaining Southeast Asia’s Momentum, https://www.strategy-business.com/article/Sustaining-Southeast-Asias-


Momentum?gko=32ad4
103 Materialise, Materialise Malaysia Inaugurates Excellence Center for 3D Printing Development and Research, https://www.materialise.com/en/
press-releases/materialise-malaysia-inaugurates-excellence-center-for-3d-printing-development-and
104 FabLab South Africa, http://www.fablab.co.za/
105 The Straits Times, Local start-up going places with its water treatment technology, https://www.straitstimes.com/singapore/local-start-up-
going-places-with-its-water-treatment-technology
106 Bain & Company, Investing in Southeast Asia: What’s Behind the Boom, https://www.bain.com/insights/investing-in-southeast-asia-whats-
behind-the-boom/
107 Defined as a company (recent startup) with a market value of more than $1 billion
108 SG Innovate, Events, https://www.sginnovate.com/events/namic-startup-innovation-forum

40
Exhibit 2.4
Venture Capital activity in ASEAN
Billion USD

Southeast Asian venture capital deals Main investment target by sectors (2018–19)
have more than doubled since 2013
Agriculture/
education
+23% 60% Main tech subsectors
Logistics • Fintech
468 528 524 • Block chain
2018-19
295 • Artificial Intelligence
231 Healthcare • Machine Learning
• Additive Manufacturing
Consumer
2013 2014 2015 2016 2017

Source: Bain & Company report: Investing in Southeast Asia: What’s Behind the Boom

4. Advancing Industrie 4.0 & skills development

ASEAN’s growth has been powered by its people, with ASEAN countries to produce the same level of output as
the establishment of a formidable labor force and the today over the next 10 years112.
subsequent creation of a wealthier middle class driving
domestic consumption. More than 350 million people are We estimate that AM can partly address this challenge and
estimated to be part of ASEAN’s workforce today and create between 3 and 4 million jobs for the ASEAN region
another 59 million are projected to be added by 2030, by 2030, of which 2 to 2.5 million jobs could be in the
making ASEAN the third largest labor force worldwide109. manufacturing sector. This would imply a contribution of 7
to 9% of growth of jobs for the manufacturing sector and an
overall impact of 1% to the total 350 million workforce today.
AM, like other Industry 4.0 technologies, offers an
AM has potential to create up to 3-4 opportunity to reskill and upskill workforce and facilitate
million jobs in ASEAN transitions towards newer AM roles, minimizing the impact
of job displacement. Traditional roles like shop floor
engineering designers, shop floor operators, and warehouse
& logistics operators can be reskilled to newer roles needed
However, as technological breakthroughs rapidly shift the
for AM including 3D model designers, 3D printer operators,
frontier between the work tasks performed by humans and
software and simulation specialists, material engineers,
machines and algorithms, labor markets are undergoing
process engineers, and service technicians (see Exhibit
major transformations. Low-cost and low-skilled labor
2.6). In addition, development of new business models
have thus far been a source of competitive advantage in
such as AM service bureaus can also create additional
ASEAN, but as the costs of automation fall, the region
employment options for local entrepreneurs.
must begin to compete through skilled talent, not low-cost
labor alone. In addition, the region must ensure that those However, if ASEAN countries don’t take action, advanced
skills are relevant for future growth. According to an ILO economies like the US and Western Europe that have
study carried out for ASEAN-5110 countries covering 80% outsourced jobs to ASEAN might bring back jobs near to
of the ASEAN workforce, around 56% of all employment end consumption and pose a risk of job losses in the region.
in ASEAN-5 countries is at high risk of displacement due Hence, it is critical for companies and governments to
to technology over the next decade or two111. Another incentivize and lead AM adoption and invest in upskilling and
independent research by Oxford Economics estimated that reskilling the region’s workforce to maintain manufacturing
around 28 million fewer workers will be required across 6 competitiveness.

109 The ASEAN Post, Driving growth in ASEAN, https://theaseanpost.com/article/driving-growth-asean


110 Indonesia, Vietnam, Thailand, Philippines, Cambodia
111 International Labour Organization, Work for a brighter future, https://www.ilo.org/wcmsp5/groups/public/---dgreports/---cabinet/documents/publication/wcms_662410.pdf
112 Oxford Economics/Cisco, Technology and the future of ASEAN jobs, https://www.cisco.com/c/dam/global/en_sg/assets/csr/pdf/technology-and-the-future-of-asean-jobs.pdf

41
Exhibit 2.5
Estimates for AM job creation in ASEAN

Onshoreable imports ASEAN GDP ASEAN total job market Jobs created
(5% of manufacturing imports)
$30 billion $2,670 billion 350 million 3-4 million

1 35-40% of total ASEAN imports (=$1,600 billion)


Note: 2016 figures
Sources: Bain & Company report: Advancing towards ASEAN digital integration, thyssenkrupp ASEAN AM market model, ASEAN Economic Community

Exhibit 2.6
AM skills & capabilities needed

Process Step 1 Process Step 2 Process Step 3 Process Step 4


Design Production Finishing Final Assembly

Design & Process Engineers Maintenance


Engineers will need to learn to “think in 3D” Maintenance personnel will
• Fundamental design constraints change need to rely on new tools (e.g.
• Product lifecycles accelerate distinction sensors for remote monitoring)
of design and process roles will become and predictive solutions
blurred
Operators Quality
Operator skills will be similar to traditional Quality roles will need to be
manufacturing skills, but they will need to customer-centric with increasing
be up-skilled to work with new equipment customization of requirements
& safety requirements

Source: HP/A.T. Kearney report: 3D Printing: Ensuring manufacturing leadership in the 21st century

42
5. Increasing sustainability

ASEAN will be a hotspot for rapid urbanization over the next 30 years. Between 2015
and 2050, ASEAN cities are projected to add 205 million new urban residents the region
(currently at 300 million), creating one of the world’s largest middle income emerging ASEAN expected
markets, only smaller than the Chinese and Indian markets113. The expected increase in
economy, population, urbanization, and the ASEAN urban middle class represents a positive to add 205
and stable outlook for the region, yet it will also place large demand for infrastructure and
associated natural resources. AM can play a key role in promoting sustainable development
million new
in the region. urban residents
AM as a production process is intrinsically sustainable, primarily due to a more rational use
of materials, lower energy usage, reduced fuel consumption of airplanes and automobiles
(with lightweight printed components), and reduced CO2 emissions due to a lower transport
volume.

• In AM, the use of materials is reduced before production as more accurate production
planning is possible and post-production throwaways can be avoided.

• Energy usage is expected to decrease because of lower manufacturing effort for tooling
and sub-assemblies of parts. It also contributes to saving inventory space which requires
energy to keep parts in adequate conditions.

• Reduced fuel consumption can be achieved by printing parts for vehicle and aircraft
components, such as brackets, fuel nozzles, or fixtures. Rolls Royce, for example,
realized 25% higher fuel efficiency using ceramic matrix composites114. Likewise, a study
concludes that by 2025, AM can lower CO2 emissions by 130.5 to 525.5 Mt and lower
supply chain costs between $170 to 593 billion globally115

• Ecological footprint of transportation is improved by enabling distributed and digital AM can lower
manufacturing. It applies not just for small, highly customized production runs, but also
for mass-volume production
CO2 emissions
• Further, recyclable materials like metal, paper, and plastic are already used by companies
by 130.5 Mt
such as 3D Systems and Innocircle. For example, in the Institute of Technology in globally
Bandung, Indonesia, researchers have already developed a filament material by heating
recycled thermoplastics from bottled mineral water116

113 UN Environment, Sustainable urban infrastructure transitions in the ASEAN region: a resource perspective, https://citiesipcc.org/wp-content/
uploads/2018/03/Summary_Southeast-Asia-Urban-Future-Infrastructure-Needs-1.pdf
114 Aerospace Manufacturing, 3D printing and composite materials shape new Rolls-Royce engine, https://www.aero-mag.com/rolls-royce-
advance3-ultrafan-engine-additive-layer-manufacturing-ceramic-matrix-composites/
115 Kundoc, A global sustainability perspective on 3D printing technologies, https://kundoc.com/pdf-a-global-sustainability-perspective-on-3d-
printing-technologies-.html
116 Bandung Institute of Technology, ITB lecturer creates 3D printer filaments from used bottle waste, https://www.itb.ac.id/news/read/56960/
home/dosen-itb-buat-filamen-printer-3d-dari-limbah-botol-bekas

