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Can HP Increase Its Penetration in the 3D Printing Segment?

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Nov. 20 2020, Updated 3:18 p.m. ET

Key capabilities

HP Inc. (HPQ) has been a market leader in the traditional printing business for the past 30 years. The firm is now eyeing the lucrative and high-growth 3D Printing market. In June 2016, HP delivered the world’s first production-ready commercial 3D printing system. Its management stated that the new HP Jet Fusion 3D Printing Solution produces superior physical parts at 50% of the cost as compared to current 3D printing systems.

HP had further stated that it was building a whole new partner channel for 3D printing and plans to continue to grow its ecosystem of technology partners in industries such as automotive, medical, aerospace, and consumer goods.

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Market opportunity of $18 billion

As the chart above shows, HP expects the 3D Printing market to grow at a CAGR (compound annual growth rate) of 30% as of calendar 2021. The firm also believes the plastics space will account for over $10 billion of the market. According to HP, it will be able to address approximately 77% of the 3D plastic market, which will drive revenue significantly over the next few years.

HP stated that it is working with a number of strategic partners, including Nike (NKE), BMW, Autodesk (ADSK), Jabil (JBL), Johnson & Johnson (JNJ), and Siemens (SIEGY). HPQ also launched demo units and prototypes for the partners.

In June 2016, HP announced that it had acquired German-based (FGM) David 3D Solutions. The acquisition has provided HPQ with the technology to continue to evolve “Sprout 3D and advance its market opportunities in both Immersive Computing and the $7 billion 3D scanning market.”

HPQ wants to build an end-to-end 3D solutions ecosystem, and it believes that its acquisition of David will bring it one step closer to its goal.

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