Co-packaged Optics Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Co-Packaged Optics Market Report is Segmented by Data Rates (Less Than 1. 6 T, 1. 6 T, 3. 2 T, and 6. 4 T) and Geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

Co-packaged Optics Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Co-packaged Optics Market Size

Co-packaged Optics Market Summary
Study Period 2019 - 2030
Market Size (2025) USD 103.28 Million
Market Size (2030) USD 711.82 Million
CAGR (2025 - 2030) 47.12 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Low

Major Players

Co-packaged Optics Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Co-packaged Optics Market Analysis

The Co-packaged Optics Market size is estimated at USD 103.28 million in 2025, and is expected to reach USD 711.82 million by 2030, at a CAGR of 47.12% during the forecast period (2025-2030).

  • The co-packaged optics (CPO) market is growing rapidly due to the accelerating demand for high-speed data transmission and the exponential growth of data centers and cloud services. Co-packaged optics integrate optical and electronic components into a single package, reducing the distance that electrical signals need to travel and minimizing latency and power consumption. This addresses the bandwidth limitations of traditional copper interconnects and meets the growing requirements of next-generation data center architectures.
  • Moreover, the ongoing shift toward 400 G, 800 G, and beyond in data center networking is a key factor propelling the co-packaged optics market. These higher-speed standards require innovations that CPOs can deliver, such as improved signal integrity and energy efficiency. Data centers require faster, more efficient data processing and transmission capabilities, and CPO technology can support the scaling needs of these data centers.
  • The co-packaged optics market is benefiting from collaborations between industry leaders in photonics and semiconductor manufacturing. Companies such as Intel, Cisco, and Broadcom are investing heavily in CPO research and development. These collaborations are essential for advancing the technology, reducing costs, and ensuring interoperability across different platforms.
  • The adoption of co-packaged optics is supported by the development of industry standards and regulatory frameworks that ensure the compatibility and reliability of these solutions. Standards associations, including the Institute of Electrical and Electronics Engineers (IEEE) and the Optical Internetworking Forum (OIF), are working to establish guidelines that facilitate the broader deployment of CPO technology.

Co-packaged Optics Industry Overview

The global co-packaged optics market is highly fragmented due to several significant players. In terms of market share, the major players currently dominate the market. These major players with prominent shares in the market are focusing on expanding their customer base worldwide. These companies leverage strategic collaborative initiatives to increase their market shares and profitability.

  • March 2024: At the 2024 Optical Fiber Communication Conference (OFC), Ranovus, a leading developer of advanced photonics interconnect solutions for AI/ML infrastructure, announced its collaboration with MediaTek to deliver a 6.4 Tbps co-packaged optics solution for MediaTek’s next-generation ASIC design platform. This solution is designed to support a 6.4 Tbps high-radix optical interconnect for AI/ML SoC and ethernet applications.
  • March 2023: Cisco presented its vision for co-packaged optics, demonstrating not only their feasibility but also the necessity for them and the strategies to overcome deployment challenges.

Co-packaged Optics Market Leaders

  1. Ayar Labs, Inc.

  2. Broadcom Inc.

  3. Cisco Systems, Inc.

  4. IBM Corporation

  5. Intel Corporation

  6. *Disclaimer: Major Players sorted in no particular order
Co-packaged Optics Market Concentration
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Co-packaged Optics Market News

  • March 2024: Intel developed a 4 Tbps bidirectional fully integrated OCI chiplet based on Intel’s in-house silicon photonics technology. This chiplet, or tile, contains a single silicon photonics integrated circuit (PIC) with integrated lasers, an electrical IC (EIC), and a path to incorporate a detachable/re-usable optical connector. The purpose of this development is to address the AI infrastructure’s significant need for bandwidth and to enable future scalability.
  • September 2023: TSMC collaborated with Broadcom and Nvidia to develop silicon photonics and co-packaged optics (CPO) following increased demand for data transmission due to the AI trend, as reported exclusively by local media outlet Economic Daily News. The company has already assembled an R&D team of over 200 employees to focus on emerging opportunities in high-speed computing chips based on silicon photonics technology. Production was expected to commence as early as the second half of this year. TSMC declined to comment on this matter.

