Despite the recent market downturn, MEMS technology remains an oasis within the telecommunications industry, according to Cahners In-Stat Group. MEMS will play a key role in providing the advanced components needed to get the most out of telecom carriers' fiber optic cable investments. As a result, sales of MEMS for use in optical networking will rise from $67 million in 2001 to $2.3 billion in 2005.
In fact, venture capitalists are still providing significant levels of equity to MEMS firms, customers continue to be enthusiastic in their evaluations, and more companies are moving toward production ramp-up. MEMS-based variable optical attenuators, tunable filters, and tunable lasers have expanded the market beyond switches, providing additional revenue streams within the telecom sector. Market movement is expected to begin in the fourth quarter of 2001, with increased momentum in early 2002While the primary focus of MEMS components continues to be the backbone and the MAN, companies are now beginning to take a look at the LAN.
- Although the telecom market won't boom like it did for the past several years, smaller segments such as the MAN will experience rapid growth, with MEMS solutions being a significant factor.
- Venture capitalists have provided more money to MEMS companies in the first half of 2001 than they did during all of 2000.
The report, MEMS and Optical Networks: Oasis or Mirage, examines the changes that have occurred over the past year in regard to the use of MEMS in optical networking. It analyzes the current telecom slowdown and its impact on MEMS development, and compares the increasingly diverse array of solutions. It also discusses how and when we can expect this market to really take off. The report includes profiles of key players, and forecasts product unit sales and revenues through 2005
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