LIGHTING THE WAY - Department for Innovation …...1.7 Global Market for Photonic Products and Components 25 2.0 Opportunities 28 2.1 Biophotonics Market 28 2.2 Lasers Market 31 2.3

GLOBAL OPPORTUNITIES FOR THE PHOTONICS INDUSTRY IN SOUTH AUSTRALIAFOR THE DEPARTMENT OF STATE DEVELOPMENT

Dr. Robert LiebermanDr. David KrohnDr. Alexis Mendez

LIGHTING THE WAY

FEBRUARY 2017

4

THEAUTHORSThe South Australian photonics opportunities study team is led by three

professionals who have over 115 years of combined experience in developing

optical and photonic products and businesses: Dr Robert Lieberman, Dr

David Krohn, and Dr Alexis Mendez. All three are active players in the global

photonics industry who have worked with a host of small (start-up), medium,

and large (multi-billion-dollar) enterprises in contract research, product

development, industry standards, company formation and funding, road-

mapping, and acquisitions.

1LIGHTING THE WAY

The Authors

Dr. Bob LiebermanPRESIDENT, SPIE

Dr. Lieberman is the president

of SPIE; the largest optics and

photonics organisation in the world.

He began his career at Bell Labs,

and has co-founded more than

half a dozen photonics companies.

He has extensive experience in

industry and working in conjunction

with government laboratories. He

also is a founding member of the

US National Photonics Initiative, a

highly effective advocacy group for

photonics in Washington D.C.

Dr. David KrohnMANAGING PARTNER, LIGHT WAVE VENTURE

Light Wave Venture is a photonics

business development firm with

more than 125 clients; he began

his career working in the glass

industry. At Exxon, he developed a

fibre optic process which was spun

out as EOTec. EOTec was acquired

by 3M where Dr. Krohn became

the chief executive of 3M’s optical

fibre business. He has developed

numerous books and short courses

on photonics-related subjects. He

is the author of “Commercialisation

Basics for the Photonics Industry”.

Dr. Alexis MendezPRESIDENT, MCH ENGINEERING

Dr Mendez is the President of MCH

Engineering a 15-year-old photonics

consulting firm; he began his

career at ABB, and has worked for

several small/medium enterprises

to develop photonic products

and business strategies. He has

extensive experience in fibre optic

sensing technologies.

44

ROADMAP FOR THE DEVELOPMENT OF THE PHOTONICS INDUSTRY IN SOUTH AUSTRALIA

Foreword

In recent years, global economic changes have had a powerful impact on South Australia’s industries and the communities they support.

These sweeping changes require a comprehensive response which is why one of the State Government’s key economic priorities is to promote growth through innovation.

Innovation is a critical driver of growth, sustainability and diversification of the State’s businesses and the broader economy.

The transformation of the state’s economy is being built upon our ability to adopt new ways of doing things, including through new technologies.

We are promoting the adoption of advanced technologies along with innovative business and revenue models to build globally competitive high value firms.

Photonics is a disruptive technology with the potential to be a game-changer for South Australian companies, enabling them to solve problems for local, interstate, and global customers.

We all use photonics enabled devices every day such as lasers, sensors, and optical fibres, without even realising it – from consumer electronics, to commercial and industrial applications in a number of our State’s priority sectors including resources, medical, defence, food, and the environment.

The global photonics market is currently worth around USD$500 billion and is expected to grow to over USD$600 billion by 2023, so it represents a great opportunity for our local advanced manufacturers.

The State Government’s Photonics Catalyst Program has helped South Australian businesses identify emerging laser and sensor technologies that could revolutionise their products or business models.

The program has supported the development of advanced products by providing funding mechanisms for industry to engage with universities to develop innovative products using laser and light based technologies.

Following the success of this program, the South Australian Government has commissioned this report by global experts in photonics in order to better understand the strengths of the photonics industry in the State and the global opportunities which we are well placed to take advantage of.

I am delighted to say that these global experts are of the view that South Australia ranks in the top ten in the world in optical fibre based sensing and application-specific solid-state laser design with significant potential to move further up the rankings.

This report outlines the global opportunities for our state and I am looking forward to working with businesses involved in photonics technology to help them grow and create jobs.

Kyam Maher MLC Minister for Manufacturing and Innovation

Global Opportunities for the Photonics Industry in South Australia2

3LIGHTING THE WAY

Contents

Introduction 6

Background and Motivation 6

1.0 Why Photonics? 8

1.1 What is Photonics? 8

1.2 Photonics Applications 10

1.3 Economic and Social Impact of Photonics 12

1.4 Australian Photonics Research Activity 17

1.5 South Australian Research Activity in Photonics 18

1.6 Australian Photonics Market 22

1.7 Global Market for Photonic Products and Components 25

2.0 Opportunities 28

2.1 Biophotonics Market 28

2.2 Lasers Market 31

2.3 Photonic Sensor Markets 34

2.3.1 Point Fibre Optic Sensor Market 34

2.3.2 Distributed Fibre Optic Sensor Market 35

2.3.3 Other Photonic Sensor Markets 38

2.4 Speciality Fibre Market 39

Conclusion 40

References 42

Disclaimer 44

4 Global Opportunities for the Photonics Industry in South Australia

Photonics is an incredibly fast growing $150 billion-dollar global market

opportunity – and it’s all about harnessing the power of light. We all use

photonic enabled devices every day without even realising it, from CD

players, to supermarket checkouts, to the Internet.

South Australia is poised to become a major global player in photonics,

and can lead the nation in the sale of photonics-based products. The time

is right for this strategy because SA has made well-focused investments

in photonics, creating a critical mass of outstanding researchers, research

facilities, and high potential projects. SA has a very strong tradition of

successfully commercialising photonic products; the current photonics-based

revenue in SA is approximately $200M, with a related employment level of

an approximately 800 people. In our opinion SA ranks in the top ten in the

world in optical fibre based sensing and application-specific solid-state laser

design with the potential for significant upward mobility. Similar strengths

exist in biophotonics and advanced optical materials.

Three universities, the Defence Science Technology Group, medium size

enterprises like Ellex, Maptek, Fugro LADS, BAE Systems and 6 photonics

start-ups: Arkwright Technologies, CryoClock, MiniProbes, Red Chip

Photonics, SensAbility and VentureNext, in the last 2 years provide the

bedrock for rapid growth.

Photonics provides solutions that can empower SA priority industries from

food and wine to mining, defence technologies and medical diagnostics.

Around the world there are numerous examples of cities and states that have

embraced photonics (Boulder, Colorado, Southampton, UK, Orlando, Florida,

Jena, Germany) and have nurtured multi-billion dollar photonics clusters

comprising hundreds of high tech companies creating thousands of jobs.

Executive Summary

We believe that Photonics, “the

electronics of the 21st century” is pivotal

for the generation of new knowledge, its

transformation into innovative products

and services, and the creation of new jobs and

overall prosperity for South Australia.

5LIGHTING THE WAY

4

6

8

5

1

2

Zeiss

Arkwright Technologies

3 Flinders University

SensAbility

Lambda

New Spec

7 VentureNext

Laserex

9

10

11

12

13

14

15

16

Norseld

Maptek

Ellex

Quark Photonics

Austofix

Lastek

Fugro

Coherent Scientific

17

19

20

21

18

22

24

23

26

25

CryoClock

Miniprobes

The University of Adelaide

Hephaestus

Schneider Electric

BAE Systems

University of South Australia

Red Chip Photonics

Department of DefenceDefence Science and Technology Group

Jung Precision Optics

There is now a unique convergence of talent and technologies that can make

this happen in South Australia.