Co-packaged Optics Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Assumption and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET INSIGHTS

  • 4.1 Market Overview
  • 4.2 Industry Value Chain Analysis
  • 4.3 Industry Attractiveness - Porter's Five Forces Analysis
    • 4.3.1 Threat of New Entrants
    • 4.3.2 Bargaining Power of Buyers
    • 4.3.3 Bargaining Power of Suppliers
    • 4.3.4 Threat of Substitute Products
    • 4.3.5 Intensity of Competitive Rivalry
  • 4.4 Assessment of Impact of COVID-19 on the Industry
  • 4.5 Impact of Latency-Sensitive Traffic on Demand for CPO
    • 4.5.1 AI and Machine Learning in Data Centers
    • 4.5.2 5G, CPO, and the Impact on Data Centers
    • 4.5.3 Video Conferencing and Online Events

5. MARKET DYNAMICS

  • 5.1 Market Drivers
    • 5.1.1 Increase in Adoption of Smart Devices and Rise in Data Traffic
    • 5.1.2 Growth in the Importance of Mega Data Centers
    • 5.1.3 Growth in High-performance Computing
  • 5.2 Market Restraints
    • 5.2.1 Increase in Network Complexity
    • 5.2.2 Device Compatibility and Sustainability Issues

6. MARKET SEGMENTATION

  • 6.1 By Data Rates
    • 6.1.1 Less than 1.6 T
    • 6.1.2 1.6 T
    • 6.1.3 3.2 T
    • 6.1.4 6.4 T
  • 6.2 By Geography
    • 6.2.1 North America
    • 6.2.2 Europe
    • 6.2.3 Asia
    • 6.2.4 Australia and New Zealand
    • 6.2.5 Latin America
    • 6.2.6 Middle East and Africa

7. COMPETITIVE LANDSCAPE

  • 7.1 Company Profiles*
    • 7.1.1 Ayar Labs Inc.
    • 7.1.2 Broadcom Inc.
    • 7.1.3 Cisco Systems Inc.
    • 7.1.4 IBM Corporation
    • 7.1.5 Intel Corporation
    • 7.1.6 Microsoft Corporation
    • 7.1.7 TE Connectivity
    • 7.1.8 Furukawa Electric Co. Ltd
    • 7.1.9 Hisense Broadband Multimedia Technology Co. Ltd
    • 7.1.10 POET Technologies
    • 7.1.11 Kyocera Corporation
    • 7.1.12 Huawei Technologies Co. Ltd
    • 7.1.13 SENKO Advanced Components Inc.
    • 7.1.14 Sumitomo Electric Industries Ltd

8. INVESTMENT ANALYSIS

9. FUTURE OUTLOOK OF THE MARKET

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Co-packaged Optics Industry Segmentation

The co-packaged optics market is segmented by data rates (less than 1.6 T, 1.6 T, 3.2 T, and 6.4 T) and geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

By Data Rates Less than 1.6 T
1.6 T
3.2 T
6.4 T
By Geography North America
Europe
Asia
Australia and New Zealand
Latin America
Middle East and Africa
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Co-packaged Optics Market Research FAQs

How big is the Co-packaged Optics Market?

The Co-packaged Optics Market size is expected to reach USD 103.28 million in 2025 and grow at a CAGR of 47.12% to reach USD 711.82 million by 2030.

What is the current Co-packaged Optics Market size?

In 2025, the Co-packaged Optics Market size is expected to reach USD 103.28 million.

Who are the key players in Co-packaged Optics Market?

Ayar Labs, Inc., Broadcom Inc., Cisco Systems, Inc., IBM Corporation and Intel Corporation are the major companies operating in the Co-packaged Optics Market.

Which is the fastest growing region in Co-packaged Optics Market?

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).

Which region has the biggest share in Co-packaged Optics Market?

In 2025, the North America accounts for the largest market share in Co-packaged Optics Market.

What years does this Co-packaged Optics Market cover, and what was the market size in 2024?

In 2024, the Co-packaged Optics Market size was estimated at USD 54.61 million. The report covers the Co-packaged Optics Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Co-packaged Optics Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

Co-packaged Optics Industry Report

Statistics for the 2025 Co-packaged Optics market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Co-packaged Optics analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.