43
Exhibit 2.7
AM has environmental benefits across whole manufacturing process

Sustainable improvement lever Use cases (global)

1 Lower energy use Boeing used 3D printing to quickly develop UAV


Pre-production (no tooling production) prototypes, eliminating wasteful development cycles
and related emissions

2 Lower transport distances/effort


Inventory/ Lower warehousing costs Mercedes-Benz trucks 3D prints and delivers parts
from the nearest facility, cutting shipping emissions
logisitics

3 Lower energy use


Lower material use GE uses 3D printing to build fuel nozzles, using
Assembly/ fewer materials, reducing manufacturing
(incl. post-production waste)
printing emissions and energy

4 Lower transport distances/effort


Product use Lower warehousing costs Renault Trucks 3D printed engines that have 25%
fewer parts and are 25% lighter, improving

5 Based on applications
• Higher fuel efficiency US Naval Air Systems 3D prints spare parts for
Maintenance/ • Reduced component weight old vehicles, removing the need for inventory
service upkeep emissions and waste

Source: HP/A.T. Kearney report: 3D Printing: Ensuring manufacturing leadership in the 21st century

44
45
Chapter

3 Creating value
from AM initiatives
In the previous two chapters, we outlined the readiness of ASEAN for AM at
a regional and country level and the opportunities it can create for leapfrogging
ASEAN into the future. However, this can only work with widespread adoption in
ASEAN by individual companies operating in the region and their ability to create
positive value out of it.

AM can help companies gain competitive advantage, improve their positions in the
value chain, achieve growth, and increase the efficiency of their supply chains. It can
help lower the cost of developing complex products, increase design freedom, and
If AM manages enhance the overall efficiency of manufacturing process. However, there are still a
few limitations that make AM less attractive vis-a-vis conventional manufacturing
to capture just for mass production, including:

1% of global • High raw material costs, limited material diversity


• Limited materials with validated process parameters, due to lack of process
manufacturing know-how

output – then • Inferior surface finish and quality of end product


• Need for process control including higher stability & repeatibiity
it can reach • Limited regulatory standards and accreditations

annual revenues The technology is rapidly improving by the day and as with any innovation, the
economics only gets better with increased adoption and usage.
of $125 billion
In our experience, the biggest roadblock for AM’s adoption is not the technology
itself but its know-how. It is the number one challenge reported by companies in a
survey carried by Strategy& to identify top barriers for AM adoption (Exhibit 3.1).

Most companies still lack an awareness of the application potential of AM, a


structured approach to identify attractive AM projects, and ability to develop a
business case based on thorough understanding of the underlying cost drivers.
Coupled with limited availability of highly skilled AM talent, this severely limits AM
penetration globally, representing less than 0.1% of $12.7 trillion117 manufacturing
output globally and only 0.03% for ASEAN region.

In our experience companies can follow a three-step approach to unlock and capture
value from AM and build a commercially viable business case.

Step 1: Step 2: Step 3:


Define the overall Form partnerships to Prioritize & execute AM
purpose & intent for minimize risk exposure initiatives based on risk
AM adoption across AM value chain adjusted cost analysis

117 3D Hubs, Q1 2019 AM Trend Report

46
Exhibit 3.1
Major challenges to the adoption of 3D printing
Percentage of survey participants (%) Many policymakers
Technical Knowhow/Feasibility 60%
and leaders know
Manufacturing costs 50%
what 3D printing is,
Available materials 40% but aren’t aware of
Quality 40% how to use it, when
Customer acceptance 25% is it effective or what
Vague IP and/or copyright situation 5% value it can drive
Source: Strategy& report “The future of spare parts is 3D: A look at the challenges and opportunities of 3D printing
https://www.strategyand.pwc.com/report/future-spare-parts-3d

Step 1: Define the overall purpose & intent for AM adoption

Before starting any AM initiative, it is important to define Exhibit 3.2


the value proposition from using the technology and its Use cases best fit for 3D printing within
alignment with the overall strategic intent of the company. product life cycle
Ultimately, any AM initiative needs to address a current
Percentage of survey participants (%)
business need and make commercial sense. For e.g.,
some companies successfully use AM for R&D and new
product development while others use it for operational Prototyping
65%
efficiency and overall supply chain cost reduction. Most of 100%
the prevalent AM applications today can be classified into
four categories Tools 20%
fabrication 50%
• Product ideation & prototyping (e.g., understanding
market requirements, product development, reverse Industrial 5%
engineering) production 20%

• Tools fabrication & modification (e.g., complex jigs, Spare parts


10%
molds with internal cooling channels, fixtures for
85%
assembly, in process testing and quality inspection)
Today In 5 years
• Industrial production (e.g., small scale production,
distributed manufacturing, on-demand printing, high- Source: Strategy& report “The future of spare parts is 3D: A look at the
mix volume serial production) challenges and opportunities of 3D printing
https://www.strategyand.pwc.com/report/future-spare-parts-3d
• Spare parts (e.g., aftermarket spares, obsolete part
production, digital warehouse, supply chain optimization,
remanufacturing and parts maintenance)

While prototyping has been historically the most popular


use of AM, spare part applications will be the fastest Spare parts are expected to
growing category in the coming five years. Spare parts
are characterized by long tail products with irregular, low become the biggest use case
demand frequencies, and supply chain inefficiencies driven
by short customer lead time and long replenishment times for AM in next 5 years
(Exhibit 3.2).

47
Deep
Dive Spare Parts
The business of making, storing, and shipping spare parts has long been a source of time-consuming and costly difficulties
for suppliers and their customers. Maintaining inventories of not-so-frequently ordered parts is so expensive that suppliers
often simply stop offering parts to customers118. That, in turn, forces customers to store large inventories of parts or turn
to third-party manufacturers. Often, spare part providers have to make tradeoffs between their service levels and costs,
demanding strategic decisions. The problem can be addressed through AM in a disruptive way. Typical challenges relating to
spare parts include:

• Whether make to stock or make to order


• Which location to be selected to manufacture the part
• What service levels to be offered
• Whether to continue making the part or discontinue it

On the other hand, spare parts are also characterized by big market size, high margins, long term stable revenue stream,
and source of customer service differentiation, making it a very attractive business proposition.

Exhibit 3.3 Examples of successful


How can AM help spare parts business? Spare Parts industrial AM
applications:119
Spare part 1. Stratasys & SIA Engineering
Supply chain implications AM benefits
business challenges Company have formed a
joint venture to adopt 3D
Long tail • Products are held in stock • Printing on demand printing interior parts for
products • Long products become eliminates long tail maintenance repair and
obselete before sell off inventory and overhaul (MRO) operations
obsolescence risk
2. EOS together with EvoBus
GmbH, identified 2,600
Irregular low • Requires high level • Printing on demand parts that are obsolete for
demand finished goods inventory eliminates stock outs 3D printing, with potential
• Irregular demand drives � savings to inventory costs
stock outs and wastage

3. Air New Zealand recently


Short customer • Requirement to build up • Last mile logistics had a seat bumper 3D
last mile logistic reduced printed by Moog for its
lead time Boeing 777-300 at Los
requirements infrastructure – • Central warehousing
Angeles, within the flight’s
warehousing & delivery eliminated
layover time at the airport.
The design of bumper
High service • Higher service level • Central warehousing was undertaken by ST
expectations expectation than for can be removed as Engineering.
original equipment local printing installed
4. Deutsche Bahn prints spare
• Long term service • Reduced express
parts for older trains which
commitment shipments to ensure are no longer available in
high service level the market. DB has printed
despite stock outs over 3,000 parts so far.
Sources: Expert Interviews

In addition to the above, uncertainty in IP and ownership of designs between suppliers and customers need to be
addressed going forward before companies are fully willing to sell spare parts design data and physical parts.

