Northwest Regional Development Agency (NWDA)
technology
showcase Photonics
What is Photonics? Photonics can simply be defined as the generation, manipulation and detection of light and is consistent with the definition within the Department for Business, Enterprise and Regulatory Reform national Photonics Strategy entitled “Photonics: A UK Strategy for Success – Painting a Bright Future” launched in July 2006. Photonics is the generic term for the technology that includes light emission, transmission, deflection, amplification and detection by optical components, instruments, lasers, other light sources, fibre optics, electro-optical instrumentation and sophisticated nanophotonic systems. It promises smaller, cheaper, lighter
and faster components and products, with greater functionality while often using less energy. The application of photonics is increasingly prevalent within telecommunications, automotive, aerospace, medical, environmental, high performance, civil and structural engineering and other industry sectors. However, one of the most pervasive applications of photonics to date has been in telecommunications, where it can provide enormous traffic volumes within the internet and other data networks coupled with high-speed optical switching. Other emerging photonic applications include the rapid penetration of display and imaging-based products and technologies into consumer and computer markets - notably LCD TVs and camera phones.
UK Photonics The UK Strategy, “Photonics: A UK Strategy for Success – Painting a Bright Future” launched in July 2006 characterised the photonic industry application areas as illustrated by figure 1.
Defence & Security Industrial Photonics
In order to provide easy reference with the national strategy and the activities within the Northwest region, the five application sectors have been applied within the mapping study and this showcase on Northwest Photonics. The importance of photonics to the UK has been estimated by the Optoelectronics Industry Development Association (OIDA) as
ICT & Consumer Photonics Life Sciences & Healthcare Lighting & Energy
being worth approximately £10 billion ($20B) which is a significant share of the £182 billion ($364B) worldwide photonics market.
Figure 1: Photonic Breakdown by Application Sectors
World Photonics Worldwide, the photonics industry is growing at a phenomenal rate of 20% per annum and the Optoelectronics Industry Development Association (OIDA) states: • Worldwide photonic market grew to £182 billion in 2005 (UK share £10 billion) • Photonic components grew 17 % to £52 billion in 2005 • Photonic enabled products grew 21% to £130 billion It is estimated that the photonics market will be worth close to 1 trillion US dollars by 2015. Figure 2 highlights the photonics market size in relation to the electronic equipment market, UK, European and World Gross Domestic Product (GDP) for 2005/6. The pyramid demonstrates that although photonics is an emerging sector it has already grown to quite
a sizeable market and this growth is set to accelerate as new photonic enabled applications emerge.
104 260
One particular area of interest is the development of high brightness Light Emitting Diode (LED) sources which are providing new market opportunities in large signs, signals, general illumination, automotive applications and within consumer appliances such as mobile phones and TV’s. The revenue market for high brightness LEDs has continued to grow over the last decade with a historical compound annual growth rate between 1995 and 2004 of 46% and reached $4 billion in 2005. The total worldwide market for high brightness light emitting diode emitters is forecast to grow from $4 billion in 2005 to over $8 billion by 2010 with an ongoing average annual growth rate of 15%.
Page 2 | Northwest Regional Development Agency (NWDA)
s nic ent oto on Ph omp C nic nt otopme h i P u Eq
1,300
nic tro ent c m e El uip Eq
2,373
UKDP G
14,527
48,144 Billions of US Dollars
Figure 2: The Pyramid of Value for Photonics during 2005/6
EUDP G rld WoDP G
Foreword I am delighted to endorse the Northwest Development Agency’s exciting showcase document on enabling 21st century Photonics technology. Evidence of the dynamic Northwest photonics sector has recently been detailed in a mapping study commissioned by the Northwest Regional Development Agency. The study explains how photonics applications being developed in industry are important to economic growth in the Northwest England. Photonics is a high growth, emerging sector worth over £182 billion worldwide in 2005 and forecast to be worth close to £500 billion worldwide by 2015. Significant consultation with academic, industrial, business support and technological support organisations has identified that Northwest Photonics companies contribute more than £659 million annually to the Region and employ an estimated 6,000 employees. Of the 260 companies contacted, 188 were identified as operating in the photonics sector. The majority of these, 110 companies, are active in the Lighting and Energy sub-sector. In recent years, photonics has become globally recognized as an emerging, cross-cutting technology that disrupts and underpins a wide range of industrial sectors via the intelligent application of light; either in an entirely novel context such as photo-dynamic medical treatment or, in replacing traditional lighting with high performance, low energy Solid State Lighting. The following pages illustrate the pervasive nature of photonics through specific examples of world-class photonics excellence occurring in the region. The document highlights several North West case studies on photonics applications within the key industry sub-sectors: • Information Communication Technology & Consumer Products • Lighting and Energy • Defence and Security • Industrial Photonics • Life Sciences & Healthcare This showcase document is an essential reference guide for the European Union, Government, national and international photonics organisations, sub-regional partners, Northwest businesses, inward investment agencies, academic, learning and skills institutions and anyone else with an interest in Photonics. It shows how photonics technology and its growth potential are being exploited for the benefit of the Northwest Regional economy.
Dr Geoff Archenhold, Business Develoment Director for Aston Science Park and author of the Northwest Photonics Mapping study outlining the potential global marketplace for photonics at the Northwest solid-state lighting consultation workshop, Haydock Park.
Contents 2
Introduction to photonics and the UK and global marketplace
3
Foreword on the Northwest Regional Development Agency (NWDA) Technology Showcase on Photonics provided by Sarah Kemp, Head of Business Relations
4
Northwest regional photonics activity including the review and key findings from the mapping study
6
Outline of photonic capabilities within Northwest University and Further Educational Institutions and observations from the Northwest photonics mapping study
8
Lighting and Energy - Detailed consideration of the photonic activities within this sector
11 ICT & Consumer Photonics - Detailed consideration of the photonic activities within this sector 13 Life Sciences & Healthcare - Detailed consideration of the photonic activities within this sector 15 Defence & Security - Detailed consideration of the photonic activities within this sector 17 Industrial Photonics - Detailed consideration of the photonic activities within this sector 19 Access to Finance - Principal Northwest contact point details
The Northwest photonics mapping study and technology showcase was compiled and produced by Dr Geoff Archenhold, Dr Neil Haigh and Mr Glenn Barrowman on behalf of the Northwest Regional Development Agency (NWDA). Birmingham Technology Limited Faraday Wharf, Holt Street, Aston Science Park, Birmingham, B7 4BB Sarah Kemp Director of Business Relations Enterprise and Skills Directorate Northwest Development Agency
Tel: +44 (0) 121 260 6000 Fax: +44 (0) 121 260 6450 Email: info@astonsciencepark.co.uk www.astonsciencepark.co.uk
Northwest Regional Development Agency (NWDA) | Page 3
Northwest Regional Photonics Northwest Regional Photonics Activity • Information Communication Technology & Consumer Products
This document will explain the importance of the emerging field of photonics, its technology and future applications with relevance to the Northwest region. Photonics has already made a significant contribution to several established target industry sectors including:
• Life Sciences & Healthcare However, the influence of photonics will become increasingly vital to all future sectors as it will empower a new generation of intelligent systems as society advances through the 21st Century.
