3D Systems Corporation (NYSE:DDD), a leader in 3D-printing technology, is betting on a diversified portfolio of 3D printing systems to drive future growth after it ditched the retail additive printing market that was dogged by sluggish demand. The company is pursuing opportunities in auto, aerospace and healthcare markets as it sees massive potential in these sectors.
As part of its push into healthcare market, 3D Systems inked a partnership with affordable custom prosthetic maker UNYQ to bring 3D-printing systems to production of medical devices such as prosthetics and orthotics. UNYQ has distinguished itself as a firm focused on democratizing access to stylish, affordable and personalized life-enhancing devices.
Before 3D Systems entered a partnership with UNYQ, the company had acquired Bespoke Innovations, a maker of personalized prosthetic limbs. As such, combining the technology it obtained through Bespoke acquisition and the partnership with UNYQ, DDD has the prerequisites to quickly popularize its 3D-printing technology in the healthcare sector and other commercial markets.
Freeing resources to focus on core strengths
By exiting consumer 3D-printing market, 3D Systems managed to free up its resources to concentrate on strengthening its core competencies. With manufacturers looking to cut cost in areas such as prototyping, 3D-printers could see widespread commercial adoption, including in several niche markets.
According to IDC, spending on 3D-printing systems is set to exceed $35.4 billion by 2020, suggesting a compound annual growth rate of 24.1% between 2015 and 2020. 3D-printing market was estimated to be $15.9 billion in 2016.
3D Systems buyout
3D Systems could also be an acquisition target for traditional printer manufacturers and industrial equipment makers looking seeking a head start in 3D-printing market. Rumors suffered recently that General Electric Company (NYSE:GE) could buy 3D Systems, sparking a rally in the stock.
3D Systems shares have risen nearly 10% over the last 12 months, and the shares gained more than 0.8% in the last session to close at $16.10