OptoNet Photonics Report – The Photonic Industry in Figures

THE MAJOR #KEYFIGURES

At a glance

Companies ›	186
Sales 2022 ›	EUR 3.8 billion
Share of sales for research & development ›	13%
Export share of sales ›	72%
Total employees (industry & research) ›	18.300
Employees in the industry ›	15.850
Employees in research ›	2.450
Average company size ›	85 employees
Trainees in vocational training ›	500
Apprenticeship rate ›	3,2 %

THE PHOTONICS #REGION THÜRINGEN

Location

Jena is the center of the industry.

113 companies with almost 10,000 employees are based in the Saale city and the neighboring Saale-Holzland district and generate around 61% of the industry’s sales.

Company size

Most companies are small and medium-sized.

Although the industry has been growing for many years, the small and medium-sized structure remains intact. The average company size is 85 employees.

Young companies are maturing and outgrowing the category of micro-enterprises, while start-ups are moving up and providing a breath of fresh innovative air.

The backbone, however, continues to be the 50 or so companies in the ’50 to 249 employees’ category, which employ around 5,200 workers.

Only a few companies employ more than 250 people. The two largest employers are ZEISS and JENOPTIK with a total of more than 4,000 employees.

#Products & Technologies

Main focus

Unique technology spectrum at the site.

Thuringia’s photonics industry is characterized by a broad spectrum of technologies, which ensures it a recognized unique selling point both throughout Germany and internationally.

No other location can be identified that has a comparable density of companies in the optics and mechanics, metrology and sensor technology, laser technology or optoelectronics segments, which cover all the areas of photonics that are relevant to value creation.

In total, the competencies of the companies cover seven focal areas, with numerous companies active in different technology fields. In each case, the most important business area is relevant for the allocation of the individual company.

The overview shows the number of employees, sales and the number of companies in each technology area.

Optics & Mechanics

asphericon – POG Precision Optics Gera – ZEISS – SPACEOPTIX – Docter Optics

Laser & Beam Sources

JENOPTIK – afs active fiber systems – Asclepion – LASOS

Optoelectronics

ams Sensors Germany – CDA – Jabil Optics Jena

Micro & Fiber Optics

Grintech – Weinert Industries – FBGS – Optikron

Optical materials

Vitron – Materion Balzers Optics Jena – IQS

Light engineering

ORAFOL Fresnel Optics – TechnoTeam Image Processing – LEJ Leistungselektronik Jena

Metrology & Sensors

GÖPEL electronic – Micro-Hybrid Electronic – SIOS Messtechnik

Companies, employees and sales by product focus

#Markets and #Export

Export ratio

Exports at record level.

72% of sales were generated abroad by Thuringia’s photonics companies in 2022, a value that is significantly higher than the export ratio of Thuringia’s industry of 37%.

Compared to the export ratio in 2021 (68%), this represents a significant increase and underscores the industry’s enormous international competitiveness.

However, the high export ratio also highlights the importance of free trade and functioning supply chains for continued sustainable development.

Export markets

US market with greatest potential.

The most important export markets remain Western Europe, North America and China. The companies currently see the greatest sales opportunities and potential primarily in the USA.

There has been a noticeable decline in the proportion of companies placing high hopes in the Chinese market. Here, many executives fear a tightening of sanctions and protectionist trade restrictions.

Market position

Very good position in international competition.

Currently, more than one third of of the companies with their products, more than a third of the market leadership. Another 59% place the products and services of their of their companies in the technological Highend range.

Overall, the industry generates more more than 40% of its sales from products at the forefront of technology development.

Element #2

Photonics is an enabler for other high-tech industries.

The customers of Thuringia’s photonics companies are to be found in promising industries, which are often themselves characterized by a highly specialized orientation and serve emerging markets.

The largest share of this is taken up by the application field ‘Industrial Production and Systems’. Almost 80% of the companies supply products or components that are used for production control and monitoring or quality control.

#Business situation

Business situation 2023

Solid economic condition.

The photonics industry in Thuringia is in solid economic shape in the first quarter of 2023. Despite a persistently challenging environment, three quarters of companies rate their economic situation as ‘very good‘(24%) or ‘good‘ (52%).

Sales

Positive sales development in 2022.

One in three companies has increased its sales significantly since 2021, and for another quarter, sales were at least somewhat above the 2021 level. Overall, the industry achieved a significant growth of 12% in 2021 and 2022 .

In absolute figures: Growth from EUR 3.4 billion in 2020 to EUR 3.8 billion in the2022 financial year.

Sales forecasts promise growth.

Further growth, in some cases strong, is also expected in the coming years.

Just under 60% of the companies expect sales to rise or rise sharply.

Challenges

The overall economic environment remains difficult.

Sales growth and forecasts could have been even better if the companies had not been confronted with various global problems.

Problems resulting from disrupted supply chains can be identified as the greatest challenge. 60% of companies said they were affected by this to a great extent.

The photonics companies surveyed also identified rising raw material and energy prices and, more generally, the inflationary environment as other important problems.

Business Climate

Business climate index points upward.

The business climate in the photonics sector is thus moving back on a clearly positive course in 2021 after a slight Corona-related weak phase.

