Infonetics: ROADM WSS component market to see double-digit annual growth

The market for ROADM wavelength-selective switch (WSS) components will rise between 15% and 20% annually through 2015, according to Infonetics Research’s new ROADM Components report.

“Growth in the WSS component market paused during the past 18 months as a result of excessive supply chain inventory and a period of slower ROADM equipment sales. We believe the WSS component market will resume growing this year and maintain annual revenue growth in the range of about 15% to 20% for the next few years, which is the underlying growth rate of the end market of WDM ROADM equipment,” expects Andrew Schmitt, Infonetics Research’s directing analyst for optical.

The growth spur will come after a down year. ROADM WSS component revenue shrank 5% in 2011, after rising 134% in 2010, according to Infonetics’ figures. Part of the reason for the decline last year was supply issues that have now been resolved, Infonetics asserts.

Infonetics expects unit shipments of ROADM WSS components to grow much faster than revenue due to price reductions and a later shift in the mix to smaller 1x4 WSS sizes as ROADMs are deployed further toward the edges of networks

Meanwhile, CoAdna, Finisar, and JDSU dominated the WSS market, according to Infonetics. However, the move to colorless and directionless ROADMs should create an opportunity for smaller suppliers like Oclaro and Nistica, as well as nascent Chinese and Japanese companies with fresh prototypes, Infonetics believes.

On the systems side, revenue for WDM ROADM-based optical equipment (not components) grew 36% in 2011 from 2010. The arrival of coherent optics should boost ROADM network growth as well. Infonetics expects that the market share winners of the transition to 40G/100G coherent network equipment will also command a greater share of the ROADM optical equipment market

Infonetics' biannual ROADM Components report provides market size, vendor market share, forecasts, and in-depth analysis on WSS components (revenue and units), with added historical and current ROADM optical equipment market size and share for a big-picture view of the market. The report provides WSS component pricing trends, supplier size, ASP forecast, deployment models, and market drivers and trends. ROADM WSS components are tracked in four discrete categories:

  • 1x4 or fewer add/drop ports, 100 GHz
  • 1x4 or fewer add/drop ports, 50 GHz
  • 1x5 or more add/drop ports, 100 GHz
  • 1x5 or more add/drop ports, 50 GHz.

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

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