ROADM WSS mkt to grow 15-20 pc in 2012-15

BOSTON, USA: After spiking +124 per cent in 2010, global ROADM wavelength selective switch (WSS) component revenue contracted by about five per cent in 2011, finds market research firm Infonetics Research.

In its ROADM Components report, the research firm also finds that revenue for WDM ROADM-based optical equipment (not components) grew 36 per cent in 2011 from the previous year, outpacing shipments of WSS modules by a wide margin. The supply issues that led to the 2011 market contraction have been resolved.

"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 per cent to 20 per cent for the next few years, which is the underlying growth rate of the end market of WDM ROADM equipment," expects Andrew Schmitt, directing analyst, optical, Infonetics Research.

Unit shipments of ROADM WSS components are expected 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.

The WSS market continues to be controlled by three vendors: CoAdna, Finisar, and JDSU though the advent of colorless and directionless ROADMs creates an opportunity for smaller suppliers like Oclaro and Nistica, as well as nascent Chinese and Japanese companies with fresh prototypes, adds the report.

The advent of coherent optics creates a new growth vector for ROADM networks; 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.