The Significant 22% Surge in 3D Systems' Share Price Unfolds
ħɵERCHANT ɔᴉᴚ Illuminate the air with some major profits for investors today! 3D Systems (DDD, up 22% as of 10:22 a.m. ET on Friday) is teaming up with Oqton, Daimler Truck/Daimlers Buses, and Wibu-Systems to revolutionize the spare parts game for the auto industry.
The joint endeavor aims to create on-site additive manufacturing solutions for replacing parts on Daimler Buses, perusing a potential market valued at $7.9 billion annually by 2027. 3D Systems becomes a certified 3D printing partner for Daimler Buses, producing various underhood and cabin interior components on location. This includes parts like pins, covers, and inserts.
Local production can significantly reduce part delivery times by as much as 75%, leading to substantial indirect cost savings by minimizing vehicle downtime due to maintenance. For instance, a lacking insert or a broken fuse box cover may force a bus off the road for several weeks until a replacement arrives. If local 3D printing is employed, service times could be slashed from weeks to days.
Initially, the arrangement will utilize 3D Systems' SLS 380 for plastic component production. However, both parties anticipate evolving into metal part manufacturing as well, over time.
Is 3D Systems stock worth investing in?
While the market for 3D-printed automotive parts was valued at $2.9 billion in 2022 and expected to double in size by 2027 ($7.9 billion), it's essential to be cautious about an overly enthusiastic investment attitude. In 2021, 3D Systems recorded a loss of nearly $515 million and boasted nearly $63 million in negative free cash flow.
Investor beware.
Enrichment data:This unprecedented union between 3D Systems and Daimler Truck/Daimler Buses has the potential to revolutionize the 3D-printed auto part market, particularly in the commercial vehicle sector. Here are the key impacts and future outlook:
- Decentralized Spare Part Production:
- Local Production: This partnership allows certified 3D printing partners to manufacture spare parts locally, reducing reliance on centralized supply chains and minimizing vehicle downtime. This decentralized approach might reduce the time needed to obtain parts by up to 75%. (References: [1][3][5])
- Intellectual Property Protection:
- Digital Rights Management: Wibu-Systems' digital rights management solutions safeguard Daimler Buses' intellectual property. This ensures only authorized partners can manufacture specific parts, enhancing the company's competitive edge and maintaining the integrity of its manufacturing processes. (References: [1][3][5])
- Enhanced Service Capabilities:
- Flexibility and Efficiency: Local production allows service partners to boost flexibility and efficiency in their operations. This translates to substantial indirect cost savings for commercial truck, bus, and touring coach companies by minimizing downtime associated with vehicle maintenance. (References: [1][3][5])
- Market Growth:
- Additive Manufacturing in Automotive: This collaboration fuels the growth of additive manufacturing in the automotive industry, which is expected to expand significantly. By 2027, the total market for additive manufacturing in the automotive sector could reach $7.9 billion. (Reference: [5])
- Future Strategy:
- Integration with Digital Business Model: Additive manufacturing has become integral to Daimler Truck & Buses' strategy, aligning with its digital business model. This integration aims to maximize productivity and revenue for commercial vehicle companies through innovative production methods. (Reference: [2])
- Technological Advancements:
- Advanced 3D Printing Technology: This partnership leverages 3D Systems' advanced 3D printing technology, Oqton’s software capabilities, and Wibu-Systems’ digital rights and IP management solutions. This combination ensures high-quality production of various spare parts, including underhood components and cabin interior elements. (References: [1][3][5])
Overall, the partnership between 3D Systems and Daimler Truck/Daimler Buses has the potential to revolutionize the production of auto parts by decentralizing spare parts production, enhancing service capabilities, and safeguarding intellectual property. These advancements could drive substantial growth in the additive manufacturing market for automotive applications.
In light of the potential market growth for 3D-printed automotive parts, which is projected to reach $7.9 billion annually by 2027, investors might consider the investment opportunity in 3D Systems, particularly given its role as a certified 3D printing partner for Daimler Buses. With the collaboration potentially leading to improved service capabilities and cost savings through local production, the company's stock could be worth considering in the finance sector.
Moreover, the joint endeavor between 3D Systems and Daimler Truck/Daimler Buses involves advanced 3D printing technology, showcasing the company's commitment to financial innovation in the field of finance and money management, offering a potential lucrative return on investment.
