Segments of the Half-Trillion Dollar Photonics Industry
Earlier newsletters this year announced that the optics and photonics industry reached an estimated $480 billion in 2014, according to OSA Industry Development Associates. This was 6% growth over 2015, and 2015 is expected to pass $500 billion.
The segmentation is broken down by vertical market in the figure. Displays dominate the revenues, forming a segment of its own, even though displays are really an intermediate product for the end application, such as a laptop computer. Other major applications are photovoltaics (PV), LEDs and LED lighting, consumer imaging, biomedical, communications, and security (including military, automotive, etc.). Precision optics is also treated as a segment, even though it is also an intermediate product, one that is sold into the other segments in the chart.
The segments that appear small in this chart are nonetheless sizeable, since the total is, after all, a half trillion dollars. That said, relatively small changes in the display or PV segments amount to absolute changes in market size that are as much as entire segments of photonics products. More details appear in the OIDA Market Update provided to OSA Industry Development Associates members.
OSA Industry Development Committee
Thank you to the volunteers who oversee the programs and services available to the Industry Community.
• Jean-Michel Pelaprat,
• Allan Ashmead,
• Henrik Skov
• Simin Cai,
• John Dexheimer,
• James Fisher,
• Alex Fong,
Gooch & Housego
• Steve Grubb,
• Fred Leonberger,
• Claudio Mazzali,
• Mike Mielke,
• Jerry Rawls,
• Martin Seifert,
• Costel Subran,
• Christoph Harder,
Harder and Partner,
6 July Deadline for Responses to Proposed U.S. Export Control Changes
The clock is ticking on a 6 July deadline for responses to revisions to the U.S. Munitions List. The U.S. government is seeking responses to two documents.
The proposed rules are the result of the Obama Administration's Export Control Reform Initiative, begun in 2009. The aim of the two revisions is to create "higher fences around fewer items" in the U.S. Munitions List. They are oriented around a so-called positive list (products that are excluded), versus the traditional negative list (products that are excepted).
The U.S. Department of State issued an amendment to the International Traffic in Arms Regulations (ITAR): Revisions of U.S. Munitions List Category XII, available here.
The U.S. Department of Commerce issued revisions to the Export Administration Regulations (EAR) for equipment that is deemed not to warrant control under the U.S. Munitions List, available here.
These proposed rule changes may greatly impact your company's ITAR and EAR product classifications. OSA recommends that members review these proposed rule changes. If these proposed rule changes impact your company negatively, we recommend you respond to these proposed changes with official public comments. Your official response can change or negate these proposed rules before they are formulated into final legal binding rules. The more companies that officially respond to these proposed rule changes, the more likely they will be altered.
The proposed rule changes were issued on 5 May 2015. The process to respond through the government website is easy, but please provide as many details as possible, such as page numbers, background, and suggested alternatives. Comments should be constructive: Are the restrictions clear? Are they well placed? Do they place a new burden? The deadline to respond to these proposed rule changes is 6 July 2015.
OSA sponsored an information session at CLEO 2015 featuring the proposed revisions. A video of the session is accessible here, and the accompanying slides are available here. For more information, contact Laura Kolton (OSA Director of Government Relations) or the U.S. government contacts provided in the documents.
Update on Europe's Photonics21
Photonics21 is aiming at new European Commission funds starting this year as a way to expand beyond its role as a "key enabling technology." It introduced members at its annual meeting on 28-29 May to funded programs in four areas: smart cities and buildings, secure society, resource efficiency and smart transport, and health and food security. These are part of the Horizon 2020 "Societal Challenges" program--addressing needs and applications.
The Photonics21 organization realized that European Commission funding specifically for photonics is limited through the rest of the Horizon 2020 program, ending in 2020. The photonics-specific funding amounts to about EUR 100M per year, varying somewhat from year to year. This is about the same level that the U.S. agency NSF funds for photonics-related research. This funding comes from the Horizon 2020 programs in "Industrial Leadership," which address cross-cutting, enabling technologies. Another major Horizon 2020 program addresses "Excellent Science." Horizon 2020 funding totals about EUR 11 billion per year, as shown in the figure below (for details, see the February issue of the OIDA Market Update).
The European Commission funds a German contractor, VDI, to manage Photonics21 operations, while a dues-paying board governs the "public-private partnership" between it and the Commission. This quasi-public-private role of Photonics21 is called a "European Technology Platform" in Euro-speak.
This year's meeting featured Günther Oettinger, Commissioner for the Digital Economy and Society. It was held in Brussels, capital of the European Union, the kingdom of Belgium, and seat of the region of Flanders.
