As narratives often dominate price behavior in the short term, thematic investing offers a powerful mental model for analyzing opportunities. Looking through the end of the decade, two themes in particular stand out as fertile ground for investors: the reorganization of global supply chains and additive manufacturing (3D printing).
The following quote is from the introduction to the June 2, 2023 report “3D printing is a razor and blade opportunity”:
With post-Covid onshoring and regionalization of supply chains a clear and likely secular trend, one could postulate that it is a case of now or never for the additive manufacturing industry.
The next passage from the report speaks to the size and growth rate projections for the additive manufacturing industry:
The market size estimates provided by 3D Systems and Materialise are nearly identical, pegging the 3D market at $15 billion annually in 2021. Each company is forecasting industry sales in the 2026 to 2027 timeframe to be in the range of $43 billion to $50 billion… an annual sales growth rate of 22% for the industry. Looking through 2030, Materialise estimates the market size to be $85 billion in 2031, while Protolabs describes the market size as $100 billion plus.
Looking through the end of the decade, if the above estimates are even roughly in the ballpark, the reorganization of global supply chains and additive manufacturing represent two of the most prolific growth opportunities for investors.
Protolabs
As discussed in “3D printing is a razor and blade opportunity,” Protolabs and Materialise were identified as the top two opportunities in the additive manufacturing industry. Since the report, Protolabs has taken the pole position in the industry following its Q3 2023 earnings report on November 3, 2023.
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