Co-packaged Optics (CPO) Global Market Insights 2025, Analysis and Forecast to 2030, by Market Participants, Regions, Technology, Application

Overview

Co-packaged optics (CPO) represents a significant advancement in the field of optical networking and data transmission. As traditional data centers and networking infrastructures are challenged by increasing data demand and speed requirements, CPO solutions offer an innovative approach to integrate photonic components with electronic circuits. This novel technology aims to reduce power consumption, improve bandwidth, and minimize latency in data transfers, making it an attractive option for various sectors including telecommunications and high-performance computing (HPC).

Market Size

The global co-packaged optics market is projected to experience significant growth between 2025 and 2030. The market size was valued at approximately USD 530 million in 2025 and is expected to reach around USD 2.1 billion by 2030, reflecting a robust Compound Annual Growth Rate (CAGR) of about 28.0%.

Share & Trends Analysis Report by Product Type

The CPO market can be segmented by product type, including:

• Optical Interconnects: This segment is anticipated to dominate the market share, contributing nearly 40% to the overall revenue by 2030.
• Transceivers: Expected to grow at a CAGR of 30-35% during the forecast period.
• Other Components: This includes multiplexers and filters, projected to have a modest share of around 15%.

Key Players

Major players in the co-packaged optics market include:

• Broadcom
• Intel
• Marvell Technology
• Cisco
• SENKO
• Coherent
• MediaTek
• Molex
• Ranovus
• Furukawa Electric
• Hengtong Group
• Quanta Cloud Technology
• Accelink Technologies
• Zhongji Innolight

By Process

The co-packaged optics market is further categorized by process:

• Integration Process: Dominates with approximately 60% of the market share, driving higher efficiency and performance.
• Manufacturing Process: This segment is predicted to capture the remaining 40%, focusing on cost-effective production techniques.

By Application

Co-packaged optics find applications across various domains, including:

• Data Center and High-Performance Computing: Expected to account for 45% of the market, fueled by increasing demand for high-speed data handling.
• Telecommunication: Anticipated to show growth of about 25% as network infrastructure upgrades are required for 5G and future developments.
• Networking: Projects to capture 30% of the market share due to the need for improved data transmission capacity.

By End-Use

End-use segments for co-packaged optics include:

• Telecommunications Providers: Expected to be a dominant end-user, representing about 50% of the total demand.
• Data Centers and Enterprises: Capture 30% of the market, driven by the cloud service boom.
• Research and Development Institutions: Expected to claim 20%, enhancing their equipment capabilities.

By Region

The geographical distribution of the co-packaged optics market indicates varying growth trends:

• North America: Anticipated to hold the largest market share, approaching 40% by 2025, thanks to substantial investments in advanced technologies.
• Asia-Pacific: Projected to witness the fastest growth rate at a CAGR of 30%, driven by rapid digital transformation initiatives.
• Europe: Expected to account for approximately 20% of the market as companies increasingly adopt optical interconnect solutions.

Market News on Policy and Companies

Regulatory frameworks are increasingly adapting to support innovation in optical networking technologies. In November 2025, the Federal Communications Commission (FCC) announced new guidelines encouraging the deployment of advanced optical technologies in the telecommunications sector. Companies are also investing heavily in R&D to stay competitive. For instance, Broadcom recently opened a new research facility focusing on photonic integration techniques that are essential for scaling co-packaged optics.

Segment Forecasts 2025 - 2030

Forecasts for the co-packaged optics market suggest:

• Continued innovation and rising demand across applications will maintain a CAGR of around 28% through 2030.
• The optical interconnects segment will likely strengthen its position, approaching USD 1 billion by 2030.
• Emerging applications in AI and machine learning will further boost the demand for high-performance optical components.

Conclusion

As the digital landscape continues to evolve, the co-packaged optics market is poised for extensive growth driven by technological advancements and the increasing need for high-speed data transmission. With key players investing in innovation and regulatory support on the rise, the CPO sector is set to become integral to modern networking solutions, particularly in data centers and telecommunications.