118 Strategy&, Part of the PWC Network, The future of spare parts is 3D: https://www.strategyand.pwc.com/report/future-spare-parts-3d
119 Air New Zealand: https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12220929
Stratasys & SIA Engineering Company JV: https://www.additiveflightsolutions.com/
EVoBus: https://www.eos.info/press/case_studies/additive-manufacturing-is-a-core-element-of-sustainable-spare-parts-management
On Deustsche Bahn: EIU perspectives, Adding it up: Economic impact of AM https://eiuperspectives.economist.com/sites/default/files/Addingitup_WebVersion.pdf

48
Step 2: Form partnerships to de-risk exposure across
AM value chain

Given the lack of in-house AM expertise, partnerships are


critical to de-risk investment, maximize success, and build Experts estimate 5 to 10% of
know-how for most companies. Partnerships can be forged manufacturing can be additive in
for each step of the AM value chain (see Exhibit 3.4) or for a
combination of steps based on available internal capabilities.
future with viable business case

Exhibit 3.4
AM value chain
Illustration for powder bed fusion process

1 Diagnostic Diagnostic is the first step of the AM value chain that helps Parameters evaluated
evaluate parts, components, or tools for its 3D printing • Business (e.g., high value,
potential, based on technical and business considerations. low volume, customized,
Most of the experts estimate that 5 to 10%120 of obsolete, complex)
manufacturing can be additive in the future, with a viable • Technology (e.g., size,
business case. material, mech. Prop)
• Material selection

2 Design & Design and engineering involve creating a 3D CAD file of the Steps undertaken
engineering part that is readable by the printing system. This step may • 3D model (scanning or
involve optimizing a design of an application for improved CAD design)
functionality. Part or system functionality and reliability • Topology optimization
could be enhanced through topology & design optimization, • CFD/FEM analysis
computational fluid dynamics, and finite element analysis. • Convert to STL/G-code
Optimizing selected parts for AM - or creating new designs
with AM - involves integrating advance structures such
as conformal cooling channels, complex geometries, and
optimized lattice structures based on bionic designs. While
designing, it is important to take into consideration AM
design guidelines and constraints (print orientation, support
removal, powder removal, etc.)

3a Raw material This step involves selecting the right material grade based Metal Powder
selection on metal powder availability as supported by AM and the considerations
desired mechanical and thermal properties of the end • Surface
product. There are numerous material databases available • Size distribution
for shortlisting and identifying the right material type (e.g., • Flow ability
NIST, Senvol, 3D Compare) • Chemical composition
• Behaviour of melting

120 EIU Perspectives, Adding it Up: The Economic impact of AM https://eiuperspectives.economist.com/sites/default/files/Addingitup_WebVersion.pdf

49
3b Process Process definition is a critical step which defines the printer Parameters considered
definition parameters (e.g., printing speed, layer thickness), design of • Print speed
support structures which are needed to serve as foundation • Layer thickness
for material deposition, and heat transfer simulations to • Support structures
obtain the final part in acceptable limits. Any inaccuracy in • Orientation
this step will lead to failure of meeting target requirements, • Nozzle pressure
potential wastage of materials, and operational loss. • Build environment
temperature
• Build volume utilization

4a Printing Printing involves the act of layer-by-layer deposition of Printing techniques


material and fusion to produce the desired product. • Selective laser sintering
• Fused deposition
Most common methods121 available in the market today are
modelling
powder bed fusion technology (layer deposition of powder
• Stereo lithography
and material fusion via laser), fused deposition modelling
(material extrusion and deposition to form the desired object
layer by layer), and vat polymerization (uses a vat of liquid
photopolymer resin and part is built layer by layer with UV
light).

4b Post processing Items made with AM are rarely ready to go straight out of Post processing techniques
the printer -- they may require post-processing in the form • Shot peening
of sanding and smoothing, or assembly. Post processing is • Heat treatment
needed to achieve a certain level of surface roughness and • Machining
final mechanical strength in the part. There are four different • Polishing
types of post-processing, which are widely used:
• Machining: Slicing away unwanted support structures
• Shot peening: Exposing to super-speed metal powder
blast that withers away roughness on the surface
• Heat treatment: Subjecting object to heating-cooling
cycles to achieve target mechanical properties
• Coatings: Surface treatments or coating of metal or
polymer to achieve required corrosion resistance

5 Testing & Unlike a conventional manufacturing process, a design Procedures conducted


Validation printed on one printer could turn out completely different • Material qualification
on another printer or somewhere else, depending on the - Destructive testing
environmental conditions, the material, or even the operator. - Non-destructive testing
This means that critical parts need to be thoroughly checked • Functional qualification
and verified to make sure they actually have the structural • Process qualification
integrity implied by the design file and proven that they
are exactly as secure and safe as the technologies used
before. Quality assurance can be very time consuming and
expensive depending on product characteristics and industry
requirements. Generally, validation is done in three steps:
• Material: Tests associated with raw material powder
qualification, e.g. flow ability, particle size, etc.
• Process: Certifying process characteristics that are suited
for the part
• Functional: Functional and mechanical qualification of
the part
Sources: thyssenkrupp Analysis

121 Sculpteo and 3D Printing and Future of Supply Chains: https://www.dhl.com/content/dam/downloads/g0/about_us/logistics_insights/dhl_trendreport_3dprinting.pdf

50
Deep
Dive Ecosystem of AM players
Based on the value chain described above, the industrial ecosystem of Additive Manufacturing players can be segmented in
the following broad categories based on their participation in the value chain (see Exhibit 3.5).

Exhibit 3.5
Ecosystem of industrial AM players

Powder suppliers1 Printer manufacturers2


Metal & plastic raw material, producers and suppliers Printer makers with focus on specific AM technology

Software vendors3 Universities4


Providers of 3D design, simulation and process software R&D centers and Universities working on research topics for
specific AM application

Bureaus & Marketplaces5 Qualification solutions6


Offer printing/post processing services inhouse or via Quality standards and testing solutions
marketplaces

Industrial Companies7 Startups8


Use AM mainly for in-house application Often specialize in one or more elements of 3D printing value chain

1 Metal AM.com, World’s metal powder suppliers set for Hamburg, AM high on the agenda: 5 All3DP.com, 34 Best Online 3D Printing Services in 2019: https://all3dp.com/1/best-
https://www.metal-am.com/worlds-metal-powder-suppliers-set-hamburg-high-agenda/ online-3d-printing-service-3d-print-services/
2 Motley Fool, The Best 3D Printing Stock for 2019 and Beyond: https://www.fool.com/ 6 Expert interviews
investing/2019/01/22/the-best-3d-printing-stock-for-2019-and-beyond.aspx 7 Based on global top industrial companies – focus across sectors
3 Expert interviews 8 Expert Interviews, AMFG.AI, 25 3D Printing Startups We’re Most Excited About in 2019
4 Additive Manufacturing Today, Colleges/Universities with Additive Manufacturing/3D https://amfg.ai/2019/03/20/25-3d-printing-startups-were-most-excited-about-in-2019/
Printing Programs https://additivemanufacturingtoday.com/colleges-universities-with-additive-
manufacturing-3d-printing-programs?cat_id=81&view=listcats

51
Step 3: Prioritize & execute AM initiatives based on
risk adjusted cost analysis

Most often, companies struggle in shortlisting and prioritizing the right parts or components
for AM. There are various factors which need to be considered while shortlisting parts but can
broadly fall into technical factors and supply chain factors. It is important to define a structured
approach, template it, and conduct part screening analysis across the portfolio to identify
which, commercially, are the most attractive parts/components for AM (see Exhibit 3.6)

Exhibit 3.6
Exemplary approach for shortlisting AM parts & components
Illustration for metals and powder bed fusion

Exemplary Factors Favourable for AM


Size 400 X 400 X 400 [mm1]

Technical
Material Available as AM supported grade Typically, the cost
Functional & mechanical properties Supported by AM
considerations of raw materials is
No. of sub-parts & geometrical High complexity & >15-20 sub-parts
complexity higher in AM (e.g.,
Surface Roughness Ra >12 µm [Greater than forging finish] $40 to US$150/
Kg for polymers&
Frequency of demand Low frequency of demand2 plastics compared
Batch size for each demand Small batch size2
Supply chain
Value of the part > $1-3/gram for metal parts
to $1.5-1.8/Kg for
Considerations the materials used
Logistics cost Logistics costs > manufacturing costs
Lead time >1-2 months in injection molding
or $125-250/Kg for
Cost of manufacturing & logistics
Titanium powder
or Cost of ‘Buy’ compared to $57/Kg
Business
case
Cost of AM (design, print, post for Ti bar) which can
processing costs)
Value of Additional benefits Weight reduction, Lead time reduction
more than cancel out
Cost of Additional risks Yield, Failure Rate, IP risks any savings gained
from using less
Overall
Tangible: (Cost of manufacturing + logistics) – Cost of AM + material
Value of Benefits – Costs of Risks > 0)
decision Other Intangible factors: Sustainability, Customer Responsiveness,
Complexity Design

Sources: tk analysis & Expert Interviews


1 Based on EOS M400 printer for powder bed fusion
2 As defined by the industry and customer segment

The overall decision is based on the net value generated from the AM project and can be
represented as a combination of the following factors:
Net Value Traditional cost Cost Value of additional Costs of
= - + -
Generated from AM of make or buy of AM benefits from AM additional risks

While the standard costs of make or buy are well understood, it is often the other three
elements which are the hardest to quantify and can influence the overall business case.

