Kornit Digital Ltd. Market Research Report

Background

Company Overview

Kornit Digital Ltd. is an Israeli-American company specializing in digital printing solutions for the textile industry. Founded in 2002, the company is headquartered in Rosh HaAyin, Israel, with additional offices in the United States, Europe, and Asia Pacific. Kornit Digital offers a comprehensive suite of products, including digital printing systems, inks, consumables, and software, primarily serving the fashion, apparel, and home décor sectors.

Mission and Vision

Kornit Digital's mission is to revolutionize textile manufacturing by providing sustainable, on-demand digital printing technologies that meet modern supply chain needs and consumer demands. The company's vision is to transform the world of fashion and textiles for a better, more sustainable planet.

Industry Significance

As a leader in digital textile printing, Kornit Digital plays a pivotal role in advancing sustainable and efficient production methods within the textile industry. Its innovative solutions have significantly impacted the adoption of on-demand and mass customization concepts, aligning with the industry's shift towards sustainability and responsiveness to consumer preferences.

Key Strategic Focus

Core Objectives

Kornit Digital aims to lead the digital textile printing market by offering innovative, sustainable, and efficient solutions that address the evolving needs of the fashion and textile industries. The company focuses on expanding its product portfolio, enhancing customer engagement, and driving global market penetration.

Areas of Specialization

The company's primary areas of specialization include:

• Direct-to-Garment (DTG) Printing: Providing high-quality, on-demand printing solutions for apparel.

• Direct-to-Fabric Printing: Offering efficient and sustainable printing methods for various fabric types.

• Sustainable Inks and Consumables: Developing eco-friendly inks and consumables that reduce environmental impact.

Key Technologies Utilized

Kornit Digital employs several proprietary technologies, including:

• NeoPigment™ Process: An eco-friendly printing process that eliminates the need for external pre-treatment and reduces water and energy usage.

• PreT System: An integrated pre-treatment solution that enables wet-on-wet printing without manual pre-treatment.

• XDi Technology: A 3D printing technology that allows for the creation of textured and dimensional designs on textiles.

Primary Markets Targeted

Kornit Digital primarily targets the following markets:

• Fashion and Apparel: Serving brands and manufacturers with on-demand and sustainable printing solutions.

• Home Décor: Providing printing technologies for home textile products.

• Promotional Products: Offering customized printing solutions for promotional items.

Financials and Funding

Funding History

Kornit Digital went public in 2015, listing its shares on the NASDAQ under the ticker symbol KRNT. The company has since raised capital through various funding rounds, including post-IPO equity offerings. Specific details regarding total funds raised and notable investors are not publicly disclosed.

Recent Financial Performance

In 2024, Kornit Digital reported total revenue of $203.8 million, a decrease from $219.8 million in 2023, primarily due to reduced systems revenue. However, the company achieved a positive adjusted EBITDA margin of 2% in Q3 2025, indicating improved operational efficiency.

Utilization of Capital

The capital raised has been utilized to:

• Expand Manufacturing Capabilities: Including the establishment of a state-of-the-art ink manufacturing facility in Kiryat Gat, Israel, to support global demand.

• Research and Development: Investing in the development of new products and technologies to maintain a competitive edge.

• Strategic Acquisitions: Acquiring companies like Custom Gateway, Voxel8, and Tesoma to enhance technological capabilities and market reach.

Pipeline Development

Key Pipeline Candidates

Kornit Digital's pipeline includes several innovative products:

• Apollo Platform: A digital mass production platform designed for high-volume, single-step digital garment decoration, capable of processing up to 400 garments per hour.

• Atlas MAX Plus: An extension of the Atlas MAX line, designed for industrial production, enhancing productivity to up to 150 garments per hour.

Stages of Development

Both the Apollo Platform and Atlas MAX Plus are in the advanced stages of development, with the Apollo Platform already introduced to the market and the Atlas MAX Plus expected to be launched in the near future.

Target Conditions

These platforms are designed to address the needs of high-volume garment decorators and manufacturers seeking efficient, sustainable, and on-demand production solutions.

Anticipated Milestones

Key milestones include:

• Product Launches: Official market introductions of the Apollo Platform and Atlas MAX Plus.

• Customer Adoption: Achieving significant adoption rates among target customers.

• Revenue Growth: Contributing to increased revenue streams from high-volume production solutions.

Technological Platform and Innovation

Proprietary Technologies

Kornit Digital's proprietary technologies include:

• NeoPigment™ Process: An eco-friendly printing process that reduces water and energy usage.

• PreT System: An integrated pre-treatment solution for efficient wet-on-wet printing.

• XDi Technology: A 3D printing technology for creating textured designs on textiles.

Significant Scientific Methods

The company employs advanced scientific methods such as:

• Digital Inkjet Printing: Utilizing inkjet technology for precise and efficient textile printing.

• Sustainable Chemistry: Developing inks and consumables that minimize environmental impact.

AI-Driven Capabilities

While Kornit Digital focuses on digital printing technologies, it does not prominently feature AI-driven capabilities in its current offerings.

Leadership Team

Executive Profiles

• Ronen Samuel: Chief Executive Officer (CEO) since June 2018. Previously served as CEO of Stratasys Direct Manufacturing and held various leadership roles at Stratasys Ltd.

• Yuval Cohen: Chairman of the Board since August 2011. Founding and managing partner of Fortissimo Capital.

• Assaf Zipori: Chief Financial Officer (CFO) as of December 2025. Former CFO at Nano Dimension Ltd. and Markforged Holding Corporation.

Key Contributions

• Ronen Samuel: Led the company through significant growth and strategic acquisitions, enhancing its market position.

• Yuval Cohen: Provided strategic guidance and oversight, contributing to the company's expansion and success.

• Assaf Zipori: Bringing financial expertise to support Kornit Digital's growth initiatives.

Competitor Profile

Market Insights and Dynamics

The digital textile printing market is projected to grow at a Compound Annual Growth Rate (CAGR) of approximately 12.5% from 2025 to 2032, with an estimated market size of $5.0 billion by 2025. The apparel and fashion segment is expected to hold a 42.0% share of the market in 2025.

Competitor Analysis

Kornit Digital faces competition from several key players:

• Epson: Offers a range of digital textile printers and has a significant market share.

• Mimaki Engineering Co., Ltd.: Provides innovative direct-to-garment and direct-to-film printing solutions.

• Durst Group: Specializes in industrial digital printing systems for textiles.

• EFI Reggiani: Offers a comprehensive portfolio of digital textile printing solutions.

Strategic Collaborations and Partnerships

Kornit Digital has engaged in strategic partnerships to enhance its market position:

• Printful: Collaborated to provide on-demand printing and fulfillment services, demonstrating the potential of digital transformation in the apparel industry.

Operational Insights

Kornit Digital's focus on sustainable, on-demand production differentiates it from competitors. The company's integrated solutions, including hardware, software, and consumables, offer a comprehensive approach to digital textile printing. However, the competitive landscape requires continuous innovation and adaptation to maintain and enhance its market position.