PUBLISHER: Grand View Research | PRODUCT CODE: 2152300
PUBLISHER: Grand View Research | PRODUCT CODE: 2152300
The global co-packaged optics (CPO) market size was valued at USD 138.6 million in 2025 and is projected to grow from USD 172.8 million in 2026 to USD 1,220.6 million by 2033, at a CAGR of 32.2% from 2026 to 2033. North America dominated the market, accounting for a revenue share of 45.0% in 2025. The global market is entering a transition from technology development and early deployments toward broader commercialization, primarily driven by the rapid scaling of AI workloads and hyperscale data centers.
Increasing GPU and accelerator densities are creating substantial bandwidth, latency, thermal, and power challenges within data center networks, increasing interest in integrating optical engines directly with switch ASICs and other high-performance processors.
AI infrastructure expansion is expected to remain the principal demand catalyst for CPO. As data center architectures move toward 800G, 1.6T, and higher-speed interconnects, conventional electrical links and pluggable optical modules face increasing power and thermal constraints. CPO addresses these challenges by shortening electrical interconnect paths and placing optical engines closer to high-speed switching and computing silicon, supporting higher bandwidth density and improved energy efficiency. For instance, Broadcom is developing CPO platforms based on silicon photonics for Ethernet switches and AI-oriented XPUs, reflecting the industry's movement toward optical connectivity being designed into the compute and networking architecture rather than treated solely as a removable module.
The market is also witnessing increasing ecosystem development across semiconductor, photonics, packaging, and optical-component suppliers. For instance, in May 2026, GlobalFoundries introduced its SCALE optical module solution to support CPO adoption in advanced AI data centers, while industry initiatives increasingly emphasize open ecosystems and standardized approaches to address integration, manufacturing, thermal management, testing, and supply-chain requirements. At the same time, advances in silicon photonics and optical-engine architectures are pushing CPO beyond conventional switch connectivity toward increasingly integrated AI accelerator and scale-up networking architectures.
Global Co-Packaged Optics (CPO) Market Report Segmentation
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented the global co-packaged optics (CPO) market report based on component, data rate, architecture, application, and region.