52
Cost of AM
Exhibit 3.7 outlines the various components of costs involved in a typical AM initiative and
the underlying factors behind them. Generally, for a typical AM project, material costs will
account for 10 to 20%, printing and processing are 40 to 70%, and all other activities have
the balance of 10 to 20% (e.g., design, engineering and inspection). However, this split
varies a lot from project to project depending upon the material, quality requirements, and
productivity.

Value of additional benefits from AM


AM often offers additional upside compared to a traditional manufacturing process which all
needs to be quantified to make an informed assessment, for example,

• Weight reduction (e.g., in the aerospace industry, waste reduction due to AM leads to
direct fuel savings. It has been estimated that by 2050, the aerospace industry could save
up to 90%122 of raw material required in manufacturing.)

• Consolidation of build group and additional benefits such as lower in-process inspection It’s been estimated
cost, lower part suppliers and supplier management cost, and better part reliability without
assemblies or joints (e.g., EOS 3D printed injector head for Ariane Group, integrating
that by 2050,
assembly elements from 248 to 1123) the aerospace
• Lower inventory and logistics costs (e.g., Proto labs provide printing on-demand, reducing
industry could
central warehousing or logistics costs124) save as much
• Longer product life (e.g., engine companies can produce blades of jet engines with as 90%122 of raw
complex cooling channels, making engines run at higher temperatures for longer time122) material required
• Additional sales due through better product differentiation. New business potential in in manufacturing
the after-sales market. (e.g., Reduced product delivery times and increased customer
responsiveness)

Costs of additional risks


There is a risk of failure that needs to be quantified (e.g. risk of build failure, product
rejection, yields) and properly mitigated. Failure rates can typically vary between 5% and
20%. In AM, the quality of printed product is highly dependent on the printer (how the
machine is setup, maintained, and calibrated), material (how material spec is controlled,
stored, and recycled), and process (build process parameters, gas flow control, build
orientation, and location). An operational qualification (OQ) needs to be performed in order
to account for external factors, such as environmental conditions. In addition, an AM quality
control plan would have to be introduced to ensure that all processes critical to quality are
within control specifications.

Another risk commonly associated with AM is design leakage or IP loss. It is noted that
such risks do exist for conventional manufacturing as well, as 2D files and production mold
designs are shared with contract manufacturers.

These are currently mitigated by having proper supplier control management processes.
While there are solutions available today to secure the entire value chain and provide
traceability (e.g., block chain-enabled solutions), risks and costs associated with data
leakage should be quantified to ensure a realistic comparison with conventional processes.

122 EIU perspectives, Adding it up: Economic impact of AM https://eiuperspectives.economist.com/sites/default/files/Addingitup_WebVersion.pdf


123 EOS Case Studies, Aerospace: Ariane Group - Future Ariane propulsion module simplified by additive manufacturing, https://www.eos.info/
press/case_studies/future-ariane-propulsion-module-simplified-with-3d-printing
124 www.protolabs.com

53
Exhibit 3.7
Cost drivers in AM project
Illustration for powder bed fusion

Contribution to overall
Stage of value chain Major cost drivers (Unit)
3D printing costs

• Number of hours spent on diagnostics ($/hr)


<5% Diagnostic - Costs of technical & business resources involved in diagnostic
- Can also be outsourced to specialist solution providers

• Number of hours spent on designing & software licenses ($/hr)


Design & engineering,
10-15% - Cost of specilist engineering resources involved for designing,
process definition optimization and process simulations

• Raw material costs ($/kg)


10-20% Raw material - Typical cost of plastics: $40-150/kg
- Typical cost of metals: $70 – 400 /kg

Printing costs • Depreciation costs of Machine capex ($/hr)


- Industrial scale printer costs (>$0.1 to $1-2 million)
40-60%
• Labour costs ($/hr)
- Costs of operator, typically not a major driver
• Machine utilization (factor)
- Ratio of part volume over build volume to utilize printer run
• Consumables & Utilities ($/hr)
- Costs of electricity, inert gases and other consumables
• Failure rate (factor)
- Probability of failure of desired end part

Post processing • Machining costs ($/hr)


- Thickness and number of support structure in the printed part
10-40%
• Shot peening costs ($/hr)
- Surface area for shot peening & machine utilization
• Heat treatment costs ($/hr)
- Furnance utilization factors
- Utility costs
- Depreciation of furnace
• Coating costs ($/m2)
- Surface area for coating
- Type of surface preparations needed before coating of part

• Tensile testing, Non-destructive testing & Functional inspection


Validation and ($/unit)
5-10% - Commonly outsourced, depends on exhaustiveness of testing
inspection
and qualification required

Sources: thyssenkrupp & EOS analysis, Expert interviews


Note: % contribution to printing cost is dependent on the Part Design, Build Layout, Technology used and the Qualification requirements from the industry.

54
55
Conclusion
ASEAN is at a crossroads as AM and the broader Fourth Industrial Revolution drive
fundamental changes to the region’s manufacturing ecosystem. These pose a threat but
also a significant opportunity for the regional and local players. The low-cost competitive
advantage is gradually being eroded as competitors in advanced economies use new
technologies to achieve significant improvements in cost, speed, quality, and sustainability
moving production nearer to end consumers. However, it also provides the ability for local
and regional players in ASEAN to leapfrog onto the global manufacturing stage. It is therefore
crucial for ASEAN manufacturers to accelerate their adoption or risk being left behind.

With more than $100 billion of value at stake and the opportunity to create 3 to 4 million jobs,
ASEAN cannot take a wait-and-see approach.

Policymakers and business leaders need to work to together to capture this opportunity and
achieve the following outcomes:

AM has the
potential to
1. Develop a regional 2. Launch a concentrated 3. Foster extensive public-
create > $100 roadmap for adoption and effort and provide funding private partnerships
billion value and scale-up of AM ecosystem support to build up AM (PPP) across government,
in the region, building on infrastructure, policies, institutes, manufacturers,
3 to 4 million existing lighthouses and skills and capabilities and AM ecosystem
jobs in ASEAN in the ASEAN countries players to team up and
develop locally relevant
solutions

Companies need to follow a structured three step approach to unlock and capture value from
their AM initiatives, given the lack of know-how and AM expertise today.

• Define the overall purpose • Form partnerships to de- • Prioritize & execute AM
& intent for AM adoption risk exposure across the initiatives based on risk
AM value chain adjusted cost analysis

Ultimately, the decision for any AM project should result in positive net value generated,
accounting not only for the value of additional benefits but also for the risk adjusted cost
of adoption. Such a holistic approach to identify and implement AM projects can help
demonstrate the value-add of the technology, build proof points of success, and ultimately
contribute to its widespread adoption in the region.

These actions will be critical to leapfrog ASEAN into the future. The time to act is now.

56
Appendix

1 AM Brief Overview
Additive manufacturing (AM), more commonly referred to as 3D printing, is the process of
joining materials to make objects from 3D model data; it is usually done layer by layer, as
opposed to subtractive manufacturing methodologies such as traditional machining (Refer
Appendix 1.1). Combined with advanced scanning, AM allows digital files to be converted
into physical products and vice versa, transforming the digital-physical interface for product
design, development, and manufacturing.

Since the introduction of the SLA-1 printer by Charles (Chuck) Hull of 3D Systems in 1987125,
the technology has come a long way, overcoming several limitations. Applications range
from rapid prototyping and designing to tooling and producing complex final parts in small
batches across industries (Refer Appendix 1.2).

Appendix 1.1
Additive manufacturing (AM) at a glance

How does AM work?


