Co-Packaged Optics Market Size To Surpass USD 124.15 Billion By 2032, At 26.53% CAGR Research By SNS Insider

(MENAFN- GlobeNewsWire - Nasdaq) Co-packaged Optics Market growth is driven by the need for high-bandwidth, low-latency data transfer in AI, HPC & 5G networks.

Austin, Sept. 25, 2025 (GLOBE NEWSWIRE) -- Co-packaged Optics Market Size & Growth Insights:

According to the SNS Insider,“The Co-packaged Optics Market size was valued at USD 18.9 Million in 2024 and is projected to reach USD 124.15 Million by 2032, growing at a CAGR of 26.53% during 2025-2032.”

Increasing AI Workloads and Energy Efficiency Propels Market Growth

The market for co-packaged optics is expanding because to growing needs for high-performance computing and artificial intelligence. By combining wafer-scale technology with co-packaged optical interconnects, memory and communication constraints are overcome and computation performance is increased while power consumption is decreased. This makes it possible for sophisticated robotics applications, large-scale AI inference, and real-time simulations. Investment in energy-efficient, high-capacity optical interconnects is driven by growing acceptance in the commercial and defense sectors, which accelerates innovation, market expansion, and the global deployment of next-generation Co-Packaged Optics solutions.

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Leading Market Players with their Product Listed in this Report are:

• Broadcom
• Molex
• Marvell
• Ranovus
• Ragile Networks Inc.
• SENKO
• Quanta Computer Inc.
• Furukawa Electric Co., Ltd.
• Cisco Systems
• Intel Corporation
• Nvidia Corporation
• Applied Micro Circuits Corporation (AMCC)
• Finisar Corporation
• Lumentum Holdings
• II-VI Incorporated
• Oclaro, Inc.
• Ciena Corporation
• NeoPhotonics Corporation
• Avago Technologies
• Sumitomo Electric Industries

Co-packaged Optics Market Report Scope:

Report Attributes	Details
Market Size in 2024	USD 18.9 Million
Market Size by 2032	USD 124.15 Million
CAGR	CAGR of 26.53% From 2025 to 2032
Report Scope & Coverage	Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook
Key Segmentation	. By Type(Co-Packaged Optics (CPO) and Near-Packaged Optics (NPO)) . By Data Rate(Less than 1.6 T & 1.6 T, 3.2 T and 6.4 T), By Technology(2.5D CPO and 3D CPO) . By Application(Data Center and High-Performance Computing, Telecommunications and Networking and Others)

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Key Industry Segmentation

By Type

The market for co-packaged optics is led by near-packaged optics (NPO), which is widely used in networking and data centers. Rising AI workloads, energy-efficient interconnects, and the growing need for high-density, high-performance computing solutions across commercial and hyperscale applications are driving the fastest growth in the co-packaged optics (CPO) market.

By Technology

Owing to its well-established use in data center and high-performance computing applications, 3.2T leads the co-packaged optics industry. The growing need for cost-effective, scalable, and energy-efficient optical interconnect solutions in developing AI and cloud infrastructures is driving the rapid expansion of the less than 1.6T and 1.6T segments.

By Application

Due to its extensive use in high-performance computing configurations and traditional data centers, 2.5D CPO leads the co-packaged optics industry. Due to the growing need for more bandwidth, smaller integration, and improved energy efficiency in next-generation AI and cloud infrastructure deployments, 3D CPO is growing at the highest rate.

By Industry Vertical

The market for co-packaged optics is led by data centers and high-performance computing (HPC), which have widely adopted fast and energy-efficient interconnects. Growing demands for faster data transfer, network scalability, next-generation 5G, and the expansion of cloud infrastructure are driving the fastest growth in telecommunications and networking.

Asia Pacific is the Dominating Region in the Market; North America is Expected to be the Fastest Growing Region in the Market During 2025-2032

The fast uptake of high-performance computing, growing data centers, and rising need for energy-efficient optical interconnects have propelled the Asia-Pacific Co-Packaged Optics market to the forefront of the worldwide market. The demand for high-performance computing, expanding AI workloads, and investments in cloud data centers are driving the fastest-growing Co-Packaged Optics market in North America.

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Recent News:

• In March 2025, Ranovus is advancing Co-Packaged Optics with its ODIN® CPO 3.0, delivering 800Gbps and 6.4Tbps solutions for AI/ML and high-performance computing. The company collaborates with Cerebras and Jabil for wafer-scale AI platforms and mass production of optical engines.
• In March 2025, Furukawa Electric launched a compact 12-fiber optical connector designed for Co-Packaged Optics, enabling high-speed, low-power data transmission in AI and data center applications. The connector supports easy assembly, high repeatability, and performance in dusty environments, advancing next-generation photonics-electronics convergence.

Exclusive Sections of the Co-packaged Optics Market Report (The USPs):

• DEPLOYMENT & ADOPTION METRICS – helps you analyze how quickly data centers and telecom operators are shifting towards co-packaged optics, with insights on annual adoption rates, switch port penetration, and growth in high-bandwidth applications.
• TECHNICAL PERFORMANCE BENCHMARKS – helps you measure the efficiency advantages of CPO, including power consumption reduction, latency improvements, and higher throughput (Tbps) per switch compared to traditional optics.
• MANUFACTURING & SUPPLY CHAIN INSIGHTS – helps you assess yield rates, lead times for CPO components, and the balance between outsourced vs. in-house production strategies among leading manufacturers.
• COST & ROI METRICS – helps you evaluate the economic benefits of CPO adoption by comparing per-port costs, operational savings from reduced cabling and energy use, and ROI timeframes for early adopters.
• COMPETITIVE LANDSCAPE & STRATEGIC POSITIONING – helps you gauge how leading players leverage CPO integration to strengthen market share, improve efficiency benchmarks, and differentiate through supply chain and cost advantages.

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