Emerging Technology

The Market Today: When to Invest in 3D Printing Stock

Emerging Technology
3D Printing Investing

A look at the 3D printing market to determine if 2016 is the best time to invest in 3D printing stock.

2016 has becoming a turning point for the 3D printing investing. Many companies are starting to integrate the technology into their manufacturing processes and stock prices are evening out. We aren’t seeing the major gains of previous years, but the market seems to be on the wise.
The overall hope from those in the industry is that 3D printers will become a mainstay of personal technology systems. Is now the year that this is finally happening?
History of plummeting share prices
2015 got off to a difficult start for the 3D printing industry, with Stratasys (NASDAQ:SSYS) and 3D Systems (NYSE:DDD), the only two stocks expected to be profitable last year, experiencing poor share price action.
 

At the time, Morgan Stanley (NYSE:MS) has identified capital spending constraints, currency, new product introductions and a slower channel ramp in Asia as reasons that Stratasys fared so poorly. However, the firm has also said that “most concerning reason is the consolidation within the channel. The 3D printing industry is believed to be in the early stages of adoption which is inconsistent with go-to-market consolidation trends.”
These share prices continued to disappoint investors throughout the beginning of 2015 and, at the outset of 2016, it looked as though things may continue in the same vein. However, in February fortunes took a turn for the better, and most stock prices have been rising.
Growing market
A PwC report titled “3D Printing and the New Shape of Industrial Manufacturing” states that the global 3D printer market is expected to reach $6 billion by 2017 — a vast increase from its value of $2.2 billion in 2012. Much of this increase is expected to stem from the willingness of major companies to adopt 3D printing technology into their manufacturing processes.
The report states that 66.7 percent of manufacturers are currently adopting 3D printing technology in some way. A further 28.9 percent of companies surveyed are in an experimentation phase to determine how the new technology may best apply to their production, while another 24.6 percent have moved on to prototyping with it.


However, one-third of companies (the largest single group) responded to the PwC survey by claiming that they are not implementing these technologies. Indeed, 8.6 percent of manufacturers do not ever plan to adopt 3D printing.

Is now a good time to invest in 3D printing stock?

This calmer market could be seen as a prime time to invest in 3D printing stock. Investors are not going to see the major gains of previous years, but it seems as though the disheartening losses of 2015 are over as well. As companies stock prices appear to be rising steadily, 2016 could be the perfect time to purchase 3D printing stock.
 
Do you know of any exciting 3D printing tips? Let us know in the comments or on twitter @INN_Technology.
 
Securities Disclosure: I, Morag McGreevey, hold no direct investment interest in any company mentioned in this article.

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