Steve Nigro will head HD’s 3D Printing division
On September 2, 2015, Fortune reported that Steve Nigro, Hewlett-Packard’s (HPQ) senior vice president of imaging and printing, will take charge of the company’s 3D Printing business for the soon-to-form HP Inc. after the split happens. HP Inc. will be focused on printers and personal computers (or PCs).
Dion Weisler, CEO (chief executive officer) of the soon-to-be HP Inc. stated, “As our first 3D printing product nears commercial availability, I’m creating a new 3D Printing business group and center of excellence.” Weisler added, “With that in mind, I have asked Stephen Nigro to turn his entire focus to 3D Printing, continuing to report to me.”
For more on HP’s plans, please read Why HP expects 3D printing to drive its growth.
HP’s leadership position in 2D printing made easy transition to 3D printing space
HP is considered a leader in the 2D printing space. IDC (International Data Corporation) reported that HP commanded nearly 40% market in this space in 2013. So entering into the 3D printing business appears like a natural progression for HP.
As we’ve already seen in the series HP chooses an opportune moment to enter 3D printing market, HP’s entry into the 3D industry couldn’t be more opportune, as this industry is about to witness patents expiration.
Also, with long-held expertise in the 2D printing market, HP is well positioned to bolster innovation in the 3D printing industry. The industry is currently dominated by smaller players such as 3D Systems (DDD) and Stratasys (SSYS).
Canalys estimates that 3D printing space, which was worth $3.8 billion in 2014, is expected to grow at a compound annual growth rate (or CAGR) of 45.7% by 2018, as the above presentation shows.
HP’s Multi Jet Fusion technology claims to revolutionize the 3D industry
In early 2014, HP’s CEO (chief executive officer) Meg Whitman shared the company’s plans to enter the 3D printing market. Later on in its 4Q14 earnings release, the company divulged details about its Multi Jet Fusion (or MJF) technology.
HP’s MJF technology is capable of printing over 30 million drops per second across each inch of the build area, with a five-micron tolerance. HP’s MJF 3D Printing services are expected in the market by 2016. HP’s MJF uses Intel’s (INTC) Core i7 family of processors.
3D printing demand is expected to pick up as it reduces material waste and requires comparatively lower energy consumption than conventional manufacturing processes.
If you’re bullish about HP, you might consider investing in the Technology Select Sector SPDR (XLK) that invests about 1.25% of its holdings in HP.