Ovum: Optical component segment revenue rose 35% in 2010

Optical components saw its strongest growth in ten years, rising 35 percent with $5.6 billion in revenues in 2010, according to a new Ovum report.

Although the OC market led the telecom market recovery in 2010, Ovum thinks the market won't grow as briskly in 2011.

Daryl Inniss, Ovum analyst and author of the report, said that the "35 percent year-on-year growth experienced by the OC market in 2010 was the highest since the telecom bubble years, when the market more than doubled in one year," but was quick to add that "we do not believe the market is experiencing another bubble."

What drove the majority of the OC growth in 2010 were the ROADMs and filter segment, which grew 46 percent during the year, compared to 2009 and posted annual revenues of $0.9 billion. Led by JDSU, which increased its revenues 75 percent over 2009, the ROADM and filter segment saw $260 million in revenues, up 10 percent sequentially.

Since ROADMs are the engine of all of the 10, 40 and 100 Gbps transport networks being deployed by large service providers like AT&T (NYSE: T), Internet2, Verizon (NYSE: VZ) and the soon-to-be-merged CenturyLink (NYSE: CTL)/Qwest (NYSE: Q), Ovum believes that the ROADM segment will continue to see ongoing growth.

For more:
- see the release

Related articles:
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Competition eats into Tellabs Q4 earnings
Ciena's Nortel MEN purchase drives up Q4 revenue
Alcatel-Lucent recovery continues with rise in Q4 revenue and a solid outlook

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