What's wrong with 3D printing? (and why we acquired Micronics)

The 3D printing industry is facing significant challenges, with many companies struggling financially despite substantial venture capital investments. Recent examples include companies that raised over $1 billion but were sold for only $185 million or declared bankruptcy. In 2023, the estimated revenue for 3D printing original equipment manufacturers (OEMs) was around $7 billion, which is low compared to the drone industry, where a single company, DJI, is rumored to approach similar revenue. The competition among approximately 100-150 manufacturers has led to a lack of profitability, with no public 3D printing company currently profitable and an estimated cumulative EBITDA margin of -30%.

Dávid Lakatos, CPO of Formlabs, emphasizes the need for companies to focus on creating valuable products rather than merging unprofitable entities in search of synergies. Formlabs is acquiring Micronics, a startup that has developed a prototype for an affordable SLS 3D printer, to enhance its product offerings and accelerate market access. This acquisition aligns with Formlabs' commitment to innovation and customer value, contrasting with the broader industry's dysfunction. Lakatos encourages a focus on building quality products and seizing opportunities for growth and education within the market. The acquisition of Micronics is seen as a strategic move to bring more accessible and powerful SLS printers to customers, reinforcing Formlabs' position in the industry.