A novel approach to assessing the photonics industry involves an in-depth look at more than 3000 companies. It has yielded a unique ranking of the firms that serve the optics and photonics marketplace and their impact on the global economy.

1. The International Society for Optics and Photonics
Core market for optics & photonics in 2012 | Stephen G. Anderson | stevea@spie.org
© 2014 SPIE 1

2. In this presentation …
 Who is SPIE?
− The international society for optics and photonics
 SPIE’s Photonics Market Analysis
− Measuring the market using company information
• A bottoms-up worldwide look at revenues, jobs, and
geography of optics and photonics
Core market for optics & photonics in 2012 | Stephen G. Anderson | stevea@spie.org © 2014 SPIE 2

3. About SPIE
The International Society for Optics & Photonics
A self-funded, not-for-profit educational society
advancing the science and application of light
17,000 members, 5,200 student members, 500 corporate members
SPIE publishes proceedings, journals, books, and hosts
a digital library of more than 370,000 papers online
35,000+ attendees visit ~20 SPIE conferences
and exhibitions annually
SPIE provided more than $3.3 million to global education
and outreach programs in 2013
SPIE provides worldwide industry support &
advocacy for optics and photonics
Core market for optics & photonics in 2012 | Stephen G. Anderson | stevea@spie.org © 2014 SPIE 3

4. SPIE’s Photonics Market Analysis
from components to consumers
Photonics
Enabled
Services
Photonics
Enabled
Products
Market
Measuring the Market using Company Information
Core market for optics & photonics in 2012 | Stephen G. Anderson | stevea@spie.org © 2014 SPIE 4

5. Materials, LEDs, lasers,
detectors, image sensors,
lenses, prisms, optical filters,
gratings, solar cells, fiber
Lighting, internet &
datacenters, smart phones,
(machine) vision systems,
TVs, medical imaging systems
Core photonic
_components
& materials
Photonic
products
LED lamps, cameras, displays,
optical scanners, markers
advanced manufacturing
systems, inspection systems
Photonic-enabled
products
Increasing value
Core market for optics & photonics in 2012 | Stephen G. Anderson | stevea@spie.org © 2014 SPIE 5

6. The Photonics Marketplace
From components to enabled services
Photonic
products
Core photonic
components
Photonic-enabled
services
Photonic-enabled
products
Photonic products
Core photonic
components and
materials
•Internet, streaming video and
audio (music), cloud storage
services
•Lighting, internet &
datacenters, smart phones,
(machine) vision systems, TVs,
medical imaging systems
•LED lamps, cameras, displays,
optical scanners, markers
advanced manufacturing
systems, inspection systems
•LEDs, lasers, detectors, image
sensors, lenses, prisms, optical
filters, gratings, optical fiber
Knowledge generation
Core market for optics & photonics in 2012 | Stephen G. Anderson | stevea@spie.org © 2014 SPIE 6
Not to scale

7. Building from Company Information
Entities active in
photonics
4962
Make & ship
photonic materials
and components?
2748
Total sales
& jobs?
Photonics data
review
Exhibited at one or more of 30+ optics & photonics events
worldwide in 2012 (de-duped)
• Educational institutions
• Government labs
• Publishers and media outlets
• Consultants
• Associations, societies, non-profits
• Distributors and reps
Excluded entities
Dun & Bradstreet provides company sales & employee data. For various
reasons information is not available for all companies especially outside the
USA. Firms without D&B data are assessed using public information combined
with regional statistical benchmarks derived during the D&B analysis.
Company data is imported into the SPIE database for analysis and review
SPIE’s Data Analysis Team
• “Out of range” data reviewed in-depth
• Company revenues and employment prorated based on estimates of
actual photonics-related sales (“Photonics Factor”)
• Companies with sales < $10 million assumed to be 100% photonics
SPIE SPIE’s global market estimate for core photonics components
Core market for optics & photonics in 2012 | Stephen G. Anderson | stevea@spie.org © 2014 SPIE 7

8. Not to scale The Photonics Marketplace
Photonic
products
From components to enabled services
Core photonic
components
Photonic-enabled
services
Photonic-enabled
products
Photonic products
Core photonic
components and
materials
•Internet, streaming video and
audio (music), cloud storage
services
•Lighting, internet &
datacenters, smart phones,
(machine) vision systems, TVs,
medical imaging systems
•LED lamps, cameras, displays,
optical scanners, markers
advanced manufacturing
systems, inspection systems
•LEDs, lasers, detectors, image
sensors, lenses, prisms, optical
filters, gratings, optical fiber
Knowledge generation
Core market for optics & photonics in 2012 | Stephen G. Anderson | stevea@spie.org © 2014 SPIE 8

9. Core photonic
_components
& materials
Materials, LEDs, lasers,
detectors, image sensors,
lenses, prisms, optical filters,
gratings, solar cells, fiber
Photonic-enabled
products
$156 B Revenues
2750 Companies
700,000 Jobs
Core market for optics & photonics in 2012 | Stephen G. Anderson | stevea@spie.org © 2014 SPIE 9

