Latest Market Analysis and Forecast of Co-Packaged Optics Module Market, Sees $5.5 Billion Market in 2027
In 2020 the analyst became the first analysis firm to release a co-packaged optics market analysis that surveyed the opportunities flowing from the development and deployment of co-packaged optics. In 2022 we issued a new co-packaged optics market analysis and have updated our forecasts and technology and market analysis in this report.
The primary goals of this report are to update the analyst's forecasts of the CPO space with breakouts by application, speed and network segment and provide an update on CPO strategy from the key influencers in the market. In terms of speed, we look at 800G and 1.6T. Another objective of this latest report includes efforts to better understand the product roadmap for CPO in the near- to medium-term future and the report includes some analysis of important subsystems of CPO devices; notably the external lasers and the potential additional cooling for the CPO module. We also address silicon photonics and the impact of optical integration on the future of CPO.
In terms of coverage, we are concerned in this report with CPO and precursors to CPO; meaning primarily near-packaged optics (NPO). In terms of applications we cover all likely applications, but aside from organic traffic growth made up of voice, data and video traffic, the forecasts also reflect an expected boom for low-latency traffic and how the growth of AI (enterprise, SaaS and individual) is resetting the thinking. Less impactful applications for CPO including HPC, disaggregated compute applications and sensors are also analyzed and forecasted. Finally, the report considers the market impact of the emerging standards for CPO including the just-released OIF standard and the work on standards setting beginning in China.
In the report, the analyst predicts that the co-packaged optics modules market will reach $5.5 billion in 2027, including NPO products. Driven by the new OIF Implementers Agreement (IA), co-packaged optics now has a much clearer adoption path within data centers. In addition, this new interface standard created specifically for the age of latency sensitive traffic such as that created by the current AI boom provides an additional, and crucial enabling factor.
“Analyst sees tremendous potential for co-packaged optics that can begin to be realized in the next two years,” according to President and the report’s author, Lawrence Gasman. “CPO provides a pathway to 1.6T and beyond.”
Who should read this report?
Whether you are an optical component manufacturer, optical equipment manufacturer, large end-user, or investor, you will gain valuable insights from this in-depth research.
Table of Contents
Executive Summary
The sales of specialized co-packaged optical components will exceed $1.3 billion in revenues in 2025 and grow to $2.7 billion by 2028. The latest CPO report, “Markets for Co-Packaged Optics 2022-2030” analyzes both component and module-level CPO product developments.
About the Report
This report examines the latest developments in connectivity, lasers, and cooling systems for CPO as well as showing how CPO modules will be used in four kinds of data center. The report forecasts CPO from 2022 to 2030 with breakouts by type of data center and location (inter-building/inter-machine or rack/server) in the data center. This report has a strong emphasis on CPO’s impact on the optoelectronic supply chain in the wake of both technological change and geopolitical developments. Key companies discussed include AMD, Anritsu, Ayar Labs, Broadcom, Furukawa Electric, GlobalFoundries, IBM, Marvell, Lumentum, Ranovus, SENKO, TE Connectivity, Xilinx, and others.
The analyst is currently focusing its efforts in the areas of short-haul data communications interconnectivity with coverage on CPO, active optical cable, optical chip-to-chip communications, and data center coherent communications.
From the Report
- The commercial potential of co-packaged optical components was recently demonstrated, when Senko Advanced Components acquired Cudoform, specifically for access to Cudoform’s micro-mirror connector in a CPO application. Other CPO components in immediate demand include cooling systems and external lasers. Intel researchers also recently demonstrated an eight-wavelength silicon laser array that Intel believes can be integrated into a CPO package.
- Large deployments of CPO systems may not occur until 2027, but CPO module manufacturers are already buying critical co-packaged optical components; a couple of years in advance. CPO components will be the first big opportunity in the coming CPO revolution.
- Demand for CPO components will spur manufacturing to meet the demanding requirements for tight-spaced packaging and hard-to-integrate photonics. The goal of Intel’s research laser array is specifically a high-volume chiplet-product. Among those increasingly focused on CPO are merchant silicon firms, which are leveraging the latest silicon photonics technology to exploit this opportunity
Companies Mentioned
- Ayar Labs
- Broadcom
- Cisco
- Coherent
- Corning
- DuPont
- Furukawa Electric
- Hengtong Optic-Electric
- Hisense Broadband
- Huawei
- IBM
- Intel
- Kyocera
- Lightmatter
- Lumentum
- Marvell
- Meta/Facebook
- Microsoft
- Molex
- POET Technologies
- Quantifi
- Ranovus and AMD
- SABIC
- SENKO Advanced Components
- Sumitomo Electric
- TE Connectivity
- Teramount