3D printing Layer-by-layer deposition
of material based on a 3D
is one of model to form an object
the greatest
innovations Traditional vs AM process Key advantages of AM
ever- its allows Metal Production Design & Engineering
• Fast prototyping and go to market
individuals to Atomize
• Enables complex shapes, lesser weight
Hot/Cold Roll
• Greater customization
produce objects
on demand Cut/Stamp Print Production
• No setup time in production
whenever and Deburr/Bend Finish • Fewer production steps, more flexibility
wherever they • Batch size of 1 economically possible
• Less material waste
need them Assembly AM Product
Production Logistics & Warehousing
Finish on demand • Localized/Distributed production
• Less dependence on suppliers
• Reduced inventory & logistics cost
Conventional
Product Aftermarket
3-6 months • Support obsolete parts
lead time • Reduced lead times, print on demand

Sources: McKinsey, “How 3-D printing will transform the metals industry”; Web research

125 3D Printing Industry, The Free Beginner’s Guide - 3D Printing Industry https://3dprintingindustry.com/3d-printing-basics-free-beginners-
guide#02-history

57
Appendix 1.2
Examples of AM application’s maturity today

Typical barriers Examples Sector


1 AM is only • BMW has produced > 1 million parts using AM
since 20101
used for • Example: Window guide rail for the BMW i8
prototyping Roadster1

• 300 different aircraft production parts that are


3D printed, spanning 10 aircraft programs.2
• >20,000 parts used in its aircrafts are 3D
printed2
• Example: F/A-18 Super Hornet has ~150 parts
in forward fuselage area 3D printed2

• Partnered with Ivaldi Group for micro factory in


Singapore3
• Capable of 3D printing customized parts, on
demand, to >100 vessels visiting the port
everyday

2 AM is too • VW lowered unit cost from $900 to $23 for


wheel protection jig by 3D printing
expensive • Reduced lead time from 56 days to just 10
for adoption days.4

• 10 full sized single storey houses were


completely 3D printed using cement &
construction waste in China in less than 24
hours5
• Estimated costs to 3D print a house is <$5,000

3 AM is used • SpaceX 3D printed main oxidizer valve body in


Falcon 9 rocket, reducing part cycle time from
only for months to 2 days.6
non-critical
applications • Produced nearly 30,000 fuel injection nozzle
tip for aircraft engines (LEAP).7 Nozzles pipe
aviation grade fuel in to aircraft engines for
combustion.

• Siemens printed and conducted first full-load


engine tests for gas turbine blades
• Blades were successfully tested at 13,000
revolutions per minute and temperatures
>1250° Celsius8

1 BMW Blog BMW Used 1 Million 3D Printed Parts for Its Cars over the Last Decade: https://www.bmwblog.com/2018/11/13/bmw-used-1-
million-3d-printed-parts-for-its-cars-over-the-last-decade/
2 3D print.com, 20,000 3D Printed Parts Are Currently Used on Boeing Aircraft as Patent Filing Reveals Further Plans: https://3dprint.
com/49489/boeing-3d-print/
3 Wilhelmsen Press Release, Wilhelmsen and Ivaldi Group take another step towards digitalizing maritime supply chains with 3D printing
technology: https://www.wilhelmsen.com/media-news-and-events/press-releases/2018/wilhelmsen-and-ivaldi-group-take-another-step-towards-
digitalizing-maritime-supply-chains-with-3d-printing-technology2/
4 EIU Perspectives, https://eiuperspectives.economist.com/sites/default/files/Addingitup_WebVersion.pdf; Page 18
5 BBC, Firm 3D prints 10 houses in 24 hours: https://www.bbc.com/news/blogs-news-from-elsewhere-27156775
6 SPACEX, Press Release, SpaceX Launches 3D-Printed Part to Space, Creates Printed Engine Chamber: https://www.spacex.com/
news/2014/07/31/spacex-launches-3d-printed-part-space-creates-printed-engine-chamber-crewed
7 GE Reports, How GE Is Taking Industrial 3D Printing To A New Level - GE Reports: https://www.ge.com/reports/post/91763815095/worlds-
first-plant-to-print-jet-engine-nozzles-in/ GE, New manufacturing milestone: 30,000 additive fuel nozzles: https://www.ge.com/additive/blog/new-
manufacturing-milestone-30000-additive-fuel-nozzles
8 Siemens, Press Release: https://www.siemens.com/press/en/pressrelease/?press=/en/pressrelease/2017/power-gas/pr2017120112pgen.htm

58
Typical barriers Examples Sector
4 AM cannot • Relativity has the largest metal 3D printer
by volume, called Stargate. The machine is
print large capable of creating parts up to 20 feet tall and
parts 10 feet wide.9

• OakRidge developed a 3D-printed version of a


“trim-anddrill” tool used by Boeing to build the
wings on its passenger aircraft10
• Weight: 1,650 lbs; Dimension: 17.5 feet long,
5.5 feet wide and 1.5 feet tall.2

5 AM can only • Develops printers that can 3D print artifacts


using real clay11
support few
materials • Furniture companies including IKEA are 3D
printing customized furniture including coffee
tables, beds, chairs12

• Barilla 3d printed fresh pasta in cool shapes in


less than two minutes13

• Researchers have 3D printed heart using


human tissue, including vessels, collagen and
biological molecules14

6 AM poses • Partnered with thyssenkrupp for deploying


blockchain solutions to resolve security and IP
risks of issues in AM15
design and
IP leakage • Allows an encrypted private/public cloud
centrally managing command and control of
3D IP, printers and users16

• Aimed at IP protection, this Danish company


has developed a Platform for encrypting &
decrypting 3D files onboard printer17

7 Lack of • Periodically develops and releases standards


for AM
qualifictaion • Two sets of standards released in June 2018
standards detailing best practices of metal based printing
for critical application18

• DNV-GL closely working with NAMIC and


ecosystem players to standardize AM technical
qualification process for marine & offshore
industry19

9 The Verge.Com, Aerospace startup making 3D-printed rockets now has a launch site at America’s busiest spaceport: https://www.theverge.
com/2019/1/17/18185136/relativity-space-3d-printing-terran-1-rocket-cape-canaveral-florida; 3D Printing Industry.com, Relativity Space
“completely 3D printed” rocket to send Telesat satellites into LEO - 3D Printing Industry: https://3dprintingindustry.com/news/relativity-space-
completely-3d-printed-rocket-to-send-telesat-satellites-into-leo-152913
10 Department of Energy, US Government, The World’s Largest 3D Printed Object: https://www.energy.gov/articles/world-s-largest-3d-printed-object
11 3D Potter, https://3dpotter.com/
12 Sculpteo Blogs, 3D printed furniture on its way to homes of the future: https://www.sculpteo.com/blog/2018/02/21/3d-printed-furniture-
appliances-of-the-future/
13 3D Natives, TOP 12 of the craziest 3D printing materials: https://www.3dnatives.com/en/crazy-material-3d-printing310320174/
14 Futurism, Researchers create first ever 3D-printed heart using human tissue: https://futurism.com/researchers-3d-printed-heart-human-tissue
15 IBM Blockchain Blog, Digital platform for industrial 3D printing - Blockchain Pulse: IBM Blockchain Blog
https://www.ibm.com/blogs/blockchain/2019/04/digital-platform-for-industrial-3d-printing/
16 SECURE3D, How does the Secured 3D printing cloud work? http://secured3d.com/how-it-works
17 3D Printing Industry.com, Additive manufacturing and cyber security: How to protect 3D printers from cyber attack - 3D Printing Industry
https://3dprintingindustry.com/news/additive-manufacturing-cybersecurity-how-to-protect-3d-printers-from-cyber-attack-116677
18 3D Printing Trend Report Q1 2019, 3D hubs
19 DNVGL, DNV GL boosts investment in 3D printing with establishment of Global Additive Manufacturing Centre of Excellence in Singapore - DNV GL
https://www.dnvgl.com/news/dnv-gl-boosts-investment-in-3d-printing-with-establishment-of-global-additive-manufacturing-centre-of-
excellence-in-singapore--111035

59
Four sectors -- aerospace, industrial machines & tooling, Despite current penetration levels, other sectors have
medical/dental implants, and automotive -- account for equal potential to benefit from AM. For example, the natural
nearly 65% of the global AM market126, while other sectors resources industry (mining, cement, chemicals, oil and gas)
are largely underpenetrated. is characterized by geographic fragmentation and remote
locations, posing challenges around logistics and inventory
• The aerospace industry has historically been the management of parts. The problem can be partly addressed
trendsetter in AM. Driven by low-volume and high-value by 3D printing and building a digital spare parts warehouse
parts, coupled with faster, lighter, and less wasteful optimizing the overall inventory and cost of logistics.
part design principles, the industry realizes direct fuel
efficiency and savings. AM has come a long way since its introduction in the 1980’s,
growing at over 25% per annum over the last 30 years and
• The automotive industry has been using AM primarily accounting for around $14 billion spend in 2019. It has
for prototyping and tooling applications, and more proven benefits in providing entirely new design capability,
recently in interior part production driven by demand for redistributing supply chains closer to end consumers,
customization. and making manufacturing processes more efficient and
sustainable. There are still some technical challenges
• Industrial machines & tooling have seen widespread
around material costs and diversity, printing speed and
applications across production equipment tools (such as
build chamber size, stability & repeatability of the process,
fixtures, jigs, calibration tools), molding tools, complex
availability of standards, and IP regulations, but they are all
high-grade machine tools (e.g., for milling, cutting,
being worked on and the economics will only get better with
drilling), and critical spares.
widespread adoption.
• Medical and dental implants have benefited from patient-
While the short-term impact of AM might be overstated, the
specific customization, improved device performances
long-term impacts could be profound and fundamentally
through improved integration with bone-like lattice
change the nature of manufacturing and global supply
structure designs, and automation in a traditionally
chains in times to come.
resource-intensive industry.

