Home > Technology > 3D Printers – Ready for the PrimeTime – Disruption in Technology

3D Printers – Ready for the PrimeTime – Disruption in Technology

September 22nd, 2013

3D Printers Adoption for PrimeTimeThe 3D printing / additive manufacturing market is on the cusp of seeing much broader adoption across more upstream production applications and the consumer end market. As awareness of the technology’s capabilities evolves, we believe demand for print systems, materials and custom parts will accelerate. We also expect to see increased utilization of existing systems as customers start to extend use case beyond small batch digital manufacturing.

3D printing relies on the Additive manufacturing – a process of repeatedly applying thin layers of materials to build objects generated from 3D computer animated design (CAD) files. The technique is most commonly used by engineers during the prototyping stage of the design process. Larger manufacturing companies are looking to add elements of additive manufacturing into the production process and specialty end markets such as medical, dental and jewelry are already printing end-use parts and goods for commercial use.

While advance manufacturing applications currently account for 10-15% of total sales, over the long term we believe direct digital manufacturing (DDM) could represent the biggest share of the 3D printing market. Additionally, the recent “Maker” movement has created a flood of consumer curiosity and interest which we believe will materialize into a significant new market segment. We see the addition of those two opportunities as more than tripling the addressable market.

We see plenty of open field for market participants to roam, but the competitive environment is getting warmer. While DDD(3D) and SSYS are the clear leaders in the sector accounting for a disproportionate share of the current market. At the present, each system manufacturers offer relatively unique print capabilities and materials. Both companies are starting to generate a much greater share of sales from more profitable recurring revenue (materials and software).

3D Systems is one of the best positioned companies to take advantage of the rapidly growing additive manufacturing / 3D printing sector. We expect adoption of 3D printing to extend beyond the existing rapid prototyping market and slowly over time replace many processes currently employed by advance manufacturing.

Stratasys is well positioned in the near term to drive incremental value from its large customer install base. While their business is more closely aligned with the “mature” prototyping market, we think the uptick in activity in the space will allow Stratsys to see increased materials sales.

3D printers will be a True Disruption in the Manufacturing Space Aided by technology and may put America back on the World’s Manutacturing & Factory Map aided by Green Technology & Processes.

Categories: Technology Tags:
Comments are closed.