Shenzhen-based consumer laser engraving equipment manufacturer xTool may once again attempt to list on the Hong Kong Stock Exchange. The prospectus submitted earlier this year shows that the company achieved revenue of CNY 2.476 billion in 2024 and CNY 1.777 billion in the first nine months of 2025. Based on gross merchandise value (GMV) for the first nine months of 2025, the company holds a 47% share of the global laser engraver and cutter market, approximately six times that of the second-largest brand.
xTool founder Wang Jianjun previously established the STEAM education brand Makeblock, which was once an industry star valued at CNY 3 billion. In 2021, when the company was on the brink of bankruptcy, he defied consensus to bet on the desktop laser engraving sector. The launch of its first product, the D1, enabled a dramatic turnaround. Within less than four years, he led xTool to dominate the global consumer-grade laser engraving market.
xTool’s growth trajectory naturally evokes comparisons with Bambu Lab. Both companies excel at transforming complex industrial processing technologies into user-friendly desktop devices, representing typical examples of "industrial technology consumerization" in China. Currently, Bambu Lab has begun offering standalone laser cutters, while xTool is bringing its equipment into retail stores of major brands like Stanley, causing the product boundaries between the two companies to converge. For xTool, holding nearly half the market share serves as proof of past achievements, but the market also raises questions about the ceiling of the laser engraving sector and where next-stage growth will come from.
xTool: From Industrial Tools to Consumer Electronics
Laser engraving technology has long been applied in the industrial sector, primarily serving large-scale factory production. In recent years, global demand for DIY creation, small-batch customization, and personalized gifts has surged, leading individual creators, small studios, and retailers to generate fragmented laser processing needs. While early low-cost desktop devices lowered purchase barriers, they suffered from significant shortcomings in processing stability, software experience, and safety protection, failing to break out of the niche enthusiast circle.
xTool seized this opportunity. In 2021, the company launched its first desktop laser engraver, the D1, followed by the multifunctional all-in-one M1 the next year. Handmade tasks that previously required multiple tools could now be completed on a single desktop device. More important than feature integration was the simplification of the operation process. xTool introduced features such as camera positioning, auto-focus, and processing previews across different products, integrating design and material parameter settings through software. This allowed users to spend more time on work design and actual fabrication.
Establishing brand mindshare was key to xTool widening the gap with competitors. xTool has become the first brand consumers think of when searching for laser engravers. Since 2023, its brand term search volume on Google has consistently exceeded related generic category terms, growing by approximately 50% from 2022 to 2024. Brand recognition is also reflected in pricing. xTool products are typically priced 10% to 30% higher than similar products, with gross margins reaching 59.2%, 54.4%, and 56.0% in 2023, 2024, and the first nine months of 2025, respectively. Higher selling prices and gross margins provide financial evidence of its product competitiveness. However, capturing nearly half the share in the segment means the company must continue finding new user groups to support scale growth in the next phase.
The market often benchmarks xTool against Bambu Lab, another company following the "industrial technology consumerization" path, but there are fundamental differences in their underlying growth logic and sector ceilings.
xTool vs. Bambu Lab: Similar Strategies, Different Growth Spaces
Although both belong to the desktop manufacturing tool sector, the processing logic and value attributes of their core products are entirely different.
Bambu Lab’s 3D printers transform digital models into physical objects by adding materials layer by layer; xTool’s laser engravers primarily use lasers to cut, engrave, and surface-treat existing materials. The former can create toys, models, and parts from scratch, while the latter excels at processing materials like wood, metal, and leather to add patterns, shapes, and personalized designs to products.
Since launching the X1 series in 2022, Bambu Lab prioritized auto-calibration, high-speed printing, and multi-color printing. Subsequently, products like the A1, P1, and H2D gradually covered users at different levels. Complex operations were taken over by machines and software, lowering the barrier for consumers using 3D printers. Consumers without modeling experience can download digital models shared by other creators to directly print toys, ornaments, and household items. The community continuously provides new creative content, giving users reasons to keep using the machine after purchase.
The two processing methods address different user needs. 3D printing applications can extend indefinitely around digital models, potentially creating new usage scenarios from toys and education to home decor and engineering prototypes. Laser engraving relies more heavily on specific materials and processing purposes; consumers usually need to decide what they want to make before purchasing the equipment. This requires xTool to continuously develop material processing capabilities while seeking higher-frequency commercial application scenarios.
Financial data from the prospectus indicates that xTool’s current figures already show signs of slowing C-end growth. In the first nine months of 2025, sales of laser personal creative tools and accessory kits dropped from approximately 85,900 sets in the same period last year to 71,900 sets, while the average selling price increased from CNY 15,900 to CNY 21,100. This decrease in volume and increase in price reflects a shift in the sales mix toward higher-value products. Premiumization helped xTool increase per-unit sales amounts but also raised requirements for new customers' purchasing power. During the same period, net cash flow from operating activities was -CNY 209 million, and ending inventory rose from CNY 433 million at the end of 2024 to CNY 857 million. Officially explained as strategic stocking for the Q4 peak season, industry perspectives suggest this also indirectly reflects inventory turnover pressure amid weakening C-end demand.
