Why Invest in a 3D Printing Stock?
Why should investors consider a 3D printing stock? This overview covers the market and outlines three major players in the space.
The 3D printing sector has been slow to rise over the last several years, but there is no doubt that it is still is growing. With companies reporting record sales, new products and continual innovation, 3D printing is on the move.
In fact, according to 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 here for the long haul.
With that in mind, we’ve outlined below why investors should consider looking at a 3D printing stock, and the easiest ways to get involved in the space. If you’re looking 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 is some of the most groundbreaking and innovative work 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 (the first 3D printing technology was created as far back as the early 1980s), consumers also have to shift their behavior to make room for this new technology.
3D printing stock options for investors
There are a number of public companies in the 3D printing space, but the three main players are the companies laid out below. If you want to invest in a 3D printing stock you may want to begin here:
- Stratasys(NASDAQ:SSYS): 3D printing giant Stratasys operates in the healthcare, aerospace, automotive and education markets, and its subsidiaries include MakerBot and Solidscape. It has been operating for three decades, but emphasizes that it remains committed to innovating via new research and development initiatives.
- 3D Systems (NYSE:DDD): Like Stratasys, 3D Systems has been in the 3D printing business for three decades. Co-founder Charles Hull was the inventor of 3D printing, and the firm now bills itself as a 3D solutions company focused on engineering, manufacturing and selling a variety of 3D printers. It caters to the aerospace and defense, automotive and dental markets, among others.
- ExOne (NASDAQ:XONE): Founded in 2005, ExOne provides 3D printing machines, 3D printed products and related services to industrial customers in multiple segments, including pumps, automotive, aerospace, heavy equipment and energy. According to the company, its ExOne® process uses binder jetting technology with industrial materials, allowing traditional manufacturers to reduce costs and lower their risk of trial and error.
Other 3D printing stock exposure
For more risk-averse investors who don’t want to invest in a 3D printing stock, another option is the 3D Printing ETF (BATS:PRNT). This ETF began trading in July 2016 and had 50 holdings as of mid-2018.
All of its holdings are leaders in 3D printing and related businesses, with the top holdings being Stratasys, Prodways Group (EPA:PWG), HP (NYSE:HPQ), Renishaw (LSE:RSW) and ExOne. Which 3D printing stock are you interested in? Tell us in the comments.
This is an updated version of an article originally published by the Investing News Network in 2016.
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Securities Disclosure: I, Amanda Kay, hold no direct investment interest in any company mentioned in this article.