ROADM and WSS components to resume growth in 2012
ROADM and Wavelength Selective Switch (WSS) component suppliers, according to Infonetics' latest ROADM Components report, will start to see revenues begin to grow this year.
Following a 124 percent revenue surge in 2010, global ROADM WSS component revenue contracted by about 5 percent in 2011 due to supply issues.
With those issues resolved,Andrew Schmitt, directing analyst for optical markets at Infonetics, expects the market segment "will resume growing this year and maintain annual revenue growth in the range of about 15% to 20% for the next few years."
Despite the slowdown in component sales, WDM ROADM-based optical equipment grew 36 percent over 2010, surpassing WSS module sales. However, unit shipments of ROADM WSS components are forecast to grow faster than revenue due various issues including price reductions and a migration to smaller 1x4 WSS sizes as service providers deploy ROADMs on the edges of their respective networks.
While the WSS market has been dominated by three key vendors--CoAdna, Finisar, and JDSU--the emergence of colorless and directionless ROADMs could spell new opportunities for Oclaro--which just agreed to merge with Opnext (Nasdaq: OPXT)--and Nistica.
In addition, the emergence of coherent optics as offered by all of the major equipment suppliers, many of which are winning deals to help service providers transition to 40G/100G-based networks "will also command a greater share of the ROADM optical equipment market."
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