Additive Manufacturing (AM) Opportunities in a digitalized production

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Brussels, June 23rd_{, 2015, V 1.0}

Additive Manufacturing (AM)

– Opportunities in a

digitalized production

So ur ce : W ITH IN

Additive Manufacturing

European Conference

Source: FIT

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2 150612 Vortrag EU Cecimo.pptx

Digitalization will boost agility and responsiveness of the

manufacturing industry – AM is a key enabler for this new trend

Engineered Products & High Tech (EPHT) Competence Center

Roland Berger

> Founded in 1969 as a one-man

business, we now have successful

operations in all major international

markets

> Largest consulting firm with

European/German roots

> Among the top 3 players for strategy

consulting in Europe, number 1 for

restructuring

> Team of 250 global partners and

2,500 consultants

AM/Digitalization

> AM is part of the Roland

Berger digitalization initiative

Our offices

Source: Roland Berger

CC EPHT

Energy

equipment

Long

lifecycle

products

Digital

Techno-

logies

B2B

Electronics

Aerospace

& defense

> Our support for AM can be on strategic level

(Corporate AM strategy) as well as on

operational level (AM Industrialization strategy)

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Europe's digital business is squeezed between large Asian and US

players – RBSC'sTerra Numerata™ shall work as incubator

Market capitalization of the top 20 internet firms [2014, USD bn, %]

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Using Additive Manufacturing technology, three-dimensional solid

objects of virtually any shape can be made from digital data

> Additive Manufacturing (AM) is a

process of making a

three-dimensional solid object of

virtually

any shape

from a digital model

> AM uses an

additive process

, where materials are applied in

successive layers

Definition

> Direct production from

CAD data

> Freedom of design

> Complexity for free

> Part consolidation

> Elimination of tooling

> Max. material use

> Production cost

independent from batch

size

> New manufacturing

processes, e.g. in repair,

and materials

Key advantages

Definition and advantages

Introduction to Additive Manufacturing

> AM has a 26-year history

for plastic objects –

the

capacity to make metal

objects

relevant to the

engineered products and

high tech industries

has

been around since 1995

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From today's point of view the "paths of disruption" only have a

minor impact on production – This will change in the future!

Source: EOS, Roland Berger, NASA

Limited impact Strong impact

Direct production from CAD data Freedom of design

Complexity for free Part consolidation Elimination of tooling

Prod. cost independent from batch size New manufacturing processes

Path of disruption Individual

products New geometries & materials Decentra-lized production Examples > Prototyping > Mass customization – Medical products – Jewelry – Gimmicks

> Small series production

> Integration of new, enhanced functionalities (more efficient products) in high tech materials > Development of new

materials/material properties > New repair strategies

> Industrial production on demand > production by quantity > by location (decentralized) > Home printing/production > Outsourcing to partners

Introduction to Additive Manufacturing

Paths of disruption for Additive Manufacturing

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Together with modern CAD/CAM technologies AM as former

prototyping technology allows rapid processes and indiv. products

> Production of implants in plastic or metal materials

> Implant is custom made based on scan data > Rapid production of the implant over night > Typical implants: dental, hip joints, knees,

fingers, skull or back bone implants > Production of technical prototypes for test

purposes

> Integration of new AM design features

> Rapid process with direct transformation of CAD data into products – no tools required

> Small series production, e.g. for Formula 1

> Ongoing trend in our society towards more customization and willingness to pay for individual products

> Often combined scan and print processes are used

Paths of disruption: Individual products

AM for individual products – Examples

Implants

Source: EOS

Proto-

types

Source: toolcraft Source: FIT

Life Style

Source: ingenieure.de Source: EOS, Kerrie Luft

Advantages

> Economic production of

prototypes and small series

> Rapid process chain due to

direct transformation of CAD

data or scan data into

products

> Flexibility to change designs

Key enabler for

accelerated product

development and testing

processes

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AM offers new opportunities for lightweight design, highly efficient

products and materials with improved characteristics

> Design of lightweight components due to "bionic" design with optimized exterior (left) or inner lattice structure (right)