From our market analysis and on-site exploration, the study team has

concluded that there are at least four key markets which South Australian

reasearch and industry is well-placed to take advantage of.

These key strategic photonic market segments for SA are:

� Fibre Optic Sensors – for environmental, security, military, and

resource extraction

� Lasers – for industrial, mining, military and biomedical applications

� Biophotonics – imaging and detection, for biomedicine, agriculture,

and environment

� Speciality Optical Fibres – enabling technology.

We believe that Photonics, “the electronics of the 21st century” is ideal

for the generation of new knowledge, its transformation into innovative

products and services, and the creation of new jobs and overall prosperity

for South Australia.


Photonics is a global, multibillion-dollar market. The broad

nature of photonics, including technology

and market applications, presents the opportunity

to create a platform that allows technology

to be commercialised generating a financial

result that creates positive economic

growth, expands employment in an

environment that has long term sustainability.

Introduction

Introduction

Lumoptix LLC and Lightwave Venture LLC, consulting companies with broad

expertise in technical and commercial aspects of Optics and Photonics, in

collaboration with The University of Adelaide and its Institute for Photonics

and Advanced Sensing (IPAS), have been engaged by the State of South

Australia’s Department of State Development (DSD SA), to carry out an

analysis of the Photonics Industry in South Australia and identify global

opportunities for businesses in the State.

This report outlines the study team's findings.

Background and Motivation

South Australia (SA) aspires to be a vibrant region where people and

businesses thrive. Historically, in addition to strengths in resource extraction

and agriculture, SA has enjoyed a very successful track record in the

manufacturing, defence, and aerospace sectors. Since the 1940s, SA has been

a manufacturing state. Manufacturing has been (and will continue to be) a

cornerstone of SA’s economy. However, manufacturing itself is changing as

a result of global economic competition and technological innovation, which

have become major driving forces of today’s commercial world.

South Australia recognises these trends and wishes to prepare the State for

the future so as to work to its strengths and prosper in the global economy.

To this end, SA has formulated a number of economic priorities to help

make the State’s economy diverse, resilient, innovative, globally-competitive

and prosperous.

Furthermore, reflecting on these changes at the local, state, national, and

international level, and the associated challenges they represent, the State

of South Australia has sought to identify new strategic economic sectors

and enabling technologies that can help make SA more competitive and

successful, at both the domestic and international level.

7LIGHTING THE WAY

It is in this spirit that Photonics has been identified by SA as a key enabling

technology and strategic sector on which to focus in fostering the growth of

the state’s technical and economic base. Photonics is a global, multibillion-

dollar market. The broad nature of Photonics, including technology and

market applications, presents the opportunity to create a platform that

allows technology to be commercialised generating a financial result that

creates positive economic growth, expands employment in an environment

that has long term sustainability.


1.0 Why Photonics?

Since the core subject of this roadmap is photonics it is very appropriate

to explain what photonics is as a technology, a field of study and research,

an industry, and a commercial market. Such information, we feel, will be of

aid in understanding the value that photonics holds as a strategic enabling

technology and market opportunity for South Australia.

In the sections to follow, we’ll review in more detail the technical, market, and

societal aspects related to photonics.

1.1 What is Photonics?

Photonics is the discipline and assortment of technologies that deal with

the emission, manipulation (modulation, switching, or amplification),

transmission, and detection of light waves and photons, which are particles

of light, over the whole optical spectrum, from ultraviolet to the far infrared.

In essence, photonics is the harnessing of light, and as a technology, involves

photon engineering. In this regard, photonics bears the same relationship to

light and photons, as electronics does to electricity and electrons. Electronics

as a technology and industry revolutionised life in the 20th century;

photonics is doing the same in the 21st. So, in a way, one could say that our

future will be made by light.

Why Photonics?

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9LIGHTING THE WAY

The term “photonics” was first used around 1960, following the invention of

the laser by Theodore Maiman. The words “optoelectronics” and “electro-

optics”, though in a strict scientific sense, distinct terms relating to specific

sub-disciplines of photonics, are sometimes also used to refer to the entire

industry and technology. In current usage, and for the purposes of this

report, “photonics,” is taken to include classical optics, the manipulation of

light by lenses and mirrors that has been practised for many centuries.

Modern photonics owes its origins to the confluence produced by the advent of

solid state and semiconductor lasers in the 1960s, coupled with the subsequent

development in the early 1970s of optical fibre technology for the transmission

of voice and data. In the following decades, the combined power of laser diode

light sources and low-loss transmission optical fibres, led to the revolution in

optical telecommunications that provided the data transfer infrastructure that

makes today’s internet technology and wired society possible.

Today, photonics is made up of a variety of many different technologies

(semiconductor devices, optical lenses, optical fibres, glasses, thin-film coatings,

optoelectronics, etc.) and relies on a variety of disciplines such as physics,

electrical engineering, optics, materials science, mathematics, biology, chemistry,

etc. Hence, it is a multi-disciplinary field and industry. All around the world,

scientists, engineers, technicians and students, perform novel research and

product development on and for photonics. As a field of study, photonics offers

a myriad of possibilities and opportunities in science, technology and business.

As illustrated in Figure 1 and in the video https://www.youtube.com/

watch?v=_DZHqedyYWY&feature=youtu.be, photonics underpins a broad

variety of technologies and devices with common everyday life use such

as laptops, smart phones, lighting, medical instrumentation, and the

Internet. Photonics, it could be said, is everywhere and can be found in a

variety of conventional consumer electronic devices such as DVD players,

LCD and plasma flat-screen TVs, high-speed fibre optic internet, photo and

video cameras, laser eye surgery, etc. In fact, even the modern electronics

industry could not exist without the multimillion-dollar advanced photonic

“tools” that combine lasers and highly-engineered optical elements to

photolithographically print integrated circuit chips. Thus, photonics is an

enabling technology that helps accomplish many different functions across a

broad set of fields and applications.

https://www.youtube.com/watch?v=_DZHqedyYWY&feature=youtu.be

https://www.youtube.com/watch?v=_DZHqedyYWY&feature=youtu.be


1.2 Photonics Applications

One of the key features of photonics is how pervasive it is in terms of its need

and presence across many different products and applications. Nowadays,

photonics is present in lighting systems through energy-efficient LEDs; in

manufacturing, with high power fibre lasers; in telecommunications, with

optical fibres and networking equipment; in medicine and life sciences, with

sensors, lasers and imaging systems; in defence, with remote sensing and

intrusion detection technologies; and the list goes on. Table 1 summarises

some of the most common applications of photonics and the components

associated with each one, while Figure 2 depicts the key top applications

segments where photonics is used. Such diversity in sectors and products

makes photonics an attractive industry to get involved with due to its

diversity and usefulness, making it a true enabling technology.

Why Photonics?

Figure 1: Photonics is the harnessing of light and has a broad variety of applications across many different industries.

PHOTONICSSTORE

COMPUTE, PROCESS

DISPLAY

ENERGISE

ACTUATETRANSPORT

What do we do now with photons?

PHOTONIC INFORMATION / ENERGY PROCESSING

CPU

SENSE

11LIGHTING THE WAY

For example, photonics components are present in over 35% of all consumer

devices such as:

� Solid state lighting (LEDs)

� Televisions and displays

� Scanners and laser printers

� Cameras

� Optical sensors

� Photovoltaics

� Optical data storage (CDs, DVDs, magneto-optics media)

Table 1: Application areas and segments where photonics is used.

