AM has the potential to reduce the capital required to reach minimum efficient scale for production, thus lowering the entry barriers to manufacturing for a given location.Ĭapital versus scope: Economies of scope influence how and what products can be made. Second, it increases flexibility and reduces the capital required to achieve scope.Ĭapital versus scale: Considerations of minimum efficient scale shape the supply chain. First, AM reduces the capital required to achieve economies of scale. Its importance is derived from its ability to break existing performance trade-offs in two fundamental ways. 2 The article 3D opportunity: Additive manufacturing paths to performance, innovation, and growth provides Deloitte’s overall perspective on the impact of AM, as outlined in the framework illustrated in the sidebar “Framework for understanding AM paths and value.” 3ĪM is an important technology innovation whose roots go back nearly three decades. The overall market size for the AM industry was estimated to be $3.1 billion in 2013 on annualized growth of 35 percent over sales of $2.3 billion in 2012. AM is used in many industries, including aerospace and defense, automotive, consumer products, industrial products, medical devices, and architecture.