This week, we begin a series looking at the state of investing in the 3D printing sector. The series will feature interviews with leading additive manufacturing investors and analysts.
After several turbulent years, the industrial 3D printing sector is finding its footing. Investment in additive manufacturing during 2024 remained stable at approximately $650 million across approximately 40 deals, according to IDTechEx data. The figure is a marked decline from the pandemic-era highs of 2021–2022 but signaling a shift toward sustainability and focus. As the industry matures, the frenzy for 3D printing innovation has given way to disciplined funding and a clear-eyed emphasis on measurable results.
The End of Hype
According to interviewees in our series, the heady days of venture capital pouring into hardware-focused startups promising marginally faster or cheaper printers are over. Investors now demand evidence of how technologies solve tangible problems for customers. “Convince me you’re solving a problem. That alone sets you apart,” says Tali Rosman, Business Advisor at RHH Advisory.
Gone are the promises of untapped potential driving mega-valuations. Instead, industrial 3D printing firms must deliver cost savings, operational efficiencies, and results that justify investment. For example, application-focused companies producing niche industrial components, such as aerospace heat exchangers or healthcare implants, are emerging as favored recipients of capital.
Hardware Innovators Lead, Applications Gain Ground
In 2024, 3D printer manufacturers raised $315 million, over double the prior year’s total, bolstered by innovations in production methods for previously underserved niches. Materials firms, led by 6K and Equispheres, captured $115 million, while application-driven companies, such as Conflux Technology, raised $160 million by integrating AM into verticals from aerospace to healthcare.
However, software investments remained minimal, highlighting a lag in digital tools for streamlining AM processes. One notable exception is the $30 million raised by Backflip. Investors have also recalibrated expectations, favoring modest funding rounds aimed at incremental growth. “Startups no longer chase aggressive targets to justify oversized rounds,” says Sona Dadhania, Principal Technology Analyst at IDTechEx. “It’s about building a track record of steady returns.”
Opportunities in Specialization
The crowded marketplace, exhibitor numbers at Formnext of over 800 for example, has led to fragmentation, confusing both investors and end-users. The experts interviewed suggest focusing on vertical specialization as the best route to success. Startups concentrating on specific industries are better positioned to establish credibility and use resources efficiently.
Rosman notes that the shift to end-to-end solutions, where companies deliver both IP and production capabilities, is pivotal. Instead of relying on printer sales alone, firms can capture the larger profit pools tied to customer cost savings.
Consolidation: Necessary but Elusive
The state of consolidation in the 3D printing sector remains a point of discussion. Market observers continue to anticipate consolidation in AM to rationalize the fragmented sector, but progress has been slow. Acquisitions have often failed to create shareholder value, with poor integration and cultural mismatches derailing synergies.
Defense and Macroeconomic Drivers
Geopolitical pressures and reindustrialization efforts are boosting interest in AM, particularly in defense applications. NATO’s €1 billion Innovation Fund has backed ventures like Space Forge and iCOMAT, highlighting the potential for lightweight composites and microgravity manufacturing. Yet Europe’s fragmented procurement processes contrast sharply with the centralized Pentagon model in the U.S., creating barriers to scaling defense technologies across borders.
Defense remains a fertile ground for AM innovation, with dual-use technologies (spanning military and civilian applications) gaining traction. “We need the technological edge,” says Professor Dame Fiona Murray of the NATO Innovation Fund, citing cybersecurity, quantum sensing, and advanced semiconductors as critical areas of focus.
Challenges Persist
Despite optimism, AM still faces hurdles. Post-processing bottlenecks remain a weak link, while consistency in materials performance and quality assurance is critical to building trust with industrial users. AI offers a potential solution by enabling real-time error detection and streamlining production, but adoption remains in its infancy.
Meanwhile, consolidation continues to lag behind the entry of new startups, and funding levels are unlikely to rebound dramatically in 2025. Instead, experts predict stability, with growth concentrated in application-driven businesses.
A Sector on the Brink of Balance
The AM industry is maturing, trading speculative exuberance for rational valuations and sustainable business models. As investors prioritize clear market logic and measurable results, the future of AM appears more grounded.
Startups that solve specific customer problems, target underserved niches, and integrate AM into broader manufacturing ecosystems are positioned to thrive. While the sector faces challenges, its alignment with macroeconomic trends like decarbonization and reindustrialization suggests a steady path forward. The years of hype may be over, but additive manufacturing’s potential to reshape industries is only just beginning.
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Featured image shows Canary Wharf. Photo by Michael Petch.
