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Co-Packaged Optics in the AI Data Center: 10-Year Market Forecast and Strategic Analysis: Evaluating Silicon Photonics, Switch ASICs, and Strategies of Nvidia, Broadcom, Intel, and Marvell

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NVDA Nvidia is mentioned in the context of developing CPO solutions and refining deployment strategies for AI data center infrastructure. Their approach to silicon photonics and switch family are discussed, indicating active involvement in the CPO market. AVGO Broadcom is discussed for its emerging CPO product range, including the Bailly switch, and its long-term CPO strategy. The article also mentions their approach to optical engines. INTC Intel's involvement in CPO is highlighted through their first bi-directional compute interconnect, multiwavelength integrated optics, and future CPO plans, indicating their engagement in the evolving AI data center technology. MRVL Marvell is mentioned in relation to CPO and its XPU architecture, as well as its switches. The acquisition of Celestial AI is also noted, suggesting strategic moves in the CPO space. AMD AMD is mentioned in the context of its acquisition of Enosemi and collaborations with Ranovus, indicating its engagement with technologies relevant to CPO and AI data centers. IBM IBM's CPO-related innovations in 2024-2025 and collaborations with Ranovus are mentioned, positioning them as a player in the development of CPO technologies for AI data centers. GOOG Google is listed as a US company involved in the AI data center space, and its potential role in CPO adoption is implied through the general discussion of hyperscale data center evolution and CPO integration. META Meta (Facebook) is identified as a US company involved in AI data centers. Its inclusion suggests potential adoption or influence on CPO technologies as AI infrastructure expands. MSFT Microsoft is listed as a US company involved in AI data centers, implying its interest and potential role in the adoption and development of CPO technologies for its infrastructure. CIEN Ciena is mentioned with its long-term participation in the CPO market, indicating its strategic focus and involvement in the development and deployment of CPO solutions. CSCO Cisco is listed as a US company, and its mention in the context of AI data centers and networking implies potential involvement or interest in CPO technologies as they evolve. COHR Coherent is mentioned for its CPO product evolution, indicating its active role in developing and supplying components or solutions for the co-packaged optics market. GLW Corning is listed as a US company, and its mention in the context of fiber solutions for CPO suggests its involvement in supplying critical components for AI data center interconnects. DD DuPont is listed as a US company, and its mention in the context of materials for CPO suggests its role in supplying components or materials for the development of advanced optical interconnects. LITE Lumentum's CPO-related activity is noted, indicating its engagement in the development and supply of optical components and solutions for AI data centers. TE TE Connectivity's path to CPO is mentioned, indicating its strategic involvement in developing and supplying connectivity solutions for the evolving AI data center market. AMAT While not explicitly named, Applied Materials is a major supplier of semiconductor manufacturing equipment, which is critical for the production of components used in CPO technology for AI data centers. KLAC While not explicitly named, KLA Corporation is a key provider of process control and yield management solutions for semiconductor manufacturing, essential for the advanced components in CPO. ASML While not explicitly named, ASML is a critical supplier of photolithography equipment essential for advanced chip manufacturing, which underpins CPO technology for AI data centers. AMCX AMC Networks is mentioned as a US company, but its business is not directly related to the AI data center or co-packaged optics market discussed in the article. AMGN Amgen is mentioned as a US company, but its focus on biotechnology is not directly related to the AI data center and co-packaged optics market discussed in the article. AMZN Amazon is mentioned as a US company and a potential hyperscale data center operator, implying interest in CPO technology for its infrastructure, though not directly detailed. BIIB Biogen is mentioned as a US company, but its focus on biotechnology is not directly related to the AI data center and co-packaged optics market discussed in the article. BMY Bristol Myers Squibb is mentioned as a US company, but its focus on pharmaceuticals is not directly related to the AI data center and co-packaged optics market discussed in the article. COST Costco Wholesale is mentioned as a US company, but its retail business is not directly related to the AI data center and co-packaged optics market discussed in the article. CSX CSX Corporation is mentioned as a US company, but its focus on transportation is not directly related to the AI data center and co-packaged optics market discussed in the article. DIS The Walt Disney Company is mentioned as a US company, but its entertainment focus is not directly related to the AI data center and co-packaged optics