PUBLISHER: QYResearch | PRODUCT CODE: 1873426
PUBLISHER: QYResearch | PRODUCT CODE: 1873426
The global market for Co-Packaged Optics Module (CPO) was estimated to be worth US$ 44.6 million in 2024 and is forecast to a readjusted size of US$ 1236 million by 2031 with a CAGR of 49.0% during the forecast period 2025-2031.
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 $280 billion by 2030. CPO technology, which integrates optical engines with compute chips (e.g., AI/ML accelerators), could benefit from AI-driven demand for high-speed, low-latency data transmission in data centers and HPC clusters.
Tech giants like Google, Amazon, Microsoft, and Meta are exploring CPO to enhance power efficiency and data transmission speeds. CPO is expected to replace traditional pluggable optics in data center switches by 2026-2028.
Traditional pluggable optics consume 50-60% more power than CPO. CPO enables energy-efficient data transmission, reducing cooling costs in data centers. Growing focus on green data centers and carbon footprint reduction is accelerating CPO deployment.
Industry alliances like OIF (Optical Internetworking Forum) and Open Compute Project (OCP) are working on CPO specifications. Companies like Cisco, Intel, Broadcom, etc. are collaborating to develop standardized CPO modules for commercial deployment.
This report aims to provide a comprehensive presentation of the global market for Co-Packaged Optics Module (CPO), focusing on the total sales revenue, key companies market share and ranking, together with an analysis of Co-Packaged Optics Module (CPO) by region & country, by Type, and by Application.
The Co-Packaged Optics Module (CPO) market size, estimations, and forecasts are provided in terms of sales revenue ($ millions), considering 2024 as the base year, with history and forecast data for the period from 2020 to 2031. With both quantitative and qualitative analysis, to help readers develop business/growth strategies, assess the market competitive situation, analyze their position in the current marketplace, and make informed business decisions regarding Co-Packaged Optics Module (CPO).
Market Segmentation
By Company
Segment by Type
Segment by Application
By Region
Chapter Outline
Chapter 1: Introduces the report scope of the report, global total market size. This chapter also provides the market dynamics, latest developments of the market, the driving factors and restrictive factors of the market, the challenges and risks faced by manufacturers in the industry, and the analysis of relevant policies in the industry.
Chapter 2: Detailed analysis of Co-Packaged Optics Module (CPO) company competitive landscape, revenue market share, latest development plan, merger, and acquisition information, etc.
Chapter 3: Provides the analysis of various market segments by Type, covering the market size and development potential of each market segment, to help readers find the blue ocean market in different market segments.
Chapter 4: Provides the analysis of various market segments by Application, covering the market size and development potential of each market segment, to help readers find the blue ocean market in different downstream markets.
Chapter 5: Revenue of Co-Packaged Optics Module (CPO) in regional level. It provides a quantitative analysis of the market size and development potential of each region and introduces the market development, future development prospects, market space, and market size of each country in the world.
Chapter 6: Revenue of Co-Packaged Optics Module (CPO) in country level. It provides sigmate data by Type, and by Application for each country/region.
Chapter 7: Provides profiles of key players, introducing the basic situation of the main companies in the market in detail, including product revenue, gross margin, product introduction, recent development, etc.
Chapter 8: Analysis of industrial chain, including the upstream and downstream of the industry.
Chapter 9: Conclusion.