Production Technology LightingLaser materials processing systems LampsLithography systems (IC, FPD, Mask) LEDsLasers for production technology OLEDsObjective lenses for wafer steppers IT: Consumer electronics, office automation, printing

Optical measurement and machine vision Optical disk drivesMachine vision systems and components Laser printers and copiers, PODs, fax and MFPsSpectrometers and spectrometer modules Digital cameras and camcorders, scannersBinary sensors Barcode scannersMeasurement systems for semiconductor industry Systems for commercial printingMeasurement systems for optical communications Lasers for ITMeasurement systems for other applications Sensors (CCD, CMOS)

Medical technology and life science Flat panel displaysLenses for eyeglasses and contact lenses LCD DisplaysLaser systems for medical therapy and cosmetics Plasma displaysEndoscope systems OLEDs and other displaysMicroscopes and surgical microscopes Display glass and liquid crystalsMedical imaging systems (only photonics based systems) Solar energyOphthalmic and other in vivo-diagnostic systems Solar cellsSystems for in-vitro-diagnostics, pharmaceutical and biotech R&D Solar modules

Optical communications Defence photonicsOptical networking systems Vision and imaging systems, including periscopic sightsComponents for optical networking systems Infrared and night vision systems

Optical systems and components Ranging systemsOptical components and optical glass Munition/missile guiding systemsOptical systems (“classical” optical systems) Military space surveillance systemsOptical and OE systems and components not elsewhere classified Avionics displays

Image sensorsLasers


1.3 Economic and Social Impact

of Photonics

Photonics underpins many facets of modern-day society and it is, without a

doubt, a driver for technological innovation and a global economic engine.

Thus, photonics has a direct economic and social impact by creating jobs,

fostering innovation, and improving the human condition.

The total impact of photonics on the global economy can be understood by

considering various layers of “vertical markets”, going from core components

to high value-added products that would be impossible to manufacture

without photonic components (Figure 3). The global market for core photonics

components and materials (things that generate, route, manipulate, or detect

light) was over USD$180B in 20141, and comprises ~3,200 companies in 50

countries (Figure 5). Collectively, these companies produce optical materials,

Why Photonics?

CORE Optics and Photonics Suppliers

Knowledge G

enerationAdvanc

ed M

anuf

actu

ring

Consumer and Entertainment

Defence, Security and Law

Enforcement

Lighting and Displays

Sensing, Monitoring,

Measurement and Control

Semiconductor Processing /

Manufacturing

Solar PV and Alternative

Energy

Biomedical, Medical Imaging,

Healthcare (Biophotonics)

Communication, Information

Processing and Storage

Figure 2: Photonics is present in a broad set of key industries and commercial segments1

13LIGHTING THE WAY

LEDs, lasers, detectors, image detectors, lenses, prisms, optical filters, gratings,

fibre optics, and other photonic components, but this is only a fraction of the

impact that photonics has on the global economy.

When core photonic components are integrated into subsystems and products

whose primary function is to manipulate, measure, or record light (“Photonic

products” in Figure 3), significant added value is provided to the customer;

thus the market for photonic products is two to three times larger than for

photonic components and materials. Photonic products may be sold directly

to the consumer, or may be incorporated in other products, enabling them to

perform advanced functions that again adds significant value for the ultimate

purchaser (“Photonic-enabled products” in Figure 3) and creating a market that

is proportionately larger. Finally, photonic materials, components, products,

and systems provide the critical underpinning for entire industries that

perform functions upon which modern society depends.

Figure 3: Photonics components are the foundation of a global industry of multiple vertical markets offering different photonics-enabled products and services1

Core Photonic Components and Materials

Photonic Products Photonic Enabled Products

Materials, LEDs, lasers, image sensors, lenses, prisms, optical fibres, gratings, solar cells, fibre

LED lamps, cameras, displays, optical scanners, markers, advanced manufacturing systems, inspection systems

Lighting, internet and datacentres, smartphones, (machine) vision systems, TVs, medical imaging systems

CMOS


Thus, not only does the core photonics components industry create

considerable employment and wealth, but it also is a critical enabler of many

other value-added products and services. Moving to the top of the technical

value chain the market size mushrooms, as depicted in Figure 4. In fact, taking

into account the services that rely on photonics-enabled products (e.g. high

speed internet, video entertainment, laser medicine), optical and photonic

components form the core upon which a USD$1,700,000M of annual global

economic production depends (yes, more than one trillion US dollars!)2.

Photonics has a large and direct impact on employment. The core components

and photonic product segments of the industry employ approximately 2.3

million people, spread over 50 countries. Small and medium size enterprises

(SMEs), account for ~90% of the firms in these sectors.

Photonics is also a powerful society-changing tool with the capability to

improve many facets of life. Photonics is enabling the new world of social

media and networked communications. As one example: the data centres

that store and route virtually all internet information each contain more

than 1,000,000 lasers. Photonics will be the key technology enabling the

development of faster, multi-terabit capacity optical communications at the

Why Photonics?

Figure 4: Photonics marketplace-from components to enabled products & services1.

$

$$

$$$

$$$$

increasing value

photonic-enabled services

photonic-enabled products

photonic products

core components and materials

15LIGHTING THE WAY

trans-oceanic, national, metropolitan and home levels. Advances in new

optical fibres, light sources, integrated optic devices (“photonic IC chips”)

networking equipment, and deployment of FTTX (fibre to the “X”, where X is

the Curve, Home, Net, Antenna, etc.) technology, are all key ingredients for

this recipe and all are photonics-related.

Similarly, with a growing and ageing global population, healthcare needs are

becoming more prevalent and photonics has proven to be an excellent tool

for the development of new sensing, imaging and treatment technologies

for bio-medical and life science applications, aiding in the development of

more radical and effective systems to diagnose, treat and cure diseases.

Photonics-based imaging and sensing technologies, such as LADAR and

LIDAR (Laser Imaging Detection and Ranging), fibre optic sensors and others,

are helping make the environment greener by detecting pollutants in the air,

soil and water, by minimising the impact of resource-recovery operations in

the petrochemical and mining industries, and by maximising the efficiency

of fossil-fuel burning power plants and engines. Finally, numerous defence

applications, notably night vision, laser target designation, optical image

acquisition and processing, ground-based and marine sensors, and advanced

displays all depend on photonics.

Figure 5: The photonics industry is global and an excellent engine for job creation and formation of small technical businesses1.

SOUTH AMERICA

NORTH AMERICA

AFRICA

ASIA

AUSTRALIA


Why Photonics?

17LIGHTING THE WAY

1.4 Australian Photonics Research Activity

Australia has a very strong and well-established academic base across all its

regions. South Australia alone, counts three top-notch universities with very

high standings on national and international rating scales.

Similarly, optics and photonics have a long and very reputable tradition

of academic R&D in Australia, due to a wealth of expertise in areas such

as precision optics, holography, optical fibres and components and, more

recently, biophotonics. For a country of its size, Australia enjoys a very broad

and diversified pool of researchers based on photonics R&D.

Photonics research in Australia started at the University of New South

Wales (UNSW) in 1966 with the arrival of Prof. Toni Karbowiak from STL

(Standard Telecommunication Labs) in the UK. Fortuitously, while at STL Prof.

Karbowiak was the supervisor of Charles Kao, who won the 2009 Nobel Prize

for his invention of glass optical fibres that could be used as a medium for

telecommunication. Hence, there is a direct link from the birth of the optical

fibre industry to the birth of photonics R&D in Australia, which continues to

this day. In 1971, following the arrival of Karbowiak, Dr. Alan Snyder came

to teach waveguide theory at the Australian National University (ANU). Since

then, Snyder and collaborators like Colin Pask and John Love, have made

significant contributions to light-guiding research and theoretical analysis

of optical fibres, publishing seminal papers and co-authoring the world-

standard textbook on fibre theory.