Increase Your Chances of Getting Funding! Attend How to Communicate "HighTech" to the Market: Workshop for Scientists and Startups at Laser Munich
12:00 — 17:00, Wednesday, 24 June 2015 at Laser Munich
Register now to attend this special OSA Industry Development Associates workshop which gives you hands-on advice on how to effectively present high-tech products and technologies to prospective markets. You will learn how to set up an efficient integrated communication strategy, and what you have to do to implement this strategy and to meet prospective targets. Two experts with a proven track record in the field share their experience and provide tips on how to communicate complex technologies efficiently. Who should attend? Startup founders, scientists, engineers, and PR/marketing professionals with an interest in technology transfer. Register now!
Publishing Professional and
Thoss Media GmbH
Communication consultant focused
on science and technology
Mark Your Calendar: State of the Art Integrated Photonics Workshop
3 November, OSA's Office in Washington D.C.
Attend and get the answers to key questions about commercializing integrated photonics.
Registration opens next month. Learn more and mark your calendar to attend.
Where is the limit of discrete photonics? Where is its manufacturing economical and where is it not?
How is this threshold different for different applications?
What is the role of integrated photonics in the data center?
What is the future for commercialization of integrated photonic sensors?
Welcome New Industry Development Associates Members
Technology Transfer — Navigating the Landscape of Today's Changing Marketplace
Successful transition of technology to commercial product requires a lot of paperwork, navigating intellectual property rights, identifying markets and raising the capital necessary to brings products to consumers. The Technology Transfer Program at CLEO: 2015 provided attendees an invaluable resource for learning how to turn their discoveries into marketable products.
Dr. Milton Chang, managing director of Incubic and author of the book Toward Entrepreneurship, delivered the keynote address of this year's Tech Transfer program, highlighting his work in bringing new technologies to the market place.
During his presentation, Dr. Chang detailed how to start and do business with limited capital. He then went on to explain what gets venture capitalists excited about the photonics industry enough to invest. He also encouraged companies to pool resources, stating that alliances can be mutually beneficial. Finally, he issued a call to students to take an interest in business management and actively participate in professional societies.
Following Dr. Chang's presentation, the Technology Transfer tutorial featured presentations on technology licensing by Roger Werne, deputy director at Industrial Partnering Office, Lawrence Livermore National Laboratory, and Brent Whitlock, a patent attorney with Drinker, Biddle & Reath LLP. The tutorial covered the many paths to a successful technology transfer and gave attendees an opportunity to learn more about the licensing process, business and legal issues, and finding creative solutions that rewards all parties in a deal.
NEW Applied Optics Engineering and Laboratory Notes Now Online
Applied Optics now publishes articles called Engineering and Laboratory Notes (E&L Notes) These articles are intended to give engineers and technicians a venue to highlight laboratory techniques and hands-on skills required for the design, analysis, fabrication, integration, alignment, and measurement of optical components and systems.
Check out these three newly published E&L Notes:
Want to publish an E&L Note? Submit your manuscript today! If you aren't yet ready to submit, read this editorial by the E&L Notes Editor Brian Monacelli to learn more.
Gain Recognition for Your Engineering Team!
Team nominations for the Paul F. Forman Team Engineering Excellence Award are due 2 July. This is a great opportunity to showcase the value and importance of the engineer teams in your organization! Named in memory of Paul F. Forman, the award recognizes technical achievements such as product engineering, process and software development, and patent development, as well as contributions to society such as engineering education, publication and management, and furthering public appreciation of optical engineering. Submit your team nominations by due 2 July 2015. The awards will be presented in October in San Jose, California, during Frontiers in Optics 2015. Recent winners include: Intel Silicon Photonics Solutions Group, ZygoLOT Automotive Precision Optical Team, and Georgia Tech Research Institute (GTRI) Lidar Team.
CLEO Pacific Rim 2015
The 11th Conference on Lasers and Electro-Optics Pacific Rim (CLEO Pacific Rim) will take place
24 - 28 August 2015 at the BEXCO, Busan, Korea. Take advantage of early bird rates by registering
before 1 July, 2015.
International Year of Light 2015: Share Your Story
The International Year of Light and Light-Based Technologies (IYL 2015) is a global initiative that will highlight to the citizens of the world the importance of light and optical technologies in their lives, for their futures, and for the development of society. A resolution declaring 2015 the International Year of Light was passed by the full United Nations General Assembly on 20 December 2013. The Optical Society is one of nine founding scientific organizations that worked to obtain the formal declaration.
In support of IYL 2015, we are asking our members for their IYL stories to share. Simply submit interesting, educational or fun facts about optics, photonics or the science of light. OSA will pick the best entries to on our social media channels. Up to 10 submissions per person are allowed, and should be geared toward a non-technical audience and demonstrate factual information. Submissions may include a video or photo.
Submit your IYL news to: firstname.lastname@example.org by 15 June 2015. Be sure to check out the Legal Terms and Conditions.
Want to get even more insight and access to great discussions about optics and photonics?
Join 3,000 of your colleagues in our 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!
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