CDC ROADM rollouts boost WSS market says Infonetics

Market research firm Infonetics Research says that wavelength-selective switch (WSS) shipments and revenues are expected to increase in 2014, improving on the lackluster performance in 2013, according to figures from its latest ROADM components report.

Market research firm Infonetics Research says that wavelength-selective switch (WSS) shipments and revenues are expected to increase in 2014, improving on the lackluster performance in 2013, according to figures from its latest ROADM components report.

The report tracks the reconfigurable optical add/drop multiplexer (ROADM) optical network equipment market and the WSS components within it.

"The rollout of colorless, directionless, and contentionless (CDC) ROADMs is starting this year with major suppliers such as Ciena moving to production and carriers including Verizon proceeding with deployments. This should provide a much-needed tailwind to the WSS component sector," said Andrew Schmitt, principal analyst for optical at Infonetics Research.

Globally, ROADM WSS component revenue totaled $111 million in the second half of 2013, up 4% from the first half of 2013, but down 7% from the same period a year ago.

For the full year 2013, worldwide revenue for ROADM WSS components declined 8% from 2012. Mild increases in volume were not sufficient to offset the continued price declines, Schmitt says.

However, global revenue for WDM ROADM-based optical equipment (excluding components) increased 11% in 2013 from 2012, to reach $4.5 billion.

Infonetics expects WDM ROADM-based optical equipment to remain the fastest-growing segment of the optical transport business, with a projected compound annual growth rate (CAGR) from 2013 to 2018 of 13%.

No single vendor controls the market for WDM ROADM equipment – they are tightly bunched, the market research firm says.

Infonetics says that its biannual ROADM components report provides market size, ROADM vendor market share, forecasts through 2018, and analysis of the ROADM optical network hardware and ROADM WSS components markets. The market for WSS components is segmented into port size (1x4 or less and 1x5 or larger) and grid spacing (50 GHz/100 GHz/gridless).

For more information on wavelength selective switches and suppliers, visit the Lightwave Buyers Guide.

Want to learn more about ROADM innovation? Attend the Lightwave Optical Innovation Summit
The Lightwave Optical Innovation Summit will feature panels and presentations that will illuminate where optical innovation is required in carrier and enterprise/data center networks, what it should look like, and when it might appear. A wide range of experts from the user, technology development, academic, and analyst communities will offer their views on innovation in a variety of areas, including ROADMs. Find out more about the Summit, which will be held in Austin, TX, July 14-16, at the Lightwave Optical Innovation Summit website.

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