2023 – OptoNet Photonics Report

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.

#Network #OptoNet

Member satisfaction

Good marks for the network

OptoNet e.V. currently represents the interests of 135 stakeholders in the field of photonics in Thuringia – including 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.

#Fachkräfteentwicklung

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

There is a shortage of young talent –
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%).

#Research & #Development

R&D quota

R&D ratio reaches new high

Investment in research and development reached a new high in 2024.

Companies spent more than EUR 600 million on the development of new products and processes, which corresponds to an R&D ratio of around 15%.

Public funding boosts innovative strength

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

#Business situation

Business situation 2025

Companies are cautious

The atmosphere in the sector is noticeably subdued. Compared to two years ago, many companies rate their situation as significantly worse. Economic weakness and geopolitical uncertainties are weighing on business development – the order situation has deteriorated.

Less than half rate their current situation as ›very good‹ (10%) or ›good‹ (36%), while 15% report a ›poor‹ business situation.

Sales

Industry sales at EUR 4 billion

In the 2024 financial year, the photonics industry generated sales of EUR 4 billion — a slight decline when adjusted for inflation.

However, this overall stable development conceals a differentiated picture: After all, 16% of companies have been able to significantly increase their turnover since 2023, while a further 25% have at least slightly exceeded the previous year’s level.

In contrast, around a third of businesses reported a significant decline in sales in some cases.

Cautiously optimistic outlook

At least moderate growth is expected for 2025 and 2026. Slightly less than half of companies expect sales to rise or rise sharply – a slight decline compared to 2023, when over 50% still shared this expectation.

Overall, optimism in the sector remains intact, albeit noticeably more subdued.

Business Climate

Business climate index signals weak phase

After more than 15 years of stable and positive development, Thuringia’s photonics industry is currently in troubled waters.

Only after the global financial and economic crisis of 2007/2008 was the mood among managers worse.

#Markets and #Export

Export ratio

Export ratio remains high

Thuringia’s photonics companies generated 72% of their turnover abroad in 2024 – a figure that is significantly higher than the Thuringian industry’s export ratio of 35%.

The high value shows how important free trade and functioning supply chains are for continued successful development.

Export markets

Europe with the greatest growth potential

Western Europe, North America and China remain the main markets. Europe currently has the highest potential for those surveyed, overtaking the USA.

At the same time, there are growing concerns: tariffs and trade conflicts – especially with the USA – are increasingly causing headaches.

Market position

Many companies are technology leaders

Currently, more than a third of companies maintain market leadership with their most important products. A further 50% place their companies’ products and services in the high-end technology sector.

Overall, the industry generates more than 40% of its turnover with products that have unique technological selling points on the market.

Areas of application

Diversity ensures resilience

With their products, technologies and services, Thuringian photonics companies exclusively serve customers in other highly specialized industries.

This year, for the first time, the question was asked about the application area ‘Security & Defense‘: Almost every third company supplies components and systems for this application area.

Semiconductor production

No chips without photonics

Photonics in Thuringia is an important enabler of the dynamic semiconductor industry. 85% of respondents see above-average potential in this growth market.

Almost two thirds of companies expect to benefit significantly themselves. Research is also heavily involved: 90% of the facilities work in this area.

THE PHOTONICS #REGION #THURINGIA

Location

Jena is the center of the industry

123 companies with over 11,000 employees are based in the Saale city and the neighboring Saale-Holzland district and generate 75% of the sector’s turnover.

Company size

The industry is small and medium-sized

The average company size is 87 employees.

Only a few companies employ more than 250 people. The two largest employers are ZEISS and JENOPTIK.

