Post by Roland Berger

📈 End market mix is one of the most consequential decisions a photonics company makes. Our analysis of EBIT margins across six customer segments shows how wide the spread actually is: 🔹 Automotive (8 to 15%): Structural cost reduction pressure and a high qualification burden 🔹 General industrial (10 to 20%): Cyclical pricing and fragmented demand with limited switching costs 🔹 AI and datacenter (15 to 25%): Strong margin potential, offset by short cycle volatility from hyperscaler investment waves 🔹 Semiconductors (20 to 30%): Structurally higher margins from precision requirements and qualification lock-in 🔹 Aerospace and defense (25 to 35%): Premium margins backed by long programs, regulation and strict supply chain requirements 🔹 Life sciences (20 to 35%): Premium margins driven by high performance value and regulatory constraints Deliberate end market positioning is a margin strategy in itself. 👉 Read our full study: https://lnkd.in/di3aywtx #RolandBerger #Photonics #Semiconductors #Defence