Has the Hype Bubble Finally Burst?

Posted by Editor On July - 23 - 2016

Has the Hype Bubble Finally Burst?

Stock market data on Stratasys (SSYS) and 3D Systems (DDD) over the last six months, showing a classic hype bubble pattern

When you talk to Andrew Rutter, CTO of Type A Machines, about the history of 3D printing, you get a picture of the hype cycle effect on the 3D printing industry and where we stand right now.

“The Hype Cycle is a economic theory on the development of key industries. It looks like this. The 3D printing industry has already done the march up and down this hill and this is where we are.” Rutter pointed to the place on the graph where progress started making a steady climb.

Indeed, if we look at the charts above we see that the hype cycle for 3D printing broke on April 27 of 2016. Above are the stock charts for the two most commonly traded 3D printing companies, Stratasys (SSYS), shown above and 3D Systems (DDD), shown below. As displayed in the six month cycles displayed, both companies took huge losses in the period of late April and both are making steady climbs forward.

The reality that 3D printing will dominate a tech sector of the stock market is no surprise to the millions who have already been exposed to the industry’s capacity to over-end a number of other key industries and dominate a public sector enriched with the power of designing their own life’s necessities. And as that economic prospect exists, it exists further than one would hope due to the learning curve needed in society to adopt 3D printing as a skill set and production machine. It will be there in time, but in the immediate, sales need to be made in 3D printer sales.

Zortrax is offering 50% off sales to pull their marketshare up. Other companies are scrambling for sales in the single digits. This is not because of the quality of the machines, it is because of the little education the public has received in 3D printing technology and its comprehensive global vision. Nonetheless, the hype circle is officially over as far as we’re concerned and everyone can confidently go back to work knowing that more 3D printers will be sold tomorrow than there were today.