Cervitude LLC holds a position in 3DX Industries, Inc and has developed a research & stock analysis report (see below). We believe the industry in undervalued as a whole and 3DX’s small market cap, potential government contract work, competitive position in the spaces and sector investments leads the company to be grossly undervalued.

Catalyst in the 3D Printing Market

In general, we believe potential catalyst for the 3d printing sector are as follows:

1. Advancements in 3D printing technology and materials, leading to improved quality and affordability.
2. Increased adoption of 3D printing in various industries, such as healthcare, aerospace, and automotive, creating new market opportunities.
3. The emergence of new applications for 3D printing, such as food, textiles, and construction, expanding the potential market size.
4. Growing demand for customization and personalization, as 3D printing offers greater design flexibility and the ability to create unique products.
5. The rise of e-commerce and on-demand manufacturing, providing new channels for 3D printing services and enabling faster turnaround times.
6. Government initiatives to support additive manufacturing, such as funding for research and development and tax incentives for companies investing in the technology.
7. Partnerships between 3D printing companies and major corporations, resulting in increased investment and collaboration on new projects.
8. Increasing awareness and interest in sustainability and circular economy, as 3D printing can reduce waste and improve resource efficiency.
9. The impact of COVID-19 on global supply chains and manufacturing, leading to a greater emphasis on local production and on-demand manufacturing.
10. The development of new business models, such as 3D printing as a service, making the technology more accessible and affordable for small and medium-sized businesses.

Global 3D Printing Market

The global 3D printing market size was valued at USD 16.75 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 23.3% from 2023 to 2030. The aggressive research & development in three-dimensional printing and the growing demand for prototyping applications from various industry verticals, particularly healthcare, automotive, and aerospace & defense, are expected to drive the growth of the market.

The use of 3D printing in industrial applications is usually referred to as additive manufacturing (AM). Additive manufacturing involves a layer-by-layer addition of material to form an object, referring to a three-dimensional file, with the help of software and a 3-dimensional printer. A relevant 3D printing technology is selected from the available set of technologies to implement the process. The last step involves the deployment of this process across different industry verticals based on the necessity.

The deployment includes providing installation services, offering consultation solutions, and customer support, as well as handling aspects related to copyrights, licensing and patenting. 3D printing is benefiting manufacturers in terms of prototyping, designing of the structure and end products, modeling, and time to market. As a result, the production expenses have reduced considerably, and the manufacturers are in a position to offer better products at reasonable prices. As a result of these benefits, the demand for 3D printers is expected to be triggered more in the coming years.

However, the prevailing misconceptions with respect to the prototyping processes held by the small and medium-scale manufacturers are hindering the adoption of additive manufacturing. Companies involved in designing, particularly small-scale and medium-scale enterprises, are deliberating before considering investments in prototyping as accountable investments rather than trying to understand the advantages and benefits of prototyping. The general notion prevailing among these enterprises is that prototyping is merely an expensive phase prior to manufacturing. Such perceptions regarding prototyping, coupled with the lack of technical knowledge and a looming lack of standard process controls, are expected to hinder the market growth.

The outbreak of the COVID-19 pandemic has significantly impacted the overall global economy and subsequently, the 3D printing industry. Initially, Europe and Asia Pacific were some of the worst affected regions in terms of the number of COVID-19 patients across the globe. Further, the situation worsened in the U.S. as well. Due to the rapid spread of the virus, the governments issued an order for the complete lockdown of some key cities. The complete lockdown affected the production of 3D printing manufacturers. This is attributed to the labor shortage and the complete disruption of logistics and supply chain in the nation. The halt in the production of 3D printing had an adverse impact on the overall market growth in the first and second quarters of 2020.

Printer Type Insights

The industrial printer segment led the market and accounted for more than 76.0% share of the global revenue in 2022. Based on the printer type, the industry has been further segmented into industrial and desktop 3D printers. The large share of the industrial 3D printers can be attributed to the extensive adoption of industrial printers in heavy industries, such as automotive, electronics, aerospace and defense, and healthcare. Prototyping, designing, and tooling are some of the most common industrial applications across these industry verticals.

Extensive adoption of 3D printing for prototyping, designing, and tooling is contributing to the growing demand from the industrial sector. Hence, the industrial printers segment is expected to continue dominating during the forecast period. The adoption of desktop 3-dimensional printers was initially limited to hobbyists and small enterprises. However, they are being increasingly used for household and domestic purposes nowadays. The education sector, which comprises schools, educational institutes, and universities, is also deploying desktop printers for technical training and research purposes.

