To explain this technology, we can compare the fiber cable to a road and the signals transmitted through it to cars.
A regular fiber cable has the capacity for one car.
By implementing a WDM solution, the road's capacity is increased to a two-lane road.
With a CWDM solution, you get an 18-lane highway. You can choose to utilize some of the capacity, such as 4 or 8 lanes, and have the option to expand further as the need arises. The cars/signals can also be transmitted in both directions.
If additional capacity is required, a DWDM solution can be implemented, adding an on-ramp in one of the lanes, which can accommodate 8 or 16 cars.