10. WW Sales of Core Components
Global Photonics Sales of Core
Optics & Photonics Suppliers in 2012
Photonics firmsWW 27481
Annual photonics sales $156 B2
Photonics employees (jobs) 698,2662
Global average sales/employee $223,414
1 Photonics firms that make and that ship photonics core components and that exhibited at a major photonics
tradeshow somewhere in the world in 2012
2 Company revenues and employment are prorated based on estimates of photonics-related sales (“Photonics
Factor”). Companies with sales of less than $10 M are assumed to be 100% photonics; all data are for 2012.
Core market for optics & photonics in 2012 | Stephen G. Anderson | stevea@spie.org © 2014 SPIE 10

11. Companies Grouped by Size ($)
for Core Photonics Suppliers, WW
< $1M $1M - $10M $11M - $50M $51M - $500M $500M - $1B > $1B
Company size
1600
1400
1200
1000
800
600
400
200
0
Core market for optics & photonics in 2012 | Stephen G. Anderson | stevea@spie.org © 2014 SPIE 11
Number of Companies
Number of Companies

12. Companies Grouped by Size ($)
for Core Photonics Suppliers, WW
< $1M $1M - $10M $11M - $50M $51M - $500M $500M - $1B > $1B
Company size
60%
50%
40%
30%
20%
10%
0%
1600
1400
1200
1000
800
600
400
200
0
% of Total Revenue
Core market for optics & photonics in 2012 | Stephen G. Anderson | stevea@spie.org © 2014 SPIE 12
Number of Companies
Number of Companies % of Total Revenues
2132 companies with
photonics revenues
< $10 M produce
~4% of total sales
69 companies with
photonics revenues
> $500 M produce
>72% of total sales
<10% of companies employ ~77% of the workforce

13. Companies Grouped by Sales/Employee
for Core Photonics Suppliers, WW
Sales / employee
Core market for optics & photonics in 2012 | Stephen G. Anderson | stevea@spie.org © 2014 SPIE 13
1400
1200
1000
800
600
400
200
0
< $50K $50K - $100K $101K - $250K $251K - $500K $501K - $1M > $1M
Number of Companies
Number of Companies $223,000

14. Companies Grouped by Sales/Employee
for Core Photonics Suppliers, WW
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
1400
1200
1000
800
600
400
200
 ~16% of companies have revenue/employee between $251K-$500K (43% of total)
Core market for optics & photonics in 2012 | Stephen G. Anderson | stevea@spie.org
© 2014 SPIE 14
Sales / employee
0%
0
< $50K $50K - $100K $101K - $250K $251K - $500K $501K - $1M > $1M
% of Total Revenue
Number of Companies
Number of Companies % of Total Revenues
$223,000
<5% companies have
sales/employee of
more than $500K.
(26% of total sales)
About 80% of all
firms have
sales/employee
below $250K
(31% of total sales)
~21% of firms operate above avge profitability & produce 70% of all sales

15. The Geography of Photonics
Components Production
Jobs
Japan 234,622
United States 188,167
China 120,358
Germany 46,910
France 31,197
Taiwan 24,396
United Kingdom 9 ,328
Italy 7,483
Russian Federation 5 ,901
Switzerland 5 ,808
Netherlands 4,164
Israel 3,860
Sweden 3,342
Canada 2 ,451
Korea, Republic of 1 ,775
Czech Republic 1 ,764
Belarus 1,091
Denmark 836
Austria 714
Singapore 574
Thailand 502
Hong Kong, China 464
Bulgaria 363
Belgium 289
Ireland 272
Lithuania 270
India 225
Poland 182
Slovakia 166
Liechtenstein 165
Spain 137
Finland 100
Armenia 91
Egypt 70
Australia 5 7
Norway 40
Isle of Man 3 0
Luxembourg 2 5
Ukraine 23
Lebanon 2 0
Portugal 11
Turkey 10
Slovenia 9
New Zealand 3
Hungary 3
Romania 1
2748 firms span more than 46 countries
Core market for optics & photonics in 2012 | Stephen G. Anderson | stevea@spie.org © 2014 SPIE 15

16. The Geography of Photonics
Components Production … 2
Company count by country
2748 Firms
Revenues by country
$156 B
Core market for optics & photonics in 2012 | Stephen G. Anderson | stevea@spie.org © 2014 SPIE 16
USA
Germany
Japan
China
France
UK
Taiwan
Canada
Switzerland
Other
Japan
USA
Germany
China
Taiwan
France
UK
Italy
Switzerland
Other

17. SPIE’s Photonics Market Analysis
Photonics West
Core Components
2012
•$84 B
•1008 firms
•337,049 jobs
Coming soon …
Worldwide
Core Components
2012
• $156 B
• 2748 firms
• 698,266 jobs
Worldwide
Enabled Markets
Building from Company Information
Core market for optics & photonics in 2012 | Stephen G. Anderson | stevea@spie.org © 2014 SPIE 17

18. Celebrate the International Year of Light 2015
Find out how at www.light2015.org
Core market for optics & photonics in 2012 | Stephen G. Anderson | stevea@spie.org © 2014 SPIE 18