Communications and Technology Industry Research

The overall market for optical network hardware is going through tough times, but the WDM ROADM (News - Alert) optical segment is an exception, according to new research from market research firm Infonetics Research.

 

Infonetics predicts WDM ROADM optical equipment market will remain the fastest-growing segment of the optical equipment business, with worldwide revenue increasing at a projected compound annual growth rate (CAGR) of 13 percent from 2008 to 2013.

 

And the wavelength selective switch (WSS) component revenue will grow at an even faster CAGR, according to the analyst firm.

 

The WSS component market is seeing high growth is because carriers are aggressively deploying ROADMs, according to Infonetics. Researchers also attribute the high growth in the WSS optical components market to an increasing demand for devices with a larger degree count (1x5 ports or more), which provide service providers greater flexibility as they design their networks.

 

Among the manufacturers, JDS Uniphase Corporation (JDSU (News - Alert)) was found to have gained larger share in the worldwide ROADM WSS component market in the first half of 2009.

 

Retaining market share would be difficult for every manufacturer as the demand for both very small and very large components is likely to increase in the days ahead, the report adds.

 

What is driving growth is the move toward tighter channel spacing, from 100GHz to 50GHz, which doubles fiber capacity and ensures compatibility with cutting-edge WDM solutions.

 

“In a tough year for the overall optical network hardware market, the WDM ROADM optical segment has been the bright light in a dim room, and WSS are the key component used by this equipment,” said Andrew Schmitt, directing analyst of optical markets for Infonetics Research (News - Alert). “WSS consumption has exploded due to aggressive ROADM deployment by carriers such as Verizon, and we see no end to this trend.”

Infonetics said that its “ROADM Components Market Outlook” report is the industry’s first attempt to track WSS component vendors’ market share. The report provides WSS component pricing trends, supplier size, ASP forecast, deployment models and market drivers and trends.