Small businesses are particularly adopting desktop printers and diversifying their business operations to offer 3D printing and other related services. For instance, the concept of ‘fabshops’ is gaining popularity in the U.S. These fabshops offer on-demand 3D printing of parts and components as per the designs and requirements provided by the customers. Hence, the demand for desktop printers is expected to rise significantly during the forecast period.

3D Printing Public Companies

Investors looking to capitalize on the growth potential of the 3D printing industry have several options to consider. Some of the 3D printing stocks in the industry include:

3D Systems (DDD): 3D Systems is a leading provider of 3D printing solutions and services for a range of industries, including aerospace, automotive, and healthcare. The company has a strong track record of innovation and a robust portfolio of patents, making it a key player in the industry.

Stratasys (SSYS): Stratasys is another major player in the 3D printing space, offering a range of advanced solutions for product design and manufacturing. The company has a global presence and a strong reputation for quality and reliability.

Materialise (MTLS): Materialise is a 3D printing software and services provider that focuses on healthcare, aerospace, and automotive applications. The company’s technology is used for a range of applications, including surgical planning and medical device production.

Proto Labs (PRLB): Proto Labs is a technology-enabled manufacturer that uses 3D printing, CNC machining, and injection molding to produce custom parts and prototypes for its customers. The company’s fast turnaround times and high-quality products have made it a popular choice among businesses in a range of industries.

HP Inc. (HPQ): HP Inc. is a technology company that has recently entered the 3D printing market with its HP Jet Fusion technology. The company’s 3D printing solutions offer high-speed printing and a range of materials, making it a promising player in the industry.

Markforged Holding Corporation (NYSE:MKFG) is a young and innovative company that is shaking up the 3D printing industry with its cutting-edge technology. The company has developed a unique 3D printing process that allows for the production of strong and lightweight metal parts. The company offers desktop, industrial, and metal 3D printers, as well as advanced 3D printing software. With a strong patent portfolio and a growing list of customers, Markforged Holding Corporation (NYSE:MKFG) is well-positioned to continue to disrupt the 3D printing industry and drive growth for shareholders. The stock is ranked among the best 3D printing stocks to buy now.

Velo3D, Inc. (NYSE:VLD) is a leading 3D printing company that provides high-quality 3D printing services for a variety of industries, including aerospace, automotive, and medical. Velo3D, Inc. (NYSE:VLD) was founded in 2014 and is headquartered in California, United States. At the end of Q3 2022, 11 hedge funds were long Velo3D, Inc. (NYSE:VLD) and disclosed positions worth $54.6 million in the company. This is compared to 18 positions in the preceding quarter with stakes worth $31.7 million.

Nano Dimension Ltd. (NASDAQ:NNDM) is an Israel-based company, which is engaged in the development of advanced 3D electronics solutions. Nano Dimension Ltd. (NASDAQ:NNDM) is a leading additive electronics provider that is revolutionizing the way electronics are manufactured. The company’s unique 3D printing technology is capable of printing complex electronic devices in a fraction of the time and at a fraction of the cost of traditional methods. Nano Dimension Ltd. (NASDAQ:NNDM) is at the forefront of the additive electronics manufacturing revolution, and its technology is being adopted by some of the world’s leading electronics companies. The company’s products are used in a wide range of applications, including aerospace, automotive, medical, and consumer electronics.

Overall, 3D printing stocks offer investors a range of investment opportunities in a growing industry with significant potential for future growth. But many are over valued and too diverse to really grasp the essence of the 3d printing market.

Specific to 3DX Industries, Inc.

3DX Industries, Inc (OTCM: DDDX) not only has 2 metal 3d printing machines but also has resin 3d printing capabilities. The company, based out of Ferndale, Washington, also has a legacy subtractive manufacturing division which sets it apart from other 3d printing companies. While most 3d printing public companies either make the 3d printing machines or materials for 3d printing, none of them are using the 3d printers to make parts for customers, other that ShapeWays (NYSE: SHPW) and Xometry Inc (NASDAQ: XMTR); neither of which have a subtractive division for full service finishing when manufacturing.

3DX Industries, Inc. over the past 2 years received an investment from RB Capital which is used to shore up its capabilities and establish a government contracting division. It has attended all major conferences and utilizes Desktop Metal’s ExOne binder jet 3d printers in its facilities. In addition, the company recently announced its use of Artificial Intelligence in its design and programing processes, at it elementary stages.

Unlike many OTC companies, 3DX constantly communicates with its investors via social media (mainly on Twitter) and has an open door policy, encouraging all shareholders and potential investors to visit their machine shop in Washington State. The company as of recently has traded near it’s 52 week lows and we believe this is a great opportunity for investors to get into the company’s stock at an attractive valuation.

See 3DX Industries’ Capabilities Statement below: