The Netherlands is lagging behind the global development of 3D metal printing. So concludes ABN AMRO in a report on the growing interest in metal powders.
'Globally, 3D metal printing is undergoing rapid development,' the bank writes in the report's introduction. 'Growth in the Netherlands is still disappointing, despite the fact that 3D metal printing is increasingly becoming a 'proven technology'. This is due to unfamiliarity with the possibilities and the lack of large end-use sectors (such as automotive and aerospace).
Metal powders
The emergence of 3D printing techniques is a catalyst for the use of metal powders, it says. 'With the wide variety of application possibilities, it is not surprising that interest in 3D metal printing is high. However, we see that the scale of 3D metal powder printing in the Netherlands is slowly increasing.'
ABN AMRO also briefly touches on the history of powder metallurgy. 'The story goes that metal powders have been used since the year 3000 BC. It is said that the Egyptians and the Incas were the first to use iron powders to make metal objects. In 1870, the first patent was filed in the US for materials made from metal powders, and from then on the scale in which metal powders were used increased more rapidly. At that time, metal powders were mainly used for practical shaping of parts or decoration of objects.'
The conventional method for making products and parts from metal powders is by pressing and heating the powder (or 'sintering'). Prior to pressing, the desired metal powders are prepared into a so-called 'blend' of metal powders. This powder mix of various metals is then poured into a mould and pressed. The result is a component with so-called 'green strength'. This means that the product is compact enough, but does not yet have sufficient strength. The component then gets its real strength through heating. The concept originated in Europe (especially in Germany and Scandinavia), but currently, from a geographical perspective, North America (the US and Canada) is the largest user of metal powder, followed by Europe and Asia. North America accounts for around 35% of the total demand for metal powders. Europe and Asia both have a share of around 20% of global demand.
With the use of metal powders, design flexibility increases and so does precision. ABN AMRO: 'But the metal powder market is only a fraction of the global industrial metal market. However, the material is increasingly playing a crucial role. Metal powders appear in a range of products and components. For instance, metal powders are found in end products such as in car engines and transmissions, automatic braking and steering systems, machinery, power tools, computers and copiers but also in paint, for instance. In addition, powders are found in consumer goods, such as in household appliances, garden tools, snowmobiles, fishing rods, jewellery and wristwatches. Studies are also ongoing - in a consortium of companies and universities - on the use and feasibility of metal powders as an alternative automotive fuel. These are looking at using metal powders as an alternative to petrol and diesel fuels with almost zero CO2 emissions.'
The aerospace sector is the largest consumer of metal powders, followed by the automotive sector. The latter sector mainly uses metal powders for making (or having made) car parts. For instance, a light truck contains about 27 kg of parts made of metal powder and an average passenger car about 12 kg.
Why 3D printing is interesting
The 3D printing market (also referred to as 'AM', or Additive Manufacturing) continues to professionalise, grow extraordinarily fast and innovate. 3D printing can become increasingly efficient, faster and cheaper and many end-users see opportunities in this. 'Many sectors - such as aerospace, automotive and medical - are constantly looking for ways to reduce costs and improve efficiency. For example, lighter parts - made with 3D printing - can bring big savings in aviation. It will further reduce aircraft fuel budgets.'
In the automotive sector, too, the demand for lighter materials is high and the innovative possibilities offered by 3D metal printing are being watched with great interest. Other sectors now also have successful pilots behind them. In agri-mechanisation, 3D metal printing (laser cladding) of wear layers on gear wheels, for example, is being looked at, and the first experiments with 3D printing of bridges are attracting a lot of (media) interest. In the transport sector, a project by Damen Shipyards recently succeeded in which a 180 kg ship propeller - with a nickel-aluminium-bronze alloy - was successfully completed by 3D printing. 'So innovation in 3D printing continues non-stop and the possibilities will therefore increase further in the coming years.'
There are also an increasing number of different materials being used for 3D printing. Traditionally, plastic is a widely used material, but a lot is already possible with ceramics and wood as well. Wood is used for complex models (e.g. for scale models), because it is possible to work with interlocking and moving parts. These materials also give a lot of design freedom.
The demand for 3D printed metal products is growing annually and with it, the demand for metal powders is also increasing. The range of metal powders is already quite large. For instance, aluminium, nickel, titanium, cobalt-chrome and copper alloys are available in powder form for 3D printing. Even powdered stainless steel (RVS) already has many application possibilities and is currently the most widely used material in the Netherlands. The global growth in the metal printing market ensures that the supply chain for 3D printing materials keeps moving and will increase the number of players. This immediately also makes the chain very susceptible to technological disruption if the new player are also innovators.