• Lighting and Energy • Defence and Security • Industrial Photonics
Northwest Regional Statistics From the 188 Northwest photonics companies identified they: • Contribute annually more than £659 million to the regional economy • Employ an estimated 6001 employees Geographic Analysis Table 1 shows the breakdown of Northwest based companies surveyed within the mapping study and their geographic distribution. It should be noted that Figure 3 only identifies the minimum number of companies, employees and annual turnover for the Northwest region and in practice there will be many more photonics companies operating within the region but not discovered during the study. Key Findings The recently completed photonics mapping study undertaken by the Business Relations team within the Enterprise, Innovation and Skills directorate of the Northwest Regional Development Agency provided an excellent spotlight on the Northwest region photonics industry. The mapping study identified:
• Biophotonics is an important photonics subsector activity which can compliment the Northwest strength in biomedicine • Clustering and effective business networking already occurs in the aerospace, automotive, biomedical and advanced laser engineering sectors • Northwest universities are popular and growing rapidly in key areas such as biomedicine and photon science
Cumbria Photonics 15 Turnover £51 million Employees 663
• The possibility to use stateof-the-art photonics based demonstrations as a method of stimulating Northwest region economic activity • The potential to develop linkages based upon photonics technology will sustain growth and prevent business leakage to other regions Figure 3: NW Geographic Breakdown
• Photonics is an important contributor to the regional economy with over 6000 employees and a Gross Domestic Product of £659 million • From the 188 companies analysed, 33% had a turnover exceeding £1 million per annum • The lighting and energy photonics subsector has a significant regional business presence • A regional strength is Solid State Lighting technology in the Northwest UK within an emerging de facto cluster
Page 4 | Northwest Regional Development Agency (NWDA)
Lancashire Photonics 34 Turnover £144 million Employees 914
Merseyside Photonics 22 Turnover £46 million Employees 523
Greater Manchester Photonics 88 Turnover £331 million Employees 3283
Cheshire Photonics 29 Turnover £88 million Employees 618
Northwest Regional Photonics Northwest Regional Detailed Analysis Table 1: Northwest Sub Regional Breakdown
Through the detailed analysis of the Northwest regional statistics we can determine the breakdown of Northwest based companies surveyed within individual geographic sub regions.
NW Region
It should be noted that Table 1 only identifies the minimum number of companies, employees and annual turnover for the Northwest region and in practice there will be many more photonics companies operating within the region not necessarily highlighted during the study.
Photonics
Turnover
Employees
Cheshire
29
£88 million
618
Cumbria
15
£51 million
663
Greater Manchester
88
£331 million
3283
Lancashire
34
£144 million
914
Merseyside
22
£46 million
523
Total
188
£659 million
6001
Points of note include: Industrial Photonics 17%
• In Cumbria the majority of the sub-regional turnover can be assigned to just 4 companies, Tronic, Oxley, Marl and Forge Europa who contribute approximately £49 million and employ 575 people. There is a natural Solid-State Lighting cluster which has created a number of potentially high growth Solid-State Lighting companies
Defence & Security 4% ICT & Consumer Photonics 14%
Life Sciences & Healthcare 6%
Lighting & Energy 59%
• In Cheshire, 8 out of the 29 photonics companies have a turnover of greater than £1 million. Companies to note include Lynton Lasers, Datalase and Farfield Scientific • In Greater Manchester, 6 companies were identified whose group turnover exceeds £18 million; a further 31 out of the 88 photonics companies have a turnover greater than £1 million. Companies include Zetex Semiconductor, Parkersell, Whitecroft Lighting, Cascade Electrolite, Digital Projection, Searchlight Electrical, Laser Quantum, Signature Ltd and Trident Manufacturing
Figure 4: % Industry sector breakdown with Northwest region companies to note which incorporate significant photonics effort in their work include: Sanko Gosei, Pilkington Technology, BAE Systems and Rolls Royce • In Merseyside, 5 out of the 22 companies identified have a turnover greater than £1 million. Companies to note include: Epichem Group, Dorman and PAV Data
• In Lancashire, 8 out of the 34 photonics companies identified have a turnover of greater than £1 million. Large Group
Table 2: NW Geographic Breakdown by Photonics Mapping Study Industry Sector Industrial Photonics
Total Companies
Total Turnover
Total Employees
14
6
29
£88M
618
8
2
15
£51M
663
14
56
15
88
£331M
3283
1
1
23
3
34
£144M
914
2
0
10
6
22
£46M
523
11
18
111
32
188
£659M
6001
ICT & Consumer Photonics
Life Sciences & Healthcare
Defence & Security
Lighting & Energy
Cheshire
4
2
3
Cumbria
5
0
0
Greater Manchester
7
6
Lancashire
6
Merseyside
4
Total
26
NW Region
Northwest Regional Development Agency (NWDA) | Page 5
Northwest Regional Photonics Outline of Photonics Capabilities Northwest University & Further Educational Institutions University
Department / School
Photonics Related Courses & Research Subjects
Supports DTI Photonics Application Sector
University of Bolton
Computing & Electronic Technology
Internet Communications (BSc) Creative Technologies3D advanced computer gaming Special effects
ICT & Consumer Photonics
Christie Hospital
North Western Medical Physics
Image & Vision Computing Metrology Guided Radiotherapy
Life Sciences & Healthcare
Lancaster University
Computing Department
ICT & Consumer Photonics
Engineering
Communication and Computer Systems (BSc/MSc) Electronic Communications Systems (BEng / MEng) Mid-infrared Optoelectronics Group Semiconductor fabrication capability Mid-infrared diode lasers & Quantum Dots Photonic band gap engineering
Liverpool John Moores University
General Engineering Research Institute Computing & Mathematical Sciences
Coherent and Electro-optics Research Group RF & Microwave Research Group Convergence of Networking, Telecommunications & Broadcasting
Life Sciences & Healthcare
Manchester Metropolitan University
Engineering (BEng)
Engineering & Technology ICT & Consumer Photonics Information and Communications (BSc) Terahertz imaging and related sensing
Communication & Electronic Defence & Security
School of Computer Science, Department of Computing & Mathematics
Cognitive Systems Foresight (facial image recognition)
Life Sciences & Healthcare Defence & Security
Electrical Engineering & Electronics
Electrical Engineering and Electronics (BEng / MEng) Electrical and Electronic Engineering (BEng /MEng) Electronic and Communication Engineering (BEng /MEng) Electronics (MEng)
ICT & Consumer Photonics Life Sciences & Healthcare
Engineering
Laser Engineering (BEng/MEng) North West Laser Engineering Consortium (NWLEC)
Industrial Photonics Life Sciences & Healthcare
Chemistry
High efficiency solar cells
Quantum Information Processing Lighting & Energy ICT & Consumer Photonics Life Sciences & Healthcare Defence & Security Lighting & Energy
Physics
University of Liverpool
Manchester University
School of Electrical and Electronic Engineering
Power Conversion Group Computing & Communication Systems Engineering (BEng/MEng) Microelectronics and Nanostructures Terahertz technology and imaging Low Energy Lighting (LEDs) School of Mechanical Manufacturing & Laser Processing Group Aerospace and Civil Engineering North West Laser Engineering Consortium (NWLEC) Aerospace / flow Diagnostic imaging Faculty of Medical & Human Post graduate research in the field of Imaging Science and Sciences, School of Medicine, Biomedical Engineering Terahertz technology for medical imaging Pharmacy and Pharmaceutical Science School of Physics & Astronomy Optical phenomena
ICT & Consumer Photonics Industrial Photonics Industrial Photonics
ICT & Consumer Photonics
Industrial Photonics Defence & Security Life Sciences & Healthcare Life Sciences & Healthcare Life Sciences & Healthcare Industrial Photonics Industrial Photonics (underpinning research)
School of Physics & Astronomy, Photon Physics
Department of Photon Science
University of Central Lancashire
Technology (including recently opened PACCAR Robotics and Vision Laboratory)
Digital Communications (BEng) 3D Computer Graphics and Visualisation (BSc)
Blackpool & Fylde College
(Supported by the University of Lancaster)
Degree in Illuminations (proposed 2007)
University of Salford
Institute of Materials Research
Physics with Lasers & Photonics (BSc/MPhys) Northwest Photonics Association (NWPA)
ICT & Consumer Photonics CCLRC Daresbury
Advanced Research Computing including Quantum
ICT & Consumer Photonics Optics and Information
Computational Science and Engineering Department Page 6 | Northwest Regional Development Agency (NWDA)
ICT & Consumer Photonics
Northwest Regional Photonics Observations from Northwest Photonics Mapping Study Northwest Photonics Mapping Study Observations
Linkages with existing Northwest Regional Development Agency Activities
The study identified 188 photonics companies in the Northwest region
Develop key internationally competitive sectors. Exploit the Science base & R&D
The study identified a regional strength in solid state lighting technology.
