Teledyne's acquisition of Flir for 8 Billion in cash and stock, www.thestreet.com/investing/teledyne-tdy-flir-systems-acquisition, demonstrates the strength of the photonics industry and why it will continue in 2021. This follows several mergers and acquisitions in 2020 including Enpro's acquisition of Alluxa last Fall. While covid19 created global disruption to every markets, the photonic industry thrived. The majority of companies serving the photonics market were deemed essential businesses and continued to innovate and manufacture throughout the pandemic. M&A in the photonics industry will thrive in 2021 and here are 3 reasons why.
Photonics Is Everywhere
Try to think of a market that is not served by the photonics industry. Cameras embedded in our phones, laptops, cars and homes are a normal function of daily life. Packages are scanned, food is inspected, products are assembled aided by vision guided robots. The pandemic demonstrated and accelerated our reliance on imaging technology. Almost overnight, businesses, schools, governments, and healthcare systems found ways to connect virtually depending upon imaging and communication technology rooted in photonics.
Emerging Technologies rely on Photonics
Advanced automation, AR/VR, Lidar, silicon based photonics and quantum technologies all rely on photonics to drive innovation. As the application space expands into more commercial markets, the overall photonics industry will continue to grow. Investment in emerging technologies is being funded by private, public and government institutions. Various research reports estimate the global photonics market to grow to $900 - 950 Billion in 2025, up from approximately $600 Billion in 2019.
Photonics in Healthcare and Medical Technology
From large scale imaging platforms like X-ray, computed tomography, and magnetic resonance; to endoscopic robotic surgical systems, lab based PCR, hematology, genome sequencing and microscopy; to point of care and smartphone based devices - photonics is the enabling technology. Investment and innovation thrived before Covid19 in 2020 and will continue to grow in 2021 and beyond as demographics shift to living longer and healthier lives.