Co-Packaged Optics Market By Type (Near Packaged Optics (NPO), Co-Packaged Optics (CPO)), By Data Rates (Less than 1.6T & 1.6T, 3.2T, 6.4T), By Application (Telecommunications and Networking, Data Centers and High-performance Computing), and By Region; Global Insights & Forecast (2024 – 2030)

As per Intent Market Research, the Co-Packaged Optics Market was valued at USD 24 million in 2023-e and will surpass USD 74 million by 2030; growing at a CAGR of 17.5% during 2024 - 2030.

The Co-Packaged Optics (CPO) market is emerging as a transformative sector in the broader optical communication landscape. With the increasing demands for high bandwidth, reduced latency, and improved energy efficiency in data centers, CPO technology is positioned to revolutionize traditional systems by integrating optics and electronics into a single package. As a result, CPO has garnered significant attention for its potential to improve performance and reduce operational costs in data centers and telecommunications. Driven by the rapid expansion of cloud services, 5G networks, and AI-based applications.

Co-Packaged Optics Market

Transceivers Segment is Largest Owing to Increased Data Center Demand

In the component segmentation of the CPO market, transceivers dominate as the largest subsegment, accounting for over 40% of the total market share in 2024. Transceivers play a critical role in data transmission and are essential for high-speed optical connections in modern data centers. The continuous evolution of hyperscale data centers and the rise of edge computing are key factors driving the demand for transceivers. These components, co-packaged with optics, offer reduced latency, higher bandwidth, and energy-efficient data transmission, which aligns with the operational goals of major data center operators.

The growth of this subsegment is also accelerated by the deployment of advanced networking solutions, such as 400G and 800G, which require next-generation optical interconnects. Companies are focusing on co-packaging optics with transceivers to meet the increasing need for efficient data transmission solutions that can handle the exponential rise in network traffic. The transition to co-packaged optics is expected to further reduce power consumption in data centers, making it a key focus for large-scale enterprises looking to optimize their energy footprint.

Optoelectronic Chips Segment is Fastest Growing Due to Rising Integration of AI and ML

The optoelectronic chips segment is expected to witness the fastest growth during the forecast period, with a CAGR of over 26% from 2024 to 2030. Optoelectronic chips, which integrate optical and electronic functions onto a single platform, are becoming crucial for applications in AI and machine learning (ML) workloads. The rapid expansion of AI-based applications, including natural language processing and image recognition, has led to a surge in demand for high-performance computing infrastructure. Optoelectronic chips, when co-packaged with optics, enable faster data transfer rates, lower power consumption, and improved processing efficiency.

As AI and ML applications continue to evolve, the need for real-time data processing has grown, pushing the boundaries of traditional electronic systems. The integration of optoelectronic chips into CPO solutions is a game-changer, allowing for improved performance in data centers and high-performance computing (HPC) environments. These factors are propelling the optoelectronic chips segment into one of the fastest-growing areas of the CPO market.

Telecommunications Segment is Largest Owing to Growing 5G Deployments

In terms of application, the telecommunications sector holds the largest share of the co-packaged optics market, contributing to approximately 45% of the total market in 2024. The growing deployment of 5G networks across the globe is the primary driver of this segment’s dominance. Telecommunications companies are investing heavily in infrastructure to support the high-speed, low-latency requirements of 5G, and CPO technology provides an efficient solution for meeting these demands. Co-packaged optics can reduce latency and enhance bandwidth, which are essential for handling the massive data traffic generated by 5G networks.

Furthermore, as telecom providers continue to expand their fiber-optic networks to improve connectivity, CPO-based systems are being adopted to enhance the performance of network equipment, such as switches and routers. The integration of optics and electronics in a single package is helping telecom operators reduce operational costs and energy consumption, thereby driving the growth of this segment. Additionally, the increasing focus on 6G research and development is expected to further fuel the demand for CPO in telecommunications.

Cloud Service Providers Segment is Fastest Growing Owing to Demand for Scalable Infrastructure

Among the end-users, cloud service providers (CSPs) represent the fastest-growing subsegment, with a projected CAGR of 27% from 2024 to 2030. CSPs are at the forefront of digital transformation, driving the need for scalable, efficient, and high-performance data center infrastructure. The shift towards cloud-native applications, coupled with the increasing reliance on cloud platforms for storage, processing, and AI workloads, is pushing CSPs to adopt cutting-edge technologies like CPO.

CPO technology enables cloud service providers to optimize their infrastructure for high-speed data transfer and lower power consumption, making it a valuable asset in managing the complexities of modern cloud environments. Moreover, the adoption of hybrid and multi-cloud strategies by enterprises is creating additional pressure on CSPs to ensure seamless data flow between different cloud infrastructures, further boosting the demand for CPO solutions in this segment.

