LASER 2025: UK Photonics industry surges to £18.5 billion turnover in 2024

Business is on a trajectory to reach £50 billion by 2035, says new Photonics Leadership Group report.

optics.org, Jun. 24, 2025 – 

The UK’s photonics industry last year reached an annual output of £18.5 billion (US$ 25 billion), according to new figures released this week by the Photonics Leadership Group (PLG) at LASER World of Photonics 2025.

The figures are detailed in its latest report UK Photonics 2025: The Hidden Economy. The PLG stated, “The update reaffirms the UK’s position as a global leader in photonics innovation and manufacturing, continuing its trajectory of strong, sustained growth.”

Significant figures

The PLG report contains the following noteworthy details:

• 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 (CAGR 4.1) percent, taking the total workforce to 84,800 in 1,400 companies.
• The PLG commented that “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.”

   

• “UK photonics underpins sectors from AI, telecoms, and semiconductors to net-zero technologies, life sciences, and quantum computing,” the statement continued.

Future outlook

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, which also outlined several reasons why this sector is of growing importance in the UK’s wider economy – and that of countries across the world:

• 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.

Dr John Lincoln, Chief Executive, PLG, commented: “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.

“As we look toward 2035, our mission is clear: to amplify this momentum with bold leadership, collaborative innovation, and sustained investment. This is a once-in-a-generation opportunity to position the UK as the global powerhouse for light-enabled technologies—and we are ready to lead with purpose and ambition.”

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