According to our (Global Info Research) latest study, the global Co-Packaged Optics (CPO) Technology market size was valued at US$ 45.9 million in 2024 and is forecast to a readjusted size of USD 947 million by 2031 with a CAGR of 41.9% during review period.
Co-Packaged Optics (CPO) is an advanced heterogeneous integration of optics and silicon on a single packaged substrate aimed at addressing next generation bandwidth and power challenges. CPO brings together a wide range of expertise in fiber optics, digital signal processing (DSP), switch ASICs, and state-of-the-art packaging & test to provide disruptive system value for the data center and cloud infrastructure. Generally, CPOs offer power saving in several different ways:
No lossy copper traces: Unlike pluggable optics, CPO design eliminates the need for signals to traverse from the application-specific integrated circuit (ASIC) chip over energy-sapping copper links across the board up to the front panel. Instead, CPO design brings the fiber directly to the switch enabling short, low-loss communication between the chip and the optical engine.
Fewer digital signal processors (DSPs): In current architectures for speeds higher than 25G/lane, DSP-based retimers have become necessary components in pluggable optics to actively analyze and compensate for signal degradation, distortions, and timing issues. The DSP contributes to driving up the overall system power by as much as 25-30%. However, given that CPOs eliminate the off-chip lossy copper traces between the ASIC and the optics, designers can safely eliminate one DSP level to save power and reduce costs.
Integrated lasers: There are two schools of thought regarding laser source placement. The prevalent approach involves an external laser, necessitating the transmission of light through a fiber and coupling it into the CPO and typically incurring an optical power loss of 30-50%. The alternative approach integrates the laser directly onto the chip, offering a notably higher optical coupling compared to the latter approach, provided that thermal management and laser reliability are viable.
High bandwidth and low latency: CPOs can enable higher bandwidth and lower latency, mainly because of fewer DSPs and the removal of long copper traces. Additional blocks like DSPs as well as the parasitics in copper traces all introduce delays that signals won’t see in a CPO solution.
The AI revolution is a recurring theme across industries, with projections of the AI sector reaching $280 billion by 2030. CPO technology, which integrates optical engines with compute chips (e.g., AI/ML accelerators), could benefit from AI-driven demand for high-speed, low-latency data transmission in data centers and HPC clusters.
Tech giants like Google, Amazon, Microsoft, and Meta are exploring CPO to enhance power efficiency and data transmission speeds. CPO is expected to replace traditional pluggable optics in data center switches by 2026–2028.
Traditional pluggable optics consume 50-60% more power than CPO. CPO enables energy-efficient data transmission, reducing cooling costs in data centers. Growing focus on green data centers and carbon footprint reduction is accelerating CPO deployment.
Industry alliances like OIF (Optical Internetworking Forum) and Open Compute Project (OCP) are working on CPO specifications. Companies like Cisco, Intel, Broadcom, etc. are collaborating to develop standardized CPO modules for commercial deployment.
This report is a detailed and comprehensive analysis for global Co-Packaged Optics (CPO) Technology market. Both quantitative and qualitative analyses are presented by company, by region & country, by Type and by Application. As the market is constantly changing, this report explores the competition, supply and demand trends, as well as key factors that contribute to its changing demands across many markets. Company profiles and product examples of selected competitors, along with market share estimates of some of the selected leaders for the year 2025, are provided.
Key Features:
Global Co-Packaged Optics (CPO) Technology market size and forecasts, in consumption value ($ Million), 2020-2031
Global Co-Packaged Optics (CPO) Technology market size and forecasts by region and country, in consumption value ($ Million), 2020-2031
Global Co-Packaged Optics (CPO) Technology market size and forecasts, by Type and by Application, in consumption value ($ Million), 2020-2031
Global Co-Packaged Optics (CPO) Technology market shares of main players, in revenue ($ Million), 2020-2025
The Primary Objectives in This Report Are:
To determine the size of the total market opportunity of global and key countries
To assess the growth potential for Co-Packaged Optics (CPO) Technology
To forecast future growth in each product and end-use market
To assess competitive factors affecting the marketplace
This report profiles key players in the global Co-Packaged Optics (CPO) Technology market based on the following parameters - company overview, revenue, gross margin, product portfolio, geographical presence, and key developments. Key companies covered as a part of this study include Broadcom, NVIDIA, Cisco, Ranovus, Intel, Marvell Technology, etc.
This report also provides key insights about market drivers, restraints, opportunities, new product launches or approvals.
Market segmentation
Co-Packaged Optics (CPO) Technology market is split by Type and by Application. For the period 2020-2031, the growth among segments provides accurate calculations and forecasts for Consumption Value by Type and by Application. This analysis can help you expand your business by targeting qualified niche markets.
Market segment by Type
Less than 1.6 T
1.6 to 3.2 T
More than 3.2 T
Market segment by Application
Data Center and HPC
Telecommunication and Networking
Market segment by players, this report covers
Broadcom
NVIDIA
Cisco
Ranovus
Intel
Marvell Technology
Market segment by regions, regional analysis covers
North America (United States, Canada and Mexico)
Europe (Germany, France, UK, Russia, Italy and Rest of Europe)
Asia-Pacific (China, Japan, South Korea, India, Southeast Asia and Rest of Asia-Pacific)
South America (Brazil, Rest of South America)
Middle East & Africa (Turkey, Saudi Arabia, UAE, Rest of Middle East & Africa)
The content of the study subjects, includes a total of 13 chapters:
Chapter 1, to describe Co-Packaged Optics (CPO) Technology product scope, market overview, market estimation caveats and base year.
Chapter 2, to profile the top players of Co-Packaged Optics (CPO) Technology, with revenue, gross margin, and global market share of Co-Packaged Optics (CPO) Technology from 2020 to 2025.
Chapter 3, the Co-Packaged Optics (CPO) Technology competitive situation, revenue, and global market share of top players are analyzed emphatically by landscape contrast.
Chapter 4 and 5, to segment the market size by Type and by Application, with consumption value and growth rate by Type, by Application, from 2020 to 2031
Chapter 6, 7, 8, 9, and 10, to break the market size data at the country level, with revenue and market share for key countries in the world, from 2020 to 2025.and Co-Packaged Optics (CPO) Technology market forecast, by regions, by Type and by Application, with consumption value, from 2026 to 2031.
Chapter 11, market dynamics, drivers, restraints, trends, Porters Five Forces analysis.
Chapter 12, the key raw materials and key suppliers, and industry chain of Co-Packaged Optics (CPO) Technology.
Chapter 13, to describe Co-Packaged Optics (CPO) Technology research findings and conclusion.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
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