Mux/demux components market to decline 22%

Sept. 1, 2001

The worldwide market for DWDM multiplexer/demultiplexer components in telecommunications applications is forecast to decline 22% in 2001, according to a new report by market researcher Strategies Unlimited (Mountain View, CA). The decline is attributed to a reduction in new orders for DWDM equipment, excess component inventory, and falling prices.

The market for 2000 was estimated at more than $960 million worldwide. The report, entitled "DWDM Mux-Demux Components and Modules: AWG, Thin Film, FBG, and Diffraction Gratings-2001-2005," analyzes the market for narrowband mux/demux devices for different applications and device types.

Mux/demux devices enable DWDM systems by combining (multiplexing) and separating (demultiplexing) the different wavelength channels at the terminals. The components require high-precision manufacturing techniques to route the channels with a minimum of loss and interference with other signals.

The rapid expansion of mux/demux sales in 2000 led to many new suppliers in 2001. There are now over 70 suppliers offering products into this part of the telecommunications component market. Most of these suppliers are not shipping products, and few are likely to survive through next year, says the report. JDS Uniphase stands out as the market leader, with 66% market share overall as well as a strong position in every product category.

North America currently leads the world in both supply and consumption of mux/demux products for telecom applications, with more than 84% of the revenues going to North American manufacturers.

The report categorizes mux/demux technical approaches and reviews the suppliers, provides market share estimates for major products, and forecasts the market by product type for the next five years. The report also reviews the demand for key constituent materials that go into fiber gratings, thin-film filters, and arrayed waveguide gratings for mux/demux products.

For more information, call Strategies Unlimited at 650-941-3438 or visit the company's Website at

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