Develop key internationally competitive sectors. Exploit the Science base & R&D
The study considered the technology of energy efficient solid state lighting to be with in the early stage of adoption.
Develop key internationally competitive sectors. Support Knowledge Transfer
The study observed that Photonic Technologies & Environmental Strategies could play an essential part in future Northwest environmental activities.
Develop higher added-value activity through innovation. Exploit the science base and R&D
The study identified that broadband deployment via DSL technology will not support future high bandwidth services such as digital video.
Support ICT usage and digital content Develop ICT infrastructure
The study reported the perception of difficult and complex grant procedures faced by regional companies.
Improve availability of business finance
The study identified a perceived lack of visibility of the Access to Finance initiatives.
Improve availability of business finance Develop higher added-value activity through innovation.
The study identified the need to consider Photonics Skills Training & Brokerage given the embryonic nature of the photonics sector.
Invest in workforce development Develop leadership, management and enterprise skills
The study identified the requirement to further stimulate photonics innovation and R&D.
Develop higher added-value activity through innovation.
The study identified many photonic companies who are hesitant in engaging with the patent process.
Exploit the science base and R&D
The study identified photonics will continue to rapidly penetrate the aerospace and transport sector in areas such as lighting, signalling, control communications, security and sensing.
Develop higher added-value activity through innovation. Develop key internationally competitive sectors.
The study identified that Northwest region has a strong presence in biomedical activity which includes bio-photonics as a rapidly growing area.
Exploit the science base and R&D Support knowledge transfer.
The study identified that the Northwest is home to a strong, growing and popular university sector with core photonics activity already in place and emerging.
Exploit the science base and R&D Retain and attract people to the region
The study identified that SMEs working in the photonics area felt that access to approachable expertise within Universities was not readily available.
Support knowledge transfer. Exploit the science base and R&D
The study identified a degree of confusion within industry and a perceived lack of support for attendance at national and international photonics based conferences and exhibitions.
Realise opportunities from international trade. Maximise opportunities from globalisation and emerging markets
The study identified that there was a proliferation of clustering and knowledge transfer organisations working across the photonics sector
Support knowledge transfer.
The study identified the prevalence of solid state lighting companies in the Cumbria region
Stimulate economic activity in areas remote from growth. Retain and attract people to the region.
The study identified that the photonics SME UK customer base currently represents around 80% of their business with minimal significant ‘local’ presence.
Maximise opportunities from globalisation and emerging markets.
The study indicated that for active photonic products there is no distinctive supply chain.
Support knowledge transfer. Improve the formation, survival and growth rates of enterprises.
The study highlighted the value of exemplar showcase photonics based projects.
Realise and nurture the natural and built heritage assets Improve the physical environment.
Northwest Regional Development Agency (NWDA) | Page 7
Lighting and Energy Photonics within Lighting and Energy • Solid state lighting Including architectural, signage, messaging systems, OLED technology, Signals, Street Lighting, Backlighting, residential lighting • Photovoltaics Including solar cells – energy generation • Sensing for process optimisation • Fuel image analysis • Energy infrastructure security
Photonics within Lighting and Energy can play a significant role in the regional, national and global environment reducing global warming effects through the development of new photonic technologies that provide energy efficient lighting to homes, factories and places of work and with environmentally friendly energy generation by harnessing the power of solar energy through photovoltaic cells. Moreover new materials and devices such as light emitting diodes, organic light emitting diodes (OLEDs) and very high-efficient PV cells are providing the opportunity to create a dramatic influence through new forms of energy-efficient lighting and renewable energy sources. Solid-state lighting (SSL) has the potential to revolutionise the lighting market through the introduction of highly efficient, long lasting and versatile light sources. Advancements in SSL technology over the last two decades have contributed to a gradual market penetration in coloured and general white lighting markets. Industrial research and investment
The Lighting and Energy sector within photonics is set for explosive growth during the next decade and represents one of the strongest opportunities for the development of university and industrial sectors within the Northwest region. Globally solid state lighting is expected to create a $155 billion market by 2020 from just $1 billion in 2006. Northwest based companies operating within this global market include NJO Leds, Oxley, Marl International, Luminanz, Whitecroft Lighting, Searchlight and Zetex continues to improve the performance of LEDs whilst reducing their costs. SSL is expected to create a $155 billion market by 2020 from just $1 billion in 2006. The Northwest region and the UK generally has a strong research pedigree and significant knowledge of inorganic semiconductors, organic electronics, lighting fixture design and luminaire manufacturing providing an opportunistic environment for exploiting solid-state lighting. The opportunity to take advantage of this technology is prevalent throughout the Northwest with a combination of small but highly innovative companies such as NJO Leds, Oxley, Marl International and Luminanz as well as larger organizations such as Whitecroft Lighting, Searchlight and Zetex. It is through the novel and disruptive applications of solid-state lighting that the Northwest region could contribute significantly to a high growth, value-added opportunity in the advanced manufacture of next generation lighting solutions for a variety of applications.
To explain why this is happening now it is worth noting that historically energy generation by photonic means has been pursued for many years. However this has seen limited impact due to a combination of low conversion efficiencies (~1015%) and high costs to manufacture. However with new second and third generation photovoltaic devices under development, including organics and III-V quantum-well solar cells which potentially offer significantly higher conversion efficiencies (>30%). Photonic solar cells offer the opportunity to provide micro-site energy generation at the point of consumption whether in residential or commercial applications to provide a more robust and secure energy network. The increase in carbon-based energy prices and their effect on the natural environment in the future is proving to be a strong political and consumer driver for renewable energy sources where PV cells can play a significant role. The Northwest region activities in this area include the development of printable PV materials at the OMIC centre within the University of Manchester.
UK Residential Lighting Summary statistics on the scale of the UK residential lighting sector • In 2005 there were approximately 25.6 million households in the UK • The residential electricity consumption accounted for approximately 112 TWh (Terra Watt Hours) or more 112,000,000,000,000 Watt Hours • It has been estimated by the European Commission – DG Joint Research Centre that 17.9 TWh is used for lighting consumption within the UK residential market making lighting represent approximately 16% of the total domestic electricity consumed • This residential lighting energy consumption is the CO2 equivalent of driving an average car 882,000 times around the globe With the number of households and the number of light fittings projected to rise the demand for solid-state lighting will significantly increase. Worldwide the annual greenhouse gas (CO2) created due to the energy production for illumination is estimated to be in the order of 900 million tons. Huge energy savings and environmental benefits can be realised when replacing the current incandescent and discharge lamps by efficient SSL sources. That corresponds to 750 TWh global energy savings per year as well as 300 million tons less greenhouse gas in the atmosphere.
It is estimated that by 2025 SSL could reduce the global amount of electricity used for lighting by 50%. In addition to the environmental benefits of CO2 reduction the replacement of traditional light sources such as fluorescent tubes will reduce the end of life requirement to remove small amounts of toxic materials such as lead, mercury and rare earth elements. Solid State light source characteristics include: • Long life times (LED 20,000 to 100,000+ hours and OLED 1,000 to 10,000+ hours); • Environmentally friendly – no hazardous materials e.g.; mercury;
Page 8 | Northwest Regional Development Agency (NWDA)
• Highly energy efficient; (LEDs >100 lumen/Watt,OLED >25 lumen/Watt) • No IR or UV in beam output; • Lower overall total cost of ownership (TCO); • Vivid saturated colours without filters; • Dynamic colour control – white point tuneable;
Lighting and Energy High Brightness Light Emitting Diodes (HBLED) have successfully penetrated many markets over the last decade and LEDs for consumer appliances have become commonplace.
is forecast to grow from $4 billion in 2005 to $8 billion in 2010 with an ongoing average annual growth rate of 15% with mobile appliances segment demonstrating the strongest growth of 57% in both 2003 and 2004 through their use within backlights and flash for mobile phones,
Today, high brightness LEDs are used in backlights for LCD displays in mobile phones and LCD TV’s; and are increasingly being found in traffic signals, signage and general lighting applications. The revenue market for high brightness LEDs has continued to grow over the last decade with a historical Compound Annual Growth Rate between 1995 and 2004 of 46% and reached $4 billion in 2005.
