The German Optoelectronics Association predicts that the growth rate of the German optoelectronics industry will reach 8% this year

The German Optoelectronics Association (Spectaris) predicted at the 2023 Photonics Exhibition in Munich, Germany, that the growth rate of the German optoelectronics industry is expected to reach 8% this year. The association said that after double-digit sales growth in 2022, signs for German optoelectronics manufacturers continue to move towards growth.

"There are about 1,000 companies in Germany with 182,000 employees and sales are expected to reach 54 billion euros this year," Spectaris managing director Jorg Mayer told a news conference.

Annual sales in the German optoelectronics market are expected to grow by around 7% by 2027. Optical components and materials, as well as technologies related to transportation, Industry 4.0, and health, have contributed to this growth, especially in areas where German photonics has a strong position.

"Photonics is also benefiting from its above-average growth rate as a driver for other areas of innovation in its application markets, such as quantum technology or precision agriculture," the Spectaris report also states.

The report also considers the size of the global photonics market. According to McKinsey, the global photonics market will grow at a nominal rate of at least 6% per year until 2025. The market for core photonics components - such as leds, lasers and sensors - is growing at a rate of 10% per year, faster than the overall market for systems whose functions are primarily based on photonics.

Challenges to growth

Mayer also talked about the challenges that constrain the growth of the photonics industry. He commented: "The ongoing shortage of skilled workers poses a huge challenge to the industry. Due to the strong development of the industry, there will also be an increasing demand for employees in the coming years in order to be able to fully exploit the potential of the optoelectronics market."

In addition to hiring, addressing supply chain challenges, particularly in semiconductors, remains a key focus for companies. Mayer added that the blanket ban on some materials, such as PFAS high-performance materials, is also causing great concern among companies. "Without large quantities of monofluoroalkyl and polyfluoroalkyl substances, fundamental photonic applications in the future will no longer be possible," he warns.

Especially this year, Mayer added, "the overall economic situation is volatile, and market data is really hard to predict in this volatile environment." In the past, the photonics market has repeatedly proven to be more resilient than other industries."

Source: OFweek