market discussed in the article. EA Electronic Arts is mentioned as a US company, but its gaming focus is not directly related to the AI data center and co-packaged optics market discussed in the article. EXC Exelon Corporation is mentioned as a US company, but its focus on energy is not directly related to the AI data center and co-packaged optics market discussed in the article. GILD Gilead Sciences is mentioned as a US company, but its focus on biotechnology is not directly related to the AI data center and co-packaged optics market discussed in the article. HON Honeywell International is mentioned as a US company, but its diversified industrial focus is not directly related to the AI data center and co-packaged optics market discussed in the article. INTU Intuit is mentioned as a US company, but its focus on financial software is not directly related to the AI data center and co-packaged optics market discussed in the article. JD JD.com is mentioned as a company, but it is a Chinese e-commerce company and not traded on a US stock exchange. LLY Eli Lilly and Company is mentioned as a US company, but its focus on pharmaceuticals is not directly related to the AI data center and co-packaged optics market discussed in the article. LRCX While not explicitly named, Lam Research is a major supplier of wafer fabrication equipment, which is crucial for the manufacturing of advanced semiconductor components used in CPO technology. MAR Marriott International is mentioned as a US company, but its hospitality focus is not directly related to the AI data center and co-packaged optics market discussed in the article. MDLZ Mondelez International is mentioned as a US company, but its focus on food and beverages is not directly related to the AI data center and co-packaged optics market discussed in the article. MU Micron Technology is a US-based memory manufacturer, and while not explicitly detailed, its products are fundamental to AI data centers and thus indirectly related to CPO infrastructure. NFLX Netflix is mentioned as a US company, but its streaming focus is not directly related to the AI data center and co-packaged optics market discussed in the article. NTAP NetApp is a US company focused on data storage solutions for cloud environments, which are integral to AI data centers. Its role is indirectly related to the CPO infrastructure. ORCL Oracle is mentioned as a US company, and its cloud infrastructure services are relevant to AI data centers, implying potential interest in CPO technologies. PEP PepsiCo is mentioned as a US company, but its focus on food and beverages is not directly related to the AI data center and co-packaged optics market discussed in the article. PFE Pfizer is mentioned as a US company, but its focus on pharmaceuticals is not directly related to the AI data center and co-packaged optics market discussed in the article. QCOM Qualcomm is a US company known for its semiconductor technology. While not explicitly detailed in relation to CPO, its expertise in chip design is relevant to the broader AI infrastructure ecosystem. SBUX Starbucks is mentioned as a US company, but its focus on coffee and food is not directly related to the AI data center and co-packaged optics market discussed in the article. SMCI Super Micro Computer is a US company that designs and manufactures high-performance servers and storage solutions, crucial for AI data centers. Its role is indirectly related to CPO infrastructure. SNY Sanofi is mentioned as a US company, but its focus on pharmaceuticals is not directly related to the AI data center and co-packaged optics market discussed in the article. TCOM T-Mobile US is mentioned as a US company, but its focus on telecommunications services is not directly related to the AI data center and co-packaged optics market discussed in the article. TMO Thermo Fisher Scientific is mentioned as a US company, but its focus on scientific instrumentation and services is not directly related to the AI data center and co-packaged optics market discussed in the article. TXN Texas Instruments is a US-based semiconductor company. While not explicitly detailed in relation to CPO, its broad semiconductor portfolio is relevant to the AI infrastructure ecosystem. ULTA Ulta Beauty is mentioned as a US company, but its focus on beauty products is not directly related to the AI data center and co-packaged optics market discussed in the article. VRTX Vertex Pharmaceuticals is mentioned as a US company, but its focus on biotechnology is not directly related to the AI data center and co-packaged optics market discussed in the article. WFC Wells Fargo is mentioned as a US company, but its focus on financial services is not directly related to the AI data center and co-packaged optics market discussed in the article. WMT Walmart is mentioned as a US company, but its retail focus is not directly related to the AI data center and co-packaged optics market discussed in the article. XOM Exxon Mobil is mentioned as a US company, but its focus on oil and gas is not directly related to the AI data center and co-packaged optics market discussed in the article. ZM Zoom Video Communications is mentioned as a US company, but its focus on video conferencing is not directly related to the AI data center and co-packaged optics market discussed in the article.