Appendix 1.3
Over 65% of AM adoption limited to four sector
Reson for adoption Concept Inital adoption Matured
Obsolescence
Customization

Light weight
Low volume

On demand
production

properties
Improved

Year
Complex

Top Sectors
material
(urgent)
shape

(% of share of
market, 2018) Examples -2012 2013-2018

Aerospace/ GE leap fuel nozzle


Aviation
Jet engine parts
18% Door and body parts
Implants
Medical/
Dental Dental restoration

12% Bioprinted tissue


Prosthetics

Automotive Turbo charger


Engine parts
15% Prototypes
Tooling
Industrials
O&G drilling components
17% 3D printed electronics

Sources: McKinsey & Company, thyssenkrupp analysis

126 IDC Reports, thyssenkrupp analysis

60
Appendix

2 Why thyssenkrupp AM?

Our Additive Manufacturing Value proposition

1 We are a diversified industrial group with 200+ years of engineering expertise

2 We have end-to-end Additive Manufacturing process capability and our


solutions are process- and material- agnostic

3 We have a successful track record of delivering and creating value from


250+ AM projects

4 We can help de-risk AM investments with our deep expertise and proprietary
approach

5 We have a local presence worldwide through our extensive network of


businesses and partners

61
We are a diversified industrial group with 200+ years of engineering expertise
thyssenkrupp is a diversified industrial group with traditional strengths in materials and
a growing share of capital goods and services businesses. We have deep technological
expertise to develop high-quality products and intelligent industrial processes and services
for sustainable progress of our customers. In fiscal year 2017/2018, we generated sales of
around €42.7 billion.

Together with our customers, we develop competitive solutions for the challenges of the future
in sectors across automotive, off highway equipment, infrastructure and urban mobility,
aerospace, materials, steel, mining, cement, marine, oil and gas, and chemical industries.

Our technologies and innovations are the key to meeting diverse customer and market
requirements around the world, growing on the markets of the future.

Additive manufacturing is a step to uphold our brand promise and build on our deep
engineering expertise in designing and creating components, machinery and complete plants.

Our experience in Appendix 2.1


Marine & Offshore We serve a broad range of industries
• DNV-GL certified
AM facility
• AM process
approval for
maritime parts Construction Elevator Escalator Marine Aerospace Steel
• Expertise in AM
pressure vessels
• First to develop and
use 1.3964 material
(submarine grade Chemical Energy Automotive Materials Minerals & Spare parts
Mining & toolings
steel) for AM

We have end-to-end Additive Manufacturing process capability and our


solutions are process- and material- agnostic
Our customers keep telling us: “We greatly appreciate the fact that your proposed solutions
are process- and material-independent”. And this is our strength.

We have the expertise to provide the complete additive manufacturing value chain solution.
Whether you would like powder materials delivered just in time for your routine print jobs
or diagnose your spares inventory to identify suitable parts for printing, we will be your go-
to partner. We are ready to address your challenges in part suitability identification and
ROI screening, design optimization as well as process definition. In our experience, the
technology is already commercially attractive for 5 to 10% of the components inventory
today and we follow a quick and iterative process to separate these from the rest.

We can independently design and fabricate components for your application, or we can
also internalize your ideas and develop proposals for implementation and quality assurance
processes together. This also includes training concepts with which we can train your team
in how to use the technology correctly. Sometimes, customers simply want us to implement
their print job, leveraging our process expertise to minimize failure rates and this is usually
followed by finishing or post-treatment of the printed parts. We are just as well positioned to
carry out any of these tasks.

62
Appendix 2.2
We have end-to-end process capability in AM

Start Feasibility
Analysis

Methods expertise Geometrical Topology


Design & design optimization
Simulation

Pre-Process Data
Preparation

Material Design verification Data preparation Material supply


Supply

Production

In-Process Automation

Laser beam Fused layer Automation Process control


Process melting melting
control

Support
removal

Powder recycling Support removal Heat treatment


Post-Process Part
finishing

Quality
control

Surface treatment Final machining Quality control

63
We have a successful track record of delivering and creating value from 250+ AM projects
We have successfully delivered over 250 AM projects in different fields of application to our internal and external customers
for a variety of industrial applications. We have created value for our customers in a variety of ways, including:

1. Design optimization to lower 2. Using alternate materials and 3. Implementation of digital warehouse
production costs and improving design strategies to reduce framework for inventory optimization
operational performance part count and enhancing supply chain reliability

Appendix 2.3
Select references from our AM projects

Automotive Industry/Marine Tooling

Hydraulic valve housing of motor Hydraulic valve block of Submarine Special preforming tool
sport damper Weight reduction of 83%, reduction Reduced mass by lattice structures
More compact design containing in flow noise and permeability and up to 75% productivity increase
enhanced functionality due to lower heating time

Aerospace Mining

Inconel 718 bearing Functional part of bucket tooth


Fast production and • Delivered polyamide prototype
delivery of aerospace • Functional tested part in
bearing aluminum

Food processing Process plant Automotive

Assembly for
electron mobility
Flat air pipe housing Polyamide based Lattice structures
Flat air pipe housing of 510 mm prototypes In partnership with Europlast-
length and small 6 mm pipes developed for NYCast GmbH, enhanced payload
functional validation for a special automotive application

64
We can help de-risk AM investments with our using encryption technology, limit authorization of access
deep expertise and proprietary approach for use of data, and address your concerns regarding IP
protection. We are already a member of the Industrial Data
We fully understand challenges associated with the adoption Space Association, which enables smart infrastructure to
of new technology, the relative strengths and limitations secure data transfer between different parties (vendors,
of AM materials and processes, and the underlying cost regulators, governments, customers) in the Industrie 4.0
drivers to develop a commercially positive business case. technology domain.
Ultimately, any AM initiative should result in net positive
value generated.
We have a local presence worldwide through our
Most of the companies just compare the traditional costs extensive network of businesses and partners
of make or buy vis-à-vis printing via AM. The real value
is often hidden in the additional benefits which can be We are present in 78 countries worldwide with over 161,000
created, such as weight reduction, complexity reduction employees and generating over 42 billion euro of sales. We
or use of sustainable material. It is important to develop have been serving our customers in Asia for last 150 years,
holistic business case comparing these additional benefits with over 28,000 employees and generating over 15%
to the incremental risks (e.g., IP, failure rates) and make an of our global sales. We have offices in all major countries
informed decision. in Asia, with deep relationships with regional and local
customers and business partners.
Our AM experts are well versed with the challenges
technology possess today, such as technical challenges Our AM Tech Centers in Germany and Singapore are ready
like residual stresses, surface quality, walls and gaps, to address your AM challenges and provide full range of AM
and business challenges like screening parts for AM, capabilities from designing to post processing. Additionally,
data security, and IP. We can assist in identifying and with our network of qualified printing and post-processing
mitigating these risks and challenges upfront. Together partners (in-house and beyond), we can deliver qualified,
with our partners, we can also secure your design file data traceable parts on demand at your desired location.

Appendix 2.4
We can support a broad range of materials and processes

Additive manufacturing processes

Metal Plastic

Electric Arc Laser Beam Fused Layer Stereo


Welding Melting Deposition Bonding Lithography
Modeling

Electron Beam Hybrid Laser Beam


Binder Jetting
Melting Manufacturing Sintering

Appearance form Wire Powder Foil Liquid

65
Working with our AM Tech Center
We at thyssenkrupp AM Tech Center offer a wide range of solutions in all relevant areas of AM. Whether you own a printer
or are just beginning to enter into additive manufacturing, you can trust us as an experienced industrial group in this
technology. We complement our deep engineering and sector expertise with start-up virtues such as speed and a can-do
mindset to develop innovative, reliable AM solutions for our customers.

