Study tracks OADM and component market value climb

March 22, 2007
MARCH 22, 2007 -- The global consumption value of optical add/drop multiplexers (OADMs) will accelerate from $371 million in 2005 and $483 million in 2006 to $2.38 billion in 2015, according to a new study from ElectroniCast Consultants.

MARCH 22, 2007 -- The global consumption value of optical add/drop multiplexers (OADMs) will accelerate from $371 million in 2005 and $483 million in 2006 to $2.38 billion in 2015, according to a new study from ElectroniCast Consultants (search for Electronicast). The market forecast study examines the global consumption of fixed, semi-reconfigurable and fully reconfigurable optical add/drop multiplexers and supporting fiber-optic components.

Fixed configuration OADMs will maintain the consumption value lead with an 82 percent value share in 2005 evolving to a 53 percent share, $1.35 billion, in 2015. This is the forecasted value of the assembled "hardware" modules and systems, including the value of operating software and electronics but excluding remote control and instrumentation subsystems and other system-level costs.

"OADMs, as defined for this study, incorporate a wide variety of optoelectronic and passive optical components. As the capacity and complexity of OADMs expand greatly over the next decade, and as the deployment quantity rises, the related component value correspondingly will climb," states Jeff D. Montgomery, president of ElectroniCast Consultants and director of the study.

Components constituted about 20% of OADM value in 2005. The balance is electronics, software, assembly/test labor, related sales/administrative/overhead costs, and profit. The global consumption of OADM components in 2005 is estimated at $69.2 million, and $102 million in 2006. This will rise rapidly, to $831 million in 2015. Components, in this report, are priced at estimated/forecasted market prices, whether purchased or produced internally. Optoelectronics (transmitters, receivers, optical amplifiers) will lead component value.

This 10-year forecast is available immediately from ElectroniCast Consultants.

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