The size of the co-packaged optics market is anticipated to increase at a compound annual growth rate (CAGR) of 26.5% from USD 15 million in 2023 to USD 49 million by 2028.

In the next five years, the co-packaged optics market is anticipated to rise due to the launch of ultra-high definition video streaming, growing investments made by tech giants in data center development, and the penetration of IoT and connected devices in the education and healthcare sectors. For industry participants, however, greater network complexity is probably going to provide difficulties.

The report aims to define, characterize, and project the co-packaged optics market according to its type, data rates, application, and geographic distribution.

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Throughout the projection period, the co-packaged optics market is anticipated to develop at the greatest CARG, according to CP0.

Over the course of the projected period, the CPO is anticipated to hold a sizable share and increase at the fastest CAGR. The market is anticipated to develop due to the need for CPOs as businesses search for methods to enhance network performance. The market for co-packaged optics is also significantly influenced by the growing construction of mega data centers, which need dependable high-speed connections to transfer data across various equipment types. The industry under investigation has been further stimulated by the increased demand for data centers brought about by the increasing usage of cloud services.

In the co-packaged optics market, less than 1.6 T & 1.6 Ti is anticipated to expand at the highest CARG in 2023.

During the projected period, a substantial part is anticipated to be accounted for by the less than 1.6 T & 1.6 T category. In the upcoming years, there will likely be a continued high demand for co-packaged optics (CPO) with data rates less than 1.6 T. This is because there will be a large need for numerous applications, including telecommunications, data centers, and industrial automation. This 1.6 T data range is expanding due in large part to the increased activity of major competitors in the market, including Intel Corporation and MACOM.

Over the projected period, India is anticipated to have the greatest compound annual growth rate (CAGR) among the Asia Pacific countries with a co-packaged optics market.

Co-packaged optics continues to have a substantial market in the Asia Pacific area. Data center infrastructure has grown significantly in the Asia Pacific region as a result of the growing demand for digital services, cloud computing, and e-commerce. As 5G networks are being installed in the Asia-Pacific region, fast, low-latency communication lines are crucial. Over half a million internet users in India are producing and consuming more data, and they are becoming more and more reliant on cloud services, which is driving the country's data center industry's rapid expansion.

Key market players
Major vendors 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.