In 1992, the Australian Photonics CRC was created at The University

of Sydney. This group produced a new generation of researchers and

entrepreneurs in Australia and resulted in at least a dozen spin-off

companies including Finisar Australia, now with revenues exceeding $100M

per annum. Another illustration of the long tradition of photonics in Australia

is the Australian Conference on Optical Fibre Technology (ACOFT), which

started in 1984 and continues to be held annually to this day.

Professor Tanya Monro was headhunted and brought to The University of

Adelaide in 2005 from The University of Southampton to establish photonics

in SA. After engaging extensively with Australian defence research she created

IPAS (Institute for Photonics and Advanced Sensing) in 2009. Her efforts and

vision have led to the construction of The Braggs Building, which houses IPAS


as well as the Centre for Nanoscale BioPhotonics (CNBP). In her new role at

UniSA she has created a complementary photonics group. This has given South

Australia a very strong academic and R&D platform in the State from which

could form and grow an entire photonics-based industrial cluster.

Additional photonics research is conducted in Western Australia, Canberra,

Brisbane and Melbourne, making photonics a truly national area of research

across Australia4. Such expertise and infrastructure must be utilised to its

fullest and its innovations transferred to industry for commercial benefit.

Based on all of the above, we can safely say that Australian photonics

research is alive and well, dwelling mostly in universities. This strong

academic base, however is currently more focused on research than on

technology development and commercialisation. It is necessary to stimulate

and reward entrepreneurship among faculty and students that will lead to

the new leading South Australian photonics companies of tomorrow. In our

opinion SA ranks in the top ten in the world in optical fibre based sensing

with the potential for significant upward mobility.

1.5 South Australian Research

Activity in Photonics

South Australia has globally recognised research expertise in photonics at

The University of Adelaide (UA), University of South Australia (UniSA), Flinders

University (Flinders), and the Defence Science and Technology Group (DSTG).

South Australian R&D activity has produced a strong photonics technology

base in a number of application areas. The technology has been created by

focused programs at the universities in Adelaide, and at DSTG in Edinburgh.

In addition, there are a number of start-up companies and established SMEs

that have contributed to the wealth of technology (Figure 6).

In a few cases, advanced business development concepts are being employed

by South Australian photonics companies, including open innovation

which requires close coordination with outside development resources.

In addition, cross functional teams are being used within the university

development laboratories to join the physics of photonics with the science

of biology in an effort to create new technologies and eliminate technology

transfer boundaries. There is a state-of the-art capability in developing

Why Photonics?

In our opinion, SA ranks in the top ten in the

world in optical fibre based sensing.

19LIGHTING THE WAY

high-performance solid-state laser technologies. Material development in

non-standard glasses such as fluorides, tellurites and other base glasses

has created a platform for lasers that can function in the mid-IR which

is a significant breakthrough in biomedical and sensing technologies.

Developments such as this have the potential to open the door for

critical strategic partnerships with companies like Thorlabs in the US that

can greatly advance world-wide distribution. There has been advanced

development in biomedical engineering and instrumentation relating to

chromatography, spectroscopy, optical coherence tomography and other

chemical sensing approaches.

An extremely exciting area is the development of potentially low cost, but

highly multifunctional microstructured optical fibre (MOF). The technique

uses extrusion, replacing the very cumbersome and expensive process

of fabricating microstructured optical fibres with multiple draws which

requires tedious assembly and multiple fibre draws to make a single

fibre. Microstructured optical fibre is a technology platform for expanded

biophotonic sensing and fibre lasers in various wavelengths, potentially for

replacing CO2 lasers. The ability of IPAS to create MOF structures in a wide

variety of materials, ranging from exotic glasses to polymer materials, is truly

unique in Australia and extremely rare to find anywhere else in the world.

The ability of IPAS to create MOF structures in a wide variety of materials is truly unique in Australia and extremely rare to find anywhere else in the world.


1940

1874

1955 1969 1974 1975 1985 1988 1990 1992 2000 2014 2015 2016

BHP ENGINEERING

TIMELINE OF SOUTH AUSTRALIAN PHOTONICS COMPANIES

1200

1000

800

600

400

200

0

DEFENCE ESTABLISHED IN SA

WRECMEK

AUSTOFIX

QUARK PHOTONICS

XEIKON

ZEISS

CHRONOLOGIC

OPTICAL COATING ASSOCIATESLASTEK

NORSELD

LASEREXTECHNOLOGIES

LASEREX COHERENT SCIENTIFICMAPTEK

LEICA MICROSYSTEMS ARKWRIGHT

TECHNOLOGIES

MINIPROBES

NEWSPEC

HEPHAESTUS

QUENTRON ELECTRONICS

AWA

LADS CORPORATION

VISION SYSTEMS DESIGN

PHOTON ENGINEERING

VENTURENEXT

JUNG PRECISIONOPTICS

THE UNIVERSITY OF ADELAIDE

FUGRO LADS

BRITISH AEROSPACE

SENSABILITY

QUENTRON OPTICS PTY LTD

COLE PRECISION OPTICS

QUENTRON

FAIREY

TENIX

Formation of Quentronlargely due to defence sales

RLA

SOLA

BAE SYSTEMS

RED CHIP PHOTONICS

AUSTRALIAN GOVERNMENTDEPARTMENT OF DEFENCE

DEFENCE SCIENCE AND TECHNOLOGY ORGANISATION

ELLEX

SCANTECHA.G THOMPSON

FLINDERSUNIVERSITY UNIVERSITY OF

SOUTH AUSTRALIA CRYOCLOCK


DEFENCE SCIENCE AND TECHNOLOGY GROUP

Staff Movement Intellectual Property Movement Intellectual Property and Staff Movement

Company in ExistenceTotal Number of Photonics Employees

Figure 6: Timeline of South Australian photonics companies.

21LIGHTING THE WAY

1940

1874

1955 1969 1974 1975 1985 1988 1990 1992 2000 2014 2015 2016

BHP ENGINEERING

TIMELINE OF SOUTH AUSTRALIAN PHOTONICS COMPANIES

1200

1000

800

600

400

200

0

DEFENCE ESTABLISHED IN SA

WRECMEK

AUSTOFIX

QUARK PHOTONICS

XEIKON

ZEISS

CHRONOLOGIC

OPTICAL COATING ASSOCIATESLASTEK

NORSELD

LASEREXTECHNOLOGIES

LASEREX COHERENT SCIENTIFICMAPTEK

LEICA MICROSYSTEMS ARKWRIGHT

TECHNOLOGIES

MINIPROBES

NEWSPEC

HEPHAESTUS

QUENTRON ELECTRONICS

AWA

LADS CORPORATION

VISION SYSTEMS DESIGN

PHOTON ENGINEERING

VENTURENEXT

JUNG PRECISIONOPTICS

THE UNIVERSITY OF ADELAIDE

FUGRO LADS

BRITISH AEROSPACE

SENSABILITY

QUENTRON OPTICS PTY LTD

COLE PRECISION OPTICS

QUENTRON

FAIREY

TENIX

Formation of Quentronlargely due to defence sales

RLA

SOLA

BAE SYSTEMS

RED CHIP PHOTONICS


DEFENCE SCIENCE AND TECHNOLOGY ORGANISATION

ELLEX

SCANTECHA.G THOMPSON

FLINDERSUNIVERSITY UNIVERSITY OF

SOUTH AUSTRALIA CRYOCLOCK


DEFENCE SCIENCE AND TECHNOLOGY GROUP

Staff Movement Intellectual Property Movement Intellectual Property and Staff Movement

Company in ExistenceTotal Number of Photonics Employees


Bragg grating technology is another area of advanced platform technology.