> Significant saving potential in combination with light weight materials like Aluminum or Titanium

> Ability of AM to "print" complex geometries out of high tech materials, like Hast-X or Inconel, is used to create smarter products. The examples shows gas turbine nozzles with optimized mixing and cooling geometry for more efficient

combustion processes

> The high power cooler for diode lasers (left) com-bines two different metal materials and offers an outstanding cooling performance in an compact design

> Amorphous metals combine high strength and high hardness with high elasticity and high plas-ticity and further offer high magnetic susceptibi-lity with low coercively and high electrical resistance

Light-weight

design

Source: Rennteam Uni Stuttgart

Highly

efficient

products

New

materials

Advantages

> Lightweight design and new

ways of manufacturing even

with complex materials

> Creation of new materials with

enhanced characteristics

> Improved geometries for more

efficient products

AM is a key enabler for

new high-tech products

Paths of disruption: New geometries and materials

AM for individual products – Examples

Source: FIT Source: GE Source: Morris Technologies Inc. Source: IQ- Evolution

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Bionic Design is the design key leavers for ultimate weight reduction

and minimized life cycle cost

Source: Roland Berger, Within, EOS

Paths of disruption: New geometries and materials

Bionic Design in the context of AM

> Natural organism contain no solid parts, but a surface of varying thickness and beneath a lattice structure

> Material is only applied were it absolutely needs to be

> Design determined by functionality and persisting environment

> Components with bionic design have superior weight to stability ratio, can be flexible and sturdy at the same time

> Applicable to maximize surface (A), to maximize strength (B) or to minimize material use (C) > Used for implants with osseointegration (D)

Inspired

by

nature

…

… solves

real

world

problems

Complex bionic design

structures can be only

manufactured by AM

Bone of a bird

Micro cooler (A)

Finger implant (D) Engine block (B, C)

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"Mobile" production and repair are of high interest for e.g. military

applications, decentralized production will impact service business

> Decentralized production of spare parts on container vessels, oil platforms, space stations, aircraft carriers or in containerized solutions for the ground troops

> Limitations with regard to materials and post processing need to be considered

> Cheap and fast printing of simple plastic assembly tools by the maintenance staff, e.g. bending tools, gauges etc.

> AM supports in general the decentralization of production as the production cost are independent from the lot size, but still AM production cost are significantly higher

> Labor cost nearly of no relevance

> Decentralized production of e.g. spare parts in 3rd_{parties or OEM AM factories definitely is a}

near future application

Mobile

printing

AM for

repair

Decen-tralized

produc-tion

Advantages

> Rapid availability of spare

parts even in remote locations

> Fast and cheap production of

support tooling for

maintenance

> Further decentralization of

production

AM will impact the future

supply chain design

Paths of disruption: Decentralized production

AM for decentralized production – Examples

Container vessel – triple E class Example: Containerized print center for ground forces 3D printed tools

and fighter plane nose

Professional AM Factory by RedEye

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AM covers a wide range of "printing" technologies and materials

offering multiple business opportunities

Overview Additive Manufacturing technologies

Production Technologies (DIN 8550) Materials > Cell suspension > Cell-encapsulating hydrogels

> Microfluidic fill-in for cells > Bio-filaments

Forming

(Umformen) (Trennen) Cutting Joining (Fügen) (Beschichten) Coating Change of material properties

(Stoffeig. ändern)

Master Forming

(Urformen)

Dimension

1 Materials Plastic Metal

Physical

condition Liquid Powder

2 Technology Powder Bed _Fusion

VAT Photo- poly-merization

3 Application Personnel

Printers Series Production

Ceramic, glass Solid, pastrious materials

7 different technologies

Prototypes, Mock ups

Technology/Application > Inkjet printing > Acoustic bioprinting > Laser-induced bioprinting > Laser-guided bioprinting > Extrusion-based deposition

