Co-Packaged Optics Market worth $49 million by 2028 - Exclusive Report by MarketsandMarkets™

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89 – Tables
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Co-Packaged Optics Market Report Scope:

The CPO type segment is expected to account for the largest share of the co-packaged optics market in 2023.

The CPO segment is a significant market for co-packaged optics. The adoption of CPO is on the rise among various end-users, such as high-performance computing. CPO is an emerging technology that is gaining attention as a potential solution for achieving better performance and power efficiency without the complexities of full onboard integration. As the technology matures, its adoption is expected to increase further in data center and high-performance computing (HPC) markets.

Data center and high-performance computing is expected to account for the largest share of the co-packaged optics market in 2023.

The data center and high-performance computing segment accounted for the largest share of the co-packaged optics market in 2022, and a similar trend is expected to be witnessed during the forecast period. Data centers are experiencing an exponential increase in data traffic due to the rise of cloud computing and several emerging web applications. To manage this network load, large data centers are required, with thousands of servers interconnected with high-bandwidth switches. The rapid growth of data traffic, driven by streaming services, cloud computing, IoT, and 5G, has created a significant demand for higher bandwidth and lower latency in data center and high-performance computing.

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Asia Pacific market is expected to witness the highest CAGR in the co-packaged optics market during the forecast period.

Asia Pacific is projected to record the highest CAGR during the forecast period. One of the key drivers for the Asia Pacificco-packaged optics industry is the increased demand CPO, particularly in China, Japan, and India. With the deployment of 5G networks in the Asia- Pacific countries, high-speed, low-latency communication links are essential. Co-packaged optics can enhance the performance of the backhaul and fronthaul networks supporting 5G. Moreover, the Indian government's growing support for the data center and telecommunication industry is creating new opportunities. For instance, in June 2022, the government of a northern state (Haryana) approved a data center policy aimed at making it an attractive location for constructing these facilities and establishing the state as a global data center hub. Thus, the expanding data center sector presents a promising market opportunity for investors.

Key players

Key players in the co-packaged optics companies include Broadcom (US), Molex (US), Marvell (US), RANOVUS (Canada), Ragile Networks Inc. (US), SENKO (US), Quanta Computer Inc. (Taiwan), Furukawa Electric Co., Ltd. (Japan), among others.

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