Bragg gratings with unique properties have been written mechanically in

microstructured optical fibres that are compatible with advanced sensing

technologies. Unique Bragg grating sensor packaging developed at Flinders is

an enabling technology that will allow advanced pressure and shape sensing

critical in both medical and industrial applications. In addition, the packaging

approach solves the very difficult problem of athermal packaging which

allows isolation of temperature and pressure measurements.

IPAS is the only academic centre in the world engaged in the development

of fully distributed fibre optic chemical sensors. Highly engineered coatings

materials, developed to be uniquely sensitive to specific chemicals, combine

with advanced optical fibre designs to give chemical detection capabilities that

are truly unique. Applications range from agricultural and security monitoring

to the DCS (Distributed Chemical Sensing) systems that have been (until the

recent market downturn) much sought-after by the petrochemical industry.

Technology generation at UA, UniSA, Flinders, and DSTG have resulted in

the development of speciality glasses, direct write laser technology, laser

engineering, advanced spectroscopy, and hyperspectral imaging. All of

these technologies support biophotonic, laser, speciality fibre, and sensor

development commercialisation platforms.

1.6 Australian Photonics Market

The Australian Government has in the past contributed to the global

photonics market, and continues to do so today. Australia has had a

strong and successful record of photonics-related academic research and

development, dating back to the late 1960s. However, the translation of this

knowledge into business enterprises has been limited.

Information on the actual Australian photonics market is extremely scarce.

The first estimate was reported by the Australian Photonics CRC in 1996

when it estimated Australia’s share of the global photonics market at only

1.9%. By 2005 the market share was being estimated by the Australian

Photonics Forum at approximately USD$500M in revenues, with a poll of 100

to 200 diverse companies. Figure 7 depicts the Australian photonics market

by region, size of business revenue and type of vertical segment.

An extremely exciting area is the development

of potentially low cost, but highly multifunctional

microstructured optical fibre (MOF). The technique uses extrusion replacing

the very cumbersome and expensive

process of fabricating microstructured optical

fibres with multiple draws which requires tedious assembly and

multiple fibre draws to make a single fibre.

Why Photonics?

23LIGHTING THE WAY

In 2012, Australian photonics exports were estimated at USD$150M, or

50% of the domestic market; more recent estimates are hard to find. In this

context, it should be noted that the SA Photonics study team estimates the

size of the market opportunity in photonics for South Australia to be of the

order of USD$800M by 2025. This would catapult the State into a leadership

position in the Australian photonics industry.

In general, the Australian Photonics Industry has been somewhat insular, in

part as a consequence of its relatively remote geographic location, in part

because of the cottage-like nature of its businesses which are mostly SMEs with

a management style and business focus that favours the so-called “lifestyle

type” company. At the same time, the global core photonics industry has

undergone a tremendous consolidation and transformation, driven by product

commoditisation and rapid technological innovation. Such rapidly changing

conditions further challenge Australian businesses to keep up or even thrive.

In spite of its limited size and challenges, Australia has its share of success

stories in the photonics arena. Companies like Indx, Virtual Photonics,

Redfern Fibres, AOFR, and others, have gone from being modest academic

spin-offs to being acquired, each for several million US dollars by large

65%

6%

26%

Adelaide

49% 33%

12%6%

3% Adelaide

6% Canberra

26% Melbourne

65% Sydney

6% Test & Measurement

12% Sensing

33% Communication

49% Power

6% AUD$50M+

22% AUD$10 - 4.99M

21% AUD$5 - 9.99M

51% AUD$0.1 - 4.99M

Figure 7: 2005 Australian photonics market: a) breakdown by region; b) by company size; and c) by segment3

a) b) c)

6%

22%

21%

51%


corporations. For instance, Indx was acquired in 1997 by JDS Uniphase (an

optical components juggernaut at the time) for USD$8M and went from an

original staff of six to a full production plant of 388 people. Similarly, Redfern

Fibres started operations in 1998 and was eventually acquired by Nufern Inc.

in the US. Nufern itself was acquired by Rofin-Sinar in 2008, and just earlier

this year (2016) Coherent Inc. announced their intentions to acquire Rofin.

So, in a matter of time, a small start-up could easily end up being the core of

a very large company. There is no reason why the same type of successes

cannot be repeated. All it takes is innovation, focus and appropriate

identification of suitable and lucrative commercial markets. Furthermore, by

focusing on photonic products rather than on photonic components (higher

value, higher margin, lower impact of shipping costs, etc.) South Australia

could foster the growth of companies that remain in the State, even after

becoming successful on the global stage.

The key areas that have been identified for strong

and sustainable growth are sensors, lasers,

biophotonics and optical fibre. These

technology platforms are compatible with

South Australian capabilities.

Why Photonics?

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25LIGHTING THE WAY

1.7 Global Market for Photonic Products

and Components

As an economic engine for growth, the photonic marketplace is substantial

and sustainable. The core photonics components industry (the “inner circle”

in Figure 4) provides jobs for 863,000 people and is global, spanning over 50

countries (Figure 5). It is served by an excess of 3,000 companies that generate

revenues for core components of USD$182,000M1 . As demand grows, so will

the jobs needed to support the industry’s growth. Similarly, any new photonics-

based products and services will demand the expertise of properly trained

personnel, creating new jobs across the board (engineering, manufacturing,

sales). As points of reference, Canada has approximately 400 core photonics

component companies that employ around 20,000 people and generate

collectively in the order of CAD$4,500M annually4. In Europe, over 5,000

companies exist, mostly small and medium enterprises (SMEs), employing

approximately 300,000 people and generating around €65,000M5. In the US

there is an estimated 2,442 companies involved in photonics. The US and Japan

account for approximately 80% of the photonic component sales. China and

Southeast Asia account for the majority of the remaining market.

0

100

200

300

400

500

600

USD

$B

2000 2005 2010 2015 2020

Figure 8: Global photonics products market forecast (2000-2020)1.


Data compiled by OIDA (OSA Industry Development Association), SPIE

(International Society for Photonics) and EPIC (European Photonics Industry

Consortium), estimate that the global market for photonics products (the

“second ring” in Figure 4) reached USD$500B in 2015, and that it will reach

over USD$600B by 2020 (Figure 6). It is in this market segment that South

Australian photonics can play a significant role. The global market for

photonic products is growing at a CAGR (compound annual growth rate) of

~7%, and generated over 2.3 million jobs in 2015. Even capturing a small

portion of this market can bring major economic benefits to a state the size

of South Australia. The South Australian share of the market, currently less

than 0.1%, can grow dramatically in a short period of time by globalising

existing businesses and introducing new photonic products.

The photonics market and its industrial ecosystem are truly global. Photonic

components could be manufactured in one country, exported to another

for further assembly, and eventually shipped to a third for integration

into more complex systems, with eventual delivery to customers spread

around the globe. Figure 9 shows the relative market percentage share for

diverse countries and regions. It can be appreciated that the Asia-Pacific

18% Japan

18% Korea

17% US

16% Taiwan

15% Europe

12% China

4% Other

Other

12%

15%

16%

18%

18%

17%

Figure 9: Percentage share of photonics market by key countries/regions6.

Why Photonics?

