2025 European Deep Tech Report: Photonics

Photonics, the technology of light, underpins daily life from smartphones to the internet and medical instruments to laser technology. It is now playing in an increasingly important role in energy production as well as in food safety and healthcare, leading to several breakthrough applications.

Europe has a significant edge in this field, and we believe photonics-based companies will continue to enable some of the largest breakthrough companies over the next 20 years.

The technical breakthrough that truly enabled ASML ($262B market cap) to become a global leader was EUV Lithography, which involved solving some of the most complex problems in optics, plasma physics and material science. No other company has replicated this at the same scale, giving ASML a near monopoly in this critical part of chip manufacturing.

Europe has long been a centre of optics and physics, from Sir Isaac Newton and Christian Huygens and Augustin-Jean Fresnel to modern pioneers like Dennis Gabor, Alain Aspect and Anne L’Huillier. Eight European scientists have already been awarded the Nobel Prize for their groundbreaking contributions to photonics.

We have world-class universities and institutes such as Institut Optique (Paris), Fresnel Institute (Marseille), Max Planck School of Photonics (Germany-wide), Optoelectronics Research Centre, (Southampton), ICFO – The Institute of Photonic Sciences (Barcelona), Photonic Integration Group (Eindhoven), Chalmers University of Technology – Photonics Laboratory (Gothenburg). There is significant pan-European research co-ordination via Horizon Europe and Photonics21.

We’re excited about the transformative potential of biophotonics and machine learning in enhancing food safety. The ability to shine light on food samples and analyse the interaction between microorganisms and light represents a significant innovation in pathogen detection, especially when coupled with Machine Learning models trained to identify specific spectral signatures of harmful bacteria. > Spore*

The advancements in optical neuromonitoring technologies are also a game-changer in the medical device landscape. Cutting-edge optical devices are now capable of delivering non-invasive measurements of critical physiological parameters. These innovations not only reduce the risks associated with invasive procedures but also enhance the quality of patient monitoring and improve outcomes. > Comind*

We’ve also seen advancements in optogenetics, an innovative technique that uses engineered light-sensitive proteins (opsins) to precisely control neural circuits, providing novel treatment strategies for brain and nervous system disorders which can lead to radically improved therapeutic capabilities in neurology. >Modulight*

We also see huge promise in precision of laser technology that allows for minimally invasive surgeries, as well as innovations in wearable technology, like optical sensors incorporated into smartwatches or health monitors, enabling continuous monitoring of vital signs, oxygen levels, and other health metrics in real-time.

We’re excited about deep tech companies, which are enabled by scientific or engineering breakthroughs, including in photonics, that solve real-world problems, including in health and life sciences — and we believe these technologies will drive the next wave of economic growth.

(*) LG portfolio company.

Full 2025 European Deep Tech Report is here.