THE MAJOR #KEYFIGURES

At a glance

195

Companies

4 B €

Sales

72%

Export share of sales

15%

Share of sales for research & development

19.6oo

Total employees (industry & research)

16.9oo

Employees in the industry

2.700

Employees in research

85

Ø Employees per company

700

Trainees
in vocational training

4,2%

Apprenticeship rate

#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

ZEISS · Optec · POG Präzisionsoptik Gera · Lenstec · asphericon · Docter Optics · Jabil Optics

Laser & Beam Sources

Active Fiber Systems · LASOS · Lasertechnik · Layertec · LLT Applikation · SIOS Meßtechnik

Optoelectronics

JENOPTIK · ams · DERMALOG JENETRIC · IMMS · IDloop · AIM Micro Systems · JETI · LEJ

Micro & Fiber Optics

GRINTECH · FabuLens · heracle · FBGS · Optikron · piezoystem jena · WEINERT Fiber Optics

Optical materials

VITRON · 5microns · ACM Coatings · GBneuhaus · INNOVENT · IQS · Optics Balzers Jena · optiX fab

Light engineering

TechnoTeam Bildverarbeitung · ORAFOL Fresnel Optics · LightTrans International · LEC

Metrology & Sensors

BATOP · confovis · GÖPEL electronic · Fibotec Fiberoptics · FluIDect · JenControl · Mahr

The technology fields of photonics in Thuringia with example players
Employees, sales by product focus and number of companies

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

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

#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.

#Geschäftssituation

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.

#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.

Areas of application

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.

#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.

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

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.

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 %

These are ~200 players from industry and research, versatile, excellently networked and internationally renowned. OptoNet has been surveying the industry – with scientific support from Friedrich Schiller University Jena – every two years since 2001.

For the 14th edition of the report, the players in the Thuringian photonics industry once again answered detailed questions about their business situation, turnover, employment and technology trends.

This year’s special topic: the potential of AI and semiconductor technology.

Topics

The most important #keyfigures
The photonics #region #Thuringia
#Products & #Technologies
Current #business situation
#Research & #Development
#Markets & #Export
#Fachkräfteentwicklung
Special: #Technology trends
#Challenges and fields of action
#Network #OptoNet

Key points for the survey

For the 13th edition of the report, the players in the Thuringian photonics industry once again answered detailed questions about their business situation, turnover, employment and technology trends.

This year’s top topic: the development of skilled workers in the high-tech industry.

Topic overview

The most important #keyfigures
The Photonics #Region Thuringia
#Products & Technologies
#Markets & #Export
#Current business situation
#Research & #Development
#Skilled labor development
#Network OptoNet

Key points for the survey

#Skilled workforce development

Number of employees

Almost 20,000 employees in industry & research

Almost every sixth company or research institution reports a significant increase in personnel of 10% or more. Around a quarter recorded a moderate increase, while the number of employees remained constant at just under half.

The trainee ratio developed positively for the first time in a long time, rising from 3.2% to 4.2%.

Open positions

650 positions are currently vacant

The demand for skilled workers in the photonics industry is unbroken.

More than 650 positions are currently vacant. Employees are most frequently sought in the areas of research and development, production, technology and electronics as well as IT and software development.

Situation on the specialist market

Situation remains tense

Despite the weak economy, the situation on the skilled labor market has hardly eased. Physicists, engineers, skilled workers and technicians remain hard to find.

Around 70% of managers rate the supply of skilled workers – with the exception of the commercial sector – as ‘rather poor‘ or ‘very poor‘.

Skilled labor potential 63+

Flexible solutions keep skilled workers beyond retirement age

In 70% of companies, employees will reach retirement age in the next five years – especially in production.

Many companies are trying to retain these skilled workers for longer by offering flexible working hours. In two-thirds of cases, more than half of the retirement candidates show interest – almost 50% remain with the company beyond retirement age

Employment forecast

Further staff expansion planned

The photonics industry is expecting sales growth in the coming years. This is also reflected in the personnel forecasts: by the end of 2026, more than 2,000 new positions will need to be filled through expansion and replacement.

Training rate increases – skills gap remains

Important training courses such as precision optician and microtechnologist have recently been significantly expanded. This is reflected in an increase in the proportion of trainees from 3.2% to 4.6%.

Despite this, the industry will have a calculated shortage of around 480 skilled workers by the end of 2026.

Young academics are not enough

In the 2024/25 academic year, around 3,400 students will be enrolled in photonics-relevant degree programs at Thuringian universities – a stable figure, but too low to comfortably meet demand.

