3D printing market to expand 19.9% this year
HP (HPQ) recently opened a new 3D printing center in China. Seeking to produce components and prototypes faster and more efficiently, manufacturers are adopting 3D printers. The new 3D printing center has expanded HP’s footprint in the world’s largest manufacturing market.
The global 3D printing market is poised to grow 19.9% this year to $12 billion, according to IDC. By 2021, the market is expected to expand to $20 billion, including spending on 3D printers, materials, software, and services.
HP buys Samsung’s printer unit
In the race for revenue in the 3D printing market, HP is competing with 3D Systems (DDD) and Stratasys (SSYS). In its fiscal Q2 2018, HP generated printing revenue of $5.2 billion, with commercial printing revenue, which includes 3D printer sales, growing 27% YoY (year-over-year). Meanwhile, revenue rose 6.1% YoY at 3D Systems and dipped 5.7% YoY at Stratasys. Last year, HP bought Samsung’s (SSNLF) printer business for $1.1 billion to broaden its reach and diversify its market.
PC market shows surprising strength
After separating from Hewlett Packard Enterprise (HPE) in 2015, HP narrowed its focus to the printer and PC businesses, with PCs forming its largest operation. Although the rise of smartphones has cut into PC sales, the PC market registered surprising growth in the second quarter, according to Gartner. HP’s PC-focused business grew 14% YoY in the latest quarter.