Investment fads come and go, and when they go it doesn’t always mean the earlier excitement was unwarranted. In fact, it can be an ideal time to invest. Once the hype has passed, valuations can actually be more compelling and put the investing odds back in favor of the investor.
That looks to be the case with 3D printing, which really just got going in the 1990s. Back in 2013, the market had grown enamored with 3D printing, but the excitement has slowed considerably since.
One issue is the industry is seeing much more tepid demand lately. This helps explain the decreased demand for the stocks. But long-term growth is expected to be 25%, suggesting the industry has some of the more compelling growth projections out there. One key industry player expects 3D printing to grow to a $21 billion market by 2020.
3D printing isn’t intuitive, but represents a revolutionary manufacturing process by which an object is printed from a digital image or three-dimensional computer model. CAD (computer-aided design) software can design a part or product that a 3D printer is able to create.
The below pure plays in 3D printing offer direct exposure to the best this industry has to offer. Of course, large, diversified and incumbent manufactures including General Electric Company (NYSE:GE) could end up eventually dominating the space. That could easily include buying out any of the players mentioned today, which would offer another chance for investment upside. Given the overall growth expected for the industry, investors should be looking for the safest way to position their own respective portfolios.