New procurement regulations included in the U.S. National Defense Authorization Act (NDAA) that took effect in January 2026 are raising concerns across Asian AM supply chains. The provisions restrict the use of AM systems manufactured or developed in certain countries, prompting defense-related manufacturers to reconsider their procurement strategies.
Overview of New Regulations
Section 880 of NDAA 2026 prohibits the U.S. Department of Defense (DoD) from operating or procuring AM systems that are manufactured in, have software developed in, or are networked through specific countries. The designated countries include China, Russia, Iran, and North Korea.
The regulation positions AM technology as “critical defence infrastructure” and, while narrow national-interest waivers are available, fundamentally restricts both new procurement and renewal of existing contracts for covered systems.
Additionally, Section 220A mandates that by September 30, 2026, the DoD must implement a program to produce replacement parts for military systems using advanced or additive manufacturing techniques, underscoring the strategic importance of AM in defense applications.
Current State Of Asian AM Supply Chains
The Asia-Pacific AM market continues to experience rapid growth, reaching $8.71 billion in 2025 and projected to reach $22.13 billion by 2030 at a compound annual growth rate of 20.5%.
Market segmentation by price point is becoming increasingly pronounced. In the low-cost segment dominated by desktop machines, Asian-manufactured systems account for approximately 70% of the global market. Meanwhile, the industrial large-format segment features a mixed landscape of Western manufacturers and price-competitive Asian makers.
China stands as the world’s largest AM equipment manufacturing hub, with an integrated supply chain centered in Shenzhen. South Korea’s market reached $541.5 million in 2024 and is projected to grow to $3.175 billion by 2033. India is fostering domestic AM industry development aligned with its “Make in India” policy.
Procurement Considerations
The impact of the new regulations will likely vary by price segment.
For industrial large-format systems, alternative options from Western manufacturers exist, though procurement costs will inevitably rise.
More significant impact is anticipated in the low-cost desktop and entry-level industrial system segments. In these segments, alternative options manufactured outside the designated regions are extremely limited, and price differentials are substantial.
Existing equipment handling also presents challenges. While the regulations primarily target new procurement, restrictions on contract renewals mean companies will need to revise their mid- to long-term equipment replacement plans.
Impact on Prototyping Processes
Particularly notable is the potential impact on early-stage development prototyping processes.
In defense-related product development, iteration speed and cost directly affect competitiveness. The ability to conduct multiple prototyping cycles economically using low-cost systems has been key to development efficiency.
However, restrictions on procurable systems may increase per-iteration costs, potentially forcing reductions in the number of iterations. This is expected to particularly affect small and medium-sized suppliers, research institutions, and startup companies with limited budgets.
Regional Approaches Across Asian AM Supply Chains
Responses across the Asian region are likely to vary by country.
Japan and South Korea, which maintain close defense cooperation with the United States, are expected to prioritize regulatory compliance. Defense-related suppliers in these countries may face requirements to ensure compliance throughout their supply chains.
ASEAN countries, meanwhile, may adopt strategies that clearly distinguish between civilian and defense-related applications, applying appropriate procurement approaches to each.
Singapore continues to advance AM industry development centered on NAMIC, focusing on enhancing domestic company capabilities and integration into global supply chains. DNV’s Global Additive Manufacturing Technology Centre, also located in Singapore, functions as a hub for certification and verification services.
India faces the challenge of carefully balancing domestic manufacturing promotion with strengthening U.S. relations.
Industry Adaptation Strategies
Multiple adaptation strategies are beginning to emerge across Asian AM supply chains.
First is the adoption of multi-vendor strategies. Rather than depending on a single region or price point, approaches that utilize different suppliers based on application and requirements are gaining attention.
Second is the revision of technical evaluation criteria. Movements are emerging to add factors such as geographical diversity of procurement sources and compliance risk to procurement criteria that previously emphasized price and speed.
Third is the clear distinction between civilian and defense-related applications in equipment use. Some facilities are attempting to balance compliance and cost efficiency by segregating equipment use based on application, even within the same facility.
Future Outlook
In the short term, these regulatory changes are likely to bring increased complexity and rising costs to Asian AM supply chains.
In the medium term, further market segmentation may progress. One axis would be the distinction between a “compliance-focused” market for defense-related applications and a “price-competitiveness-focused” market for civilian applications.
The regulations may also impact Western AM manufacturers. The U.S. exclusion of systems manufactured in specific countries from defense procurement could prompt companies in those countries to reduce procurement of Western systems in retaliation. China, in particular, represents one of the world’s largest AM equipment markets, and restrictions on market access could significantly affect Western manufacturers’ business strategies.
In the longer term, scenarios of market fragmentation based on geopolitical factors cannot be ruled out. There is potential for the formation of two parallel AM ecosystems: one centered on the West and allied nations, and another centered on China.
Should this scenario materialize, the following impacts are anticipated.
In terms of technical standards fragmentation, equipment specifications, file formats, and quality certification standards could evolve in different directions by region. Current international standardization efforts through ISO/ASTM risk splitting into two distinct standard systems.
Supply chain duplication is also a concern. Companies may need to construct entirely different supply chains depending on which market they operate in. This represents a significant cost increase factor, particularly for companies operating globally.
Restrictions on technological exchange are also possible. International movement of researchers and engineers, information sharing at conferences, and collaborative research projects may face constraints. This raises long-term concerns about potential impacts on innovation speed across AM technology as a whole.
Asian AM supply chains find themselves in a particularly complex position amid this potential fragmentation. Many Asian countries maintain strong economic ties with China while preserving cooperative security relationships with the West. This duality may manifest in the AM industry as well.
TCT Asia 2026, scheduled for March 17-19, 2026 in Shanghai, will provide an important opportunity to directly hear industry stakeholders’ perspectives on these regulatory changes. Through interviews at the exhibition and discussions in conference sessions, insights may emerge regarding how Asian AM companies perceive these regulatory changes and what responses they are considering.
In the coming years, how Asian AM supply chains adapt and evolve within this new regulatory environment will be a focal point for the entire industry. Whether market integration is maintained or fragmentation progresses will be determined not only by technical and economic factors but also by political decisions.