Bio Printing

AM technologies

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Foundry sands, lost wax castings,

ceramics, metals

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AM covers a wide range of materials and applications – Large range

of technologies and applications with plastic materials

Application/ Quantity Series pro-duction/Mass customization Prototypes Mock-ups Personnel Printers Material

Jetting1) Jetting Binder Powder Bed Fusion Jetting Binder Powder Bed Fusion Direct Energy Deposition Jetting Binder

Plastics Metal Material

by laser by electronic beam Material Extrusion UV curable Plastic AM technologies

Additive Manufacturing technologies landscape

1) Stereolithography

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Additive Manufacturing is a step up from rapid prototyping – Series

production manufacturing readiness level differs by application

Series production manufacturing readiness level

Source: Roland Berger; expert interviews

> Crowns and copings > Artificial hip joints > Medical instruments > Tooling inserts > Fuel injection > Structural elements > Blades > Air ducts > Formula 1 components

Aerospace

Source: FIT

Tooling

Automotive

Source: SLM Solutions

Medical

Full-rate production Low-rate production

Pilot line capability demonstrated

Capability in operational environment demonstrated Systems produced (simulated environment) Basic capabilities shown (simulated environment) Technology validated in laboratory environment Manufacturing proof of concept developed Manufacturing concept identified

Basic manufacturing implications identified

Examples

AM technologies

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From 2004 to 2014 the AM industry showed a significant growth of

around 20% (CAGR), from 2010 even more than 30% (CAGR)

> Total AMmarket includes – AM Systems (~ 30%), like

machines, system upgrades and aftermarket business

– Services (~ 50%), like contract manufacturing, training,

consulting services etc. – Materials (~20%) used in all

kinds of AM systems > Compared to the machine tool

market for 60 EUR bn the AM market is still small

> Based on 2012 the market is expected to quadruple within the next 10 years

Comments

100 80 60 40 20 120 0 -20 -80 -100 -40 -60 10 48.0 08 54.2 04 06 46.0 41.1 _35.5 33.5 29.3 96 00 23e 7.7 33.0 18e 4.5 14 3.1 59.7 13 57.8 12 02 66.7 98 ~10% metal AM

Source: Expert interviews; VDMA, Roland Berger et al.

Machine tool market1)

[EUR bn]

1) World machine tool production excl. parts and accessories

30.0% 20.0% 50.0% AM Systems Materials Services AM market [EUR bn]

Global AM market

AM market

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In 2014, around 540 metal AM systems were sold worldwide

– More

than 80% of the machines for PBF by laser are from Germany

EXONE 36 R BJ T 28 M 245 E ARCAM 36 R PBF(EBM) 42 228 RENISHAW 443 PBF(LS) 26 3345 3D SYSTEMS 101) PBF(LS) 153) 451) EOS 138 PBF(LS) 1003) 507 SLM SOLUTIONS 33 PBF (LS) 62 164 CONCEPT LASER 181) PBF (LS) 111 591)

Source: Press research, Bloomberg, Orbis, Dafne, Wohlers Associates , Roland Berger

Revenue [EUR m] 2014 Technology Metal AM systems sold in 2014 Employees 2014

R T M E

DED = Directed energy deposition PBF = Powder bed fusion LS = Laser sintering EBM = Electron beam melting BJ = Binder jetting 1) 2013 2) Revenue 2012 for laser deposition seg. 3) RBSC estimate

R T M E R T M E R T M E R T M E TRUMPF 62) DED 9 n.a. R T M E R T M E R T M E REALIZER n.a. PBF(LS) 15 71) R T M E VOXELJET 16 BJ 14 R T M E ₂₀₀ AM market

Metal AM system manufacturers 2014

> Around 540 metal AM systems have been sold in 2014

> Leading metal AM system

manufacturers are located in Germany

with a combined market share of ca. 60% > Recent consolidation (e.g. 3D Systems

acquired Phenix Systems, DM3D acquired POM)

