3D printing solutions provider
) subsidiary, MakerBot, has entered into a strategic partnership
with SoftKinetic, a provider of 3D imaging and gesture
The partnership is mutually beneficial as MakerBot would be
able to expand and enhance its 3D Ecosystem and 3D Printing
Platform leveraging Softkinetic's 3D solutions. Softkinetic, on
the other hand, would gain in terms of 3D camera technology, used
for 3D scanning.
Moreover, SoftKinetic's DepthSense 3D Time-of-Flight (ToF)
depth capture technology complements MakerBot's Scanners and
Desktop 3D Printers. It is also noteworthy that Texas Instruments
and Intel use Softkinetic's 3D products and solutions. This
partnership will enable MakerBot and its parent company Stratasys
to attract new clients, thereby increasing the installed base of
3D printing systems.
Over the years, Stratasys' additive manufacturing solutions
have been used by companies in the automotive, aerospace,
defense, electronics, consumer goods, education and other sectors
to improve product designs.
The company has also expanded its product offerings through
acquisitions. The strategic acquisition of MakerBot has expanded
Stratasys' customer base and will help it to target engineers,
designers, architects and entrepreneurs. We believe this
combination will result in a leader in 3D industrial printing and
manufacturing and positions Stratasys for growth in the 3D
The company's focus on the 3D printing market presents a
favorable long-term opportunity. Per the 2013 study by Wholers
Associate, this industry is expected to continue to show
double-digit growth over the next few years.
Therefore, Wohlers Associates believes that by 2017 the sale
of 3D-printing products and services will reach a level of $6
billion worldwide, whereas by 2021, the industry is expected to
touch $10.8 billion in revenues. As the industry leader in 3D
printing, this is encouraging information for Stratasys as it
will be able to grab maximum share of this market.
However, Stratasys is concerned about its high-cost business
model and competition from big and small players like
3D Systems Corp.
). The prevailing economic uncertainty, especially in Europe is
affecting the company's volumes. Some customers are delaying
their purchases owing to the current economic conditions.
Currently, Stratasys has a Zacks Rank #3 (Hold). Some of the
better-ranked stocks that investors can look at are
), both of which carry a Zacks Rank #1 (Strong Buy).
3D SYSTEMS CORP (DDD): Free Stock Analysis
SANDISK CORP (SNDK): Free Stock Analysis
STRATASYS LTD (SSYS): Free Stock Analysis
WESTERN DIGITAL (WDC): Free Stock Analysis
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