News: Optoelectronics
22 January 2026
CSA Catapult report highlights growth and scale-up opportunities for UK photonics companies
Investment in scale up, manufacturing and supply chains, could lead to significant growth and acceleration for UK companies developing photonic integrated circuits (PICs), according to a new report ‘Unlocking the Future with Photonic Integrated Circuits’ by the UK’s Compound Semiconductor Applications (CSA) Catapult (a not-for-profit center of excellence established by Innovate UK in 2018, specializing in the measurement, characterization, integration and validation of compound semiconductor technology spanning power electronics, advanced packaging, radio frequency and microwave, and photonics applications).
The global PIC sector is forecasted to surge at a compound annual growth rate (CAGR) of 24% from $3.9bn in 2024 to $54.5bn by 2035. This rapid market expansion is anticipated in data centers and telecoms and in quantum technologies (56.1% CAGR) and sensing (47.5% CAGR).
According to the Photonics Leadership Group, the UK’s photonics sector currently contributes £18.5bn to the economy and supports over 84,000 jobs, making it one of the most productive manufacturing industries in the country.
The UK is the second largest photonics producer in Europe and the ninth globally, accounting for about 2.25% of a £850bn global market. Most UK firms export more than half of their output, and foreign investment continues to flow into the sector due to its reputation for innovation and skills.
To secure long-term leadership in PICs the UK should:
- Invest in scale-up, manufacturing and supply chain capacity – establish pilot and production facilities and strengthen domestic supply chains to bridge the gap between research and industrial deployment, enhancing the UK’s technological sovereignty.
- Embed PICs within national AI and quantum strategies – position PICs as a core enabler of the UK’s 10-year compute roadmap and national quantum programs.
- Strengthen integration and prototyping capabilities – expand, co-design, packaging and validation services to reduce adoption risk and accelerate innovation.
- Develop specialist talent pipelines – expanding training, apprenticeships and fellowships to address gaps in photonic design, packaging and testing.
- Promote cross-sector adoption and international collaboration – showcase PIC applications across telecoms, data centers, healthcare and quantum, while fostering global partnerships to secure market competitiveness.
“Photonic integrated circuits are a critical part of modern digital infrastructure. If the UK acts now to build capability and capacity, it can secure long-term leadership to support the fast-growing markets in AI hardware, quantum and 6G,” says CSA Catapult’s chief technology officer Nick Singh.
“CSA Catapult can support UK photonics companies by combining our design expertise with integrated prototyping services; we want to be a key enabler of the UK’s photonics supply chain,” he adds. “Our focus on manufacturability, scalability and convergence ensures that emerging PIC technologies can transition more effectively from research to industrial deployment.”