Promising future
Demand for metal powders has grown rapidly. The global market for metal powders was worth around USD 3.7 billion in 2005, in 2017 it grew - according to BCC Research - to USD 7.1 billion. Global demand is also expected to grow further in the coming years. The use of metal powders in 3D printing is behind this growth. The consulting firm Wohlers Associates forecasts a growth of over 175% over the period 2018 to 2022 in AM metal printing sales on a global scale. That is over 35% year-on-year. Another consulting firm - SmartTechMarkets - thinks global growth in 3D printing metal powders volume is going to increase by over 150% in the period 2018 to 2022. Advisory firm Transparency Market Research assumes an average annual growth in global sales of 22.5% over the period 2017-2025.
While these growth figures differ, the central message is clear: the potential for 3D metal printing and for demand for metal powders is high. Strong growth is attracting attention and many companies have already developed AM initiatives with metal powders.
In July 2016, Alcoa - one of the largest US aluminium producers - opened a 3D Metal Powder Plant in Pittsburgh. This specialised plant uses 3D technology to produce special aerospace parts with titanium, nickel and aluminium powders. Swiss company Oerlikon - a global player with activities linked to high-tech industries - has also invested heavily in 3D metal powder production. The company has launched a production facility in the US with a strong focus on R&D in 3D metal printing. But companies like Airbus and GE Additive are also not sitting still and have plans on the shelf to invest significantly in this segment.
The growth of investment in 3D metal printers shows that the potential of using metal powders is also great. In the coming years, the growth in demand for 3D metal printing will continue globally and this growth will be more broad-based. In particular, demand will increase from the transport equipment industry, and especially from the automotive and aerospace sectors. The automotive sector was already making great use of the numerous possibilities of metal powders, but 3D technology will accelerate the creation of specific parts and finished products in small series in the coming years. But the rapid growth in the use of metal powders in the automotive sector will not exceed the growth in aerospace. This sector is seen as a true pioneer in the use of 3D printed parts made of metal powders.
But there will be similarly strong global growth in demand in the healthcare sector. Healthcare will continue to make intensive use of 3D metal printing, especially cobalt chrome and titanium, in the coming years. 3D metal printing technology gives the sector the disposal to have complex parts made, where high (customer-specific) accuracy is a strict prerequisite. Especially in the field of dental and medical implants, innovation is continuing.
The ABN AMRO report 'Turnover 3D printing in the Netherlands to 120 million in 2017' (March 2017) already noted that the number of metal printers in use in the Netherlands is still relatively low and that the market is still very fragmented. The market is characterised by relatively many small 3D printed metal series and prototyping. This means that the overall demand for 3D printed metal products and parts is currently still limited. The Netherlands also lacks the volume of traditionally large end-use sectors of 3D printed metal parts, such as the automotive industry and aerospace industry. In healthcare - especially in the dental sector (crowns and braces) - initiatives are slightly more numerous, but even there, the overall volume in the Netherlands is still relatively low.
We think that the willingness to invest in 3D metal printing - including further research and technical development - will also start to increase in the Netherlands. The pace of growth of 3D printed metals is slower in the Netherlands because awareness among potential end users is not yet high. Also, many potential end users still have the perception that 3D printed metal products and parts are expensive. These are obstacles that stand in the way of a definitive breakthrough of 3D metal printing. But that does not alter the fact that other sectors (such as construction, shipping, machinery industry) are also showing increasing interest in 3D printed metal products and parts. So far, 3D metal printed products and metals are still predominantly used in high-tech industries, and much less in low-tech industries.
Still many obstacles
3D printing with metal powders is clearly on the rise. Yet it also still has its obstacles, says the bank. '3D metal printing is still a relatively slow process. That makes it less suitable for some applications. An additional disadvantage is that it has its limitations in terms of dimensions. Most of the end products made by the industry using 3D metal printing are still relatively small in size.'
The quality of metal powders and alloys also listens closely and differences in the quality of metal powders are still relatively high. 'It is a critical success factor in many cases. For instance, a mix of metal powders in the same composition can behave differently with different producers. Because properties such as size and roundness of the metal grains are decisive on the final result. This makes standardisation and thus wider acceptance more difficult. With that, customisation is still commonplace, as end-users have high demands on the quality of metal powders and end products.
Also, the effects a laser can have on molten metal powder of a particular alloy are often unknown. An inferior input of (a mix of) metal powders can have major consequences on the quality of the final product. For instance, an incorrect composition results in cracks in the final product. The quality of the metal powders ultimately has a major influence on the material properties of the final products such as tensile strength, hardness and density. The whole process requires continuous quality checks.'
However, strong growth also brings more price dynamics. Transparency on price formation is still relatively limited at present, partly because the added value of metal powder producers is mostly price-determining. Our expectation is that price volatility - through the interplay of supply and demand - will only increase over time. Due to the great potential and expected growth of 3D metal printing, the number of companies will increase in the coming years. This also puts pressure on the supply of metal powders, especially when higher-frequency applications of metal powders become more widely used in the 3D metal printing process. This requires a consistent supply chain. Consistency in supply helps to ensure the long-term viability of 3D metal printing and to make its applications common across multiple (sub)sectors.
Source: ABN AMRO Industry Update - Sector Adivsory
