Somewhat quietly, the 3D Printing ETF (CBOE: PRNT), the lone ETF focusing on the 3D printing theme, is higher by more than 15% over the past 90 days and resides near all-time highs. Recent data regarding 3D printing market growth confirms why PRNT is on a tear as of late.
PRNT debuted nearly three years ago as the first US-listed ETF dedicated to the 3D printing theme. The fund is one of two passively managed products from New York-based Ark Investment Management. ARK believes 3D printing will revolutionize manufacturing by collapsing the time between design and production, reducing costs, and enabling greater design complexity, accuracy, and customization than traditional manufacturing.
“The 3D printing market by revenue is expected to grow at a CAGR of over 18% during the period 2019–2025,” according to Report Linker research. “The global 3D printing industry has been on a stable growth path over the last decade. 3D printing has opened a plethora of opportunities for mankind. It is permeating many industries and sectors, thereby creating ways to explore new products.”
Industrial, International Adoption
Bolstering the case for PRNT is that plenty of major economies outside the U.S. are embracing 3D printing and the same goes for industrial adoption, which is increasing in broad-based fashion.
“The US, UK, Germany, France, and China are the leading countries with the highest adoption and investment rates. The automotive industry is expected to expand at the fastest pace because of the growing acceptance of the technology in automotive part manufacturing. 3D printing technology is largely adopted in the aerospace and defense sectors. The aircraft industry is among the early adopters of the technology,” according to Report Linker.
Adding to the allure of PRNT is that the coronavirus pandemic is highlighting numerous applications for 3D printing in the healthcare market, a trend that’s expected to last well beyond the virus’s expiration date. As regulatory guidelines become clearer, healthcare is expected to be a major market for 3D printing products and services in the years ahead.
PRNT’s underlying index index “is composed of equity securities and depositary receipts of exchange-listed companies from the U.S., non-U.S. developed markets and Taiwan that are engaged in 3D printing-related businesses within the following business lines: (i) 3D printing hardware, (ii) computer-aided design (“CAD”) and 3D printing simulation software, (iii) 3D printing centers, (iv) scanning and measurement, and (v) 3D printing materials,” according to Ark.
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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.