PDA’s and other mobile products. Looking ahead over the next five years revenues are expected to grow an average of 15% per year with revenues forecast to exceed $7 billion by 2009.
HB LED Revenues
The total worldwide market for HB LED emitters
($million)
2004
2005
2006
2007
2008
2009
Signs/Displays
500
552
631
758
1073
1835
Mobile
2095
1997
2061
2174
2229
2300
Traffic Signals
63
74
87
98
94
90
Automotive
472
519
650
766
905
1019
Illumination
174
252
360
494
661
857
Other
383
418
475
541
615
700
Total
3687
3812
4264
4831
5577
6801
Table 3: The market forecast for HB LED revenue by application segment
The Lighting Equipment Market Statistics on the UK, European and global market include: • The global lighting market size was estimated to be worth $100 billion in 2006 and is estimated to reach over $132 billion (light sources $25bn and fixtures $107bn) by 2011 • Within Europe the professional lighting market (that which covers commercial, industrial, public and domestic lighting) is significant with a value of approximately $10 billion in 2004 • The UK market for lighting equipment is expected to increase marginally to £1.9 billion in 2005 Within the UK Lighting equipment market the buoyant construction market and strong consumer spending have had a positive impact over the past 5 years. The construction market is expected to continue to demonstrate growth, albeit at more moderate levels than in recent years. Product innovation in the area of energy efficiency along with changes in the building regulations are also likely to further boost such sectors of the market. Key end use application areas for non domestic lighting equipment include commercial offices (21%), entertainment & leisure (17%), healthcare (17%), education (14%), retail (13%), industrial (9%) and infrastructure (5%), with ‘other’ applications such as prisons and the MOD accounting for 4%. Sectors likely to offer the greatest potential for growth over the next few years include healthcare, education, infrastructure and commercial offices. The UK lighting market is well established at various layers within the supply chain due to the maturity of the lighting market however there are indications that volume manufacturing of conventional lighting systems in the UK will diminish rapidly as conventional lamp technologies are moved offshore due to lower manufacturing costs.
Figure 5: Muncaster Castle wonderfully illuminated by LED arrays
However High brightness LED activity for general illumination is an emerging embryonic technology with niche markets beginning to expand for SSL solutions. In these cases the overwhelming benefits outweigh the initial entry costs for the replacement HB-LED fixtures. This opportunity has created many new startup lighting manufacturers specialising in solidstate lighting fixtures and has resulted in an increase in the number of UK manufacturers to 722. The number of companies associated with SSL technologies such as plastic optics, drivers and heatsinks would make the number of companies associated with the UK SSL significantly larger.
Lancashire 5%
process identified a significant presence of LED and lighting companies in the Northwest region providing an excellent regional opportunity. Figure 6 shows the sub-regional turnover of Lighting & Energy companies as a percentage with the majority of the turnover associated with companies in the Greater Manchester subregion. Figure 6: Breakdown of Turnover for North West Lighting & Energy Companies Merseyside 3%
Cheshire 11% Cumbria 5%
Greater Manchester 76%
The mapping study and consultation
Northwest Regional Development Agency (NWDA) | Page 9
Lighting and Energy The Northwest mapping survey observed that for the lighting and energy application sector, and for solid state lighting in particular, an approximate supply chain can be identified as follows:
Fortunately the UK and the Northwest region retains a strong position in producing the basic materials for LED and OLED devices
• LED device fabrication (100% offshore) • LED device distribution • LED assembly into bespoke lighting product e.g. luminaire or signalling • LED architectural design • LED lighting product installation
• 11 companies are associated with the distribution of LEDs and LED component modules • 44 companies are involved with the supply of bespoke lamps and luminaires • 44 companies are involved in the architectural and installation side of the technology
It is important to note that there is no volume fabrication of the base LED or OLED components in the UK itself with supply dominated by the 5 main global players, Nichia, Cree, Osram, Philips and GE whose products are considered to be both ground breaking and high quality in their performance.
Moreover the UK is strong in the design and manufacture of secondary optics, electronic drivers, packaging and thermal management which enables LEDs to be built effectively into fixtures and luminaires. This firmly establishes the UK and Northwest at the higher end of the value chain.
Importantly, the lack of a UK LED foundry may not be a major issue as it is widely perceived that LED dies will soon become a commodity item providing little in added value.
It is evident from the mapping study that the Northwest supply chain and experience dominates this sector of the market and there are numerous examples of innovative LED fixture
companies such as NJO LEDs, Oxley, Marl International, Luminanz and Forge Europa that are capitalising on their early leader position within the SSL market. Analysis of the 111 companies working in the lighting and energy application sector reveal two specific specialisms dominate: • Lamp and luminaire supply • Lighting and architectural (design and installation) Evidence indicates that Northwest organisations working in this area show high degrees of innovation particularly in solid state lighting and the assembly of novel LED based lighting and signage products. Longer term, the UK has considerable knowledge, expertise and experience in organic LED materials, printing processes and manufacturing equipment, which is an opportunity to establish the future of the UK lighting manufacturing industry within the next two decades.
Case Study Marl International is active within the Lighting and Energy photonics industry sector operating within the Northwest Region photonics community. Marl International is a privately owned UK company that has been involved with LED technology since the industry's inception in the early 1970's. Over the years, the company has developed a reputation for high quality engineering and first class customer service. Design manufacturing and operating systems are approved to ISO 9001. As LED efficiency and sophistication of materials has resulted in ever increasing light output, this has lead Marl to evolve more from providing indication to illumination. One application can be shown with Eastman Kodak, where Marl have been providing a wide range of customised light sources to assist with specific task lighting applications throughout their network of primary manufacturing plants around the world. This all came about because the low sensitivity
This calculation does not take into account additional, significant savings in maintenance, and elimination of contamination of product risk. points of the photographic emulsions and films matches the peak wavelengths of the red, amber and green LEDs specified by Marl International to suit this particular application. Looking back this means that Marl has been producing some of the world's first electronic light bulbs for more than two decades. Under one of their own initiatives, Eastman Kodak calculated that over a ten year period, the annual power saving alone accrued to $226,437 and an overall saving of $2,765,000.
Marl International Limited Marl Business Park, Ulverston, Cumbria. LA12 9BN United Kingdom Tel: +44 (0)1229 582430 Fax: +44 (0)1229 585155 Email: marketing@marl.co.uk
Page 10 | Northwest Regional Development Agency (NWDA)
The attached photograph shows just one of the wide ranges of SSL products that Marl produce for Eastman Kodak. This particular device is an LED safe light used for x-ray development, -red output 635nm, suitable for 110Vac operation, fitted with an ES27 cap for retrofit into a range of existing laboratory style fittings. Marl will draw on this example of experience to accelerate adaptation of SSL in a much wider range of industrial, commercial and residential lighting applications.
ICT & Consumer Photonics Photonics activities within ICT and Consumer include: • Displays 3D television; holography; indoor and outdoor advertising displays • Optical Communications Internet; Fibre to the premises FTTx • Optical Data Storage Blu-ray DVD storage • Consumer products Mobile phones, flat panel LCD TVs, digital camera
Displays form a key part of the growing ICT and Consumer market sector. Flat panel displays have penetrated strongly into the consumer market, outselling cathode ray tubes in 2005 and arguably is a key technology for the future. Market Size • The Flat panel display component market exceeded $74 billion in 2005 • The market is expected to continue to grow to over $135 billion by 2015 • The OLED growth is from a 1% share of $74 billion in 2005 to a projected 7% share of $135 billion in 2015
Flat panel displays are split into three main types: liquid crystal displays, plasma display panels, and organic LED displays with the key difference being that plasma display panels (PDP) and Organic Light Emitting Diodes are emissive whereas liquid crystal displays are non-emissive and thus need a backlight to illuminate the display. The emissive nature of OLEDS is an attractive proposition and it is considered that OLEDS will grow to rival LCDs and PDPs. Revenue share split by display type: • CRT 12% • LCD 78% • Plasma 7% • OLED 1% • other 2% (source OIDA)
Optical Communications
Market Size • Global telecoms revenue in 2005 was over $2.5 trillion • Revenue is forecast to be $5 trillion in 2012 • By 2012 it is forecast that telecoms revenues in USA, Europe and Asia-pacific will be roughly equal at around $1.5 trillion each • In 2005 optical communications components grew to $26 billion up 14% from 2004
In recent years the UK optical comms industry activity has been centred on new start-ups working in specific niche areas, in many cases established by former employees of the larger photonics companies. This coupled with the university sector which has continued to recruit students and expand the scope of photonics based research, not exclusively in optical communications.
