3D printing is one of the top technology trends in 2016. From Johnson & Johnson (NYSE:JNJ) partnering with Carbon3D to produce custom surgical devices, to GE’s acquisitions of two European firms specializing in 3D printing technology, there is no doubt that this sector is growing.
According to the International Data Corporation, the 3D printing market is projected to reach $35.4 billion in 2020. With applications ranging from the healthcare sector to manufacturing and aerospace, 3D printing is on the rise.
Here, we outline the real reasons that you should invest in 3D printing stocks and the easiest way to do so. For more 3D printing facts, click here.
What we learned from the rise of 3D printing
The 3D printing hype curve taught us two important lessons. First, the technology behind 3D printing stock is some of the most groundbreaking and innovative on the market today. And second, just because this technology is available or in development, doesn’t guarantee that it will become an immediate commercial success. Just as it took 3D printing innovators decades to create the technology that’s available today (you might be surprised to learn that the first 3D printing technology was created as far back as the early 1980s), consumers also have to shift their behaviour to make room for this new technology.
Best way to invest in 3D printing companies
There are many public companies in the 3D printing space, but the three main players are:
Stratasys is one of these old-time 3D printing giants. Year to date, the company has seen a 32.83 percent jump in its share price. Stratasys operates in the healthcare, aerospace, automotive and education markets. One of the company’s subsidiaries include MakerBot and Solidscape.
3D Systems is another big-name 3D printing stock. Year to date, the company has seen a 31.68 percent increase in its share price. In early 2017, the company launched its heavy duty ProX DMP 320, which is designed for metal printing.
ExOne provides 3D printing to industrial customers in several segments, which include pumps, automotive, aerospace, heavy equipment and energy.Year to date, the company has seen a 9.21 percent increase in its share price.
For the more risk-averse, another option is the 3D Printing Exchange Traded Fund (BATS:PR). This ETF began trading in July 2016 and has 39 holdings, all of which are leaders in 3D printing and related businesses. As of December 2016, companies on the top holdings are Organovo Holdings (NASDAQ:ONVO), HP (NYSE:HPQ), and K2M Group Holdings (NASDAQ:KTWO).
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This article was originally published on the Investing News Network on May 16, 2016. All stock prices have been updated to reflect their current value on February 14, 2017.
Securities Disclosure: I, Pia Rivera, hold no direct investment interest in any company mentioned in this article.