Photonics

Light technologies buck trend despite global economic turmoil

Market Research Study Photonics 2024

15.05.2024 - New research published today shows the photonics industries in Europe, the US, and Asia outpaced global GDP from 2019 to the post-pandemic period of 2022, growing at a CAGR of 6.8 %.

According to a new photonics market study published today by the European Technology Platform Photonics21 and conducted by the French market intelligence group Tematys, the photonics industries in Europe, Asia, and the US remained robust during 2019 to 2022 – a period plagued by some of the toughest global and economic tensions after decades of geoeconomics and globalization.

Called “Insights into the Dynamic Photonics Market (2019 – 2022)”, the new study shows the photonics industry worldwide grew from the previous 2015-2018 study despite geopolitical risks such as Covid-19 – with many countries closing their borders and restricting travel to control the spread of the virus – global inflation affecting economies worldwide, and the war in Ukraine hindering trade.

Outperforming global growth

Global GDP growth has generally fluctuated between two and five percent from year to year in most years since 1980. However, the global market for photonics components and systems, which accounted for $ 865 B in 2022, outpaced GDP worldwide during the three years from 2019, growing at a compound annual growth rate (CAGR) of 6.8 %. This growth is predicted to continue into 2027 when the study expects the world photonics market to be worth $ 1,200 B.

Photonics21 president Dr Lutz Aschke, CEO of Photonics Systems Group, said: “The latest research from Tematys shows that light technologies are bucking the global trend against a backdrop of some of the most turbulent economic and geopolitical activities in decades. The findings from the study affirm Europe’s central role in driving worldwide photonics innovation. While the EU can maintain its competitive edge with its enormous photonics capacity and an innovation ecosystem spanning the continent, a sustained investment will be crucial to harnessing the full potential of optics and photonics in the coming decades.”

Tematys identified photonics applications in environment, energy, lighting, Industry 4.0, and agriculture as the fastest-growing segments across the world. While the relatively small segment of photonics for agriculture and food is an emerging market at present, this domain showed an exceptional CAGR of 11.8 % during the period.

“Given that photonics (the study and manipulation of light) and the technologies developed by harnessing the power of light are critically important to a number of industries worldwide, this strong growth is easy to see. 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 by using lasers. Within the next few years, we will experience remarkable photonic solutions that will improve our everyday lives,” said Dr Aschke.

European industry highlights

The study reveals substantial growth and development in European photonics between 2019 and 2022. Key highlights include:

  • Thousands of extra Jobs – Employment surged by 35,000 jobs during this period, far exceeding the growth rate of European manufacturing as a whole.
  • Industry Volume – European photonics production soared to € 124.6 B in 2022, representing over 5,000 companies and contributing significantly to Europe’s manufacturing landscape.
  • Annual Revenue Growth The sector witnessed a remarkable annual revenue growth rate of 6.5 % (2019 – 2022), outpacing Europe’s GDP growth even after accounting for inflation.
  • Market Share – 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.
  • Innovation and R&D – The European photonics industry exhibits a strong commitment to research and innovation, with an R&D intensity of 10.5 %, significantly higher than other industries.

As of 2022, the global photonics market was worth € 786.5 B. The European photonics industry has grown from € 103 B in 2019 to € 124 B in 2022. With a 6.5 % CAGR, the European Photonics Growth exceeds the EU’s GDP. The European photonics industry has considerable global leadership positions and employs about 430,000 people directly.

With a positive growth forecast, current industry trends like digitalization, resource efficiency, and individual and zero-failure production will drive the photonics industry further.

Reference: “Insights into the Dynamic Photonics Market (2019-2022)”, PDF, photonics21.org

Contact

Photonics21

c/o VDI Technologiezentrum GmbH, VDI-Platz 1
40468 Duesseldorf
Germany

+49 211 6214 338 668

Tematys

6, Cité de Trévise
75009 Paris
France

+33 6 7464-5221
+33 9 7239-4439

Digital tools or software can ease your life as a photonics professional by either helping you with your system design or during the manufacturing process or when purchasing components. Check out our compilation:

Proceed to our dossier

inspect award 2024

Submit your product now for the inspect award 2024

Submit your product now!

Digital tools or software can ease your life as a photonics professional by either helping you with your system design or during the manufacturing process or when purchasing components. Check out our compilation:

Proceed to our dossier

inspect award 2024

Submit your product now for the inspect award 2024

Submit your product now!