The market for co-packaged optics (CPO) modules and near-packaged optics (NPO) products will reach $5.5 billion in 2027, CIR says in a newly released report. The completion of a new OIF Implementation Agreement will help drive use of this technology in both data centers and low-latency artificial intelligence applications, the market intelligence firm states in Markets for Co-Packaged Optics 2023-2028.
"CIR sees tremendous potential for co-packaged optics that can begin to be realized in the next two years,” according to Lawrence Gasman, CIR’s president and the report’s author. “CPO provides a pathway to 1.6T and beyond."
Gasman and CIR see CPO as an inflection point in the evolution of optical integration as CPO combines with chiplets and “a new take on silicon photonics.” This new form of optical integration differs from prior approaches that leveraged novel materials, according to the report.
The resulting benefits will see CPO gaining traction in multiple markets. For example, CIR sees data centers generating more than $19 billion of aggregate spending on CPO from 2023 to 2028. Meanwhile, the market research firm also expects to see significant deployment of CPO in the access network, to the tune of more than $600 million worth of access deployments in 2028.
While most commercial CPO work has come from the West, CIR believes that China is striving to catch up, thus increasing the available market and supplier universe.
CIR’s Markets for Co-Packaged Optics 2023-2028 provides updated forecasts of the CPO and NPO spaces with breakouts by network segment application and data rate. The report also provides an update on CPO strategy from the key influencers in the market. Applications covered include 800G and 1.6T. The report offers product roadmaps for CPO in the near- to medium-term future as well as analysis of important subsystems of CPO devices, notably the external lasers and the potential additional cooling for the CPO module. CIR analysts also address the role of silicon photonics and the impact of optical integration on the future of CPO.
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