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of Photonics Technologies: the European Perspective The Leverage Effect

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<strong>The</strong> <strong>Leverage</strong> <strong>Effect</strong> <strong>of</strong> <strong>Photonics</strong> <strong>Technologies</strong>: <strong>the</strong> <strong>European</strong> <strong>Perspective</strong><br />

2.2<br />

<strong>The</strong> <strong>Photonics</strong> industry is<br />

substantial and still in its early<br />

industrial stage<br />

<strong>The</strong> world market for civil photonics products in 2008 was worth<br />

€256bn, <strong>the</strong> defence market adding an additional €21bn - leading to an<br />

overall total <strong>of</strong> €277bn [Optech Consulting, April 2010]. <strong>The</strong> two largest<br />

civil sectors were flat panel displays and information technology. <strong>The</strong>y<br />

accounted for €71.8bn and €49.0bn respectively and toge<strong>the</strong>r made up<br />

nearly half <strong>the</strong> total market volume (44%). <strong>The</strong> remaining seven nondefence<br />

sectors accounted for between €15bn and €27bn each.<br />

Defence photonics<br />

8%<br />

6%<br />

6%<br />

8%<br />

10%<br />

Solar energy<br />

Flat panel displays<br />

6%<br />

Lighting<br />

Information technology<br />

Medical tech. & life sciences<br />

7%<br />

Optical communications<br />

24%<br />

Measurement and automated vision<br />

18%<br />

7%<br />

Production technology<br />

Optical components & systems<br />

Figure 2: World photonics production by sector (2008). Total: €277B, redrawn with modifications<br />

from [Optech Consulting, April 2010].<br />

<strong>The</strong> total <strong>of</strong> €277bn can be put in perspective by comparing this with<br />

o<strong>the</strong>r important industries. In total, <strong>the</strong> overall worldwide GDP is around<br />

€60trillion (2008), where <strong>the</strong> EU GDP is around €12trillion (2008). <strong>The</strong><br />

overall production <strong>of</strong> defence related photonics in 2008 was around<br />

€22bn, which can be compared to defence procurement <strong>of</strong> €44bn in<br />

Europe and $154bn in <strong>the</strong> USA in 2009 (EDA 2 ). Compared to technol-<br />

2<br />

<strong>European</strong> Defence Agency<br />

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