> Other small companies include Beijing Longyuan (CHN), DM3D (USA), Fabrisonic (USA), Irepa Laser/BeAM (FRA), Insstek (KOR), Matsuura (JPN), OPM Lab (JPN), Sciaky (USA), Optomec (USA), Wuhan Binhu Mech. & Elect. (CHN), Sisma (ITA)

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Many service providers for metal AM contract manufacturing exist

worldwide – strong demand from the aerospace industry

Advanced Manufacturing Services Layer Wise

Axis Prototypes RPC Group

3T PRD Laser Lines Material Solutions CRDM

C&A Tool Engineering ExOne

Fineline Prototyping Directed MFG

GPI Prototype & Manufacturing Services InterPRO

Laser Reproductions

Linear Mold and Engineering Morris Technologies Solid Concepts Ecoparts INITIAL FIT BKL Lasertechnik Blue Production Citim FKM Sintertechnik PTZ-Prototypenzentrum toolcraft Alphaform Edelstahl-Rosswag

Service providers for metal AM contract manufacturing (selection)

> Worldwide, more than 90 companies

provide metal AM manufacturing services

> Most companies are small (<100 employees) and independent

> Approx. 10% of service providers have advanced capabilities for designing difficult applications like aerospace components

> Companies have different backgrounds and different business models

Additional information

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Especially for B2C business the internet offers different platforms for

"online 3D-printing" services

Revenue [EUR m] 2014 Material Employees 2014

R Trinckle 3D GmbH n.a 9 R M E MP Rapidobject GmbH 0.3 n.a R M E MP i.materialize (Materialize NV) 81.4 1,244 R M E MP Sculpteo n.a 10 R M E MP

M = Metal P = Plastic MP= Metal and Plastic

Amazon.com Inc. n.a n.a R M E MP 3D systems Corp. USD 354 m n.a R M E MP Shapeways Inc. c.22 >140 R M E MP

Overview: Selection of 3D printing platforms and revenues 2014

Rinkak (Kabuku Inc.) n.a n.a R M E MP Impression-3D n.a n.a R M E P Ponoko2) n.a n.a R M E MP Offload studios Inc. 0.1 1 R M E P

1) 2013 2) Ponoko was founded and is based in New Zealand, but is represented in the US and in Europe as well E

M

Source: Bloomberg, Press research, company websites, OneSource, Roland Berger

> Many small companies offer platforms for 3D-printing > The selection of providers

indicates that most prominent platforms are based in Europe and North America

> The majority of the players offers printing of metal and plastic parts, only a few focus on plastic parts only

Comments

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Still Europe has a leading role in Additive Manufacturing but

competition from Asia and the US is arising rapidly

Summary and recommendations

Further support by the EU is required to

> Support the European AM equipment suppliers in further developing their product and

service portfolio. Most of them are small medium size (SME) enterprises competing against

large national conglomerates

> Make AM an essential part of engineering education at the universities and in parallel to

develop AM design and manufacturing skills in the industry

> Develop an European AM supplier infrastructure, that can fulfill the industry demand for the

AM components, e.g. for the aerospace industry

> AM is a key enabler for accelerated engineering processes, highly efficient products and

new agile supply chains and further of high strategic relevance for the European industry

> The market for AM is still expected to grow significantly throughout the upcoming 10 years.

Technical applications for prototyping, small series production and "smart" AM products will

be the key driver

> Europe still has a leading role which is challenged by new machine OEMs from Asia and

the US. With regard to product and process development the US have a leading position

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To identify the latest trends around AM and digitalization, Roland

Berger continuously conducts research and publishes studies

Recent Roland Berger digitalization studies and publications

Digitalization and I 4.0

Semiconductors

Big Data

Additive Manufacturing

Cyber Security

Predictive

Mainten-ance

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Please contact us if you have any further questions

Dr. Bernhard

Langefeld

Principal Engineered Products/High Tech

OpernTurm, Bockenheimer Landstraße 2-8

D-60306 Frankfurt

Tel.: +49 160 744 6143

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Bone of a bird