We can offer both standard ‘off the shelf’ services or develop customized solutions based on your specific needs and
requirements. Some of our most popular engagement models are listed below.

Training & Training


Consulting Services We host variety of training formats to suit your requirements:
• 1 to 2 days of introductory capability building workshops for your leadership teams
• 3 to 4 days expert hosted workshops on introduction to additive manufacturing for product
development, procurement, and manufacturing functions, with strong relevance to your
business, markets and customer segments
• 1 to 2 weeks of joint working sessions with your engineers and product development
teams to upskill on Design for Additive Manufacturing (DfAM) principles and brainstorm on
ideas for AM applications

Diagnostic & Part Suitability Screening


We have a validated, proprietary approach for screening parts for 3D printing. We can help
you identify and shortlist suitable parts for additive manufacturing accounting for a variety
of technical and supply chain parameters and generating net positive value-add for your
AM project. Our experts work closely with your sales, production, design, and purchasing
engineers typically over 4 to 8 weeks to screen and identify parts and help address some of
the commonly asked questions:
• What parts should I print using additive manufacturing from my warehouse?
• Is it possible to reduce cost or realize tangible commercial benefits using AM?
• How do I ensure that AM printed part will meet similar performance standards as
conventional manufacturing?
• Which is the right AM process technology for my application?
• How do I preserve my IP on the part design?

Engineering Design Engineering


Services Our team is experienced in employing Design for Additive Manufacturing (DfAM) methodology.
(Design, process
Using iterative part design, we are able to offer potentially hundreds of design variations with
and printing)
simulation results, providing the ability to choose the best design to meet customer’s needs.
We offer a wide range of design services including:
• Creation of 2D & 3D digital models of existing or obsolete parts
• Engineering optimization and light weighting (typically ranges from 40 to 80% reduction)
• Support structure optimization

66
Engineering Process engineering
Services We pioneer a holistic approach to 3D printing process definition by bridging design,
(Design, process
engineering, and manufacturing sections of the AM value chain. Using our deep technology
and printing)
experience and advanced software tools, we can deduce process parameters to achieve
cont’d desired quality in printed parts (e.g., optimizing print layer thickness, speed of the printer
head, build chamber temperature, among others).

3D printing and post processing


With our in-house set-up in Mulheim and our network partners, we can help you print and
machine parts to desired surface finish and dimensional accuracy.

We have capabilities to support all major process technologies including, for example, laser
beam melting, laser sintering and fused deposition modelling technologies. We have partnered
with major printer manufacturers to deliver printing solutions in various kinds of metals and
plastics.

Through our partnerships in post processing, we can support heat treatment, machining, and
any surface treatment requirements.

Strategic long term partnerships


We are also open to long-term strategic partnerships with our key customers and support
them along their AM journey. We can be your trusted partner in digitizing your supply chains
and bundle up all our AM services and customize solutions based on your specific needs and
requirements. Some of our common models include:

• Technology and business consulting partner

• Engineering design and process solutions provider

• Provider for small batch production of AM parts or printing on demand

• Provider of Digital Warehouse inventory solutions for your spare parts

67
Appendix

3 Approach & Methodology


thyssenkrupp assembled a multidisciplinary team of experts to put down a comprehensive
perspective on the state of AM in the ASEAN and implications for policymakers and
businesses. This captures our rich experience of working in the region for over last 150
years, our deep expertise on AM technology built over years in Mulheim and our recent setup
in Singapore, and the knowledge of our experts and our partners from EOS and NAMIC
across the whole AM value chain.

We have focused our research on the ASEAN (Association of Southeast Asian Nations)
region which comprises of 10 member countries – Vietnam, Singapore, Malaysia, Thailand,
Brunei, the Philippines, Indonesia, Myanmar, Laos, and Cambodia. All financial numbers in
this report are in US dollars unless stated otherwise.

Appendix 3.1
ASEAN member countries

Laos Thailand

Vietnam

Philippines

Cambodia
Myanmar

Malaysia
Brunei

Singapore

Indonesia

68
Our multidisciplinary team of experts leveraged multiple data sources to analyze and validate
the findings presented in this whitepaper:

• Systematic review of 500+ publicly available data sources from market analysts and news
articles published by regional and local media groups

• Existing reports and publications on AM market (see bibliography)

• Structured interviews with leading AM experts in the region

• Insights from local and regional players across AM value chain

ASEAN Market Sizing


For ASEAN market size, public data from existing available Appendix 3.2
reports (see bibliography) was estimated for Global and Comparison of External Sources with
Asia Pacific market; regional market values for China,
thyssenkrupp ASEAN AM Market Model
Japan, Korea, India, Australia, and ASEAN countries were
then modeled based on expert inputs. Further validation
of these market numbers was done based on online Wohler’s Ipsos tk ASEAN AM
information from press releases, trade registers, industry Source
Associates Consulting Market Model
reports, and validations with industry experts. In addition,
to triangulate the market numbers for each ASEAN country, AM system AM system Market Size Installed
“AM penetration” metric was estimated and benchmarked. installed installed (bn USD, base1, 2019
“Penetration” is calculated by dividing a country’s AM (end 2016) (end 2017) 2019) (# of printers)
market size (thyssenkrupp estimation) by its manufacturing Asia breakup
value add (World Bank).
35.3% 34% 1.8
Country 3D printing market size 31.7% 33% 1.2
AM penetration =
Manufacturing Value Add 11.5% 11% 0.4
9.0% 8% 0.2
The countries were then categorized into high, medium, or 5.4% 7% 0.2
low penetration.

For the industrial printer installed base, only publicly


3.9% 4% 0.1
available information is considered based on sale of printers 3.2% 4% 0.1
in destination markets validated by primary interviews and
experts from EOS. These market numbers are modeled Asia 100% 100% 3.8
conservatively and do not include all captive printers held
by industrial companies utilized for internal applications or,
ASEAN breakup
for example, printers installed in Southeast Asian countries
but sold outside the region (e.g., in Japan or Korea). 9.0% 8% 200 mn 220-270
Definition 1.7% - ~80 mn 100-120
• Market Size
2.7% 3% ~50 mn 50-60
Refers to the overall market value for AM including
services, software, materials and printers (desktop and 1.2% 2% ~30 mn 30-40
industrial printers) for all applications
Other
ASEAN 3.4% 3% ~40 mn 40-50
• Installed Base
Refers only to industrial printers ($>100,000 in value)
1 Industrial printers with a value >100,000 USD
both metal and plastic, used either for industrial 2 Considered as part of China
applications or by research institutes Source: thyssenkrupp ASEAN AM market model

69
AM Value Creation
To estimate the incremental value generated by AM till 2025, the baseline number from
McKinsey’s analysis of impact from productivity gains from the Fourth Industrial Revolution
(including Internet of Things, Artificial Intelligence, AM, big data, and others) for ASEAN were
considered. The underlying assumptions were modeled based on technology contribution
and sectoral impact and triangulated to arrive at a base case value creation number.

For the pupose of modelling, the following sectoral share were considered: 5 to 10% of the
overall value-add in infrastructure, 20 to 30% in manufacturing, 15 to 20% in agriculture,
20 to 30% in healthcare, and 5 to 10% in consumer & retail.

Appendix 3.3
AM contribution to ASEAN GDP by 2025
Billion USD, Share of AM value as % of total 4th Industrial Revolution Impact

Estimated AM share
5-10% 20-30% 15-20% 20-30% 5-10% n/a ~100 bn of total technologies
value add

97-366 220-625

7-39
20-53
24-48
Maximum
25-45 contribution

47-74 Minimum
contribution

Infrastructure Manufacturing Agriculture Healthcare Consumer Others Total


& Retail
Source: McKinsey Global Institute, thyssenkrupp estimate

70
ASEAN countries assessment
Extensive secondary research was conducted to develop individual ASEAN country profiles validated with primary interviews
from our expert network. Sources include press releases, industry reports, published government plans, and general
information from university websites, AM communities and platforms and local and regional company websites. The overall
findings were categorized into:

1. Government and R&D 2. Private sector 3. Enabling infrastructure


(collaborations, research projects) (startups and MNCs activities) (availability of trainings/printers)

Government and R&D contain Private sector includes all Enabling infrastructure indicates
all content associated with activities of large corporates, the existence of primary/high
government or government- the startup environment (incl. school initiatives, online courses,
related research activities, incubators, accelerators), new efforts towards workforce
programs, policies, funding business models and applications reskilling towards 3D design and
availability as well as extent of to enter national AM market, engineering and also printing
university programs, breadth of variety of events and conferences capabilities, i.e. quality of existing
research subjects and others related to additive manufacturing physical infrastructure across the
country, volume of printing shops/
factories, quality of printers and
access to space

We have outlined only the most popular examples; for further country-specific insights, please contact the authors.

