3D printing has revolutionized not only the printing industry but also various other sectors. From printing simple objects like keychains to constructing entire buildings, 3D printing has become an essential and innovative technology. Over the past 30 years, the 3D printing industry has experienced remarkable growth, presenting significant investment opportunities.
What is 3D Printing?
Although the idea of 3D printing a bridge might sound like a scene from a sci-fi movie, the technology has been around since the early ’80s. In 1980, Hideo Kodama filed the first 3D printing patent, describing a photopolymer rapid prototyping system that utilized UV light to harden the material.
Since then, 3D printing has evolved rapidly, with applications ranging from designing intricate small objects to transforming the manufacturing industry. Although early attempts to introduce 3D printers into homes were challenging, the industry experienced substantial growth in the 2010s, with sales reaching $9.3 billion in 2018. By 2021, the industry had grown to $10.6 billion, and projections estimate it will reach $50.8 billion by 2030, according to SmarTech Analysis, a leading 3D printing analysis and market research firm.
3D Printing Key Stats:
- 3D printing technology has been around since the early ’80s.
- In 2005, Dr. Adrian Bowyer developed the self-replicating 3D printer process, which enables printers to create copies of their own parts, reducing production costs and supply chain blockages.
- The industry is expected to achieve over $50 billion in sales by 2030, according to SmarTech Analysis.
- In 2021, 2.2 million 3D printers were shipped worldwide, and shipments are projected to reach 21.5 million units by 2030, according to Grand View Research.
- Global 3D printing sales are forecasted to grow at a compound annual growth rate of 20.8 percent from 2022 to 2030, according to Grand View Research.
- In 2021, a 12-meter 3D-printed steel bridge was opened in Amsterdam, demonstrating the technology’s potential impact on everyday life.
A Brief History of 3D Printing
Since its inception over 40 years ago, 3D printing has undergone significant advancements. Charles Hull created the first stereolithography apparatus (SLA) or resin printing machine in 1983 and later co-founded 3D Systems Corporation. The company sold its first 3D printing SLA machine, the SLA-1, in 1988, after Hull was granted the first 3D printing patent in 1986.
In the 1990s, several milestones propelled 3D printing technology toward global adoption. AeroMat introduced a 3D process in 1997 that used high-powered lasers to fuse powdered titanium alloys, enabling 3D manufacturing. In 2005, Dr. Adrian Bowyer developed the self-replicating 3D printer process, significantly contributing to the advancement of next-generation 3D printers.
While 3D printing was initially marketed for home use to supplement or replace traditional printers, the consumer application did not materialize as expected. However, industrial 3D printing experienced substantial growth, leading to a resurgence in the market. In 2009, Micro, a consumer 3D printing company, launched a successful funding campaign on Kickstarter, and Makerbot introduced do-it-yourself kits for home 3D printing. The industry attracted significant investments and attention from companies such as General Electric, Lockheed Martin, Boeing, and Google.
Today, 3D printing has become an integral part of industrial technology, enabling the creation of intricate designs and lightweight products that traditional manufacturing methods cannot achieve. The technology’s flexibility and digital nature have contributed to its expansion.
Top 3D Printing Companies
- Desktop Metal (DM): Creates processes for metal 3D printers. Market Capitalization: $780.7 million.
- Xometry (XMTR): Provides on-demand manufacturing services for 3D printing. Market Capitalization: $1.8 billion.
- Markforged (MKFG): Offers a software interface for creating and printing 3D parts. Also provides physical printers. Market Capitalization: $382.4 million.
- PTC Inc. (PTC): Provides a comprehensive 3D technology suite for manufacturers. Market Capitalization: $13.1 billion.
- 3D Systems (DDD): One of the industry’s pioneers, specializing in the production and development of 3D printers. Market Capitalization: $1.4 billion.
- Proto Labs (PRLB): Digitally manufactures prototypes and utilizes 3D printing. Market Capitalization: $1.3 billion.
- Stratasys (SSYS): Provides polymer-based 3D printing solutions. Market Capitalization: $1.3 billion.
(Source: Yahoo Finance, data as of July 22, 2022)
The 3D Printing ETF
Managed by investor Cathie Wood’s advisory firm, ARK Invest, the 3D Printing ETF (PRNT) tracks around 50 companies in the 3D printing industry. The fund includes hardware, software, scanner, materials, and printing center companies. Prominent holdings include Microsoft, Autodesk, Xometry, and PTC.
The fund operates on a tiered, equal-weighted index.
Annualized Returns (as of July 19, 2022):
- -38.8% (1 year)
- -0.8% (3 years)
- -2.5% (5 years)
Expense Ratio: 0.66%
Pros:
- Exposure to key players in the industry with significant growth potential.
- The industry is projected to experience rapid sales growth.
- Cathie Wood and ARK Invest have established reputations for investing in high-growth sectors.
Cons:
- Narrowly diversified, concentrated in one industry.
- The industry can be volatile; investors must be prepared for risks.
- The fund has negative returns in its 1-, 3-, and 5-year periods.
The 3D Printing ETF provides broad exposure to the 3D printing market, both directly and indirectly. It allows investors to participate in the industry without conducting individual company analysis.
Industries Driving 3D Printing Adoption
Several industries have been instrumental in driving the adoption of 3D printing:
- Health Care: 3D printing has made significant advancements in the healthcare sector, including the creation of prosthetic limbs, surgical tools, and even living human cells through 3D bioprinting. The 3D printing healthcare market was estimated to be $1.04 billion in 2020 and is projected to reach $5.8 billion by 2030.
- Automotive: The automotive 3D printing market is expected to grow from $2.9 billion in 2022 to $7.9 billion by 2027. 3D printing helps decrease development time and supply chain disruptions, providing lightweight components for electric vehicles.
- Aerospace: The global aerospace 3D printing market is projected to grow from $1.4 billion in 2020 to $6.8 billion by 2030. The demand for lightweight airplane components and easier prototyping drives growth in this sector.
- Defense: The 3D military market size is expected to reach $1.7 billion by 2027.
The Future of 3D Printing
With its versatility and integration into various industries, 3D printing is poised to have a profound impact on technology and manufacturing. Experts predict that 3D printing will become a mainstream technology for mass production in the near future. Metal 3D printing is expected to expand further, enabling its incorporation into aerospace and defense production.
In the healthcare industry, 3D printing applications will play a vital role in emergency situations and supply chain disruptions. However, the skills required to utilize 3D technologies present a potential growth hurdle. Education and increased awareness of 3D printing software and technology will foster further development within the industry.
Investors are advised to conduct independent research into investment strategies and consider the potential risks before making investment decisions.
Remember, the future of investing in 3D printing holds tremendous potential. So why not explore the opportunities available and embark on this exciting journey with investment?
