The figures are detailed in its latest report UK Photonics 2025: The Hidden Economy and according to the PLG, “The update reaffirms the UK’s position as a global leader in photonics innovation and manufacturing, continuing its trajectory of strong, sustained growth.”
The report shows that the UK achieved £18.5 billion in total turnover in 2024, up 20 percent over two years in absolute terms, with a compound annual like-for-like growth rate (CAGR) of 7.9 percent. Sector employment increased by 8.4 percent, taking the total workforce to 84,800 in 1,400 companies.
“Productivity remains exceptional with a Gross Value Added (GVA) per employee of over £101,000, one of the highest in the UK and contributing £8.5 billion in GVA to the UK economy,” said the PLG. “UK photonics underpins sectors from AI, telecoms, and semiconductors to net-zero technologies, life sciences, and quantum computing.”
The report said that the UK photonics sector is “projected to grow to between £19 and £22 billion by 2026 – putting it on course to reach a total value of £50 billion by 2035, aligning with the Photonics Leadership Group’s 2035 vision.”
These figures suggest that the photonics sector now rivals automotive and aerospace in employment, while outperforming pharmaceuticals, steel, and chemicals by a factor of more than 2:1, said the PLG.
According to the PLG, the strength of the sector and its growing importance in the UK’s wider economy is due to:
- Photonics is ranked among the top UK manufacturing sectors for productivity, with an increasing R&D intensity.
- It acts as a cornerstone of the 2021 UK Government’s Innovation Strategy, supporting transformative technologies from quantum to net-zero systems.
- Looking at the wider picture, the PLG estimates the sector underpins more than 13% of global innovation output.
Commenting on the report Dr John Lincoln, Chief Executive, PLG, said, “Photonics is not just growing, it’s accelerating. Our industry is delivering high-value jobs, world-class productivity, and mission-critical technologies to meet global challenges. These latest figures reflect how deeply embedded photonics has become across the UK economy and how essential it is to the world’s future.”
Shahida Imani, Chairman, PLG, and CEO of Singular Photonics, added, “The scale of impact outlined in this report reinforces what those of us in the field have long known photonics is not a niche technology, but a foundational enabler of the future economy.
“With £18.5 billion in output, over 84,000 high-skilled jobs, and one of the highest productivity rates in UK manufacturing, the photonics sector is now rivalling traditional giants like aerospace and automotive."
