I just left one of the largest commercial printers in the world and my primary focus was supporting the production of dye-sublimated soft signage. The demand for this was coming mostly from the retail industry or clients with 500, 1000, 2000+ locations which needed quarterly signage shipped to each location. When you can fold and ship a 10'x10' banner in a small box weighing 2lbs versus rolling styrene or sending a rigid board in an oversize box weighing 20lbs it becomes a no brainer.
The problem is there is a lot of knowledge that is required to successfully produce this work that your normal commercial printer doesn't posses to day. Fabric is a inconsistent and none rigid material, each banner dimension throughout a roll might need to be a little different to compensate for the different percent of stretch in each fabric roll, sewing - who knows how to sew fabric, now who can sew 5,000 10'x10' pieces in a day. Sublimation has a lot of issues for color matching to other programs that might be deploying SWOP or GRACoL. It isn't a simple transition but there is demand and profitability. However the margins are already dropping pretty quickly. It is getting close to commodity level on the large nation programs.
Also one off personalized pattern for your next couch is coming if not already here. Someone needs to print that fabric on demand.