Does 3-D Printing Have a Future in Your Home?http://www.fool.com/investing/general/2012/10/01/does-3-d-printing-have-a-future-in-your-home.aspx Alex Planes
October 1, 2012
My opinion on 3-D printing can best be described as "evolving." I consider this a good approach when dealing with a technology still very much in an evolutionary stage. Sure, 3-D printing pioneers 3D Systems (NYSE: DDD ) and Stratasys (Nasdaq: SSYS ) have both been around for more than two decades, and their high-end machines are being used for an ever-growing variety of industrial purposes. But for nearly all of those two-plus decades, the average person would have had no idea what 3-D printing actually is, or what its capabilities are. Most still don't -- but that's changing fast.
The biggest evolutionary leap in 3-D printing hasn't been in terms of resolution, print speed, or software accessibility, although all of these elements have helped create the leap I'll discuss today. Stratasys and 3D Systems aren't even on the vanguard of the latest shift, which is part of a multiyear effort by upstart manufacturers to bring the capabilities of industrial 3-D printers to home desktops around the world.
You're about to hear a lot more from the media about the transformative power of 3-D printing, and a lot of it will focus on this 3-D-printing-at-home movement. But what does it really mean? What does it say about the future? Will this shift help or hurt the current industry leaders?
Answering these questions requires more analytical finesse than simply projecting exponential adoption curves out to infinity, because a 3-D printer doesn't have any easy analogues in our lives. It's not at all comparable to a paper-based 2-D printer, which has a simple function and can handle it at low cost. It's not like a computer, which can be miniaturized, networked, and augmented with complementary technologies over time to become something essential and portable, like a smartphone or a tablet.
While I remain optimistic about the long-term industrial adoption of 3-D printing, it's in-home use that's forced my opinion to evolve. Keep an open mind and read on, and perhaps we'll reach a deeper understanding together than we would have doing this sort of research alone.
Chronicling an evolution
Of course, with any evolving technology, one's views can always use some updating as the situation changes. That's where we stand today, thanks to two recent updates that have forced me to again recalibrate my thoughts. A Wired cover story, released earlier this month, delves deeply into MakerBot's new Replicator 2, a stylish $2,200 home unit that purportedly marks MakerBot's "Macintosh moment." However, a Kickstarter project to fund start-up Formlabs' new Form 1 3-D printer might represent an even bigger step forward in home adoption.
Challenges, threats, and opportunities
It's a threat because 3D Systems has not put its weight behind home adoption and risks losing out on industry leadership if home use takes off. Consider the Replicator 2's cost. If MakerBot can create next-gen Replicators of the same quality for half the price, it could build a billion-dollar business from a million sales to home users. The $10 million funding MakerBot received last year is supposed to, in Wired writer Chris Anderson's words, "scale it into a corporation whose products sell at Target (NYSE: TGT ) ." Placement in big-box retailers would go a long way toward building the brand awareness necessary to make that billion-dollar business a reality.
It's also an opportunity for the high-end 3-D printer manufacturers. The broader the base of potential 3-D designers, the deeper the design library, and the more useful 3-D printed designs will become to the average person. You may not want to go through the learning curve for 3-D design programs, but as a design community grows, you'll become more able to find just what you want. This ties in to both my 3-D design marketplace concept, and my distributed on-demand manufacturing musings. Wired agrees:
Once you have a design on your computer, you can prototype a single copy on your desktop fabricator -- or upload it to a commercial manufacturing service and generate thousands. Essentially, you "print local" on your MakerBot and "print global" with cloud manufacturing services ranging from Shapeways and Ponoko to Chinese mass-production facilities found through Alibaba.com. …. The services will even ship the finished goods directly to customers.
If MakerBot is a threat and an opportunity to established players, Formlabs is a heat-seeking cruise missile, aimed at MakerBot, 3D Systems, Stratasys, and everyone else in the industry. In six days, the brand-new MIT spinoff has raised an incredible $1.3 million on Kickstarter from more than 900 back