Analysts, investors optimistic about MEMS components

July 1, 2004
Despite the number of MEMS manufacturers that have gone dark or significantly shifted their business models, the market for MEMS-based network components is poised for slow, steady growth in the future, contends a new report from In-Stat/MDR (Scottsdale, AZ). Last year ended surprisingly strong for the MEMS market, thanks to increased customer activity, say In-Stat analysts, who remain "cautiously optimistic."

"MEMS is no longer a bad word," notes In-Stat/MDR senior analyst Marlene Bourne. "Companies once avoided use of the term because of concerns about reliability; now they don't because it is seen as a competitive advantage."

Investors appear optimistic too, having funneled $38 million to MEMS suppliers in the first quarter alone. But Bourne points out that a reality check is needed in one particular segment—there are far too many companies pursuing the development of variable optical attenuators (VOAs), making that sector ready for consolidation.

Unit shipments of MEMS-based optical-networking components are forecast to increase at a 15.5% CAGR, with revenues increasing at a 25% CAGR. Shipments of MEMS-based components, other than switches, are forecast to grow at a 14.8% CAGR. Continued growing demand for tunable filters and lasers as well as dynamic components, coupled with decreasing price points, will help drive sales.

For more information on the report, "MEMS and Optical Networks: Cautiously Optimistic," call 480-609-4533 or visit www.instat.com.

Sponsored Recommendations

How AI is driving new thinking in the optical industry

Sept. 30, 2024
Join us for an interactive roundtable webinar highlighting the results of an Endeavor Business Media survey to identify how optical technologies can support AI workflows by balancing...

The AI and ML Opportunity

Sept. 30, 2024
Join our AI and ML Opportunity webinar to explore how cutting-edge network infrastructure and innovative technologies can meet the soaring demands of AI memory and bandwidth, ...

On Topic: Optical Players Race to Stay Pace With the AI Revolution

Sept. 18, 2024
The optical industry is moving fast with new approaches to satisfying the ever-growing demand from hyperscalers, which are balancing growing bandwidth demands with power efficiency...

Advances in Fiber & Cable

Oct. 3, 2024
Attend this robust webinar where advancements in materials for greater durability and scalable solutions for future-proofing networks are discussed.