By the end of 2026, this will result in a potential of just over 600 young professionals with a Bachelor’s or Master’s degree – provided that at least half of them choose a company in the sector in the region. This would correspond to a demand coverage of around 78%.

Special: #Technology trends

Use of artificial intelligence

Artificial intelligence in photonics

Companies are increasingly relying on artificial intelligence, especially generative AI, for example for the automated creation of technical documentation or the simulation of optical systems. AI-supported automation and machine learning are also used, for example for process optimization in production or for quality control. While technologies such as computer vision have been used less frequently to date, there are signs of further potential here – for the inspection of optical components or the analysis of complex image data, for example.

Goals

Focus on efficiency and quality

In the photonics industry, the use of AI tools is being driven forward primarily to increase efficiency. This goal has already been achieved in some cases, but only partially for the majority. Promoting innovation and improving quality are also key objectives, although there is still significant potential for development here. The use of AI has so far been less relevant for eliminating staff shortages or increasing safety – these goals have not been prioritized by many companies or have not yet been achieved. Overall, it is clear that AI in photonics is primarily seen as a lever for process optimization.

Obstacles

Skilled workers and regulation as the biggest hurdles

The use of AI is hampered above all by a lack of human resources – more than half of companies see this as a delay. Legal uncertainties and insufficiently digitalized processes are also slowing down implementation. Financial bottlenecks, on the other hand, play a lesser role, as do a lack of partners or a lack of acceptance among the workforce. Overall, it is clear that the success of AI projects depends heavily on the availability of specialists and clear framework conditions.

#Challenges and fields of action

Fields of action for politics

Focus on reducing bureaucracy and infrastructure

Companies in the photonics industry see the greatest need for political action in the reduction of bureaucratic hurdles – for the overwhelming majority, this topic has the highest priority. The repair of public infrastructure and the protection of democracy are also rated as particularly urgent. Other important areas include controlling immigration, limiting social spending and driving forward the energy transition.

Challenges for the economy and society

Strengthening the business location is a priority

Strengthening the business location is at the top of the agenda for almost half of the companies in the next five to ten years. Equally important are securing the next generation through education and the development of skilled workers as well as maintaining free trade and global peace.
Respondents currently pay comparatively little attention to climate change.

The Photonic Industry in Figures

#Network #OptoNet

Member satisfaction

Good marks for the network

#Fachkräfteentwicklung

Number of employees

The number of employees is growing.

Open positions

1,000 positions are currently unfilled.

Situation on the specialist market

The situation is getting worse.

Commitment of the companies

Companies are expanding their own involvement.

Employment forecast

Further increase in personnel planned.

The largest gap is among skilled workers.

The demand for academics is theoretically 3/4 covered.

Fields of action against the shortage of skilled workers

There is a shortage of young talent –the industry must act.

Three pillars: STEM education + immigration + qualification

#Research & #Development

R&D quota

R&D ratio reaches new high

Public funding boosts innovative strength

#Business situation

Business situation 2025

Companies are cautious

Sales

Industry sales at EUR 4 billion

Cautiously optimistic outlook

Business Climate

Business climate index signals weak phase

#Markets and #Export

Export ratio

Export ratio remains high

Export markets

Europe with the greatest growth potential

Market position

Many companies are technology leaders

Areas of application

Diversity ensures resilience

Semiconductor production

No chips without photonics

THE PHOTONICS #REGION #THURINGIA

Location

Jena is the center of the industry

Company size

The industry is small and medium-sized

THE MAJOR #KEYFIGURES

At a glance

195

4 B €

72%

15%

19.6oo

16.9oo

2.700

85

700

4,2%

#Products & #Technologies

Main focus

Unique technology spectrum at the site.

Optics & Mechanics

Laser & Beam Sources

Optoelectronics

Micro & Fiber Optics

Optical materials

Light engineering

Metrology & Sensors

#Research & Development

R&D quota

R&D rate at record level.

#Geschäftssituation

Business situation 2023

Solid economic condition.

Sales

Positive sales development in 2022.

Sales forecasts promise growth.

Challenges

There is a shortage of young talent –
the industry must act.