Printed Electronics Industry: Market Growth and Investment Plans
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Market environment
In 2021, the value of the printed electronics industry was USD 47.1bn (+14.5% y/y), and in 2025 it is projected at USD 63.3bn (source: IDTechEx). This implies an average annual market value growth rate of 9.0% from 2020 to 2025. According to market analysis, the CAGR of the electronic prototyping equipment industry, which includes the company's DPS prototyping equipment, is expected to be around 31% during 2021-31 (per Transparency Market Research). Global annual sales of R&D and rapid prototyping and small batch production systems for the printed electronics industry are about 250-500 units per year, at a price of about EUR 50-500 thousand per unit.
Capital raised and planned investments
The company plans to invest PLN 60mn by 2026, of which about PLN 34.6mn has been raised from a share issue (PLN 36.6mn proceeds from the issue of 275,000 bearer shares less about PLN 2mn in issue costs), and the remainder from debt financing, grants and own funds. In the following years, the funds are to be invested in key business areas such as sales (43% share of the planned investment), production (35% share) and R&D (22% share). The company's estimated investments include both OPEX (additional employment with the increase in scale) and CAPEX (such as investments in capacity expansion).
The company's business target is to generate PLN 100mn in revenue from sales of products and services in 2026. The bulk of the company's assumed revenues (about 50%) should come from sales of modules for industrial sales (assumed sales of about 100 modules from the transition to industrial deployments with 3-4 business partners; at the end of 1Q23, three projects with partners were at an advanced stage). The remaining 50% of the assumed revenue in 2026 should come from sales of Delta Printing System (27% of the loaded revenue in 2026, three-fold increase in sales, due to numerous sales opportunities in the sales funnel) and sales of silver nanopaste (23% of the assumed revenue in 2026; assumed four-fold increase in production capacity).