Bibliography
• 3D Hubs: 3D Printing Trends Q1 • Ipsos Business Consulting: • Wohler’s Associates: Wohler’s
2019 3D Printing: The genesis of Report 2018
a new realm of possibility in
• Allied Market Research: Global • World Economic Forum: Shaping
manufacturing and supply chain
3D Printing Market (Opportunity ASEAN’s future readiness –
Analysis and Industry Forecast, • HP/A.T. Kearney: 3D Printing: Collaborations to Advance
2019-2025) Ensuring manufacturing leadership Manufacturing and Production
in the 21st century
• ASEAN Economic Community,
ASEAN Economic Community • ILO: ASEAN In Transformation
Chartbook 2017 – The future of jobs at risk of
automation
• A.T. Kearney: 3D printing and the
future of the US economy • McKinsey Digital Capability
Center Singapore: Industry
• A.T. Kearney: Accelerating 4IR
4.0: Reinvigorating ASEAN
in ASEAN: An Action Plan for
Manufacturing for the Future
Manufacturers
• McKinsey Global Institute:
• Bain & Company: Advancing
Southeast Asia at the crossroads:
towards ASEAN Digital Integration
Three paths to prosperity
• Economist Intelligence Unit:
• PwC: The future of ASEAN Time
Adding it up: The economic impact
to Act
of Additive Manufacturing
• Strategy&: The future of spare
• IDC: Worldwide Semiannual 3D
parts is 3D
Printing Spending Guide 2019

71
Appendix

4 About EOS

EOS GmbH, the innovation leader in industrial 3D printing


EOS is the global technology leader for industrial 3D printing of metals and polymers.
Founded in 1989, the independent company is a pioneer and innovator for holistic solutions
in additive manufacturing. Everything EOS does is founded on the cornerstones of corporate
responsibility and sustainability, both inward- and outward-facing. OS embraces a deep
commitment to customers and their needs.

Like no other company, EOS is mastering the interaction of laser and powder material.
Additionally, EOS provides all essential elements for industrial 3D printing. System, material,
and process parameters are intelligently harmonized to ensure a reliable high quality of
parts and thus facilitating a decisive competitive edge. Furthermore, customers benefit
from deep technical expertise in global service, applications engineering and consultancy –
Additive Minds.

Source: https://www.eos.info/nextgenam

72
How can EOS technology and solution benefit you?

For Your Engineering - Design-driven manufacturing with industrial 3D printing


Lightweight construction and functional integration - Additive Manufacturing
begins when conventional production processes reach their limits

For Your Business - Save time and reduce costs with industrial 3D printing
Discover new ways of manufacturing with systems and solutions for industrial
3D printing (additive manufacturing) by EOS

For Your Design - Your way to customized production with Additive


Manufacturing
Industrial 3D printing solutions by EOS offer designers the greatest possible
construction even for extremely complex structures

For Your Innovation - Design-driven production with industrial 3D printing


Benefit from the advantages of EOS industrial 3D printing (additive
manufacturing) to shorten your track to the serial production with the greatest
possible freedom in design

Our vision of the future: the new era of manufacturing has begun.
We’re moving forward, seamlessly integrating AM into your manufacturing ecosystem.
We demonstrate the integrated 3D printing process chain live with a pilot facility setup
by three powerful partners to further industrialize 3D printing - The aerospace supplier
Premium AEROTEC, the technology provider EOS and the automotive manufacturer Daimler.
The NextGenAM pilot facility currently consists of the EOS M 400-4 four-laser system for
industrial 3D printing with metal materials. The system is used in combination with the
peripheral solutions of the EOS Shared-Modules concept. Additionally, various machines for
post-processing and quality assurance are installed. The innovation about the production
chain is that the individual steps and the interaction of all additive and conventional process
steps are fully automated and integrated, and manual steps have been eliminated. As a
result, complex, lightweight, and at the same time robust components can be manufactured
and the high level of automation forms the basis for profitable production going forward.

Additive Minds
Organisations around the world are under increasing pressure to innovate faster and better
than competitors. Even so, they are sometimes slow to adopt AM because the necessary
Thought expertise is hard to find and this translates to potential investment risk.

leadership that Additive Minds solves these problems and enables your organisation to enjoy the full
potential of AM by giving you all the know-how you need to outperform competitors. We can
puts you first transfer the necessary expertise wherever you need it, whenever you need it. Fast.

Minimize investment risks and optimize competitive advantage through AM innovation.

Industrial 3D printing is about to enter serial mass production. The key challenges are:
• How can you minimize investment risks?
• How do you gain competitive advantage?

We accelerate your transformation with extra values:


• Transfer of expertise is rapid and pragmatic
• Training is provided by our large, reliable network of AM experts
• AM enablement programs are customized to your specific needs
• Tangible results delivered in short time frame

73
Additive Minds Consulting Services
Wherever your organisation finds itself in the AM implementation process our consultants
stand ready to support it. They can assist you in understanding any aspect of AM and help
you discover how best to make it work in developing applications, ramping up production, or
ensuring quality. We assist in identifying where you have the greatest opportunities on this
AM roadmap and then accompany you on your journey to significantly improved production.
For further information, see our Additive Minds Website.

Qualify, Rollout &


Achieve AM Readiness Ramp-up AM Production
Scale Production
• Understand the
benefits of AM and the
• Increase production
performance and
• Implement full scale AM
production, assure good
Let’s take your
value it can create for
your organisation
utilization and continuous quality,
scale your AM production
manufacturing
• Define your new
• Develop high value factory layout for your after being successful to the next level
AM Applications AM production • Validate and implement
• Select parts from your • Improve your existing robust processes
own portfolio, or develop AM production according to legal
radical innovations requirements
• Optimize your
• Redesign your parts cost per part • Get your production
or create completely certified and prepare
new designs for high demand
expectations
• Integrate advanced
structures into your
design (e.g. lattice)
• Optimize specific
parameters for
your application

74
Appendix

5 About NAMIC

The National Additive Manufacturing Innovation Cluster (NAMIC), led by NTUitive, was
launched in October 2015 to address the challenges, and accelerate Singapore’s industrial
adoption of additive manufacturing. It identifies and nurtures promising AM technologies and
start-ups, jumpstarts public-private cross-collaborations, acting as a connector between
industry, research performers and public agencies. NAMIC also assists companies seeking
to lower the barriers towards AM adoption through joint project funding and leveraging on its
investor networks.

It focuses on industry sectorial applications and needs, such as standards development and
certification, in conjunction with the translational research and commercialization strategies,
to help companies co-create innovative processes, products and services. NAMIC focuses
on sectors where Singapore has developed capabilities with competitive advantages, with
a view to the future, such as Aerospace, Bio-Medical, Clean Technology, Offshore Marine,
Maritime, Precision Engineering, Electronics, Building Construction and Design. Since its
inception, it has engaged and partnered with several hundred organizations globally and
in Singapore, raising more than $30 million in private and public funding to support over
100 projects covering industry technology development, translation, commercialization,
standards development, training and certification, across various industry verticals.

75
What we do

Leadership New Business Adoption Standards & Training Translation


Consolidate and Build and catalyse Create and provide Develop AM standards Accelerate translation
foster collaboration an ecosystem for a platform for to accelerate research of upstream
to achieve global/ the growth of new test, learning and and industry adoption. AM research
regional leadership businesses and new implementation of Provide training into commercial
in Additive business models with AM methodologies and certification for applications for the
Manufacturing (AM) AM technologies industry industry and support
technologies business adoption

NAMIC Portfolio
Automotive/ AM Technology Aerospace/Defence
Transport (Hardware/Process) 8%
5% 8%
Content and AM Technology
Media (Software)
1% 6%

1700 Standards/
Certification
Companies Engaged
9%
Logistics
1%
Robotics
2%
Sector/
Marine and Domain
222 Offshore
4%
Biomedical
31%
Projects Initiated
Food and
Beverage
1%

Environment and
Clean Tech
7%

166 Electronics
3%
Design and
Construction
Consumer
Product
Projects Approved 10% 4%

76
Notes
thyssenkrupp Innovations Pte. Ltd.

3 International Business Park


#06-01, Nordic European Centre
Singapore 609927
E: tkamsingapore@thyssenkrupp.com
T: +65 6890 6000

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