The 3D Printing ETF (PRNT ) has one of the longer track records among thematic ETFs and is the first and only fund dedicated to this fast-growing segment. Still, some investors forget just how fast the 3D printing market is growing. That shouldn’t be the case.
PRNT debuted nearly three years ago as the first US-listed ETF dedicated to the 3D printing theme. The fund is one of two passively managed products from New York-based Ark Investment Management. ARK believes 3D printing will revolutionize manufacturing by collapsing the time between design and production, reducing costs, and enabling greater design complexity, accuracy and customization than traditional manufacturing.
Data confirm the 3D printing space is poised for exponential growth.
“The global 3D printing market size was valued at USD 11.58 billion in 2019 and is expected to expand at a CAGR exceeding 14% from 2020 to 2027,” according to Trusted Business Insights. “Globally, 1.42 million units of 3D printers were shipped in 2018 and this number is expected to reach 8.04 million units by 2027.”
PRNT’s underlying index index “is composed of equity securities and depositary receipts of exchange-listed companies from the U.S., non-U.S. developed markets and Taiwan that are engaged in 3D printing-related businesses within the following business lines: (i) 3D printing hardware, (ii) computer-aided design (“CAD”) and 3D printing simulation software, (iii) 3D printing centers, (iv) scanning and measurement, and (v) 3D printing materials,” according to Ark.
As regulatory guidelines become clearer, healthcare is expected to be a major market for 3D printing products and services in the years ahead and the same is true of other well-known industries.
“The aggressive R&D in Three-Dimensional Printing (3DP) and growing demand for prototyping applications from various industry verticals, particularly healthcare, automotive, and aerospace and defense, are the factors expected to drive the market growth,” notes Trusted Business Insights.
ARK believes 3D printing will revolutionize manufacturing by collapsing the time between design and production, reducing costs, and enabling greater design complexity, accuracy and customization than traditional manufacturing.
“The adoption of desktop 3-dimensional printers was initially limited to hobbyists and small enterprises,” according to Trusted Business Insights. “However, they are being increasingly used for household and domestic purposes. The education sector, which comprises schools, educational institutes, and universities, is also deploying desktop printers for technical training and research purposes.”
This article originally appeared on ETFTrends.com.