Co-Packaged Optics Market Overview
Co-Packaged Optics Market is projected to grow at a CAGR of 28.1% through 2032. It was valued at USD 200 Mn in 2024 and is expected to become USD 1.45 Bn by 2032.
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Co-packaged optics (CPO) Market integrates optical components such as lasers, modulators, and detectors directly with processing chips (CPUs, GPUs, networking processors) to enhance data transmission speed, reduce power consumption, and increase bandwidth density. The technology eliminates separate optical modules and enables more efficient, compact, and high-performance systems ideal for AI and data center applications.
In 2024, major industry milestones include NVIDIA’s integration of CPO in AI superchips, TSMC’s 3nm CPO mass production, and the Co-Packaged Optics Alliance publishing interoperability standards. Key players like Intel and Broadcom are advancing photonics-enhanced data center chips targeting ultra-high-speed networks (up to 1.6T). CPO aligns with global sustainability goals by potentially reducing data center power usage by 30-50%.