Mixed picture in the photonics market
The ongoing economic slump in Germany slowed the growth momentum of the photonics industry in 2025. Internationally, business was stronger.
According to the industry association SPECTARIS, the photonics industry in Germany was unable to maintain its usual growth momentum in 2025. Following a weak previous year, sales did increase in the low single-digit percentage range—the approximately 1,000 companies with nearly 190,000 employees generated total revenue of just over 50 billion euros—but the nominal sales growth is at least partly attributable to price increases. According to SPECTARIS, producer prices for optical and photographic instruments and equipment rose.
A recent industry survey by SPECTARIS and OptecNet Germany reveals a heterogeneous market situation: “While domestic sales declined on average in 2025, the international business of many companies remained stable,” the association reports. The transformation process in the automotive industry is also having an impact. The surveyed companies report weak demand from this key industry and from other traditional industrial sectors. While the propensity to invest is currently low here, the survey indicates that things are going better in technology-driven fields.
Starting the new year with optimism
The majority of the companies surveyed expect the market to pick up in 2026. Growth momentum is expected to come from high-tech applications such as quantum technology, integrated photonics, aerospace, sensor technology, and industrial measurement technology. The companies also view defense and security applications as growth areas. For SPECTARIS Managing Director Jörg Mayer, this is a clear signal “of the growing importance of photonics as a technology of the future and a resilience technology.” He notes that it holds enormous potential for industry and society.
Internationally, the outlook remains positive as well. Current market studies by Fortune Business Insights, Research and Markets, and Market and Markets, among others, forecast annual growth rates of between 6 and 7 percent for the global photonics market in the coming years. If these forecasts prove accurate, the global market is expected to reach a total volume of nearly 1.5 trillion U.S. dollars by the end of this decade.