Week in research: Optical market sees big gains; Netherlands telecommunications on track

Optical on the upswing: The fastest growing segment of the optical transport market is WDM ROADM (Reconfigurable Optical Add/Drop Multiplexer) equipment, according to Infonetics Research. "Sales of WSS (wavelength selective switch) 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," says Andrew Schmitt, Infonetics Research's directing analyst for optical. News release

Infonetics ROADM

In related research the optical transceiver market hit $1.2 billion in 2010 and is forecast to reach $2.8 billion by 2015. "For dominant vendors with good cost controls and broad product lines, the 10G transceiver market is a good place to be, a sharp contrast to the reality of the previous 10 years. Unfortunately for some component suppliers, Network Equipment Manufacturers (NEMs) are supplying an increasing share of 40G and 100G long reach ports, leaving optical module manufacturers to fight for a diminishing share of this accelerating market. There will be minimal market for many suppliers of 40/100G transponders, until the NEMs decide to outsource supply, most likely not until 2013 or later," says Schmitt. News release

Netherlands shores up legacy losses: The fixed line telecommunications market in the Netherlands stayed just on the growth side during the four-year period 2005-2009, with a CAGR (compound annual growth rate) of 0.7 percent. In 2009, revenues reached $9.47 billion, Research and Markets reports in its latest Telecommunications Industry Guide for the area. Telecommunications services saw a CAGR of 3.7 percent for the same period and 2009 revenues of $20.4 billion, while the communications equipment market saw a CAGR of 4 percent from 2005-2009 and 2009 revenues of $338.3 million. News release

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