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Co-Packaged Optics Market by Type (CPO, NPO), Data Rates (less than 1.6 T & 1.6 T, 3.2 T, 6.4 T), Application (Data Center and High-performance Computing, and Telecommunication and Networking), Packaging Technology and Region - Global Forecast to 2028

12-05-2023 01:24 PM CET | Media & Telecommunications

Press release from: ReportsnReports



"Co-packaged optics market to grow at CAGR of 26.5% during 2023-2028."

The co-packaged optics market is projected to grow from USD 15 million in 2023 to USD 49 million by 2028, registering a CAGR of 26.5% during the forecast period. Some of the major factors driving the growth of the co-packaged optics market include the Introduction of ultra-high-definition video streaming, growing workload of AI/ML-based use cases in data centers, and growing investment by tech giants to develop data centers. However, increased network complexity and increasing fiber counts per switch act as a challenge for the market in the future. The major growth opportunities for the market players are the penetration of IoT and connected devices in education and healthcare sectors.

"Market for telecommunication and networking will have the highest CAGR during the forecast period."

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The telecommunication and networking segment of the co-packaged optics market is expected to witness the highest CAGR during the forecast period. The demand for higher bandwidth and lower latency in telecommunication and networking infrastructure has increased due to the rapid growth of data traffic driven by services such as streaming, cloud computing, IoT, and 5G. This has led to a rise in the demand for CPO, which has consequently improved performance and efficiency. Moreover, the increasing 5G network and IoT are driving the demand for interconnect routers and switches, further driving the demand for CPO in the telecommunications and networking industry.

"6.4 T expected to register the highest CAGR during the forecast period."

The co-packaged optics market's 6.4 T segment is expected to account for the highest CAGR in the forecast period. The development of 6.4 T CPO is a challenging task, but the demand for high-speed and reliable data communication is growing rapidly and is driving the market growth. Moreover, it is expected to play an increasingly important role in the data center and high-performance computing (HPC) markets in the coming years. A number of companies are developing 6.4 T CPO products, including Skorpios Technologies Inc., Broadcom, and Marvell.

"North America to account for the highest market share among other regions during the forecast period."

North America is expected to dominate the co-packaged optics market during the forecast period. It is expected that North America will continue to dominate the co-packaged optics market in the coming years, accounting for the largest market share. This is because North America is home to many technology companies and research and development establishments, which lead to significant innovations and technological advancements.

It is set to grow significantly in the coming years due to the rising need for reliable and high-speed optical interconnects across various industries, including data centers, telecommunications, and industrial automation. With the introduction of 5G networks and the expansion of edge computing infrastructure, the increasing demand for low latency and high bandwidth are creating opportunities for CPO technology in the upcoming years.

The break-up of primary participants for the report has been shown below:

By company type: Tier 1 - 38%, Tier 2 - 28%, and Tier 3 - 34%
By designation: C-Level Executives - 40%, Managers - 30%, and Others - 30%
By region: North America - 35%, Europe - 20%, Asia Pacific - 35%, and RoW - 10%

The report profiles key players in the co-packaged optics market with their respective market ranking analyses. Prominent players profiled in this report 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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