Co-packaged optics modules to be $5.5B market by 2027, says CIR

May 13, 2024
The research firm’s report updates its market forecasts for co-packaged optics modules.

Bolstered by the new OIF Implementation Agreement (IA), co-packaged optics now have a much more straightforward adoption path within data centers. Additionally, this new interface standard explicitly created for the age of latency-sensitive traffic, such as that made by the burgeoning AI trend, provides an additional and crucial enabling factor.

In its latest co-packaged optics modules report, CIR forecasts that the market will reach $5.5 billion in 2027, including near-packaged optics (NPO) products. 

“CIR sees tremendous potential for co-packaged optics that can begin to be realized in the next two years,” said CIR’s President and the report’s author, Lawrence Gasman. “CPO provides a pathway to 1.6T and beyond.”

A big consumer of CPO will be data centers.

CIR predicts that data centers will generate over $19 billion in aggregate spending on CPO over the 2023-2028 period. The research firm said there will be significant deployment of CPO in the access network, reaching $323 million in access deployments in 2027.

Further, CIR noted that the emerging approach that combines CPO with chiplets represents an “inflection point in the evolution of optical integration.” While this type of optical integration does not yet have a name, CIR said it differs from the approach based on novel materials.

Initially, CPO was seen as a way to protect US firms from Chinese transceiver competitors. CIR noted that the Chinese players have set up a CPO development organization to place CPOs deep in the network. Also, the research firm’s review of technical papers suggests that some of the more prominent Chinese transceiver companies have advanced plans to offer CPO products.

For related articles, visit the Network Design Topic Center.
For more information on high-speed transmission systems and suppliers, visit the Lightwave Buyer’s Guide.
To stay abreast of fiber network deployments, subscribe to Lightwave’s Service Providers and Datacom/Data Center newsletters.

About the Author

Sean Buckley

Sean is responsible for establishing and executing the editorial strategies of Lightwave and Broadband Technology Report across their websites, email newsletters, events, and other information products.

Sponsored Recommendations

New Optical Wavelength Service Trends

July 1, 2024
Discover how optical wavelength services are reshaping the telecom landscape, driven by rapid expansion and adoption of high-speed connections exceeding 100 Gbps, championed by...

Data Center Interconnection

June 18, 2024
Join us for an interactive discussion on the growing data center interconnection market. Learn about the role of coherent pluggable optics, new connectivity technologies, and ...

AI’s magic networking moment

March 6, 2024
Dive into the forefront of technological evolution with our exclusive webinar, where industry giants discuss the transformative impact of AI on the optical and networking sector...

ON TOPIC: Innovation in Optical Components

July 2, 2024
Lightwave’s latest on-topic eBook, sponsored by Anritsu, will address innovation in optical components. The eBook looks at various topics, including PCIe (Peripheral...