According to our latest figures, worldwide shipments of 3D Printers rose +25% year-to-date (YTD) through the first three quarters of 2016 thanks again to shipments of low priced Personal/Desktop 3D Printers.
Of the total 217,073 3D printers shipped year-to-date, 96% of these were Personal/Desktop printers, carrying an average price of just under $1,000. This represents a 27% year-on-year growth for this sub-category compared to a decline in shipments of -12% YTD in the Industrial/Professional segment which saw only 7,726 units shipped through the first three quarters of 2016. While the market is still largely defined by the shipment of Industrial/Professional printers – which accounted for 78% of the global revenues – the market is clearly settling into two distinctive segments.
Vendor wise, in the Desktop/Personal 3D Printer segment, Taiwan’s XYZprinting remained the global leader so far in 2016, seeing its share grow to 22% through the first three quarters. This side of the market saw the exit by the #3 global overall player 3D Systems and the continued repositioning of the #1 global 3D Printer market Stratasys of its MakerBot line away from the lowest end.
The Industrial/Professional segment was marked by the official entrance of HP into the space but printers did not begin shipping until the end of the year. While the Industrial/Professional segment has, in general, cooled off in the past few years, the shipment of additive manufacturing devices capable of printing in metal materials was one major bright spot within this category. This Metal side was not immune to market changes in recent quarters either however, with a slow-down seen in this sub-segment as well in the 2nd half as General Electric (GE) acquired two of the top five metal making 3D Printer companies (Arcam and Concept Laser).
Projections for the full year 2016 remain reserved for the Industrial/Professional market and bullish for the Desktop/Personal market, largely in-line with trends seen through the first three quarters. Forecasts turn more bullish in the Industrial/Professional sector in 2017 and beyond as the HP and GE ramp results in a return of growth; the Desktop/Personal market is expected to continue its unfettered growth.
On November 29th, CONTEXT hosted a special VR breakfast in cooperation with Exertis France, AMD, MSI, Oculus, and Ubisoft in the Musée de l’Armée in les Invalides in Paris. Retailers, distributors and vendors gathered for the morning to hear the results of the latest CONTEXT European VR survey.
The VR survey was designed by members of the CONTEXT Virtual Reality Research group which includes companies such as Exertis, AMD, Oculus, John Lewis, Dell, CONTEXT, Retail Week and the University of Reading. The research highlighted the expectations of European consumers towards VR and the potential barriers to purchase of VR products. It also showed in which channel the consumer were expecting to find VR products and how much they were ready to spend. The survey gave to the various industry players a clear understanding of what concerns they should address and what they should communicate in order to allow the technology to gain greater penetration of the market. A representative of FNAC, Laura Gaztambide, eCommerce Coordinator of Video Gaming, shared FNAC’s own experience on VR products and future plans to develop this market further.
Prior to hearing the results of the VR research, attendees watched a briefing on the European gaming market presented by Jonathan Wagstaff, UK & Ireland country manager at CONTEXT, and a detailed presentation on Ancient Rome made by university professor Matthew Nicholls who has made a full virtual reconstruction of the Eternal City, the outcome of 8 years of work. This helped the attendees to assess the educational potential and usage that VR is opening up.
Guests also had a chance to try Ubisoft’s Eagle Flight VR game flying over a virtual Paris, and were welcomed by a kind note of support for the VR industry from President Francois Hollande who was proceeding to an Army review in the Invalides on the same morning.
Thirteen months after its launch, adoption of Microsoft’s Windows 10 operating system is slowly beginning to increase amongst business users. By August, Windows 10 Pro (excluding the Windows 7/Windows 10 downgrade version) made up 24% of Windows Business PC sales in Western European distribution, up six percentage points compared to July. Whilst adoption in the first half of the year had largely been driven by the Windows 7/Windows 10 Pro downgrade version, July and August were the first months to see the share for “pure” Windows 10 Pro sales grow faster month-on-month than share for the downgrade version, albeit from a much smaller base. The share of Windows 10 Pro was up from 16% in June to 18% in July and 24% in August, while Windows 7/Windows 10 Pro moved from 65.5% in June to 66% in July, followed by a drop to 64% in August. Combined adoption rates for the two versions increased from 81% to 88% over the period.
The rise in Windows 10 Pro share, though moderate for the time being, is good news for the PC industry, which is looking at Windows 10 refreshes as the next larger growth driver in commercial PC sales. Certainly, some of the recent rise in adoption might be driven by the fee that we hear is being applied to the downgrade version, which is likely to cause budget-conscious buyers to move faster to “pure” Windows 10. But anecdotal evidence suggests that there is also a more “genuine” rise in interest for the new operating system, particularly within the small- and medium-sized business segment, as companies are slowly beginning to make the move from testing to deployment. In terms of volume growth, the business segment does indeed see a positive development: Windows Business PCs across our Western European panel were up by +7% year-on-year in the first two months of Q316, and while it would be taking things too far to say that this was entirely down to Windows 10, the new OS certainly did play a role.
Comparing adoption rates of Microsoft’s latest version of Windows to its most successful predecessor, Windows 7, the “pure” Windows 10 still has a long way to go to catch up. The 24% share of Windows 10 Pro that we’re seeing now, thirteen months after its launch date, compares to an adoption rate of 77% for the “pure” Windows 7 version at the same time after launch in October 2009. Things look better however when comparing the two OS’s combined shares of “pure” and downgrade versions: Windows 10’s 88% share in August this year is not that far off from the 98% held by the combined Windows 7 and Windows 7/XP versions in November 2010.
It will be interesting to see if the first few signs of an increase in Windows 10 sales will translate into a more significant growth trend over the next few months. Expectations are for the commercial segment to start refreshes in earnest at the beginning of 2017, with larger enterprises transitioning over the course of the next two years. We will be monitoring this closely.