SOURCE: Infonetics Research

Infonetics Research

May 11, 2011 16:41 ET

Infonetics Research: ROADM WSS component market on pace for 20% annual growth through 2015

BOSTON, MA--(Marketwire - May 11, 2011) - Market research firm Infonetics Research today released excerpts from its ROADM Components report, which tracks the Reconfigurable Optical Add/Drop Multiplexer optical network equipment market and the wavelength selective switch (WSS) components within it, measured by spacing technology and degree-count.

ANALYST NOTE
"Sales of WSS components used for ROADM optical network hardware and ROADM subsystems more than doubled in 2010 over 2009, and we forecast continued strong revenue growth through at least 2015, with the market growing at a 20% CAGR. WSS unit growth will actually outstrip revenue growth due to price reductions and an eventual shift to smaller degree counts as ROADMs are deployed further toward the edges of networks. Carriers large and small continue to embrace ROADMs as a way to lower lifetime capex," explains Andrew Schmitt, Infonetics Research's directing analyst for optical.

ROADM WSS COMPONENT MARKET HIGHLIGHTS

  • The WDM ROADM optical equipment market is the fastest growing segment of the optical transport equipment business, outstripping the growth of the overall WDM optical market and taking share from the declining SONET/SDH market
  • Within the WDM ROADM space, the key component is the WSS, which allows wavelength route provisioning to become dynamic and protection switching to take place at the optical layer rather than the electrical layer
  • In 2010, WSS component revenue as a share of overall WDM ROADM equipment revenue grew to 13% from 7% in 2009 and is expected to climb to 15% by 2015
  • The huge increase in ROADM WSS sales in 2010 was due to a massive shift towards higher degree counts, as well as unit volume growth that outstripped the growth of the end equipment market
  • With demand outstripping supply, the average selling price of WSS components actually increased in 2010
  • Finisar and JDSU are neck-and-neck in the ROADM WSS component revenue market share race, with Finisar edging past JDSU for the first time in 2010

REPORT SYNOPSIS
Infonetics' biannual ROADM Components report provides market size, 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 4 discrete categories: 1) 1x4 or fewer add/drop ports, 100GHz; 2) 1x4 or fewer add/drop ports, 50GHz; 3) 1x5 or more add/drop ports, 100GHz; and 4) 1x5 or more add/drop ports, 50GHz.

WSS component manufacturers tracked: Capella, CoAdna, Finisar, JDSU, Neophotonics, Nistica, Oclaro/Xtellus, and others. ROADM optical equipment market share is included for ADVA, Alcatel-Lucent, Ciena (Nortel), Cisco, ECI, Ericsson, Fujitsu, Huawei, Infinera, NEC, Nokia Siemens, Tellabs, Transmode, and others.

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Infonetics Research is an international market research and consulting firm serving the communications industry since 1990. A leader in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete more effectively.

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