27LIGHTING THE WAY

Photovoltaics

Flat Panel Displays

Biophotonics

LED & Lighting Applications

Optical Fibre Communication

Image sensor & Optical I/O Devices

Precision Optical Lens & Modules

Laser Light Sources

Optical Storage

05 01 100 150 200 250

Value in Billion USD

223.4168.7

202.7185.1

96.894.8

62.845.1

41.834.9

18.218.5

13.7

12.8

10.69.4

6.67.3

region, collectively, accounts for roughly two thirds of the total photonics

components market. Geographically, South Australia is well placed to tap into

such markets and both contribute to and exploit from it.

Figure 10 provides market segmentation with the relative size of each

key segment7. It can be seen that both photovoltaics and displays are

the two top segments in sheer size, closely followed by biophotonics. For

the particular case of South Australia, not all market segments are viable

targets. For instance, the telecommunication market segment is dominated

by Asian companies and in many cases products are considered commodity

products which have high pressure on low selling costs and low cost

manufacturing. After the telecommunications boom-to-bust cycle, many

companies diversified into other more lucrative markets. Other market

segments could be problematic for South Australia. Solar energy is a large

market, but the competitive environment and shipping issues likely limit

any Australian company to local sales. The defence industry faces barriers

in penetrating the US markets. Experience with Canadian defence suppliers

has shown great difficulty in dealing with “not being made in the United

States” and ITAR8 type restrictions.

Figure 10: Photonics market segments and their size7.

2014

2017


However, there are key photonic product market segments that can be

addressed by South Australian technologies and companies, given proper

platforms to support commercialisation. These markets segments include

biophotonics, lasers, sensors, and speciality optical fibres and materials.

Next, we will discuss these key photonics market segments, indicating their

size, characteristics and potential fit for commercialisation in South Australia.

2.0 Opportunities

The Study Team has identified four Photonics market segments with

opportunities for SA businesses – Fibre Optic Sensors, Lasers, Biophotonics

and Speciality Optical Fibres.

2.1 Biophotonics Market

Biophotonics is a term used to describe the interaction of light with biological

matter. Light can be used to detect tainted food, to diagnose and treat

diseases in humans, animals, and plant species, to monitor production

Light can be used to detect tainted food, to diagnose and treat diseases in humans, animals, and plant species, to monitor production from biotechnology fermenters and farms, to study biological systems, and can even be employed in non-biomedical applications.

Opportunities

10%7%

6%

11%66%

Total 85.5 Billion Euros

10% Other €8.9B

7% Microscopy €6.2B

6% Medical lasers €5.0B

11% Endoscopy €9.5B

66% Optical in-vitro diagnostics €55.9B

Figure 11: Global biophotonics market projection for 20209.i Optical in-vitro diagnostics market includes medical optical in-vitro diagnostics and optical food safety diagnosticsii Optical microscope and operation microscopesiii Includes optical coherence tomography, fluorescence tomography, biometric tomography.

29LIGHTING THE WAY

from biotechnology fermenters and farms, to study biological systems

(from individual protein molecules to entire ecosystems), and can even be

employed in non-biomedical applications (e.g. biophotonic-based chemical

sensors). Biophotonics as a subset of the photonics industry is a very

active research area with tremendous application and market potential.

The global biophotonics market is expected to reach USD$50,200M by

2020, at a Compound Annual Growth Rate (CAGR) of 11.5% between 2015

and 2020 according to the London-based “Report Buyer” market research

service10. Based on the end use of the biophotonics technology, the market

is segmented into medical diagnostics, medical therapeutics, tests &

components and other (non-medical) sectors. Medical diagnostics accounted

for the largest market with over 60% market share. The biophotonics market

is growing in the Americas, Europe, Asia-Pacific and Rest of the World (RoW).

Of these regions, the Americas market is expected to grow at the highest

CAGR during the forecast period. Major drivers identified for the growth of

the biophotonics market are an increase in the demand for home-based

point of care (POC) devices, and increasing need to deal with an ageing

population as well as developing new treatment approaches.

The market for medical imaging (not included in the above estimates) is

expected to grow at greater than 15% CAGR between 2015 and 2020 reaching

USD$15B in 202011. Medical imaging application areas include see-through

imaging (e.g. optical coherence tomography (OCT), inside (endoscopic)

imaging, spectromolecular surface imaging, and other techniques. In addition

Table 2: Historical and expected growth of world biophotonics market. Values in €B9

i Optical microscope and operation microscopes.ii Includes, for example, optical coherence tomography, fluorescence tomography, biometric devices.

Segment 2010 2011 2012 2020 (Expected)

CAGR 2010 - 2020

Optical in-vitro diagnostics 29.4 29.8 31.8 55.9 6.6 %

Medical optical in-vitro diagnostics 27.7 27.9 29.6 49.5 6.0 %

Optical food safety diagnostics 1.7 1.9 2.2 6.4 14.5 %

Endoscopy 4.4 4.8 5.1 9.5 8.0 %

Medical lasers 2.1 2.3 2.5 5.0 9.2 %

Microscopyi 3.4 3.6 3.8 6.2 6.2 %

Otherii 4.5 4.8 5.2 8.9 7.1 %

Total market volume 43.8 45.3 48.4 85.5 6.9 %


to medical applications, remote optical imaging technologies can solve critical

issues facing production in agriculture by monitoring, in real-time, cellular and

molecular processes in crops and livestock.

A breakdown of the global biophotonics market sectors is presented in Figure

11 and Table 2. The biophotonics market is dominated by the optical in-vitro

diagnostics segment which currently occupies 66% of this market and is expected

to grow to more than US$100B by 2020. The two segments in which South

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Opportunities

31LIGHTING THE WAY

Australian photonics companies are well positioned are medical lasers and

food safety analysis which have strong growth prospects.

2.2 Lasers Market

The total market for lasers is projected to approach USD$6B in 2017 with

a CAGR of 6%. The market will reach USD$7B in 202012. The laser market is

segmented by application (Figure 12), laser type (Figure 13) and region.

In particular, the fibre laser market is growing at a CAGR of 12% and is

projected to reach UDS$2.7B in 2020 (Figure 14). The medical portion is

forecasted at USD$715M in 2020. There is a growing market opportunity

for lasers that function in the mid infrared (IR) region (Figure 15). Typically,

these lasers will require rare earth doped fluoride or other glasses that can

transmit in the mid IR wavelength range.


Printing Displays

1% Printing

2% Displays

6% R&D & Military

6% Optical Storage

8% Instrumentation & Sensors

8% Medical & Aesthetic

13% Lithography

27% Materials Processing

29% Communication

Figure 12: Lasers market segmentation by application12.

Fibre DPSSL

1% Fibre

4% DPSSL

6% Excimer

6% LPSSL

9% CO2

16% Diode

58% Other

Figure 13: Lasers market segmentation by type12.

6%

6%

58%

6%

9%

16%

6%8%

8%

13%27%

29%

Opportunities

4%

33LIGHTING THE WAY

Materials Processing

6,000

5,000

4,000

3,000

2,000

1,000

0

USD

$M

Total FibreTotalFibre Fibre Total

Advanced Applications Medical

ACTUAL FORECAST

2010 2013 2017

28%28%

Figure 14: Fibre laser market forecast13.

USD

$M

0

50

100

150

200

250

300

350

2012 2013 2014 2015 2016 2017 2018 2019 2020

Medical Military

Figure 15: Mid-IR fibre laser market forecast. Figures in USD (LightWave Venture LLC).

20%

Fibre Lasers 2013

20% Fibre

80% Other

80%

Fibre Lasers 2017

28% Fibre

72% Other

72%


2.3 Photonic Sensor Markets

The photonic sensor market is forecast to reach USD$14B by 2020 with a

CAGR of 18% according to OIDA14. The market consists of fibre optic sensors,

imaging sensors and biophotonic sensors. Biosensors and imaging sensors

were discussed previously. Fibre optic sensors are both an emerging

and established commercial technology depending upon specific market

segmentation. The fibre optic sensor market falls into two general categories.

