The investment case for 3D printing stocks may be forgotten, but it’s not gone. In fact, the case for assets such as the 3D Printing ETF (CBOE: PRNT) is being bolstered by the dental and healthcare markets.
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.
Research and data have long suggested the healthcare arena could unleash a massive wave of growth for the 3D printing market, a thesis that’s routinely confirmed.
“The global 3D Printing in the Medical and Dental Market is expected to witness promising growth in the next few years,” according to Reports and Reports. “The rising level of competition among the leading players and the rising focus on the development of new products are likely to offer promising growth opportunities throughout the forecast period.”
PRNT Up Opportunities
ARK, PRNT’s issuer, 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 global 3D Printing in the Medical and Dental Market is highly fragmented. Small market players operating at regional and local levels are challenging the market shares of the leading players (on the basis of cost differentiation and technical support services),” notes the research firm. “In order to maintain their market shares, leading players are continuously developing new technologies and upgrading their existing products and services to enhance their product portfolios. Increasing competition is expected to drive innovation in the market, thereby helping the industry to overcome existing challenges in the field of healthcare mobility and at the same time address user compliance issues and unmet needs of the market.”
The coronavirus is impacting 3D from a macro standpoint this year, but that should improve as countries get a handle on the virus.
“Due to delays in the transport of components and raw materials, along with quarantine restrictions, the transportation of raw materials is affected, this will cause tight supply, and then the price of raw materials to rise,” note the report’s authors. Meanwhile, as end-user demand weakens, many players are also facing the risk of higher inventory backlog, which may lead to passive production reduction, some traditional retailers began to develop the online business.”
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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.