|
Read about Changes in E.U. Funding of Photonics, France and Europe Photonics Markets, Optical Communications, Special Events, New Reports and Other Noteworthy News, Opinions & Opportunities
In this Issue:
Changes in E.U. Funding of Photonics While the U.S. has been inwardly focused on a presidential election, there is mixed news on European funding of optics and photonics.
The good news is that photonics will remain as a unit in the new Horizon Europe, but differently than before. There is talk of a "ring-fenced budget", having its own section in Cluster 4 (Digital, Industry & Space) of Pillar 2 of the program, and so on—all somewhat difficult to decipher for anyone not familiar with the labyrinthine nature of the European Commission's workings. (For example, see this presentation from 2019).
In November, the League of European Research Universities (LERU) complained about the cuts through an opinion piece entitled "They couldn’t care less." It notes that the E.U. governance promised greater investment in R&D, with hopes that it might exceed €100 billion, but it hasn't followed through. France and Europe Report on Photonics Markets Photonics France recently reported on its optics and photonics industry, approximately confirming OIDA's own estimates for the country. The market research firm Tematys conducted the study, and is also tabulating the values for the E.U. countries for Photonics21 (see story above). It’s helpful to have the same firm doing both studies and Tematys has done a good job.
The Tematys study estimates employment of about 73,000 workers across over 1,000 companies, bringing €18.6 billion in annual revenues. This compares to OIDA's estimate in 2016 of 68,000, about 21% of the European employment, including the U.K and non-E.U. countries. OIDA estimated France's location quotient at 2.5, second only to Germany. The location quotient is a measure of the relative concentration of photonics employment compared to the overall economy, with values greater than 1 indicating greater than average concentration.
Tematys also recently provided preliminary estimates for the European optics and photonics market at the Photonics21 event mentioned above, with a final report coming by the end of the year. Tematys projects growth of 5-6% for the period 2020-2025, which approximately agrees with OIDA’s projection.
Asian countries generate about 2/3 of revenues, and are strong in assembly of high volume consumer products, such as displays, camera modules and LED lighting. The order has changed significantly in recent years, however, with China rising in nearly every major segment, while Japan and Taiwan have moved much of their manufacturing offshore, as the U.S. did decades ago. The specific estimates can vary according to the exchange rate, since OIDA values the worldwide market in U.S. dollars, while Tematys values it in euros. Optical Communications Keeps Moving Forward Market research firm Omdia expects that 2020 will end up with positive growth in the optical communications components market, followed by several years of strong growth, to nearly US$ 25 billion by 2025, a compound annual growth rate of 10%. This is remarkable growth for a market at any time, much less through a pandemic. One doesn’t have to go far to note industries that have been devastated by the pandemic, such as travel and hotels, as we’ve written in previous OIDA newsletters.
Wide Area Networking (WAN) was the largest segment of the market in 2019 with 52%, followed by datacom with 37% and access with 11%. Omdia expects datacom to gain share over the next five years to bring it to 45%, just ahead of WAN with 43% and access will be at 12%.Driving this increase in revenue will be Internet Content Providers (ICPs) adoption of 400G, and some adoption of 800G toward the end of the forecasting period.
Member Benefit: Plan Your 2021 Strategy with Industry Reports Available to OIDA Members
Industry leaders worldwide are planning their strategy for 2021 and beyond. A winning strategy is driven by intelligence. OIDA Members have exclusive—and complimentary—access to OIDA Market Update reports. Have you downloaded our newest industry reports?
OIDA members have free access to all reports. We encourage you to browse the OIDA Publications and Reports Center to see everything available to you. It's a Wrap! 5th Annual OIDA Funding Accelerator Speed Meetings Focused on SBIR/STTR Funding OIDA is committed to fostering the development and commercialization of new optics and photonics technologies that will expand the industry's product pipeline, and to offering OIDA members the opportunity to get the funding they need. We brought companies with less than 500 employees together with top U.S. federal agencies for one-on-one virtual meetings and presentations on 12 November. Companies had the opportunity to discuss their innovations and business model with this exclusive audience, and got an insider perspective on what specific agencies are looking to fund. The event helped government agencies better understand what our Industry can offer and how optics and photonics technologies can help them meet their goals. RSVP for Virtual OIDA Member Benefit Orientation RSVP for OIDA's member benefit overview orientation. This is an opportunity to learn more about key membership benefits you and your company should be taking advantage of and explore how to maximize performance and grow your business. New Digital Programming Now Available Live and On-Demand
OIDA management and OIDA members have produced a series of webinars and a virtual Technology Showcase that are available at no charge. We encourage you to browse our growing list of upcoming events and view on-demand recordings as they become available. And there is much more! Check out the OSA We Are On webpage for more high quality webinars on career development from the OSA Foundation and the OSA Career Lab. Showcase Your Company's Useful Techniques: Submit to Applied Optics' Engineering and Laboratory Notes Applied Optics (AO) publishes Engineering and Laboratory Notes (E&L Notes)—brief, concise articles that share useful laboratory techniques and practical engineering approaches in the applied optics field. Topics range from design and analysis, to fabrication and integration, alignment, testing, and calibration of optical systems. E&L Notes offers a unique way to publish useful techniques from your engineering notebook in Applied Optics. Read more about E&L Notes and suitable topics for submission and learn about how to submit your contribution. Gain Recognition for Your Optical Engineering Team Submissions are now being accepted for the 2021 Paul F. Forman Team Engineering Excellence Award, which recognizes team technical achievements such as product engineering, process and software development, and patent development, as well as contributions to society such as engineering education, and furthering public appreciation of optical engineering. The submission deadline is 10 April 2021. Don’t miss this opportunity to gain recognition and promotion for your optical engineering team(s).
Invitation to Join the OIDA Optics and Photonics Industry LinkedIn Group Join 3,500+ of your colleagues in our OIDA Optics & Photonics Industry Network LinkedIn Group. This one-of-a-kind Forum for Industry lets you participate in discussions about cutting-edge issues. Extend your professional network. Exchange information about problems, ideas and solutions. Collaborate with experts in your field. Now is the perfect time to build a relationship with fellow optics and photonics professionals!
Questions or Suggestions about OIDA Member Benefits? We are committed to ensuring the value of your OSA Industry Development Associates Membership, so please email OIDA if you have any suggestions for new programs or comments on your membership.
|
Source: OIDA, from E.U. documents. The 2021-2027 proposed budget is in 2018 prices.
Source: OIDA, from Photonics France document (2020).
Sources: OIDA (2020) and Tematys (2020).
Source: Omdia (2020), with permission.
|
|
|
|