Northwest Regional Activities The Northwest does not contain any large
scale telecoms organisations, although it does have a significant share of experienced telecom infrastructure supporting companies. In consideration of Northwest photonics activity in optical communications, it is fair to predict that the most significant role will likely be in the area of provision of highspeed broadband communication services to the premises, whether to the business or home. The recent announcement by Stephen Timms, Minister of State for Competitiveness highlighted the need
for a next generation network that enable businesses to become more competitive through super fast access to networking and communication. The implementation of 1 Gbit per second bi- directional broadband for the Northwest region would develop the conditions for increased productivity and world class infrastructure in support of its regional economic base.
Northwest Regional Development Agency (NWDA) | Page 11
ICT & Consumer Photonics The Northwest region has an opportunity to lead the UK and the world in the deployment of next generation broadband networks based predominantly on optical fibre systems For broadband delivery via fibre-to-thepremises (FTTP), Japan currently leads the way; in June 2006, OECD estimated that there were 6.3 million fibre subscribers in Japan outnumbering the total number of broadband subscribers in 22 of the 30 OECD countries.
The ‘last’ drop to the premises is now the bottleneck with regard to the provision of high bandwidth communication services as services based on copper infrastructure such as ADSL 2+ and VDSL are inadequate for medium term needs.
The demand for consumer based services can now be taken as a given, as can the understanding that provision of a high bandwidth services will themselves initiate the advent of new and possible unexpected but successful revenue streams and services e.g. YouTube™ and Skype™. A recent study undertaken by Walsall Regeneration Company one of the 24 national regeneration companies has demonstrated that the deployment of FTTx is extremely cost effective on all new regeneration initiatives and can add significant value to a variety of stakeholders from social housing to health and private sector developers to education and enterprise. It has been proposed that a fibre access network infrastructure in Walsall would provide bi-directional broadband access to premises at up to 1.5 Gbits per second or more than 4000 times faster than current broadband capabilities. The opportunity exists to encourage high bandwidth networking as a driver for urban regeneration or high technology working in rural locations. This could include access to high resolution media content development, remote support for software development, test environments and tele-health and remote medicine. Moreover this could be aligned to the development of intermediate skills through HE and FE training provision in optical fibre cable and network architecture skills for FTTx installation
Case Study Finance backed startup, Litelogic, has a research and manufacturing base located in Stockport, Cheshire which is leading a global revolution in outdoor advertising through the development of innovative advertising display systems. The latest generation of 360 degree LED based advertising displays are proving revolutionary incorporating innovative and high engineered designs which are supported by a sophisticated and secure
online content management and scheduling platform enabling dynamic and geographically responsive digital advertising campaigns.
Litelogic believe that their unique system will transform the global outdoor advertising industry and the fortunes of those already in this sector.
Recent products include the Evolution and Litecast system that incorporates a high resolution LED display capable of being integrated onto the side of a bus and a powerful software platform that enables advertisers to create and schedule an advertising campaign at the touch of a button dynamically across a fleet of buses. The Evolution display system utilises a GPS system to enable advertising campaigns to be location specific and provide the right message, at the right time in the right location.
By marketing its high quality, yet low cost, digital light-emitting diode screens for installation on poster sites worldwide, networking them to proprietary online software, and altering the advertising sales strategy of the outdoor industry,
Litelogic Unit 5, Bridgeside Business Centre, Lingard Lane, Bredbury, Stockport SK62QT Tel: 020 8977 6600 Email: info @litelogic.com www.litelogic.com
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Litelogic are committed to changing the way that global outdoor advertising is bought and sold and thereby revolutionising a traditional advertising medium.
Life Sciences & Healthcare Photonics within Life Sciences & Healthcare This includes biophotonics represented by the generation, manipulation and detection of light to: • Monitor biomaterial in real-time in a non-contact way without affecting the life processes of a subject • Use light as a probe to image a variety of features simultaneously and to observe very complex processes such as protein reactions in living cells • Image biomaterial from the molecular level right through tissue samples and living organs to whole bodies of animals or humans • Modify cells which can then be utilised in cell biological research and minimally invasive treatment
Biophotonics has advantages over alternative diagnostic techniques such as ultrasound, MRI or computer tomography in terms of resolution, simultaneous probing, cell manipulation and sensitivity. Biophotonics is a new multidisciplinary subject that requires biologists, physicists and chemists to work together to understand the interaction of light for a multitude of new life sciences, pharmaceutical and healthcare applications. Microfluids module created by lasers and used in biophotonics
The Biophotonics Market Whilst the biophotonics marketplace is embryonic there are specific photonic applications and technologies such as lasers, bioinstrumentation and photonic biosensors that have reached a certain size and visibility to provide sufficient indicators for market trends. Industry Statistics According to OECD figures healthcare costs in 2004 were over $1.8 trillion dollars for the USA, $144 billion for the UK and more than $260 billion for Germany. The world’s top 30 countries provide healthcare services at a cost of nearly $3.5 trillion per year. Small cross sections of healthcare markets that utilise photonic technologies include: • Emerging bio-health technologies estimated at $260 billion in 2005 • Medical diagnostics estimated at $27.5 billion in 2005 • Medical biosensors estimated at $8.5 billion in 2005 • Brest cancer biopsy market estimated at $2.3 billion in 2005 • Cervical cancer diagnostics estimated at $1.6 billion in 2005. The prognosis for photonic technologies in medical devices expects to grow from $5.95 billion in 2002 to $20.4 billion in 2010 and could reach $38 billion by 2015. This relates to a global medical devices market valued at over £124 billion in 2005 with the UK having a 3% share: The rapid growth of the biophotonic market is linked closely to the demands for new solutions to improve medical healthcare within our society. The global market for medical imaging equipment (including ultrasound, CT and MRI scanners and x-ray imaging equipment) was
estimated to be $15 billion in 2005 and is expected to grow to over $26 billion by 2008. There is a clear penetration of photonic systems within the medical imaging sector which are now strongly competing with existing technologies due to advantages in resolution, sensitivity and price. Established technologies such as endoscopy, ophthalmology and fluorescent imaging are being complemented by advanced optical systems that can image a few millimetres into cell structures such as Optical Coherence Tomography (OCT).
on acute hospital services.
The global pharmaceutical industry exceeds $400 billion with the revenues on equipment used to develop drugs and to deliver healthcare estimated to be around $180 billion during 2004. The industry spends an average of $800$900 million in direct costs to develop each new drug over a 15 year period. It has been estimated that photonic devices for molecular imaging can provide savings from $10 million to $30 million per project resulting in the need for faster and more sensitive systems.
The global market size for the emerging life sciences segments reached $173.5 billion in 2005.
Market drivers for life science and healthcare applications Today, as the population of the UK grows progressively older it is clear that healthcare provision has to change dramatically from the current scenario to meet future demands and biophotonics provides an opportunity to create a paradigm shift in modern diagnosis and treatment. Accordingly, biophotonic instrumentation has created a new opportunity to change the model for modern healthcare provision by delivering photonic-enabled screening techniques directly to the user to identify the origin of disease on a molecular level. This way, diseases may be prevented or healed in an early and less aggressive manner thus reducing healthcare costs and enabling healthcare provision within the community thereby reducing the pressure
This new model of healthcare provision would ideally utilise photonic-enabled devices to monitor and screen individuals with regular health check-ups or potentially in a non-invasive continuous nature. The results would identify potential or early stage abnormalities through imaging or other detection methods and suggest early corrective procedures using minimally invasive surgery, drugs or other treatments as required.
