Photonics industry stays robust and resilient

Focusing on the German photonics market, the report outlines the strength of the photonics industry. Even in a difficult economic environment the steady growth continues. According to the SPECTARIS’ Trend Report 2025/2026, the industry is following a strong growth path in the medium and long term. Between 2015 and 2022, the global photonics industry recorded steady growth with annual growth rates (CAGR) of around 7% in revenue. This trend is likely to continue almost unabated over the coming decade. In 2024, roughly 1,000 photonics manufacturers with nearly 188,000 employees generated over EUR 50 billion in sales. Their export share is 76%—and rising. Also, the R&D ratio of over 10 percent is an eye-catching proof of the industry's innovative strength. New application fields, such as quantum technologies or solutions for precision agriculture, offer great potential in addition to the already established areas. Besides that, the security and defense sector is becoming increasingly important due to the geopolitical situation.

Global growth path continues

According to TEMATYS, the global photonics market was worth US$865 billion in 2022, after average annual growth rates of around seven percent for a decade. Forecasts are assuming similar growth in the following years. China is by far the leading market player, accounting for 32% of global photonics production, followed by Europe and the US with 15% each. Japan, Korea, and Taiwan follow with shares of 11% to 7%. Germany is Europe’s leader, with 39% of European and 6% of global production.

Global market for quantum photonics is thriving

According to the report, the global market for quantum photonics will expand significantly, increasing from USD 0.4 billion in 2023 to approximately 3.3 billion by 2030, with a compound annual growth rate (CAGR) of 32.2% over the forecast period. This development is driven by the rising demand for secure and reliable communication systems and increasing investments in quantum photonics computing. A significant increase in research and development efforts and financial investment points to great opportunities in this dynamic environment.

Mixed results for the Global Laser Market

The global market for laser beam sources grew with average annual rates of 7% even during and after the pandemic. However, in 2024, TEMATYS noticed a change: some key sectors did not perform as well as expected due to the difficult economic situation. As a result, the analysts revised their previous forecasts. Their current outlook, which has been lowered to an average annual growth rate of 5% for the period 2023–2029, would likely be greeted with enthusiasm in many sectors which have been hit much harder by the economic slowdown.

Download Trend Report Photonics 2025/2026