Market Analysis - Photonics 2017
Photonics is a fast-growing business sector, with a global market of around € 350 billion, projected to reach over € 600 billion by 2020. Europe has established a strong position with an overall total share of approximately 18 %1 (€ 66 billion2 in 2012) Major growth is expected in lighting, medical technologies and life sciences, laser-based manufacturing and optical communications. These are the areas where the European Photonics industry is particularly strong
The Italy region, with its strong economy, expanding network communications and increased investment in research and Development, offers investment opportunities to wide range of sectors. The most dominant sectors presently include logistics and transport, tourism, machinery, iron and steel, chemical and petrochemical, electronics, ceramics and construction materials, (non-metallic minerals), metallurgy, textile and footwear, printing industry, paper and plastics manufacturing. The Italy region’s industries and enterprises are dynamic, deep-rooted and used to competing with other national and multinational markets.
- Strong Economy
- Expanding Network Communications (Motorways, Trains, Ports, Airports)
- Investment in Photonics Opportunities
- Available Industrial Space
- Strong Financial Environment
- Excellent Services Industry
- Growing research and development
Photonics in Italy a key technological asset, pervasive in a wide range of industrial activities from the ICT to the industrial equipment’s, from biomedical to the lighting form the cultural heritage to sensing, In a market which is the 8% of the European photonic market, big firm are active along with a large number of advanced SME, founded on a high level academic competence
Major sectors of Photonics production in the Italy are:-
- Information technology (IT): With estimated revenues of EUR 0.7 billion Italy is the leading IT Photonics producer in Europe. Olivetti (100% Telecom Italia) produces laser printers, multifunctional printers (MFPs), digital copiers, and fax machines. Data-logic produces bar code scanners. The company, with revenues of about EUR 250 million, is estimated by market researchers to be the tenth largest company in the automatic data capture business, worldwide.
- Defence photonics: Finmechanica produces photonics based defence components and systems in Florence (Galileo Avionica) and near Rome (Selex Sistemi Integrati).
- Lighting: An Italian production volume of ~ EUR 0.5 billion for lamps (incl. accessories) has been estimated based on Eurostat data. Eurostat does not indicate any LED production.
- Medical technology & life science: The production volume is estimated at EUR 300 … 400 million. According to Eurostat the production volume of spectacle lenses / contact lenses accounts for EUR 150 million, and the production of ophthalmic instruments for EUR 70 million. El.En. produces medical laser systems and markets them worldwide through its consociates.
- Measurement & automated vision: The Italian production volume is estimated at EUR 300 … 400 million, including systems for automated vision, and other optical measurement systems for industrial use. Further, Eurostat indicates a small production volume of spectrometers.
- Optical components & systems: Italy produces optical components, fibre-based components, and classical optical systems (including equipment for processing of films, equipment for cinemas, and television cameras).
- Production technology: Laser machines and lasers are produced by Prima Industrie, Datalogic / Laservall, El.En., and about 30 smaller companies. The total production volume is estimated at EUR 200 … 250 million.
- Optical communications: Ericsson, due to the takeover of Marconi in 2005, produces optical networking systems in Italy.
- In the solar energy sector Italy accounts for a production volume of EUR 100 million
Global photonics market value is expected to grow at a CAGR of 35% from 2015 to 2020
World Market Photonics:-
Today, the global market for photonics is estimated to be approximately €350 billion, and the leveraged impact of photonics in other enabled industries is substantially greater in terms of turnover and employment levels. This market is expected to grow significantly over the next few years, with the estimated market size approaching €480 billion by 2015.
Europe performs a major proportion of the world’s research into basic photonics and achieves excellent R&D results, providing Europe with a world leading position. However, Europe needs to strengthen the industrial deployment of these research results by promoting wide-scale cooperation and greater integration across the whole research and innovation value chain. Therefore, it is necessary to rebalance the funding within the new Framework Programme Horizon 2020, so as to provide an increased budget of funding to applied research and demonstration programmes for photonics.
Will Be A 615 Billion Euro Market In 2020 – CAGR >> GDP
2005 2011 2020
228 Billion Euros 350 Billion Euros 615 Billion Euros
Production Technology Medical Technology & Life Sciences Displays
Measurement & Automated Vision Communicstion Technology Light Sources
Opical Components & Systems Information Technology Photovoltaic
Saftey-and Defence Technologies
Photonics in Europe:-
Photonics Production Europe by Countries
SWOT analysis for Photonics in Europe:-
Photonics is a very dynamic and vibrant European industrial sector. It has market leaders in core industry areas, established links with application industries, a highly diversified SME industry and a highly educated workforce
- Established technology leaderships
- Strong European research ecosystem
with world-leading research
organizations, companies and clusters
- World market leaders in core industryareas
- Established links with application anduser industries
- Highly diversified SME driven industry
- Highly educated workforce
- Wide applications space
- Fragmented and uncoordinated development strategy, particularly for
- EU funding strategy along the value chain
- Slow innovation process and lack of significantly sized demonstration and
- commercialization actions to accelerate transfer from lab to market
- Limited access to Private Equity (seed) money and capital to finance innovative SMEs
- Limited public (pre-competitive) procurement for speeding up market uptake of innovative products
- Unfavourable IPR conditions and European State Aid Rules in the EU
- Lack of skilled engineers will limit expansion of industry
- Photonics provides competitive advantages to vital manufacturing
- industries in Europe
- Rapidly growing market place
- Broadening applications space
- Demands for greener technology and carbon neutral energy generation
- Demands for greater data bandwidths
- Healthcare needs of aging population
- High demand and fast growing markets in safety and security
- Open up photonics R&D and pilot infrastructures to SMEs to speed up innovation
- Cross-fertilisation with other KETs, e.g. micro- and nano-electronics, manufacturing
- Low-cost off-shore manufacture
- Increasing competition, especially from the Far East in nearly all photonics sectors
- Massive investments abroad in core areas of photonics to improve competitiveness
Major Photonics Associations in Europe:-
1. European Photonics Industry Consortium
2. Nanophotonics Europe Association
3. ICFO-Research-Platforms and Associations
4. SPIE Photonics Europe
5. Photonics PPP - Photonics21
Researchers, Engineers, academicians who work with photonics to solve problems in medicine and biomedicine, Design engineers, Nanoscience Engineers, Organic Photonical researchers, Electronic and Optical Engineers and talented student community from leading Universities.
Top Universities in Europe:-
1. Beuth Hochschule für Technik
2. HTW University of Applied Sciences
3. Technical University of Applied Sciences Wildau
4. Technical University of Berlin
5. The Abbe School of Photonics (ASP)
6. Friedrich Schiller University Jena, Germany
7. Karlsruhe School of Optics & Photonics (KSOP)
8. Münster University of Applied Sciences