Is 3D Systems (DDD) Poised to Capitalize on the U.S. 3D Printing Industrial Shift?

The U.S. 3D printing industry is undergoing a profound transformation, driven by technological innovation and sector-specific demand. According to a report by Grand View Research, the U.S. market generated $4.26 billion in revenue in 2023 and is projected to expand to $16.48 billion by 2030, with a compound annual growth rate (CAGR) of 21.3% from 2024 to 2030. This acceleration is fueled by advancements in hardware, particularly in stereolithography (SLA) and powder bed fusion (PBF) technologies, which enable the production of complex metal and polymer parts for aerospace, automotive, and healthcare applications. The global market, meanwhile, grew by 17% in 2023, adding $19.9 billion in revenue, underscoring the sector's systemic momentum.

For 3D Systems (DDD), the question is whether its strategic repositioning aligns with these tailwinds. The company has undertaken a series of transformative steps to focus on high-growth industrial applications, particularly in aerospace and defense (A&D). In 2023, 3D Systems divested its Geomagic software portfolio to Hexagon for $123 million, a move that allowed it to concentrate on platforms such as 3D Sprint, 3DXpert, and Oqton Industrial Manufacturing OS, which are critical for scaling additive manufacturing in production environments. This pivot reflects a recognition that the future of 3D printing lies in industrial-scale solutions rather than fragmented consumer or dental applications.

The A&D sector is central to 3D Systems' strategy. The company has expanded its Application Center of Excellence in Colorado by 80,000 square feet, enhancing its capacity for process qualification and production-scale manufacturing. Additionally, it has secured a $18.5 million U.S. Air Force contract to develop next-generation laser powder-bed fusion technologies, a critical capability for producing large-format metal parts for defense systems. These investments align with broader policy tailwinds, including provisions in the National Defense Authorization Act (NDAA) for Fiscal Year 2026, which prioritize additive manufacturing for national security applications. By 2026, the A&D segment is projected to become 3D Systems' largest industrial business, with production printing systems and custom metal parts revenue expected to exceed $35 million.

However, the company's financial performance has been mixed. For the full year 2024, revenue fell 10% to $440.1 million, driven by weaker hardware sales and macroeconomic headwinds. Q1 2025 revenue declined 8% year-over-year to $94.5 million, with gross profit margins contracting to 34.6% from 39.8% in the prior year. The Healthcare Solutions segment, which includes dental and orthopedic applications, saw a 9% drop in revenue, reflecting volatility in the dental aligner market. Yet, the Industrial Solutions segment, particularly A&D, showed resilience. In Q2 2025, Industrial Solutions revenue surged 84% year-over-year to $49.8 million, driven by demand for high-reliability defense components. This divergence highlights the company's uneven transition from consumer-focused markets to industrial applications.

The recent divestiture of Geomagic and associated cost-cutting initiatives have strengthened 3D Systems' balance sheet, with cash reserves rising to $250 million by April 2025. The company has also announced $70 million in cost savings by mid-2026, aiming to improve profitability amid uncertain customer capital expenditure trends. While these measures address short-term challenges, the long-term success of 3D Systems hinges on its ability to scale A&D and other industrial applications.

A critical test will be the company's capacity to leverage its NAMI joint venture in Saudi Arabia, which has become the Kingdom's first AS/EN 9100-certified additive manufacturing provider. This partnership, including a collaboration with Lockheed Martin to produce mission-critical components, underscores 3D Systems' global industrial ambitions. If successful, such initiatives could position the company as a key player in localized, high-margin manufacturing ecosystems.

In conclusion, 3D Systems is strategically aligned with the U.S. 3D printing industrial shift, particularly in aerospace and defense. Its focus on industrial-scale platforms, infrastructure expansion, and policy-aligned R&D positions it to benefit from the sector's projected growth. However, the company must navigate near-term financial pressures and demonstrate consistent execution in high-margin markets. For investors, the key question is whether 3D Systems can sustain its transformation while capitalizing on the $16.48 billion market opportunity by 2030.