Co-Packaged Optics Market Size to Hit USD 1,923.64 million by 2035

Austin, May 27, 2026 (GLOBE NEWSWIRE) -- Co-Packaged Optics Market Size & Growth Outlook:

According to the SNS Insider, “The Co-Packaged Optics (CPO) Market Size was valued at USD 91.27 million in 2025 and is expected to reach USD 1,923.64 million by 2035, growing at a CAGR of 35.70% over 2026–2035.”

AI Infrastructure Bandwidth Crisis Creating Urgent CPO Adoption Imperative at Hyperscale Data Centres, Drive Market Growth Globally

The main factor driving structural growth in the co-packaged optics market is the mathematically certain infrastructure bandwidth bottleneck that will be generated from the exponential scaling up of the scale of AI training clusters, whereby the amount of bandwidth necessary for the all-to-all GPU connectivity model used in the training process scales quadratically with respect to the size of the cluster, thus reaching a point where the power and bandwidth constraints of plug-in transceivers become critical.

Co-Packaged Optics Market Size and Growth:

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

Co-Packaged Optics Market Report Scope:

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Key Segmentation Analysis:

By Integration Approach

2.5D CPO dominated the market with an estimated share of around 68% in 2025 due to its integration maturity, established supply chain, and compatibility globally. 3D CPO is projected to be the fastest-growing segment owing to rising demand for higher bandwidth density, compact integration, and improved energy efficiency in AI and cloud infrastructure.

By Data Rate

Less-than-1.6T and 1.6T segments collectively accounted for approximately 72% of the market share in 2025 due to strong deployment across current-generation 51.2 Tbps switching platforms. Greater-than-1.6T segments are expected to witness the fastest growth driven by next-generation AI networking and 102.4 Tbps switching requirements.

By Application

Data Centers and High-Performance Computing held the dominant market share of around 64% in 2025 due to early hyperscale adoption of CPO technology. Telecommunications and Networking is anticipated to be the fastest-growing segment fueled by rising demand for 800G and 1.6T optical backbone infrastructure and 5G network expansion.

Regional Insights

The North American region is the most rapidly developing region for co-packaged optics, given that the unprecedentedly high investments made in AI-related facilities in American data centers will shape the path of adoption of CPO globally. The leading role of CPO technology companies based in America, such as Broadcom, Marvell, and Intel in defining the first specifications for CPO products via their commercial releases, and the funding from the CHIPS Act to develop silicon photonics manufacturing capabilities.

The Asia Pacific region took the lead in the global co-packaged optics market in 2025, owing to the fact that it is home to the highest density of hyperscale data center infrastructure in the world, and it is the leading manufacturer of optical components and integrated photonic products.

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Recent Developments:

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

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Co-Packaged Optics Market Size to Hit USD 1,923.64 million by 2035 | SNS Insider