Single point sensors and distributed sensors. The market specifics for each of

these two key sensors categories are reviewed below.

2.3.1 Point Fibre Optic Sensor Market

The point fibre sensor market (Figure 16) currently stands near USD$200M,

with a projected CAGR of 5.75%. The market is currently dominated by the

gyroscope segment, but other applications are emerging and will be supported

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Gyro 106 117 123 130 134 142 146 146 154 161 169 178 187

Industrial 15 16 16 20 21 22 23 24 25 26 28 29 30

Utility power 7.5 8 8 10 10 11 12 12 13 13 14 14 15

Medical 6 7 7 8 8 9 10 10 11 12 14 16 19

Military 7.5 8 8 10 10 11 11 11 12 12 13 14 15

Total 142 156 167 178 183 194 201 203 213 225 237 251 266

300

USD

$M

0

50

100

150

200

250

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

MilitaryMedicalUtility PowerIndustrialGyro

Figure 16: Global single-point fibre optic sensors market. Figures in USD (LightWave Venture LLC).

Opportunities

35LIGHTING THE WAY

by new innovative technology. Particularly robust growth is expected in the

use of fibre-tip chemical sensors (“optrodes”) for industrial and biomedical

applications, in electric field sensors for the power industry, and in the

deployment of Fibre Bragg Grating (FBG) sensors for spot temperature and

strain measurements. Note that arrays of point sensors (mainly interferometric

and FBG-based) actually represent a sizeable market, but these are considered

as distributed fibre optic sensor systems.

2.3.2 Distributed Fibre Optic

Sensor Market

The distributed fibre optic sensor market is considerably larger, and is

predicted to grow at a much faster rate than the point sensor market. Based

on a direct industry survey, in-depth company interviews and market and

financial trends input, Lightwave Venture (one of the co-authors of this

report) has updated its highly respected distributed fibre optic sensor market

forecast as of March 2016. The projections extend to 2020 (Figure 17). The

total, now standing near USD$500M, is projected to grow to USD$879M in

2020, yielding a remarkable CAGR of 12%.

However, as a word of caution, world market dynamics can rapidly change.

We must note that the distributed fibre optic sensor market was projected

as recently as October 2015 to reach USD$1,027M in 2020. The 2015 - 2016

drop in distributed fibre sensor market size evident in Figure 17 is due to the

fact that oil and gas applications have the largest market share. Industry, in

general, was blind-sided by the sudden surprise drop in oil prices in 2014.

In 2014, the oil and gas segment was 49% of the entire distributed fibre

sensor market. This is projected to drop to 25% of the market in 2016, due

to a continuing slide in oil prices, and the resultant lack of investment in new

wells. The 15% change in projected market size in just six months illustrates

the relative deviation in market forecasts that can be induced by unforeseen

macroeconomic factors.

Though the oil-induced contraction in the distributed fibre optic sensor

market starting at the end of 2014 will last through 2016, on the positive

side the military/security market segment is showing signs of growing

more rapidly than previously expected. Also, there is increased spending

for oil pipeline and storage facility monitoring due to the large volume of


202020192018201720162015201420132012201120102009200820072006

1000

900

800

700

600

500

400

300

200

100

0

USD

$M

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Oil & Gas Seismic 6.6 15.0 17.1 15.2 17.5 20.3 37.3 44.7 49.2 29.5 17.7 17.7 19.5 23.4 28.0

Oil & Gas In-well 37.7 70.9 92.1 94.7 118.3 147.9 199.7 232.6 255.9 153.5 92.1 92.1 101.3 121.6 145.9

Oil & Gas Pipelines 4.7 5.9 7.3 6.7 7.9 9.4 11.1 13.1 15.3 17.8 22.7 29.4 39.3 53.6 75.1

Wind Energy Turbines 8.0 15.0 20.0 20.0 23.4 25.7 25.7 25.7 28.3 31.1 34.3 37.7 43.3 49.8 57.3

Utility Power Lines 3.6 4.5 5.0 5.5 6.3 7.3 8.4 9.6 11.1 12.7 14.6 16.8 20.2 24.2 29.1

Military 8.9 22.9 28.9 51.5 61.9 68.1 72.7 77.8 85.6 97.2 110.8 125.9 143.2 162.8 185.3

Homeland Security - Intrusion / Chemical 31.2 38.9 51.4 65.0 81.3 92.8 98.3 104.2 111.1 119.3 127.3 137.1 148.0 160.0 173.3

Infrastructure 12.4 15.5 19.4 19.4 22.3 24.5 27.0 59.4 65.3 71.9 79.0 87.0 95.6 105.2 115.7

Industrial Process Control 5.4 9.0 11.2 10.1 11.6 13.0 13.8 14.6 15.5 16.8 18.6 20.6 23.0 25.9 29.5

Geothermal 0.0 0.0 0.0 1.0 1.8 8.8 9.3 11.1 13.4 16.0 19.2 23.1 27.7 33.2 39.9

Total 118.4 197.6 252.4 289.0 352.4 417.8 503.1 592.9 650.6 566.0 536.3 587.5 661.2 759.9 879.1

Oil & Gas Seismic Oil & Gas In-well Oil & Gas Pipelines Wind Energy Turbines Utility Power Lines

Military Homeland Security - Intrusion / Chemical Infrastructure Industrial Process

Control Geothermal

Figure 17: Global distributed fibre optic sensors market by application. Figures in USD (LightWave Venture LLC).

Opportunities

37LIGHTING THE WAY

oil in inventory. By 2020, the forecast shows the oil and gas market will regain

nearly all of its former value (USD$300M). By then, robust growth in other

market segments will mean that this represents only 28% of the 2020 market for

distributed fibre sensors, somewhat reducing the potential sensor market impact

of future volatility in world oil prices.

900

800

202020192018201720162015201420132012201120102009200820072006

700

600

500

400

300

200

100

0

USD

$M

Bragg Grating Raman Scattering (DTS) Brillouin Scattering

Interferometric Other Rayleigh Scattering (DAS)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Bragg Grating 29.4 44.3 57.5 73.1 87.1 103.2 121.8 152.5 167.6 145.5 136.9 148.5 165.9 188.7 214.8

Raman Scattering (DTS) 34.2 65.2 83.4 86.9 107.1 135.3 185.2 201.0 222.5 158.6 125.5 137.2 159.7 194.3 139.1

Brillouin Scattering 1.0 1.7 2.1 2.0 2.4 3.4 3.6 3.9 4.3 4.8 5.4 6.1 6.9 7.9 9.1

Interferometric 20.0 44.1 53.9 59.1 72.0 80.3 89.2 112.0 97.4 96.9 101.7 115.8 133.3 155.0 180.4

Other 33.9 42.3 55.5 67.7 83.8 95.6 91.8 96.1 98.0 104.3 111.6 118.9 126.8 135.2 144.0

Rayleigh Scattering (DAS) 0.0 0.0 0.0 0.0 0.0 0.0 11.6 27.4 60.8 55.9 55.1 61.0 68.5 78.9 91.5

Total 118.4 197.6 252.4 289.0 352.4 417.8 503.1 592.9 650.6 566.0 536.2 587.5 661.2 760.0 878.9

Figure 18: Fibre optic distributed sensing market technology type. Figures in USD (LightWave Venture LLC).


