Interview: Thomas Masuch, 4 November 2024
Frank Carsten Herzog, Founder and Managing Partner, HZG Group, talks to Formnext magazine about the current market situation in the Additive Manufacturing industry.
What is the current situation in the market as a whole and at the HZG Group in particular?
It has become more difficult for many start-ups in the 3D printing industry to find capital in new financing rounds. As investors, we no longer encounter exaggerated valuations as often as we did three years ago. The self-assessment of start-ups is becoming more realistic.
The start-ups in which we’re involved at the HZG Group are at different stages of development. Anyone who develops a groundbreaking innovation gets time and support from us as an investor until their technology is fully developed. A go-to-market strategy is developed in parallel. The start-ups with finished products work intensively on realistic profitability scenarios alongside sales and further research efforts. When I look at our portfolio companies, I’m very optimistic overall.
Is the pessimism that you hear from some quarters regarding the entire AM market justified?
There is no reason for pessimism. Overall, the market for 3D printing is growing. We are on our way to achieving a decent market penetration in both spare parts production and tool manufacturing. Additionally, an increasing number of companies are beginning to explore 3D printing as a viable option for series production.
What are the reasons behind the somewhat subdued situation? Could it be that the overall AM market is developing at a slower pace than initially expected?
Not all forecasts have come true, but much of that was also due to hype. Anyone who thought that 3D printing would prevail in every area may now be somewhat disillusioned. There are natural limits. For example, 3D printing will not be an option in the future for quantities in the millions. Overall, a differentiated view is needed to identify growth opportunities. There is no single AM market.
Is the competitive situation getting tougher, especially for European companies?
I advise every entrepreneur to be courageous when using new technologies. Europe is strong in basic research; when it comes to implementation, companies from the USA often lead the way. We need to look at the opportunities offered by new technologies.
What opportunities are still presenting themselves to AM companies?
I expect the use of artificial intelligence in particular to give the industry new impetus for innovation. We are also continuing to see great innovations in production processes themselves! However, I see our strong training system as the greatest opportunity. This is where we as a society should continue to invest, so that prospective engineers are familiar with the latest technologies right from the start. In Lichtenfels, we are already offering 3D printing courses for school pupils as part of the FADZ project and have initiated a master's degree program in 3D printing together with the Coburg University of Applied Sciences. It’s only one of its kind in Germany so far – but it doesn't have to stay that way!
We have also discussed the current market situation with four other AM experts:
- Arno Held, AM Ventures: „It is positive that dubious participants have left the table“
- Rainer Lotz, Renishaw: “The good long-term prospects are not at risk”
- Jurgen Laudus, Materialise Manufacturing: Big difference between prototyping and series production
- Rainer Gebhardt, VDMA: „More confident than the average“
Tags
- Market reports and studies