The co-packaged optics market size 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.

Penetration of IoT and connected devices in education and healthcare sectors, growing investment by tech giants to develop data centers,  and introduction of ultra-high-definition video streaming are expected to propel the co-packaged optics market in the next five years. However, increased network complexity is likely to pose challenges for industry players.

The objective of the report is to define, describe, and forecast the co-packaged optics market based on type, data rates, application, and region.

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Co-packaged optics Market: Key Trends
The prominent players in the co-packaged optics market are 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. These companies boast mixing trends with a comprehensive product portfolio and strong geographic footprint.

CP0 is expected to grow at the highest CARG in the co-packaged optics market during the forecast period.
The CPO is expected to account for a significant share and grow at the highest CAGR during the forecast period. The demand for CPOs is expected to drive market growth as organizations look for ways to improve their network performance. Additionally, the increasing deployment of mega data centers is a key driver in the co-packaged optics market, as these data centers require reliable high-speed connections to transmit data between different types of equipment. The widespread use of cloud services has raised the demand for data centers, which has further fueled the industry under study.

Less than 1.6 T & 1.6 Tis expected to grow at the highest CARG in the co-packaged optics market in 2023.
The less than 1.6 T & 1.6 T segment is expected to account for a significant share during the forecast period. The demand for less than 1.6 T data rates co-packaged optics (CPO) is expected to remain strong in the coming years. This is due to the fact that many applications, such as data centers, telecommunications, and industrial automation, will have high demand. The increasing activities by market players such as MACOM and Intel Corporation are driving the growth of this 1.6 T data range.

The co-packaged optics market is expected to grow at the highest CAGR in India from the Asia Pacific region during the forecast period.
The Asia Pacific region continues to be a significant market for co-packaged opticss. The Asia Pacific region has witnessed significant growth in data center infrastructure due to the rising demand for cloud computing, digital services, and e-commerce. With the deployment of 5G networks in the Asia- Pacific countries, high-speed, low-latency communication links are essential. In India, the data center industry is rapidly expanding as more than half a million digital users generate and consume increasing amounts of data, with a growing preference for cloud services. India is now becoming a prime global destination for data center construction as India has become a fast-growing DC hub pursuant to a massive and growing internet user base, explosion of data, and establishment of a favorable environment through the government's Digital India initiative. Moreover, the Indian government's growing support for the data center and telecommunication industry is creating new opportunities.