Bambu Lab’s formal entry into the laser sector shifted the relationship from indirect benchmarking to direct competition. In 2025, Bambu Lab launched the H2D, integrating 3D printing, laser engraving, and knife cutting. On September 22 of this year, it officially released the standalone R1 laser cutter, featuring a 55W CO₂ laser, supporting auto optical path calibration and camera positioning, and connecting to the existing MakerWorld ecosystem.
Bambu Lab can extend motion control, automation, and software capabilities accumulated in 3D printing to laser processing, while xTool has longer accumulation in various laser technologies, material adaptation, and professional processing scenarios. In the future, the two companies may compete for the same group of individual creators and small studios requiring desktop manufacturing tools. For xTool, the importance of the individual maker market will not disappear, but achieving larger scale growth relying solely on this group is becoming increasingly challenging.
Against the dual backdrop of pressured organic growth and intensified external competition, commercial scenarios in large-brand retail channels have become the core direction for xTool to find a second growth curve.
xTool’s Next Business: Inside Brand Stores
In a Stanley pop-up event, consumers who purchased insulated cups could select patterns and text on-site, which staff then processed via laser engraving. A standardized water cup became a customized product with a personal imprint after short-term processing. Consumers could also watch the production process in-store, making customization part of the shopping experience. According to xTool’s published Stanley case study, the event utilized the F1 Ultra and Retail Studio solutions, with some orders completed within 90 seconds. xTool stated that foot traffic during the pop-up increased by 40% compared to regular promotions.
This type of customization service offers retailers new sales ideas. Previously, retailers mainly attracted consumers through product design, pricing, and marketing campaigns; on-site processing allows customers to participate in product creation, adding personalized value to standardized goods. If customization services can consistently improve conversion rates, average transaction values, or customer stickiness, they have the potential to evolve from short-term events into permanent services, thereby generating bulk equipment procurement demand. However, brand stores have much higher requirements for machinery than ordinary makers. Retail staff need quick training, and processing results must be guaranteed across different products. Brands must also consider smoke emission, safety protection, equipment maintenance, and customer waiting times, all of which affect whether customization services can operate long-term.
Material processing capability determines how far customization services can extend across products. Metal cups, leather goods, glassware, and crystal gifts typically require different laser solutions. The more materials a device can stably process, the more opportunities merchants have to develop customized products at different price points, enhancing per-store profitability. xTool’s continuous expansion of the high-end F-series aims to meet these more complex processing needs.
The F2 Ultra UV laser engraver is regarded as the landmark product marking xTool’s true entry into the KA (Key Account) retail market. Equipped with a 5W, 355nm UV laser, the device enables precision processing of materials like glass, crystal, and ceramics, and supports internal engraving in qualified transparent materials. This solves the cumbersome processes associated with traditional CO₂ laser glass processing, making on-site customization possible for high-value retail categories such as premium gifts, beauty products, and alcohol.
Equipment truly targeting chain stores must prioritize solving safety and standardization issues. xTool’s Retail Marker adopts a dual-laser solution with a closed structure, classified as a Class 1 laser product, primarily aimed at commercial retail applications. Compared to processing equipment used in professional studios, these products place greater emphasis on employee operation, safety protection, and product placement space, facilitating integration into daily store workflows. For xTool, the value of the KA business also lies in the replicability of sales scale. An individual creator typically buys one device, whereas large retailers may adopt the same customization solution nationwide or globally. Once the single-store model works, rapid replication and scaling are possible.
Currently, xTool has not separately disclosed revenue, profit, or subsequent service income from the KA retail business in public financial materials. For xTool aiming for an IPO, the implementation progress of the KA business directly influences capital markets’ judgment of its long-term growth potential.
Xinliu Perspective
The successive rises of xTool and Bambu Lab validate the commercial feasibility of "industrial technology consumerization" in the hardware sector. Both companies leveraged mature manufacturing supply chains, using software, automation, and product design to lower operational barriers. They transformed industrial equipment originally usable only by professionals into consumer-grade products accessible to ordinary users, thereby opening up entirely new incremental markets.
However, the difference in their paths confirms an industry rule: the penetration ceiling of consumerization varies across different technical routes. Categories with strong content attributes see faster popularization, while categories with strong tool attributes and clear demands eventually extend into commercial scenarios.
After Bambu Lab entered the laser market, competition regarding device performance, pricing, and software experience will intensify, requiring xTool to establish new advantages beyond hardware. We are more focused on whether xTool can develop the KA business from short-term marketing events into stable retail services. The company is currently at a critical juncture of transitioning from a C-end single-product leader to a full-scenario solution provider.
Unlike Bambu Lab, which drives customer acquisition through community content, xTool’s growth relies more on search and e-commerce channels. This is the core reason why its brand search volume exceeds category terms—users search with explicit intent, converting directly to purchases rather than browsing communities first and then generating demand. For xTool, the 47% market share proves past product competitiveness, but next-stage growth depends on whether it can make laser processing a routine business for more merchants.