The Northwest Position The Northwest region of the UK is one of the UK's top three clusters for the biomedical sector including biotechnology, pharmaceuticals and healthcare activity; there is a major pharmaceutical presence, a rapidly expanding biotechnology community and internationally renowned academic and clinical research strengths. In total there are over 230 biomedical companies in the Northwest, including seven multinational pharmaceutical firms employing over 25,000 people. The list of pharmaceutical giants in the region includes: AstraZeneca (who’s largest R&D facility is in the Northwest); GlaxoSmithKline; Eli Lilly; BristolMyers Squibb; MedImmune; Chiron and SanofiAventis. The Northwest is the UK’s highest exporter of pharmaceuticals, with exports valued at £3.4 billion. The Northwest university sector produces 25,000 life science graduates (excluding nursing degrees - a further 10,000) per year, and the University of Manchester has 50% of its research effort dedicated to life science and medicine.
Northwest Regional Development Agency (NWDA) | Page 13
Life Sciences & Healthcare sustained with the receipt of DTI SMART awards. Biomedical activity in the Northwest is clustered under the watchful eye of the Bionow organization and there are two key bioscience projects located in the Northwest region: MerseyBio (Merseyside) which incorporates the MerseyBio Business Incubation Centre, and the Manchester based Core Technology Facility (CTF) for bioscience located in the Manchester Incubator Building (UMIC) on the University of Manchester campus. This is positioned within a strong UK performance in Life Sciences and Healthcare with the UK world trade in pharmaceuticals valued at £11,941m for exports and £8,378m for imports generating a trade balance surplus of £3,563m. Northwest SME Activity within Biophotonics The photonics mapping study highlighted there were approximately 12 biophotonics SME organisations located in the Northwest in addition to the research activities of the pharmaceutical giants listed above. This is likely to be a significant underestimation of the true picture and is dependant upon the visibility of biophotonics as a recognized discipline within an organizations capability; Bionow list over 230 biomedicine companies in the Northwest region. Highlighted within the mapping study are Lynton Lasers (Holmes Chapel) who are an excellent example of a rapidly growing Northwest company developing novel lasers and laser processes for the medical and cosmetic marketplaces. This company was a management buyout from the University of Manchester. It is considered that much of Lynton’s early growth was initiated and
Figure 7: Global medical devices market by country share
Regional research activities include the next generation of non-ionising Terahertz radiation imaging tools that are being developed by the University of Manchester supported by EPSRC funding. Given that there is strength in LED technology in the Northwest region, and experience in the integration of LED assemblies for photonics products notably in the lighting field, there is the strong possibility of a need to link the LED players with biomedical researchers to advance rapidly novel applications e.g. high brightness LEDs in the medical field. Such partnerships could develop, LED based products for Seasonal Affective Disorder (SAD) and blue light phototherapy.
Other Europe 8% Italy 3% UK 3%
Lynton Lasers Ltd, based in Holmes Chapel, Cheshire, specialises in the design, development and manufacture of laser and flash-lamp systems for applications in cosmetic dermatology and laser conservation & cleaning. Established in 1994 following a management buyout of Vuman Lasers, a Manchester University owned start-up company, Lynton Lasers Ltd has quickly established itself as a world class performer.
Sterilisation 1%
Dental 12%
Other 26%
Imaging 12%
Disposable 2% Rehab 2% Dialysis 3% Wound Care 3% Opthamology 4%
Lynton Lasers manufactures a wide range of laser and flashlamp systems, including the PARAGON Elite Family of Medical Nd:YAG and Ruby Lasers, the LUMINA and LUMINETTE Families of Medical Flashlamp Systems, the LUMACARE Non-coherent Light Sources for PDT and the PHOENIX Family of Laser Conservation and Laser Cleaning systems. Applications addressed by these systems in cosmetic dermatology include hair removal, tattoo removal, the treatment of various pigmented and vascular lesions, acne treatments and skin rejuvenation treatments. Laser conservation applications include the laser cleaning of historic buildings, statuary, sculpture and a wide range of other artefacts and materials.
Monitoring 7%
Cardiovascular 7%
As an example of the potential for this field it is estimated that the medical optical components market was $535 million in 2005, with high brightness LEDs contributing approximately 14% ($73 million) of the total.
Orthopaedic 11%
Urology 10%
By 2010, revenue is forecast to reach $847 million with Gallium Nitride based HB LEDS (used for UV lighting, sterilization and other medical applications) alone contributing almost 25% ($200 million) to Customer satisfaction is fundamental to the success of the company, as demonstrated by company commitment to after sales service, customer training and continued customer development. The company is also committed to continuous product improvement through development and innovation, a commitment that relies on a highly skilled and expanding workforce, currently at 31 employees, and is evidenced by the fact that the company has won no fewer than 6 DTI-sponsored Research & Development awards (formerly Smart & Spur). This commitment has been recognised by our customers world-wide, who now extend across the Far East, the Middle East and Europe, as well as throughout the United Kingdom itself.
Lynton Lasers Ltd Lynton House, Manor Lane, Holmes Chapel, Cheshire CW4 8AF www.lynton.co.ukTel: +44 (0)1477 536 977 Fax: +44 (0)1477 536 978 E-mail: info@lynton.co.uk
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Germany 10%
France 5%
Figure 8: Global medical devices market by medical specialism
Case Study Lynton Lasers is active within the Life Sciences and Healthcare industry sector operating within the Northwest Region photonics community.
US 44%
Other 16%
Japan 11%
Another example includes the North West Laser Engineering Consortium (NWLEC) which is developing an optical tweezer system permitting the direct manipulation and capture of cells.
Defence and Security Photonics activities within Defence and Security • Command, control, communications computers and intelligence - Secure communications: quantum cryptography • Optical fibre communications • Surveillance, Targeting Acquisition and Reconnaissance - Laser range finding - Remote sensing e.g. passive IR sensors - Forward Looking Infrared Imaging - Perimeter security - Checkpoint/port/airport security: - Terahertz imaging - Unmanned vehicles - Sensing: chemical and biohazard • Biometric identifications
Northwest UK Defence & Security Activity The mapping study assessment of Northwest photonics activity in the Defence and Security sector identified 8 companies working primarily in the defence and security area. These were in the highly niche areas such as Natolamps and Francis Searchlights producing lighting products for the defence and security sector, and AD Aerospace Ltd, a specialists in leading edge video security for the airline and aircraft industries. products) are similar and generic to other companies working in the lighting sector.
Other companies including the Oxley Group develop specific Night Vision technologies including specific optical filter technologies for military applications. Support for such photonics-based companies in the Northwest may best be delivered through generic photonics business and sector support. Arguably the lighting companies could be drawn into any lighting based clustering activity assuming their technical concerns for product performance (e.g. of novel solid state lighting
BAE Systems The single largest NW company encountered working in photonics related Defence & Security was BAE Systems based in Lancashire who due to their history and size have a clear focus and strategic vision for their defence and security activities, including photonics/avionics.
The defence and security requirements cover numerous end-users from the Government through its military defence requirements and emergency services to the private sector including para-military, industry and the general consumer. Increasingly the defence and security sectors are being underpinned by sophisticated technologies and photonics plays a vital role in the development of a wide cross-section of military and civil products which in themselves can be classified as systems, sub-systems, equipment, sub-assemblies and components. Global Defence and Security Marketplace The total worldwide market revenue for the defence segment was estimated at $950 billion in 2004, with the UK taking a prominent role in global homeland security with a 6% market share.
A good example of focussed defence related aerospace work which will likely involve significant photonics activity was the decision in Spring 2006 to officially locate pioneering work on the future of unmanned air vehicles at BAE Systems in Lancashire. Activities undertaken will include exploiting the latest optical sensor and communication photonic based technologies to support this initiative.
