3D Systems (DDD - Free Report) recently made some additions to its portfolio of DMP metal printers. The DMP Flex 350 and DMP Factory 350 were launched to further assist customers in their manufacturing transformation journey.
The DMP Flex 350 boasts up to 15% improved print productivity and quicker time to market at a lower cost compared to its predecessor ProX DMP 320 metal 3D printer. The DMP Flex 350 can be upgraded to a more enhanced printer — the DMP Factory 350 — as required by the factory.
The printers are expected to hit the market toward the end of the year.
Efforts in 3D Printing
With the 3D printing industry booming, the company’s focus on this market presents a favorable long-term opportunity. The company is enabling 3D production through digital design and manufacturing workflows, technology advancements and materials innovation, and application engineering expertise.
As a matter of fact, majority of 3D Systems customers are shifting from prototyping to end use production, using 3D printing technology.
Per data from a 2017 MarketsandMarkets report, the worldwide 3D printing industry is expected to witness a CAGR of 25.76% from 2017 to 2023 and reach $32.78 billion. Furthermore, per Gartner, the global 3D printing market is projected to be worth $17.7 billion by 2020.
The company believes that it is well positioned to aid customers in the transformation. Notably, it recently unveiled ProJet MJP 2500 IC, a new 3D printing solution ideal for customized metal bridge manufacturing and low volume production of metal cast components. The company also began shipping NextDent 5100 printers during the last reported quarter.
Earlier this year, the company unveiled four new materials optimized for producing precision metal parts. Also, it has begun bundling the innovative 3DXpert software with all direct metal printers.
The company believes metal technology and Figure 4, combined with the advanced materials and software innovation such as 3D Sprint and 3DXpert, will eventually help customers shift from prototyping to production. This can unlock multiple profitable growth opportunities for it.
All these efforts are paying off as reflected in the growing demand for its printers, which drove a 17% year-over-year jump in printer revenues and 93% surge in printer unit sales in the last reported quarter.
Competition Remains a Concern
With the robust growth opportunities being offered by this market, the competitive environment is getting more intense as 3D System’s peers continue to make their own moves to up their game in this business.
Printing giant HP (HPQ - Free Report) is forging ahead into the 3D printing market with new Jet Fusion 3D printers and key partnerships, and looks well positioned to challenge 3D Systems' leadership.
The company also faces significant competition from Stratasys (SSYS - Free Report) , which is currently developing a platform for short-run metal applications, and voxeljet (VJET - Free Report) , which recently launched new speciality materials for its High Speed Sintering line of 3D printers.
Nonetheless, 3D System’s long documented expertise in this field combined with constant improvement strategies and innovative product launches should help maintain its stronghold.
3D Systems currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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