Groowe Groowe BETA / Newsroom
⏱ News is delayed by 15 minutes. Sign in for real-time access. Sign in

Global Co-Packaged Optics Market Trends and Growth Outlook 2027-2037: AI Data Centre, Hyperscale and High-Performance Computing Analysis

globenewswire.com
NVDA NVIDIA is investing in CPO technology and developing its own CPO switches, but large-scale production faces delays due to serviceability, reliability, and manufacturing challenges, potentially pushing volume production to 2028-2029. COHR Coherent is mentioned as a company in which NVIDIA has invested, indicating potential involvement in the co-packaged optics market, but no specific performance or outlook is provided. LITE Lumentum is mentioned as a company in which NVIDIA has invested, indicating potential involvement in the co-packaged optics market, but no specific performance or outlook is provided. TSM TSMC is expanding its COUPE roadmap with a 200 Gbps micro-ring modulator scheduled for production in 2026 and a target bandwidth density of 4 Tbps/mm by 2030, indicating strong progress in co-packaged optics technology. MAR Marvell is mentioned as completing the acquisition of Celestial AI, suggesting strategic moves within the optical interconnect space, but no specific sentiment or outlook is provided for Marvell itself. AMD AMD is listed as supporting the OCI-MSA standard, indicating its involvement in the co-packaged optics ecosystem, but no specific performance or outlook is detailed for AMD. AVGO Broadcom is listed as supporting the OCI-MSA standard, indicating its involvement in the co-packaged optics ecosystem, but no specific performance or outlook is detailed for Broadcom. META Meta is listed as supporting the OCI-MSA standard, indicating its involvement in the co-packaged optics ecosystem, but no specific performance or outlook is detailed for Meta. MSFT Microsoft is listed as supporting the OCI-MSA standard, indicating its involvement in the co-packaged optics ecosystem, but no specific performance or outlook is detailed for Microsoft.

Global Co-Packaged Optics Market Trends and Growth Outlook 2027-2037: AI Data Centre, Hyperscale and High-Performance Computing Analysis Dublin, Aug. 13, 2026 (GLOBE NEWSWIRE) -- The "The Global Co-Packaged Optics Market 2027-2037" has been added to ResearchAndMarkets.com's offering.

Co-packaged optics (CPO) is reshaping optical interconnect architecture by positioning optical engines adjacent to switch or accelerator silicon. Shortening high-speed electrical paths from centimetres to millimetres enables significant improvements in power efficiency, bandwidth density and latency compared with conventional pluggable transceivers. These advantages are increasingly critical as AI data centres confront rising bandwidth requirements, power constraints, physical density limits and escalating cost per bit.

The global co-packaged optics market encompasses two primary segments: scale-out CPO for network-switch optical engines and scale-up CPO for GPU and AI-accelerator optical I/O. Initial adoption is expected in the highest-bandwidth network switches, where pluggable optical modules face mounting physical and economic limitations. Scale-up deployments are projected to accelerate as next-generation GPU and AI-accelerator platforms enter production, potentially overtaking scale-out CPO toward the end of the decade.

Industry momentum has strengthened through strategic investments, platform launches, acquisitions and standards development. NVIDIA has invested in Coherent and Lumentum while advancing its Quantum-X and Spectrum-X Photonics CPO switches. TSMC has expanded its COUPE roadmap, including a 200 Gbps micro-ring modulator scheduled for production in 2026 and a target bandwidth density of 4 Tbps/mm by 2030. GlobalFoundries has also launched its OCI-MSA-aligned SCALE platform, with demonstrated 8λ and 16λ configurations.

Additional market activity includes Ayar Labs joining NVIDIA’s NVLink Fusion ecosystem following its Series E financing, Marvell completing its acquisition of Celestial AI, and Fabrinet investing in Raytek Semiconductor. The OCI-MSA, supported by AMD, Broadcom, Meta, Microsoft, NVIDIA and OpenAI, has emerged as a leading scale-up optical interconnect standard.

Despite strong long-term prospects, the CPO market faces material deployment challenges. Large-scale NVIDIA CPO production could move to 2028–2029 because of serviceability, reliability, manufacturing-test yield and broader systems-engineering requirements. Near-package optics may therefore serve as an intermediate architecture during the transition from pluggable modules to fully integrated CPO systems.

Manufacturing and testing capacity remains a central constraint. Scaling production from approximately one million units to tens of millions of units annually will require automated electrical and optical test systems, improved manufacturing yields, standardised optical connectors and mature field-service processes. The direction of the co-packaged optics market is increasingly established, but adoption rates will depend on yield improvement, field reliability, hyperscaler qualification and the conversion of pilot programmes into volume deployments.

Report Scope

The Global Co-Packaged Optics Market 2027-2037 provides a comprehensive market and technology assessment covering AI data centres, hyperscale infrastructure and high-performance computing. The report examines CPO as a foundational interconnect technology for scale-up and scale-out AI networks as copper connectivity and pluggable optics approach physical and economic limits.

The market forecast covers 2026 through 2037 and is segmented by application, switch bandwidth generation, integration technology, component and region. Application analysis includes switch CPO and XPU optical I/O, while switch bandwidth forecasts address 51.2T, 102.4T and 204.8T+ platforms. Integration technologies include 2D architectures, 2.5D silicon, organic and glass interposers, 3D micro-bump integration and hybrid bonding. Regional coverage comprises North America, Asia-Pacific, Europe and the Rest of the World.

The report includes bull, base and bear market scenarios with probability assessments, unit-volume forecasts, pricing trajectories, cost-parity analysis against pluggable optics and total-cost-of-ownership modelling. It also evaluates adoption curves, total addressable market, regional dynamics, competitive positioning and the transition from pluggable transceivers to near-package and co-packaged optical architectures.

Technology coverage includes photonic integrated circuits, silicon photonics, optical-engine architectures, 200G-per-lane systems, wavelength-division multiplexing, channel-count scaling and end-to-end optical link budgets. Modulator analysis covers silicon micro-ring, thin-film lithium niobate, barium titanate and indium phosphide technologies.

The study further assesses advanced packaging, including silicon, organic and glass interposers, through-silicon vias, micro-bumps, hybrid bonding and EIC/PIC integration. Additional analysis addresses laser sources, external-laser architectures, fibre array units, detachable connectors, fibre-count constraints, high-density optical connectivity and manufacturing scale-up.

Report coverage includes:

The report delivers market forecasts, technical analysis and competitive intelligence for semiconductor companies, optical-component suppliers, hyperscale operators, equipment manufacturers, investors and organisations developing next-generation AI infrastructure. It provides a detailed view of the technologies, companies and commercial factors shaping the global co-packaged optics market through 2037.

A selection of companies mentioned in this report includes, but is not limited to:

For more information about this report visit https://www.researchandmarkets.com/r/31l8ae

About ResearchAndMarkets.com

ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.