6th Photonics Scotland Annual Survey reflects a growing & vibrant sector, and reaffirms the resilience of the Scottish photonics industry.
Technology Scotland has today published the results of its Photonics in Scotland 2025 survey.
The expertise of Scotland’s Critical Technologies Supercluster in photonics, quantum, semiconductors, and sensing and connectivity is unparalleled anywhere else in the UK. This has been recognised by both Scottish and UK Governments, and the importance of these technologies to our security, defence and economic independence, as well as our ambitions in areas such as net zero, smart transport, energy and our broader advanced industries.
Against this backdrop, it is more important than ever that we monitor the progress of these sub-sectors, and our Annual Photonics Scotland Survey continues to provide an important health check for our photonics capabilities.
Data collected over the last 12 months reaffirms the resilience of the vibrant Scottish photonics sector, which remains optimistic, despite the challenging economic and geopolitical landscape, which continued throughout 2024-2025.
There continues to be positive signs of growth, with more than half of companies reporting revenue increases over the past year. Even more encouragingly, around 80% of companies expect revenues to rise in the next 12 months – nearly half predicting double-digit increases. Employment is also rising, with almost two-thirds expanding their teams last year and anticipating further growth this year.
While optimism is high, barriers to growth remain, with competition being cited as the key challenge. Access to capital and to new markets also remains difficult, the latter being exacerbated by the additional challenge of tariffs and export controls. These controls are presenting a moderate to significant challenge for two thirds of our companies, although it is encouraging to note that acute supply chain issues of the last few years seem to be easing.
Scotland’s talent pool is one of the jewels in our crown and a driver of innovation and investment. However, building this pool to meet our growth ambitions remains a challenge and nearly 80% of respondents cited experiencing a skills gap in the last 12 months. While a significant number of companies have identified gaps within research and development functions, it is interesting to note that significant gaps have also been identified in manufacturing and operations and commercial functions.
Companies emphasise the need for action across the skills ecosystem, with demand for university-level training complemented by strong interest in apprenticeships, internships, and CPD opportunities. Strengthening links between industry and education was a recurring request—one that Technology Scotland via its Critical Technologies Future Skills Leadership Group remain committed to addressing.
As in previous years, our companies report involvement in a range of market areas, illustrating the importance of photonics technologies across a range of critical supply chains. This diversity also underpins much of the stability we have seen in the sector over the last 6 years as companies exploit multiple different opportunities, allowing them to navigate inevitable market fluctuations.