The photonics industry, which involves the study and manipulation of light, has outpaced global GDP growth from 2019 to 2022, growing at a compound annual growth rate of 6.8%, according to a study by the European Technology Platform Photonics21 and French market intelligence group Tematys. The industry, which was worth $865 billion in 2022, is predicted to be worth $1.2 trillion by 2027. Photonics21 President and CEO, Dr. Lutz Aschke, highlighted Europe’s central role in driving photonics innovation. The fastest-growing segments worldwide were identified as Environment, Energy, Lighting, Industry 4.0, and Agriculture.
Photonics Industry Thrives Amid Global Economic Challenges
New research indicates that the photonics industries in Europe, Asia, and the United States have demonstrated resilience and growth from 2019 to 2022, a period marked by significant global economic and geopolitical challenges. The study, conducted by French market intelligence group Tematys and published by the European Technology Platform Photonics21, reveals that the photonics industry worldwide has grown at a Compound Annual Growth Rate (CAGR) of 6.8% during this period, outpacing global GDP.
The photonics industry, which involves the study and manipulation of light, has shown robust growth despite geopolitical risks such as the COVID-19 pandemic, global inflation, and the war in Ukraine. The global market for photonics components and systems, which was valued at $865 billion in 2022, is predicted to continue its growth trajectory, with projections estimating a market worth of $1.2 trillion by 2027.
Photonics: A Key Player in Various Industries
Photonics applications in Environment, Energy, Lighting, Industry 4.0, and Agriculture have been identified as the fastest-growing segments worldwide. The relatively small segment of Photonics for Agriculture and Food, although still emerging, showed an exceptional CAGR of 11.8% during the period.
Photonics technologies, which harness the power of light, are critically important to a number of industries worldwide. In healthcare, for example, optics and photonics are enabling scientists to develop fast and precise imaging of major diseases, accurate diagnostics, and minimally invasive surgical procedures using lasers. The continued growth of photonics is expected to yield remarkable solutions that will improve everyday life.
European Photonics Industry: A Closer Look
The study also highlights substantial growth and development in European photonics between 2019 and 2022. Employment in the sector surged by 35,000 jobs during this period, far exceeding the growth rate of European manufacturing as a whole. European photonics production soared to €124.6 billion in 2022, representing over 5,000 companies and contributing significantly to Europe’s manufacturing landscape.
The sector witnessed a remarkable annual revenue growth rate of 6.5% (2019-2022), outpacing Europe’s GDP growth even after accounting for inflation. Europe maintained a strong position as the second-largest player in the global photonics market (15% share), underscoring its competitiveness against major counterparts like China and the United States. The European photonics industry also exhibits a strong commitment to research and innovation, with an R&D intensity of 10.5%, significantly higher than other industries.
Photonics21 is the European Technology Platform (ETP) for photonics, a technology encompassing all of the products and processes around the emission, manipulation, and detection of light. Photonics is integral to a wide range of industries, including the medical, healthcare, transport, manufacturing, and telecommunications sectors.
Established in December 2005, Photonics21 brings together the community of photonics researchers and industries. The European Commission defined photonics as one of five European Key Enabling Technologies (KETs) in September 2009. Today, Photonics21 represents more than 4,000 personal members from across Europe and abroad, who actively engage in developing a joint photonics strategy for future research and innovation in Europe.
As of 2022, the global photonics market was worth $864.6 billion. The European photonics industry has grown from €103 billion in 2019 to €124.6 billion in 2022. With a 6.5% CAGR between 2019-2022, the European Photonics Growth exceeds the EU’s GDP. The European photonics industry has considerable global leadership positions and employs more than 430,000 people directly.
With a positive growth forecast of €175 billion by 2027, current industry trends like digitalisation, resource efficiency, and individual and zero-failure production will drive the photonics industry further. The continued growth and development of photonics components and systems are expected to provide a competitive advantage in many key markets and policy areas, such as quantum internet, quantum computing, next-generation microelectronics, autonomous vehicles, Industry 5.0, virtual worlds, fusion energy, and many more.
External Link: Click Here For More
