As summer holidays in North America and Europe end, we find ourselves entering new territory amidst a tide of change. From the shift in the presidential line-up for the U.S. election to global geopolitics, software patches, and unstable financial markets, external forces continue to exert pressures on today’s photonics landscape.
For instance, the semiconductor foundry industry faces a complex landscape of make-or-buy decisions and international dependencies, according to a July report from Yole Group. While geopolitical tensions have prompted supply chain scrambles, at the same time, opportunities are growing due to rising demand from the server, automotive, and industrial sectors.
Or consider how generative artificial intelligence (GenAI) impacts today’s photonics environment. OMDIA’s Optical Communications (OFC2024 and AI) Report (available to Optica Corporate Members), revealed that demand for AI has triggered a new wave of data center investment, a new industrial revolution. In fact, OMDIA predicts GenAI will be the driving force behind both server and network growth within data centers during the next six years.
In another field, Mordor Intelligence reports the photonic integrated circuit (PIC) market will climb from $15.11 billion in 2024 to $38.35 billion by 2029—a compound annual growth rate (CAGR) of 20.47%. This projected increase demonstrates a growing demand for chip-based photonic solutions, which will force the market—and the companies within it—to respond with new efficiencies and solutions to maintain business position.
What the (near) future holds
This volatility requires companies to balance immediate opportunities with future demands—and these developments are just the tip of the iceberg.
The seismic shifts we’re facing drove Optica to launch our Global Photonics Economics Forum 2024, taking place October 1-2 in Málaga, Spain, to respond to this high-intensity industry progress. Catering to the wide berth of companies supporting the photonics industry, the Forum will deliver a comprehensive and inclusive discussion on investment opportunities, challenges, and strategic approaches within today’s landscape. From cutting-edge research and its implications for the photonics industry to the future of photonics manufacturing, our goal is to spark an insightful exploration of the photonics industry's evolution—emphasizing current trends and future growth areas.
As Optica Corporate Members come together in events like this one, they not only support one another on a path of discovery, they also form alliances to address existing challenges. With venture capitalists present, new funding relationships begin to take shape. With all areas of the supply chain in attendance, opportunities for collaboration arise. With photonics solutions serving distinct vertical markets, novel applications emerge in new areas. By bringing key players in the photonics industry together, Optica helps to facilitate the connections that will solve today’s challenges and unearth tomorrow’s potential.
But it’s your work that propels the industry forward. Thank you to all Optica Corporate Members for supporting the Optica Corporate Engagement. Strong participation in our in-person events and online industry meetings translates into more meaningful connections than ever before—ones that help drive industry growth.
As we enter this new season, we invite you to join us as we continue to advance collaboration, idea exchange, and connection. Because we truly are on the cusp of a new industrial revolution—a photonics revolution—that requires you, as industry leaders, to actively address it. While the landscape may be uncertain, you know where you need to head with your business, and now’s the time to make the leap to what’s next.