North America is the Largest Region Owing to Technological Advancements

Geographically, North America is the largest region in the co-packaged optics market, accounting for more than 35% of the global market share in 2024. The region’s dominance is attributed to the presence of major tech companies, data centers, and cloud service providers that are early adopters of advanced optical technologies. The United States, in particular, is home to leading players in the CPO market and has a robust infrastructure to support the rapid deployment of optical solutions in data centers, telecommunications, and high-performance computing.

North America's technological leadership, combined with significant investments in research and development, has positioned it as a key hub for innovation in the CPO market. Additionally, the growing emphasis on energy efficiency and sustainability is driving the adoption of CPO technology in the region, as companies look for ways to reduce power consumption in their data centers. The region's strong regulatory framework, which supports the development and deployment of next-generation communication technologies, further enhances its position as the largest market for CPO.

Leading Companies and Competitive Landscape

The co-packaged optics market is highly competitive, with several key players driving innovation and adoption of the technology. The top 10 companies in this market include Intel Corporation, Broadcom Inc., Cisco Systems, Inc., Marvell Technology, Inphi Corporation (acquired by Marvell), NVIDIA Corporation (through its acquisition of Mellanox), Arista Networks, Juniper Networks, Acacia Communications (acquired by Cisco), and II-VI Incorporated. These companies are leading the charge in developing co-packaged optics solutions for data centers, telecommunications, and AI applications.

The competitive landscape of the CPO market is characterized by strategic partnerships, mergers and acquisitions, and a strong focus on research and development. Companies are actively collaborating to integrate optics and electronics, reduce power consumption, and improve data transfer speeds. The industry is also witnessing increasing investments in photonic integration and packaging technologies, which are critical for scaling CPO solutions. As the market continues to evolve, leading companies are expected to focus on product innovation and expanding their portfolios to capture a larger share of the growing CPO market.

Report Objectives:

The report will help you answer some of the most critical questions in the Co-Packaged Optics Market. A few of them are as follows:

  1. What are the key drivers, restraints, opportunities, and challenges influencing the market growth?
  2. What are the prevailing technology trends in the Co-Packaged Optics market?
  3. What is the size of the Co-Packaged Optics market based on segments, sub-segments, and regions?
  4. What is the size of different market segments across key regions: North America, Europe, Asia Pacific, Latin America, Middle East & Africa?
  5. What are the market opportunities for stakeholders after analyzing key market trends?
  6. Who are the leading market players and what are their market share and core competencies?
  7. What is the degree of competition in the market and what are the key growth strategies adopted by leading players?
  8. What is the competitive landscape of the market, including market share analysis, revenue analysis, and a ranking of key players?

Report Scope:

Report Features

Description

Market Size (2023-e)

USD 24 million

Forecasted Value (2030)

USD 74 million

CAGR (2024-2030)

17.5%

Base Year for Estimation

2023-e

Historic Year

2022

Forecast Period

2024-2030

Report Coverage

Market Forecast, Market Dynamics, Competitive Landscape, Recent Developments

Segments Covered

Co-Packaged Optics Market By Type (Near Packaged Optics (NPO), Co-Packaged Optics (CPO)), By Data Rates (Less than 1.6T & 1.6T, 3.2T, 6.4T), By Application (Telecommunications and Networking, Data Centers and High-performance Computing)

Regional Analysis

North America (US, Canada), Europe (Germany, France, UK, Spain, Italy & Rest of Europe), Asia Pacific (China, Japan, South Korea, India, and rest of Asia Pacific), Latin America (Brazil, Mexico, Argentina, & Rest of Latin America), Middle East & Africa (Saudi Arabia, South Africa, Turkey, United Arab Emirates, & Rest of MEA)

Customization Scope

Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements

1.Introduction

1.1.Market Definition

1.2.Scope of the Study

1.3.Research Assumptions

1.4.Study Limitations

2.Research Methodology

2.1.Research Approach

2.1.1.Top-Down Method

2.1.2.Bottom-Up Method

2.1.3.Factor Impact Analysis

2.2.Insights & Data Collection Process

2.2.1.Secondary Research

2.2.2.Primary Research

2.3.Data Mining Process

2.3.1.Data Analysis

2.3.2.Data Validation and Revalidation

2.3.3.Data Triangulation

3.Executive Summary

3.1.Major Markets & Segments

3.2.Highest Growing Regions and Respective Countries

3.3.Impact of Growth Drivers & Inhibitors

3.4.Regulatory Overview by Country 

4.Co-Packaged Optics Market, by Type (Market Size & Forecast: USD Million, 2024 – 2030)

4.1.Near Packaged Optics (NPO)