UK Defence and Security Marketplace Key industry statistics include:
Figure 9: Geographical percentage shares of the Defence and Security marketplace
• The total UK budget for defence In 2004/5 was £38.4 million and is the third highest area of government expenditure behind health and local government • The total UK defence expenditure on research and development activity totalled £2.7 billion, comprising of £524 million on research and £2.2 billion on development during 2003/4 • The estimated MOD expenditure and defence related exports supports 305,000 employees within the UK with over 140,000 indirectly supplied through the supply-chain • The global biometric market revenues are expected to steadily increase between $1.5 billion in 2005 to $5.7 billion by 2010
Singapore HK 2%
Australia 3%
Rest of World 9%
Japan 2%
Middle East 5%
Europe 14%
UK 6% United States 54% Canada 3% Israel 2%
• Photonics represents the majority of biometric-enabled products with fingerprint analysis at 43.6% of the market share in 2006 utilising laser and image scanning techniques
Northwest Regional Development Agency (NWDA) | Page 15
Defence and Security Key Application Areas The key application areas where security based solutions requiring specific technology solutions include: Application Aviation security
Photonic based technology solutions Baggage and passenger screening technologies Biometric identification technologies Anti-missile technologies
Port and Marine security
Port surveillance and monitoring technologies
Growth in market demand and the proven success of security solutions developed within the UK has helped to boost investment in research and development. As a result the UK security segment has enjoyed the benefits of improved manufacturing techniques, development of new technologies and applications of existing technology with a coordinated approach to the promotion of security equipment within the domestic and international markets.
Container screening technologies Seacoast surveillance technologies Ground Transport security
Bus and train screening technologies Explosive detection technologies Surveillance and monitoring technologies
Border security
Biometric identification technologies Non-invasive screening technologies for vehicles
Physical infrastructure security
Surveillance systems for buildings and facilities Biometric identification technologies
Cyber/Network security
System intrusion detection Encryption technologies Secure network infrastructures
Bioterrorism prevention
Bioterrorism countermeasures Detection and monitoring systems
UK industry players using photonics based solutions within the defence and security industry include: BAESYSTEMS and BAESYSTEMS Avionics Eurosystems (Finmeccanica), AMS, Afonics, Bookham, Forth Dimension Displays, Cambridge Display Technology, Davin Optronics, Bookham, Deutsch, EADS, Astrium, e2V, Infrared Integrated Systems, INSYS, MBDA, QinetiQ, Roke Manor Research, DSTL, Spectrum Technologies, SPI, Smiths Industries, Thales, Vinten, AgustaWestland, British Telecom, Filtronic, Qioptiq as well as many SMEs.
Case Study Located in Cumbria within the Northwest Region Oxley operates within the defence and security sector as well as other key industry sectors. Oxley was established in 1942 and is world renowned as a pioneer of high quality, robust, innovative lighting solutions for defence, aerospace, rail and industrial applications. The Company has committed forty years knowledge and experience to the development of light emitting products and optoelectronic technologies; resulting in a range of quality products and a level of inhouse skill and expertise that is unrivalled by many within our sector. Oxley products are proven, in-use, with many customers across the globe who are supported via prime locations in the UK, USA, India and Australia and associated distributor networks. Their extensive range of capabilities in design and manufacture includes:
• LED Lighting Discrete, high performance indicators for all types of electronics equipment Robust, high reliability lighting systems for air, land, naval platforms and military shelters • Optical Filters Glass and plastic filters for use in night vision lighting and other optical applications. Dedicated production plant which includes sophisticated thin-film coating, cutting and lamination equipment • Total Systems Entire lighting solutions in visible and night vision modes, specifically engineered for platform upgrades and new build programmes
Oxley Developments Company Ltd Priory Park, Ulverston, Cumbria, UK LA12 9QG t: +44 (0) 1229 483268 e: l.hudson@oxley.co.uk Website www.oxleygroup.com
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• Total Capability Dedicated engineering and production centres In-house electronics, optica modelling, prototype and test facilities. Skilled technical team including designers, project and installation engineers Oxley excel at providing standard and highly customised products and are committed to ongoing research and design, enabling their customers to benefit from the latest technological advancements. Oxley is ISO accredited, holds UK MoD design authority approval as well as AS9100 Rev B and TSCO approvals.
Industrial Photonics Photonics activities within Industrial Photonics • Lasers - Cutting, welding, micromachining, material processing • Sensing - Structural health monitoring - Smart industrial and power utility monitoring - Traffic monitoring • Imaging - Quality control and inspection; automated recognition - Thermal imaging; security certification - Document scanning
Industrial Photonics concerns the use of photonics and optical technology within an industrial context. In the past decade a quantum-leap in efficiency has taken place through the introduction of photonic technologies within production processes. This has enabled the UK industry to differentiate itself from labour-intensive low technology manufacturing processes. It is important to recognise the role photonics has played in this revolution.
UK Industrial Photonics Activity The UK industrial and consumer laser eco-system is well established comprising a vibrant academic community involved with both laser development and material processing. The UK academic community is particularly strong in both micromachining and modern macro-machining areas. Within the UK there is a strong presence of laser equipment manufacturers predominantly within the non-diode and the growing industrial material processing sector. The UK has an excellence in fibre and diode pumped solid-state lasers which offer a tremendous growth opportunity in the near future. The UK industrial manufacturing user base has great growth potential especially towards niche high-value, low-volume components. This trend reflects that seen by general UK manufacturing whereby low-value, high volume manufacturing is sent offshore. Large UK users of lasers specifically diode types exist within the telecommunications sector which supports a fairly robust components supply chain within the UK. Within the non-diode laser components supply chain the majority of components are purchased from outside the UK for principally cost reasons.
High resolution laser micro-machining
Academic laser based research activities have been strongly supported by EPSRC and since 2000 more than £15m of research grants have been provided to develop novel laser systems and more than £300 million to laser-enabled products. The UK can boast that it maintains significant activity in industrial lasers, used for material processing. There are a few well-established international industrial laser companies such as GSI Group, Rofin Sinar UK, Oxford Lasers and also a number of small companies e.g. Elforlight, Litron Lasers, Advanced Optical Technology; Powerlase.
and high modulation lasers will ensure this trend continue well into the foreseeable future. The market for lasers in production and manufacturing has developed from small beginnings 25 years ago to a market worth more than $5 billion in 2005. Diode or semiconductor lasers are becoming increasingly important in industrial applications as the pump source for solid-state lasers such as the Nd:YAG or used directly for low power applications.
The Northwest is home to several leading innovative laser manufacturers including: • Datalase • Lynton Lasers • Laser Quantum
Laser Quantum located in Stockport has developed its business based on the growing importance of diode pumped solid state lasers.
The UK has a strong laser and laser processing industry covering academic research into high speed femtosecond lasers through to laser diode design for optical communication and consumer equipment.
A relatively new type of industrial laser system is the fibre laser which has found a market niche in replacement of Nd:YAG lasers.
New applications using lasers are being identified everyday and current research and development activities in high power, tuneable
Fibre lasers are able to generate highly focussed beams that results in increased resolutions for marking or micromachining.
The North West Laser Engineering Consortium (NWLEC) is investigating the incorporation of fibre lasers within regional laser micro processing applications. This will increase the commercial effectiveness of assisted manufacturing based businesses within the region.
Northwest industrial photonics activity Two exemplar northwest industrial photonics companies visited as part of the study include: • Datalase (Widnes) - World leading laser marking capability for industrial and commercial products • Laser Quantum (Stockport) - World leading capability in diode pumped solid state lasers for a wide range of industrial applications. These regionally based companies operate with strong financial independence and project rapid growth based on leading product and process capabilities. These companies display clear strategic visions for their Northwest activities.
Use of Northwest based GRAND awards to stimulate research and product development within high technology knowledge based business.
