AM Market Excitement and Maturity

A quick review of the market share price of the publicly listed companies active in the additive manufacturing (AM) market shows a relatively similar trend. Comparing the 5-year share prices of the companies listed at the end of this article shows an exciting period around the year 2021, where we see the maximum share prices for most of the companies and a continuous decrease over the past three years. There are many factors related to such trends some of which are listed here:

1. Pandemic-Driven Surge: During the early stages of the COVID-19 pandemic, there was heightened interest and investment in technologies that could facilitate rapid prototyping and production, including 3D printing. This led to a significant surge in the stock prices of 3D printing companies as investors anticipated a booming market driven by the need for agile manufacturing solutions.

2. Post-Pandemic Market Realignment: As the immediate disruptions caused by the pandemic began to stabilize, the initial euphoria waned. Companies that saw their stock prices soar during the pandemic faced a market correction as investors reassessed the long-term growth prospects of the sector.

3. Overvaluation and Market Corrections: The rapid increase in stock prices led to overvaluation concerns. As the hype settled, many investors began to realize that the projected growth and profitability might take longer than initially expected, leading to a market correction and declining share prices.

4. Technical and Market Challenges: While there have been significant advancements in 3D printing technology, including faster printing speeds and the ability to print with metals, the market adoption has been slower than anticipated. Challenges such as high costs, scalability issues, lack of knowledge among target industries, and competition from traditional manufacturing methods have tempered expectations.

5. Mergers and Acquisitions: The industry has seen significant M&A activity. While these moves indicate consolidation and long-term strategic positioning, they also reflect the market's recognition that achieving sustainable growth independently is challenging.

( Ref 1 , Ref 2 were used for the above analysis)

Although some companies like #SLM_Solutions followed a different pattern in share price or the share price of companies like Renishaw is not affected only by AM products, the overall observation is defendable. I would call the current stage Maturity where both AM technology developers realise the market needs in more depth, and AM technology adopters understand the limitations. While the recent #Wohler's_report shows the growth of the AM market in both machine manufacturing and service, specifically in the metal sector, it does not reflect itself in share prices. It is now the company's effectiveness in profitable activities and revenue generation that defines the share price, rather than future promises.

Here are the share price charts of some of the AM companies captured in July 12, 2024.

#additivemanufacturing #3dprinting