"Osram is well positioned for future technologies and trends, both strategically and financially," said Olaf Berlien, osram's chief executive, at osram's optronic semiconductor market and technology day in Munich on Tuesday.
"We are becoming a leading photonics champion" and "our optoelectronic semiconductor division is becoming a technology pillar of our strategic development."
Osram has been driving the fast-growing high-tech market.
In addition to intelligent lighting technologies, future development will focus on market areas such as visualization, sensing and processing, in which the biological effects of light on humans and plants will become the main focus.
Osram is pushing its portfolio in this direction, boosting its image as a high-tech supplier.
Currently, LED products already account for about 70 percent of the combined sales.
On this basis osram hopes to develop into a photonics champion.
The product portfolio of osram's optoelectronic semiconductor business enables innovative applications in areas such as autonomous driving, gardening and building control.
In the medium and long term, these future sectors offer tremendous growth opportunities throughout the industry cycle.
Currently, growth in the sector is temporarily lower than in previous years due to currency fluctuations and uncertainty in the auto industry.
From 2020, osram expects revenue growth at fixed currency levels of about 10 per cent, with adjusted EBITDA margins of between 23 per cent and 29 per cent.
Olaf Berlien, osram's chief executive, said: "our outlook is still positive in the long run.
While we expect some slowdown in the near term due to market impact, there will be limited visibility in the short term.
For fiscal 2018/19, planned revenue growth is expected to be between 5 percent and 10 percent, with adjusted EBITDA margins between 22 percent and 26 percent.
New photonics solutions can boost growth, such as non-glare pixel high lights with higher resolution, and energy-saving LED horticulture lights that enable plants to be grown indoors and improve yields and vegetable quality.
Technology drivers include further miniaturization of leds and innovative 3D sensor solutions such as facial recognition in smartphones.