Report finds optical networking market batters MEMS suppliers
May 4, 2005 Ann Arbor, MI -- Revenues for microelectromechanical systems (MEMS) devices sold into the optical networking market declined by 27.2% from 2003 to 2004, although the level of unit shipments remained essentially flat, according to a report by EmTech Research. Once considered the "golden child" of telecom, the report says that suppliers developing MEMS-based components for optical networking applications continue to be battered by poor market conditions.
"Even a new strategy, in which many MEMS suppliers are now offering intelligent modules such as wavelength selective switches (WSS), rather than just components, may not be enough," contends Marlene Bourne, vice president of research and principal analyst with EmTech. "2005 will be a pivotal year where survival will be the main business focus."
According to the report:
* Despite current market conditions, MEMS suppliers pursuing the optical segment received $63.5 million in funding over the past twelve months.
* At a little more than $150 million in 2009, this year's forecast is just a tenth of the forecast in what the report calls "the heyday of late 2000," and half of what was forecasted last year.
* Over the next five years, unit shipments are projected to increase at a compound annual growth rate of 9.4%.
The report, "MEMS Market Brief: Last Call for Optical Networking?" examines the companies offering MEMS-based products for the optical networking market. Forecasts of unit shipments and revenues are provided through 2009.
The 9-page report is priced at $1295.
EmTech Research is a division of Small Times Media, a source of business information and analysis regarding micro- and nanotechnology.