Northwest Regional Development Agency (NWDA) | Page 17
Industrial Photonics Industrial Laser Processing The Northwest contains significant activity in laser processing within an industrial context: • Aerospace manufacturing - Cluster organisation: North West Aerospace Alliance (NWAA) • Micro and Nano-laser engineering research and development - Cluster organisation: North West Laser Engineering Consortium (NWLEC) The study identified that the Northwest regional Industrial photonics activity in manufacturing and production can be mapped directly into the important northwest aerospace sector in areas such as laser welding and industrial processing of airframe materials within companies such as RollsRoyce and Middleton Sheet Metals. The Northwest Laser Engineering Consortium is an exciting NWDA funded initiative run jointly by the Universities of Liverpool and Manchester and provides cutting edge research and facilities in advanced laser processing and engineering.
Sensing - Structural health monitoring, smart industrial and power utility monitoring, traffic monitoring… There is widespread usage of optically based sensors within diverse technology solutions. The technology of in-fibre refractive index gratings has provided a near perfect optical fibre component for sensor applications, principally in the guise of a strain-gauge.
The mapping study identified several companies in Cumbria working in the areas of umbilicals and niche undersea photonics applications. In the longer term it is expected that optical fibre sensing will penetrate the commercial aerospace sector via so-called ‘smart skin’ technology wherein optical fibres are used to provide structural information on the health and performance of the aircraft.
Imaging - Quality control and inspection; automated recognition, thermal imaging; security certification, document scanning … Within the UK there are many examples of involvement in imaging systems, in two main categories. This comprises instrumentation based on image processing as well as new microscopies. In both areas there is considerable strength in the research base, and a substantial number of small companies in the field. Image processing extends beyond simple machine vision, digital photogrammetry, and feature recognition to techniques that overlap with full-field optical instrumentation, covering structured-light shape measurement, particle image velocimetry and various forms of interferometry and notably speckle interferometry.
Advanced imaging techniques are applied in very diverse sectors: • • • • • • •
Defence and aerospace Environmental Earth observation Life-sciences Manufacturing Security Scientific research
A particularly exciting area is terahertz technology for medical and security imaging applications where the generation of the THz radiation is dependent on optical techniques.
The study identified that the University of Manchester is undertaking, EPSRC research into Terahertz technology with funding of £6.7 million
Case Study Laser Quantum is active within the industrial photonics industry sector operating within the Northwest Region photonics community.
visible lasers for use in industries as diverse as aerospace, pharmaceutical, biomedicine and research.
Laser Quantum is a global player and a recognised contributor to the photonics industry worldwide.
Laser Quantum is known globally for its strengths in teaming with companies of all sizes for the realisation of complex products and operates in a full ISO9001 environment.
Since its foundation in 1994, Laser Quantum has specialised in continuous-wave diodepumped solid-state lasers for a range of colours across the electromagnetic spectrum. Its products include advanced patented single-frequency and multi-watt
With a wide range of products renowned for their reliability, compactness, rugged design and excellent performance, today these are to be found in military aircraft, DNA sequencers, cell sorters, production lines
Laser Quantum Ltd Emery Court , Vale Road , Stockport, UK SK4 3GL e-mail: Sales@LaserQuantum.com Tel: +44 161 975 5300 Fax: +44 161 975 5309
Page 18 | Northwest Regional Development Agency (NWDA)
and in medical institutes and universities worldwide. Over the last 12 years, the company has grown to a head-count of over 30 people and the growth is set to continue with the commencement of new OEM supply contracts in 2008. As part of this expansion strategy, the company will operate within 10,000 sq ft manufacturing and administration accommodation across a split-site both based in Cheshire in the Northwest Region.
Access To Finance Within The Northwest Region Within the Northwest there are several initiatives established to support the access to finance for technology knowledge based enterprises. A summary listing of the access to finance schemes available include: Capital Investment Grant (Selective Finance for Investment) Contact: Andrew Bridge Tel: 01925 400 100 E-mail: andrew.bridge@nwda.co.uk Web: www.nwda.co.uk/business Grant for Research & Development Contact: Clive Grunsell Tel: 01925 400 100 E-Mail: clive.grunsell@nwda.co.uk Northwest Business Angels Contact: Ruth Hollis or Gary Pennington Tel: 01925 400301/2 E-Mail: angels@nwda.co.uk Web: www.nwbusinessangels.co.uk
NW Business Investment Scheme Contact: Doug Stellman Tel: 0161 832 7603 E-mail: manchester@yfmgroup.co.uk Web: www.nwbis.co.uk Leeds office: 0113 294 5000
Northwest Small Business Loan ÂŁ3k - ÂŁ30k Small Business Loans are managed and distributed by partners across the Northwest: Community Loan Fund for the Northwest Contact: Roy White Tel: 01928 590 472 Email: Roy@Lif.org.uk Web: www.lif.co.uk
NW Seed Fund Contact: Gavin Delaney, Duncan Peyton or Steve Sealey Tel: 0161 828 5221 E-mail: info@nwseedfund.com Web: www.nwseedfund.com
Bolton Business Ventures Contact: Paul Davidson Tel: 01204 391 400 E-Mail: info@bbvonline.net Web: www.bbvonline.net
Rising Stars Growth Fund Contact: Tina Forde or Colin Willis Tel: 01772 270570 / 07970 501896 E-mail: info@enterprise-ventures.co.uk Web: www.enterprise-ventures.co.uk
Cumbria Asset Reinvestment Trust Contact: Grahame Latus Tel: 01768 869514 Web: www.cartteam.plus.com
North West Equity Fund Tel: 01925 759 246 E-mail: mail@nwef.co.uk Web: www. nwef.co.uk Merseyside Special Investment Fund Contact: Tel: 0151 236 4040 Email: info@msif.co.uk Web: www.msif.co.uk
The Enterprise Fund Contact: Roger Seddon Tel: 0161 245 4977 Web: www.enterprisefund.co.uk
Northwest Companies Consulted For Mapping Study The Northwest Development Agency would like to express their gratitude to all of the companies that demonstrated an active involvement during the photonics mapping study consultation process. Special mention should go to the senior management of the 20 plus companies listed who allowed on-site visits and completed detailed consultation questionnaires. Furthermore, over 50 organisations attended a regional workshop covering Solid-State Lighting. Importantly this activity was supported by extensive desk research on 260 companies of which 188 were considered to have a significant photonics presence.
Altimex Aurelialight Bentley Bionow Blackpool Festival of Light CLIK-Daresbury Labs Datalase Dorman Exfo Ltd Forge europa Lairdside Lasers Laser Physics Laser Quantum Leybold Optics Lo-Energi Lighting Lynton Lasers Lythgoes OSP
Davinder Lotay Terry King David Maughan Linda McGee Samara Stott Paul Vernon David Mille Philip Martin Mike Harrop Julie Barton Martin Sharp Peter Bennett Steve Lane David Clegg William Parr Andy Berry Les Lythgoe
Marl Natolamps NJO Leds NWPA NWAA NWLEC NWUA OMIC Opticonsulting Oxley PlusOpto Rutronik Scanlite Siltint Instuments Skylighting Tritec Ventilux
Adrian Rawlinson John Ronfell Mike Rawlinson Allan Boardman David Bailey Ken Watkins Peter Davies Mike Holmes Hugh Barton Tim Bushell Andrew Heaps Chris Turner David Carter Gerry Biggs Izquar Hamid David Myers Neil Whittingham
Essential Photonics Reference Documents Available For Downloads
Northwest Technology Showcase & Detailed Mapping Study
www.nwda.co.uk/photonics
UK Strategy Painting a Bright Future
www.berr.gov.uk/files/file39193.pdf
European Agenda in PhotonicsPhotonics 21
www.photonics21.org/pdf/sra_april.pdf
Northwest Regional Development Agency (NWDA) | Page 19
The Northwest Regional Development Agency PO Box 37, Renaissance House Centre Park, Warrington WA1 1XB Tel: +44 (0)1925 400 100 Fax: +44 (0)1925 400 400 www.nwda.co.uk www.englandsnorthwest.com www.visitenglandsnorthwest.com The Northwest Regional Development Agency's Business Enquiry Team acts as the first point of contact for any questions or enquiries. Phone the team on +44 (0)1925 400 495