3D printing companies Stratasys and 3D Systems painted a bleak picture about their businesses earlier this month by reporting declining revenue in the latest quarter. It was a dramatic about-face compared to the buzz around the two giants from 2012 to 2014. Even as projections about the overall 3D printing remain bright—it’s expected to be a $17 billion market by the end of this decade—the next year will likely be a rough one for Stratasys and 3D Systems. Both have promised to cut expenses while dealing with the serious challenges.
Potential customers are slowing their buying of 3D printing technology, a trend that Goldman Sachs analysts recently described in a note to investors as being “likely industry-wide more than company specific.” Meanwhile, makers of 3D printing technology are facing increased competition as newcomers enter the field, most notably HP Inc, which is expected to start shipping its own line of 3D printers next year.