NEW YORK, USA: The wavelength-division multiplexing, reconfigurable optical add-drop multiplexer (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. Wavelength selective switch (WSS) component revenue will grow at an even faster CAGR.

This is according to market research firm Infonetics Research, who released the industry's first report tracking WSS component market share.

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JDS Uniphase Corporation (JDSU), a company that manufactures and designs products for fiber optic communication and test equipment, leads in worldwide ROADM WSS component market share in the first half of 2009. Market share shifts are expected as the market transitions to 50GHz channel spacing and demand for both very small and very large components increases, the report adds..

Andrew Schmitt, directing analyst, optical, Infonetics Research, said: "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. WSS consumption has exploded due to aggressive ROADM deployment by carriers such as Verizon, and we see no end to this trend."

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Two of the key trends driving strong growth in the WSS optical component market:

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

Increasing demand for devices with a larger degree count (1x5 ports or more), which provide service providers greater flexibility as they design their networks.

The report, ROADM Components Market Outlook, is also the first to analyze the WSS component market by discrete category, measuring by spacing technology and degree-count, including WSS components with 100GHz and 50GHz channel spacing and 4 or fewer (1x4) and 5 or more (1x5) add/drop ports.