Infonetics: Modest growth ahead for WSS component market

Market research firm Infonetics Research says that 100G coherent optical transmission systems and colorless, directionless, and contentionless (CDC) ROADMs offer hope in an otherwise stagnant wavelength-selective switch (WSS) components market.

Jun 19th, 2013

Market research firm Infonetics Research says that 100G coherent optical transmission systems and colorless, directionless, and contentionless (CDC) ROADMs offer hope in an otherwise stagnant wavelength-selective switch (WSS) components market.

"It's been a tough road for WSS components these past couple of years, with quarterly revenue down nearly 50% from the highs two years ago," notes Andrew Schmitt, principal analyst for optical at Infonetics Research. "But we believe there's some modest growth ahead tied to the deployment of new 100G coherent systems and the rollout of colorless, directionless, and contentionless ROADMs."

Schmitt adds, "While the level of interest in CDC ROADMs is very high from vendors, the current pricing premium given to this architecture by equipment vendors will slow adoption."

The global market for WDM ROADM equipment (not components) reached $4 billion in 2012, up 10% year-over-year. However, ROADM WSS component revenue declined more than a quarter in 2012 before stabilizing in the second half of 2012, while recording healthy unit growth.

The leading vendors in the WDM ROADM optical hardware market in 2012 were Alcatel-Lucent, Huawei, Ciena, and Fujitsu.

Infonetics' biannual ROADM components report tracks the reconfigurable optical add/drop multiplexer (ROADM) optical network equipment market and the WSS components within it, measured by spacing technology and degree count. The report provides market size, ROADM vendor market share, forecasts through 2017, analysis and trends for ROADM optical network hardware and ROADM WSS components, including 1x4 or less 50 GHz/100 GHz and 1x5 or larger 50 GHz/100 GHz devices.

For more information on WSS modules and suppliers, visit the Lightwave Buyers Guide.


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