4.2.Co-Packaged Optics (CPO)

5.Co-Packaged Optics Market, by Data Rates (Market Size & Forecast: USD Million, 2024 – 2030)

5.1.Less than 1.6 T & 1.6 T

5.2.3.2 T

5.3.6.4 T

6.Co-Packaged Optics Market, by Application (Market Size & Forecast: USD Million, 2024 – 2030)

6.1.Telecommunications and Networking

6.2.Data Centers and High-performance Computing (HPC)

6.3.Others

7.Regional Analysis (Market Size & Forecast: USD Million, 2024 – 2030)

7.1.Regional Overview

7.2.North America

7.2.1.Regional Trends & Growth Drivers

7.2.2.Barriers & Challenges

7.2.3.Opportunities

7.2.4.Factor Impact Analysis

7.2.5.Technology Trends

7.2.6.North America Co-Packaged Optics Market, by Type

7.2.7.North America Co-Packaged Optics Market, by Data Rates

7.2.8.North America Co-Packaged Optics Market, by Application

   *Similar segmentation will be provided at each regional level

7.3.By Country

7.3.1.US

7.3.1.1.US Co-Packaged Optics Market, by Type

7.3.1.2.US Co-Packaged Optics Market, by Data Rates

7.3.1.3.US Co-Packaged Optics Market, by Application

7.3.2.Canada

          *Similar segmentation will be provided at each country level

7.4.Europe

7.5.APAC

7.6.Latin America

7.7.Middle East & Africa

8.Competitive Landscape

8.1.Overview of the Key Players

8.2.Competitive Ecosystem

8.2.1.Platform Manufacturers

8.2.2.Subsystem Manufacturers

8.2.3.Service Providers

8.2.4.Software Providers

8.3.Company Share Analysis

8.4.Company Benchmarking Matrix

8.4.1.Strategic Overview

8.4.2.Product Innovations

8.5.Start-up Ecosystem

8.6.Strategic Competitive Insights/ Customer Imperatives

8.7.ESG Matrix/ Sustainability Matrix

8.8.Manufacturing Network

8.8.1.Locations

8.8.2.Supply Chain and Logistics

8.8.3.Product Flexibility/Customization

8.8.4.Digital Transformation and Connectivity

8.8.5.Environmental and Regulatory Compliance

8.9.Technology Readiness Level Matrix

8.10.Technology Maturity Curve

8.11.Buying Criteria

9.Company Profiles

9.1.Furukawa Electric

9.1.1.Company Overview

9.1.2.Company Financials

9.1.3.Product/Service Portfolio

9.1.4.Recent Developments

9.1.5.IMR Analysis

*Similar information will be provided for other companies 

9.2.Ragile Networks

9.3.Marvell

9.4.Molex

9.5.Broadcom

9.6.Senko

9.7.Quanta Computer

9.8.Synopsys

9.9.Rain Tree Photonics

9.10.Ruijie Networks

10.Appendix

A comprehensive market research approach was employed to gather and analyze data on the Co-Packaged Optics Market. In the process, the analysis was also done to estimate the parent market and relevant adjacencies to major the impact of them on the Co-Packaged Optics Market. The research methodology encompassed both secondary and primary research techniques, ensuring the accuracy and credibility of the findings.

Research Approach

Secondary Research

Secondary research involved a thorough review of pertinent industry reports, journals, articles, and publications. Additionally, annual reports, press releases, and investor presentations of industry players were scrutinized to gain insights into their market positioning and strategies.

Primary Research

Primary research involved conducting in-depth interviews with industry experts, stakeholders, and market participants across the Co-Packaged Optics ecosystem. The primary research objectives included:

  • Validating findings and assumptions derived from secondary research
  • Gathering qualitative and quantitative data on market trends, drivers, and challenges
  • Understanding the demand-side dynamics, encompassing end-users, component manufacturers, facility providers, and service providers
  • Assessing the supply-side landscape, including technological advancements and recent developments

Market Size Estimation

A combination of top-down and bottom-up approaches was utilized to estimate the overall size of the Co-Packaged Optics market. These methods were also employed to estimate the size of various sub-segments within the market. The market size estimation methodology encompassed the following steps:

  1. Identification of key industry players and relevant revenues through extensive secondary research
  2. Determination of the industry's supply chain and market size, in terms of value, through primary and secondary research processes
  3. Calculation of percentage shares, splits, and breakdowns using secondary sources and verification through primary sources

Bottom Up and Top Down

Data Triangulation

To ensure the accuracy and reliability of the market size estimates, data triangulation was implemented. This involved cross-referencing data from various sources, including demand and supply side factors, market trends, and expert opinions. Additionally, top-down and bottom-up approaches were employed to validate the market size estimates.

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