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Stratasys Adds Channel Partners to Grow in Southeast Asia - Analyst Blog

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In a move to further strengthen its presence in Southeast Asia, Stratasys Asia Pacific - a subsidiary of Stratasys Ltd. ( SSYS ) - has partnered with five channel partners to cater to the growing demand for 3D printing solutions in Singapore, Malaysia, Philippines and Thailand.

These channel partners include Altech Asia Pacific Co. Ltd.; ACA Pacific Technology (S) Pte Ltd.; ACA Pacific Technology (M) Sdn Bhd; Marubeni (Thailand) Co. Ltd.; and Wordtext Systems, Inc. The well-established network of these channel partners will help Stratasys to expand its reach in the Southeast Asia region.

Once only a conjecture, 3D printing's potential to revolutionize manufacturing is fast becoming a reality. Companies are now working on solutions that range from simple make-to-stock orders to complex engineer-to-order production strategies. Riding on the demand wave, the company is strategizing toward advancing 3D printing to a completely new level by expanding its reach and adaptability across various industries.

Currently, the Americas offer the largest market for 3D printing. However, it is expected that Europe and the Asia-Pacific (APAC) will grow very strongly over the next few years. Currently, most of the demand for 3D printing comes from commercial sectors such as architecture, healthcare, art & craft and education in the developing nations.

In a recent research report, PricewaterhouseCoopers predicted that 3D printing technologies will take giant strides over the next three to five years, gaining relevance in manufacturing, commercial, military and complex weapon parts and system components.

According to a report available at ReportsnReports.com, the global 3D printing market is expected to increase at a CAGR of 23% from 2013 to 2020 and hit $8.41 billion buoyed by higher demand in the healthcare and aerospace market. Moreover, pent-up demand for 3D printing products is expected from automotive consumer products, government and defense, industrial/business machines, education research and other (arts and architecture) segments.

Additionally, TechNavio forecasts the global 3D Printer market to grow at a CAGR of 45% (2014-2019). Being the 3D printing industry leader, these will enable Stratasys to grab maximum market share given its sizable installed base.

In order to capitalize on the industry's robust prospects and consolidate market share, established companies might take the acquisition route for quick growth. Over the last few years, Stratasys has been very active in this space and acquired many 3D printing companies such as MakerBot and Objet Ltd.

However, rapid growth is bringing financial pressures in its wake, as the company has to constantly invest in research and development initiatives as well as raise funds for its acquisitions. Moreover, severe competition in the industry, amid persisting economic uncertainty, coupled with foreign currency risks, remain the concerns.

Currently, Stratasys carries a Zacks Rank #4 (Sell).

Stocks to Consider

Better-ranked stocks worth considering in the Computer-Peripheral Equipment industry include Analogic Corp. ( ALOG ), Logitech International SA ( LOGI ) and Immersion Corp. ( IMMR ). While Analogic and Logitech sport a Zacks Rank #1 (Strong Buy), Immersion has a Zacks Rank #2 (Buy).

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STRATASYS LTD (SSYS): Free Stock Analysis Report

LOGITECH INTL (LOGI): Free Stock Analysis Report

ANALOGIC CORP (ALOG): Free Stock Analysis Report

IMMERSION CORP (IMMR): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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