However, China's 3D printing ecosystem has a notable gap in providers of quality materials, as domestic companies are unable to supply high-quality photosensitive resin materials or high-quality metal, ceramic and polymer powder materials.
China aims to be a future leader in this new manufacturing method, the report suggests. The education sector, aided by government policy, will be the largest market in the near-term, growing at 39% annually.
"While 3D printing has been touted as a way for Western economies to compete with China's manufacturing advantages, the Asian giant is also taking rapid strides to parlay its traditional strengths into 3D printing as well," said Richard Jun Li, Lux research director and the lead author of the report titled, "China's Growing 3D Printing Ecosystem."
Thriving industry
"Far from being disrupted by 3D printing, China will thrive as its expertise in electronics, manufacturing, and its growing domestic market make it a threat and an opportunity for aspiring 3D printing value chain participants," he added.
Currently, automotive is a leading industrial application in China, and the automotive 3D printing sector will grow at 31% annually, riding on the strengths of the world's largest car market.
Chinese 3D printer makers shipped nearly 60% of their production to overseas markets, competing on cost with leading global brands such as MakerBot, 3D Systems, EOS and Stratasys. Of the 21,550 printers produced by China in 2013, 12,810 units were exported.
