Why HP Is Banking on 3D Printing

What Will We See from HP in Fiscal 1Q17? PART 4 OF 6

By Adam Rogers  | Feb 15, 2017 3:51 pm EST

Strategic partnerships and acquisitions

In 2016, HP Inc. (HPQ) stated that it aims to reinvent the printing experience and unveiled the world’s smallest all-in-one inkjet printer in fiscal 3Q16. In May 2016, HP announced the world’s first production-ready 3D printer.

In 2016, HP announced that it was working with a number of strategic partners, including Nike (NKE), BMW, Autodesk (ADSK), Jabil (JBL), Johnson & Johnson (JNJ), and Siemens (SIEGY) in the 3D Printing space. HPQ also launched demo units for customers.

Why HP Is Banking on 3D Printing

In September 2016, HP stated that it intended to acquire Samsung’s (SSNLF) printer business in a deal valued at $1.1 billion. HP is looking to disrupt the printer space using MFP (multifunction printer) technology.

MFP technology will replace traditional copiers, and Samsung currently has a portfolio of A3 MFPs. This acquisition will be HP largest in the printing segment. HP values the worldwide A3 copiers segment at $55 billion and expects the transaction to close in the second half of calendar 2017.

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 ~77% of the 3D plastic market, which will drive revenue significantly over the next few years.

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.”

Notably, HP 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 this goal.

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