#Research & Development

R&D quota

R&D rate at record level.

Investments in ‘Research and development’ reached a new high in 2022.

Almost half a billion euros was spent by companies on the development of new products and processes, corresponding to an R&D ratio of around 13%.

Government funding programs at state, federal or European level continue to play an important role in the intensive commitment to ‘research and development’. Individual funding and collaborative projects with research institutions and/or other companies strengthen the innovative strength and competitiveness of companies.

Just under a quarter of the companies regard support programs as essential, while just under half see them as at least an important supporting measure.

#Skilled labor development

Number of employees

The number of employees is growing.

Around 1,000 new employees have been hired since 2021.

Nearly one in five companies reported strong staff growth of 10% or more, while more than a quarter reported moderate growth.

At 38% of the companies, the number of employees remained constant.

This means that at the beginning of 2023, around 18,300 specialists will be working in the photonics sector in the Free State, 2,450 of them in the 13 university and non-university research institutions.

Two-thirds of HR managers also expect personnel growth in the current and next year. personnel growth, 17% even expect significant growth.

Open positions

1,000 positions are currently unfilled.

In the photonics industry is the Demand for skilled workers continues unabated. More than 1,000 positions are currently unfilled.

Most often sought are Employees:inside in the areas of production, design and manufacturing, R&D, IT and engineering/electronics.

Situation on the specialist market

The situation is getting worse.

Attracting skilled workers is becoming increasingly difficult. Not only are physicists and engineers hard to find, but the recruitment of skilled workers and technicians in various specialties is also becoming an increasingly tedious challenge.

Asked about their assessment of the supply of skilled workers on the labor market, the companies are unanimous: apart from the area of commercial/administrative employees, around 80% of respondents rate the situation as ‘rather bad’ or even ‘very bad’.

Almost two-thirds now rate this situation as a serious threat to the industry.

61% state that the lack of skilled workers is holding back growth.

Commitment of the companies

Companies are expanding their own involvement.

Many companies are active themselves and invest time and money to support regional initiatives. They are also forced to compromise on the requirements for applicants.

Nevertheless, the companies are far from being able to compensate for what falls by the wayside as a result of lesson cancellations and a shortage of teachers.

Employment forecast

Further increase in personnel planned.

The photonics industry expects growth of more than 10% in the coming years.

This is also reflected in the personnel forecasts: by the end of 2024, a total of almost 2,000 new positions will have to be filled through expansion and replacement.

The largest gap is among skilled workers.

Around 100 young precision opticians are currently being trained – more than for a long time. Nevertheless, the training rate at the time of the survey was 3.2%, significantly below the 2021 figure.

In purely arithmetical terms, this means that there will be a shortage of more than 500 skilled workers by the end of 2024.

The demand for academics is theoretically 3/4 covered.

In Thuringia, 3,300 people are currently studying a photonics-related subject – but the trend is downward.

By the end of 2024, this will result in a potential of around 600 career starters with a master’s or bachelor’s degree , as long as at least half of the career starters choose a company in the region.

Fields of action against the shortage of skilled workers

The next generation is becoming scarce –
the industry must act.

In view of the general conditions of demographics, growing competition for skilled workers and declining numbers of graduates in the STEM field, it seems more than doubtful that the workforce of around 20,000 employees forecast for the industry as a whole by 2027 can be achieved.

Three pillars: STEM education + immigration + qualification

To ensure that the shortage of skilled workers does not lead to a loss of innovative strength, competitiveness and market share, important levers must be set in motion in the education sector and in the recruitment of foreign skilled workers.

Teacher shortages, lesson cancellations and the resulting deficits in STEM education for young people could do serious damage to Thuringia as a technology location and are perceived by managers with great concern and already as a disadvantage for the location.

The photonics industry is open to foreign specialistsWhile many companies (80%) already employ people with an international background, their share of the total workforce is still quite low (approx. 13%).

In principle, however, almost all companies can imagine relying on international specialists to a considerable extent (44%) or at least for individual positions (50%).

#Network OptoNet

Member satisfaction

Good scores for the network.

OptoNet e.V. represents the interests of currently 121 stakeholders around the Thuringian photonics, in addition to companies, educational and research institutions, personnel service providers and other supporters.

The network offers these members a wide range of services in the form of networking and personal exchange, support in the promotion of technology and young talent, or the presentation of the industry at national and international level.

The members consider OptoNet to be on the right track in terms of its objectives and orientation and award it consistently good and very good marks for its wide range of services.

The PHOTONICS Report was prepared on behalf of OptoNet e.V.. The study is based on telephone interviews with the managing directors, HR managers and other executives of the companies and research institutions. Not only OptoNet member companies were taken into account, but all players in Thuringia assigned to the industry. In addition, the data were evaluated in comparison with the industry data collected by OptoNet every two years since 2001.

There may be slight differences in the totals due to rounding.

The reproduction or distribution of the contents for commercial and non-commercial purposes is only possible with the express permission of the publisher. For inquiries, please contact info@optonet-jena.de

The publication of results with reference to the source is permitted.

The Photonic Industry in Figures

Topic overview

Key points for the survey