The Global Market for ROADM WSS Component is Projected to Surpass US$674.4 Million by 2020

Rising Demand for Network Expansion, Capacities & Automation Drives the ROADM WSS Component Market, According to a New Report by Global Industry Analysts, Inc.

GIA announces the release of a comprehensive global report on ROADM WSS Component. The global market for ROADM WSS Component is projected to surpass US$674.4 million by 2020 driven by the rapidly growing volume of data traffic, launch of new data centric services and the ensuing need for scaling up transmission speeds and upgrading networks.

The need to expand network capacity is prompted by the growing demand for higher transmission speeds, against a backdrop of growing data, voice and video traffic. Growing use of smartphones and wireless communication devices coupled with bandwidth intensive use of enterprise apps among business users are contributing towards the need for increased transmission speeds. Increased adoption of cloud computing services, virtualization technologies, and the need for low latency access to crucial business data are additionally driving demand for high bandwidth capacity. Rise in machine to machine connections especially in the industrial sector, and the evolving concept of “Internet of Things” are driving data traffic volumes, placing further pressure on service providers to expand network capacities. Widespread use of mobile Internet for a range of activities such as multimedia downloads, online gaming, accessing cloud-based consumer services and video services, also entails the need for improving transmission speeds, and expanding network capacities.

ROADM is an optical add/drop multiplexer used in WDM optical networks, which allows the flexibility of adding more wavelengths (WL) or changing direction of WL. The WSS (wavelength selective switch) is the active component performing the switching of WL direction and monitoring of WLs. The growing demand for network expansion therefore offers opportunities for optical communication components including ROADM WSS. ROADM components have shown the required caliber of managing fast growing and highly unpredictable optical traffic. WSS-based ROADMs are regarded a crucial element of modern optical networks, owing to their network scalability which enables superior network agility and automation. These components have registered wider adoption among small as well as large-sized service providers seeking to reduce network capital expenditures. The need for upgrading to 3.5G and 4G networks is likely to benefit demand for ROADM WSS components, a key enabler of advanced network transmission.

Adoption of ROADMs has witnessed a rise, though their growth is currently inhibited by the high initial costs incurred. However, despite a higher capital cost, ROADM has the potential to lower operating costs, and total cost of ownership, over the long-term period. Rapid proliferation of IP video-capable devices and IPv6-ready mobile devices is expected to drive significant growth in the market, owing to the pressure to adopt advanced network transmission technologies. Market growth is also slated to rise in parallel to technology advancements in ROADM.

As stated by the new market research report on ROADM WSS Component, the United States represents the largest market worldwide, supported by the need for advanced network technologies such as WSS-based ROADMs. Future growth is expected to be the strongest in emerging markets of Asia-Pacific, Latin America and the Middle East, due to ongoing developments in the telecommunications industry. Asia-Pacific ranks as the fastest growing market with a projected CAGR of 17.6% over the analysis period. A significant proportion of demand in Asia is expected from China, where demand for WSS components is supported by the continuous increase in Internet traffic.

Major players in the market include Capella Photonics, CoAdna Photonics Inc., Finisar Corporation, Fujitsu Limited, HUBER+SUHNER Cube Optics AG, JDS Uniphase Corp., MRV Communications Inc., and Nistica, among others.

The research report titled "ROADM WSS Component: A Global Strategic Business Report" announced by Global Industry Analysts, Inc., provides a comprehensive review of trends, issues, strategic industry activities, and profiles of major companies worldwide. The report provides market estimates and projections in US$ (Value) and Units (Volume) for geographic markets such as the US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain and Rest of Europe), Asia-Pacific (China and Rest of Asia-Pacific), Latin America, and Rest of World. Further classification of the global ROADM WSS Component market is presented in value and volume terms for 100GHz (1x4 or less, and 1x5 or more) and 50GHz (1x4 or less, and 1x5 or more) channel modules.