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HP's 3D Printing Solution on a Gaining Spree, Adds Customers

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HP Inc. (HPQ - Free Report) recently announced that it has increased installations of its HP Jet Fusion 3D printing solutions across various industries. This comes on the back of strong demand for 3D manufactured parts as industries gradually shift toward 3D mass production.

RecTech 3D of China, Forecast 3D and GE Transportation were added to HP’s portfolio of customers. Additionally, BMW and Volkswagen were also announced as customers.

Along with the announcement of increase in installations, HP also revealed a new workflow in collaboration with Autodesk, which will enhance its HP Multi Jet Fusion portfolio and help customers shift to mass production.

We note that the 3D printing technology is seeing a surge in popularity among major industries like aviation, healthcare and energy, and is slowly but steadily trickling down to other industries as well.

Strategic Steps to Expand Footprint in 3D Printing

HP has been gaining traction in the 3D printing market, courtesy of its innovations and a broadening portfolio. In fiscal 2017, the company earned 36% of revenues from its printing business including 3D printing solutions.

Notably, last year, HP launched Jet Fusion 3D Printing Solution in a bid to establish a stronger presence in this intensely competitive market. Since then, this technology has gained significant popularity across various industries.

It recently launched an advanced 3D printing technology — HP Metal Jet — that aids cost-effective high volume manufacturing of production-grade metal parts. The Metal Jet Production Service was unveiled simultaneously, allowing customers to quickly imitate new 3D part designs, produce the final parts and incorporate the HP Metal Jet into their future production plans.

HP Inc. Revenue (TTM)

HP Inc. Revenue (TTM) | HP Inc. Quote

Prospects Bright for HP Despite Competition

The 3D printing market presents remarkable long-term investment opportunities, as a large number of engineers, designers, architects and entrepreneurs are now turning to 3D solutions for primary designing and product modelling.

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.

Per Gartner, the global 3D printing market is projected to be worth $17.7 billion by 2020. Top players like Stratasys (SSYS - Free Report) , 3D Systems (DDD - Free Report) and Voxeljet , which already have a stronghold in the 3D printing business, are positioned to benefit immensely from the market’s prospects, spelling tough competition for HP.

However, we believe that HP, currently owning a 6% share in the 3D printing market, is poised well to capitalize on the prospects of the business. With an expanding portfolio and traction in 3D printer installations, the company seems to be well placed to maintain and gain more market share.

HP 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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