2.3.3 Other Photonic Sensor Markets

While fibre optic sensors are potentially the most important for South

Australia, there are several other classes of light-based sensors and sensor

systems. While none should be completely ignored, the Roadmap team

believes that two other optical sensor technologies deserve to be specifically

called to the attention of the South Australian reader:

Laser-Based Remote Sensors

These sensors, which include LIDAR (distance-resolved air column

characterisation), LADAR (laser ranging and profiling), and direct line-of-sight

spectroscopy, are in use throughout the world. The LIDAR/LADAR market

is valued at USD$1,390M in 2016 and is expected to reach USD$3,220M by

2022, at a CAGR of 12.4%15. Line-of-sight spectroscopy systems, used for

remote chemical analysis and integrated-path air column characterisation

represent approximately 10% of the global USD$6,000M spectroscopy

market, which is growing at a CAGR of 8.5%.

Micro-optic and Integrated Optic Sensors

At the other end of the length scale, these extremely miniaturised sensors

are primarily employed for chemical detection. They incorporate both active

optoelectronic devices (sources, detectors, modulators, etc.) and chemical

transduction “heads” into a single package. Examples include millimetre

sized optrodes combined with like-sized optical components in injection-

Figure 18 characterises the distributed fibre optic sensor market by

technology type. Raman scattering sensors (mostly Distributed Temperature

Sensors (DTS)) have the largest market share (27%). Bragg grating technology

sensors have 24% market share. Interferometric sensing approaches have

approximately 20% market share. Distributed Acoustic Sensors (DAS) based

on Rayleigh scattering, are rapidly gaining market share, projected to be at

10% by 2020. In contrast, Brillouin scattering-based sensors have less than

1% market share and as yet do not seem to be gaining acceptance possibly

because of high interrogator system complexity and cost. “Other” sensor

technologies include microbend, modal-interference, and coating-based

(i.e. distributed chemical) sensing, and are expected to retain 20% of the

total market.

Opportunities

39LIGHTING THE WAY

moulded housings and fully-integrated structures based on silicon-photonic

waveguides carrying light to chemically-functionalised micro-ring resonators

or array-waveguide grating (AWG) spectrometers. These leading-edge

sensors have yet to make significant product sales, but with small size

and the potential to achieve the low cost associated with semiconductor

manufacturing techniques, they have the potential to become ubiquitous

plug-and-play “hardware apps” that can be easily attached to any cell phone.

Such a capability could lead to explosive market growth.

2.4 Speciality Fibre Market

Once mainly thought of as an amplification medium for optical

communications, speciality fibres are now widely used in harsh environment

or hazardous applications in the oil & gas industry, mining, electric utilities,

marine, and several others. New classes of speciality optical fibres have

demonstrated the potential to extend the impact of optical fibres well beyond

the telecommunications arena. They are making an impact and commercial

inroads in fields such as industrial sensing, bio-medical laser delivery

systems, military gyro sensors, as well as automotive lighting and control and

span applications as diverse as oil well down-hole communication links to

intra-aortic catheters, to high power lasers that can cut and weld steel. The

conservative global market size for speciality fibres in 2012 was estimated

at USD$624M16, and is probably approaching USD$850M at this time. With

the advent of new markets, like fibre-remote infrared spectroscopy, and the

continuing take-over of the market for high-power systems by fibre lasers, this

segment is expected to grow substantially over the next decade.

The conservative global market size for speciality fibres in 2012 was estimated at USD$624M, and is probably approaching USD$850M at this time.


Conclusion

The overall conclusion of the South Australia Photonics Roadmap Consulting

Team is that South Australia is very well positioned to expand its photonics

sector. Despite the extremely broad scope of the market for light-based

products, South Australian institutions and businesses have concentrated on a

manageable subset of appropriate technologies and sub-markets. The continued

profitability of these companies has resulted in the growth of a very good

supporting infrastructure. Similarly, there has been well-targeted funding for

the development of photonics-based technology in South Australian universities

which has been very well-focused; because of this there is a remarkable synergy

between activities at the Institute for Photonics and Advanced Sensing (IPAS),

and the Centre for Nanoscale BioPhotonics (CNBP) at The University of Adelaide,

and the photonics groups at the University of South Australia, Flinders University,

and the Defence Science and Technology Group.

South Australia possesses a well-established group of profitable photonics

companies; recent investments have also created a significant, and well-

focused depth in photonics research and engineering capabilities at its

universities. Thus, conditions are ripe for significant expansion of the state’s

Photonics Industry.

By focusing on the four segments of Fibre Optic Sensors, Lasers, Biophotonics

and Speciality Optical Fibres identified and building on this dynamic base can

we 'Light the Way' to a bright economic future in South Australia.

Conclusion

41LIGHTING THE WAY


References

References1 "SPIE Industry Profile”, Stephen G. Anderson, 2015, www.spie.org.

2 "Lighting the Path to a Brighter Future”, OSA, 2016, www.osa.org.

3 "Australian Photonics Technology Roadmap", by Australian Photonics Forum

and AEEMA, Nov. 2005

4 "Illuminating a World of Opportunity, Photonics in Canada Report”, A survey by

the Canadian photonics consortium, 2009.

http://photonscanada.ca/media/16561/photonics_opportunity_2008.pdf.

5 Source: Photonics21, http://www.photonics21.org/.

6 "Photonics: Technical Applications of Light", 1st Edition, Spectaris GmbH,

2016, https://spie.org/Documents/Membership/SPECTARIS_Photonics.pdf

7 Data from STATISTA, http://www.statista.com

8 International Traffic in Arms Regulations (ITAR).

https://www.pmddtc.state.gov/regulations_laws/itar.html

9 "The German Photonics Industry and the Global Photonics Marketplace,” by

Joshua Hubbert, Optik & Photonik; Febraury 2014, pp. 27-29.

10 https://www.reportbuyer.com/search?query=biophotonics

11 According to estimates by Frost & Sullivan

12 Strategies Unlimited, "The Worldwide Market for Lasers: Market Review and

Forecast 2016", http://www.strategies-u.com/index.html

13 IPG Photonics, investor presentation May 2015.

14 "OIDA 2013 Consolidated Photonic Market Updates Report",

https://www.osapublishing.org/OIDA/abstracts/OIDA-2013-

ConsolidatedMarket-Updates-Report.cfm

15 "LiDAR Market by Product, Component, Application, Services and

Geography – Global Forecast to 2022," Markets and Markets, March 2016.

16 "The Global Market for Speciality Optical Fibres," Future Markets Inc.,

January, 2012.

http://www.spie.org

http://www.osa.org

http://photonscanada.ca/media/16561/photonics_opportunity_2008.pdf

http://www.photonics21.org/

http://www.statista.com

https://www.pmddtc.state.gov/regulations_laws/itar.html

https://www.reportbuyer.com/search?query=biophotonics

http://www.strategies-u.com/index.html

https://www.osapublishing.org/OIDA/abstracts/OIDA-2013-Consolidated-Market-Updates-Report.cfm

https://www.osapublishing.org/OIDA/abstracts/OIDA-2013-Consolidated-Market-Updates-Report.cfm

43LIGHTING THE WAY


Disclaimer

This report has been prepared by Lumoptix LLC and Lightwave Venture LLC

for the Department of State Development SA (DSD SA). While every effort

has been made to ensure the veracity of the facts discussed and accuracy

of the data presented, the authors do not make any representation or

warranties, express or implied, for any possible incorrect information

contained in this report.

The opinions expressed in this report are exclusively those of the co-authors.

Disclaimer

Piers LincolnInstitute Manager

The Institute for Photonics and Advanced Sensing (IPAS)

The University of AdelaideSouth Australia

Ph: +61 (0)8 8313 5772Mob: +61 (0)410 221 278

[email protected]