Infonetics: 1H11 ROADM WSS sales shrinkage not long term

For the first time in recent memory, sales of wavelength-selective switch (WSS) components decreased over the first half of 2011, according to a new report from market research firm Infonetics Research. However, the analyst who penned the report remains bullish on the technology’s overall prospects.

For the first time in recent memory, sales of wavelength-selective switch (WSS) components decreased over the first half of 2011, according to a new report from market research firm Infonetics Research. However, the analyst who penned the report remains bullish on the technology’s overall prospects.

According to Infonetics’ most recent ROADM Components report, the WSS component space saw 123% year-on-year revenue growth in 2010 and a 39% spike in the second half of 2010 compared to the first half. However, the ROADM WSS component market contracted by about 8% in the first half of 2011, the report states.

Nevertheless, the space improved by double digits in the first six months of 2011 over its levels during the similar period in 2010. Moreover, Infonetics Research forecasts the ROADM WSS component market to grow to $710 million worldwide by 2015. Unit shipments of ROADM WSS components are expected to grow at a 26% compound annual growth rate (CAGR) over that time. Revenue growth isn’t expected to keep pace with unit growth, however. Price reductions and a later shift in the mix to smaller 1x4 WSS sizes as ROADMs are deployed further toward the edges of networks will dampen revenue growth.

"In a classic end to a period of component capacity constraints, the ROADM WSS market experienced a short-term shock in the form of a pull-back in the first half of 2011. This anomaly aside, the global WSS component market is poised for strong, sustained growth on an annual basis based on rapid adoption of ROADM-based WDM networking by service providers," expects Andrew Schmitt, Infonetics Research's directing analyst for optical.

This year’s market contraction hit Finisar particularly hard, Infonetics says. While the company was neck-and-neck with JDSU last year, Finisar has now fallen into a clear second place position.

Infonetics' biannual ROADM Components report provides market size, vendor market share, forecasts, and analysis of WSS components (revenue and units), with added historical and current ROADM optical equipment market size and share.

For more information on optical subsystems and suppliers, visit the Lightwave Buyers Guide.

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