Photonics will skyrocket space industry in 2025

Officials believe it is a critical step in Europe’s ambitions to create a resilient and secure communication network, resembling growing competitiveness in the field. While space industry growth will also be driven by fields such as materials science, propulsion systems, AI, and international cooperation, industry experts emphasise that it is just the beginning.

They predict that in 2025, the photonics industry will become one of the key factors determining who will lead the “’new Space age’, largely driven by laser communication technologies.

“Photonics will be at the centre of the space industry’s next growth phase,” said Antanas Laurutis, CEO of Altechna, a global photonics manufacturing company. “Security, safety, and scalability of photonics technology make it indispensable for the challenges of tomorrow, especially in enabling laser communication networks. Only the players implementing this technology will take the lead in the space industry.”

Earlier this year, laser communication was named one of TIME’s Best Inventions of 2024. It was praised for its ability to transfer vast amounts of data in a faster and more secure manner when compared to traditional radio frequencies (RFs). Additionally, the satellite laser communication market size was estimated to grow at a CAGR of 40% until 2032.

However, the European space sector, despite recent initiatives like IRIS², still faces structural challenges. Unlike the United States, where collaboration between NASA, the Space Development Agency, and private companies like SpaceX has driven exponential growth, Europe’s space efforts remain fragmented.

Laurynas Mačiulis, CEO of Astrolight, a space tech company specialising in dual-use laser communication systems, also believes that photonics will “skyrocket the space industry” next year. However, he raised concerns about whether Europe will play a pivotal part in adopting practical laser communication links faster than other space-faring nations.

“Europe has the technology and talent, but we’re still lacking the political cohesion, speed, and private investments needed to fully realise the potential of projects like IRIS²,” said Mačiulis. “USA and China are already moving ahead with major satellite constellation projects and performing inter-satellite laser communication link tests in orbit. Interestingly, European companies are taking the lead in the supply of laser communication systems in the US, but struggle to find a market in Europe. This means that if we want to leverage the strength of our R&D and know-how, Europe should not close off from the US but keep working together.”

Astrolight, recently selected for Phase 2 of NATO DIANA, an accelerator program for the latest defence innovations, has been advancing laser communication technologies not only in defence but also in commercial applications.

Laurutis pointed out that technologically, laser communication has reached a point where it can be utilised on large-scale space applications due to the market’s readiness.

“Photonics is no longer a niche in the space sector; it’s becoming mainstream, and the ones missing on it should be ready to make mistakes. However, to truly succeed, Europe must also address the gaps in collaboration and funding. The space sector needs strong public-private partnerships to ensure that advancements don’t remain siloed in research labs.”

Both Laurutis and Mačiulis agree that the upcoming year could redefine how Europe positions itself in the global space race.

“The ones who will integrate high throughput and secure laser communication technologies on a large scale will probably win. However, the future of space isn’t just about technology – it’s also about alignment,” Mačiulis concluded. “With better coordination and investment, Europe has the chance to go hand in hand with the US as leading space powers. The IRIS² project is a step for the European space sector’s growth, but it’s the commercialisation of such technologies and international collaboration that will truly propel the space sector forward. This is going to be a great space race to watch next year.”