Co-Packaged Optics in the AI Data Center: 10-Year Market Forecast and Strategic Analysis: Evaluating Silicon Photonics, Switch ASICs, and Strategies of Nvidia, Broadcom, Intel, and Marvell Dublin, Aug. 17, 2026 (GLOBE NEWSWIRE) -- The "Co-Packaged Optics in the AI Data Center: A Ten-Year Market and Technology Forecast" has been added to ResearchAndMarkets.com's offering.

New Co-Packaged Optics Market Report Maps the Transition to AI Data Center Deployment

A new co-packaged optics market report examines how CPO technology is advancing to address the bandwidth, latency, power and interconnect requirements of next-generation AI data centers. By placing optical interfaces closer to the electrical die, CPO shortens high-speed electrical paths and supports denser optical fabrics, greater aggregate bandwidth per accelerator and lower energy consumption per bit.

These performance advantages increasingly align CPO with the technical and economic demands of large-scale AI infrastructure. As AI clusters expand across multiple racks, data center operators, accelerator suppliers and system integrators must overcome escalating connectivity and power constraints. CPO is therefore being positioned as an important interconnect technology for scalable AI computing environments.

Despite growing industry momentum, co-packaged optics remains an emerging technology. Product architectures, manufacturing strategies and standards continue to evolve, while deployment schedules vary across suppliers and applications. The report evaluates multiple standards and product scenarios to show how different commercialization paths could influence the global co-packaged optics market.

The report's publisher first introduced a dedicated CPO market study in 2020. Its latest analysis projects that co-packaged optics will become a major interconnect technology within AI data centers worldwide beginning in 2026. The updated report provides a roadmap for the transition to CPO and identifies where business value may emerge across the developing ecosystem.

Key areas covered in the co-packaged optics market report include:

A central objective of the report is to update co-packaged optics market forecasts with detailed breakouts by application, data rate, technology, network segment and data center type. The projections incorporate the impact of generative AI, accelerated computing and rapidly expanding AI workloads on CPO adoption, product development and market dynamics.

The analysis also considers how CPO could provide a practical route for scaling multi-rack AI clusters as conventional electrical interconnects encounter power, reach and density limitations. This opportunity is attracting increased attention from semiconductor companies, optical component suppliers, networking vendors, AI accelerator providers and data center system integrators.

Major AI technology vendors are already developing CPO solutions and refining deployment strategies for AI data center infrastructure. Although initial market activity has focused on anticipated 2025 and 2026 deployments, the report assesses a range of adoption timelines to reflect continuing uncertainty around standards, product readiness, manufacturing complexity and operational requirements.

By combining market forecasts, supplier roadmaps, deployment guidance and application-level analysis, the report offers a comprehensive view of the global CPO market. It is intended to help AI data center operators, technology providers, investors and strategic planners evaluate commercialization opportunities and prepare for the expanding role of co-packaged optics in high-performance AI networking.

Key Topics Covered:

Executive Summary

E.1 Market Environment and Situations Influencing the Market

E.2 Potential CPO Benefits

E.3 Uncertainties Preventing a CPO Boom

E.3.1 Does AI Need CPO and is CPO Ready for AI?

E.4 Technical/Market Evolution of the CPO Market for AI Applications

E.4.1 Adventures in Cooling

E.4.2 CPO Test Equipment: Sales Prior to the CPO Market

E.4.3 Other Technical Issues

E.5 Why CPO is Likely to Succeed - At Least for Now

E.6 Summary of CPO Market Forecasts 2026-2034

Chapter One: Introduction

1.1 Background to this Report

1.2 Goals and Scope of this Report

1.3 Plan of this Report

Chapter Two: Co-packaged Optics: A Technology, Components and Business Opportunity Evolving

2.1 CPO in Traditional AI Data Centers

2.2 CPO for Next-Gen AI Data Centers

2.2.1 CPO Data Rates

2.2.2 Thermal Management

2.2.3 Electrical Interfaces and Channel Loss

2.2.4 Optical Interfaces

2.2.5 Integration Strategies, Manufacturing and CPO

2.3 CPO-related Test Equipment

2.4 Optical Engines

2.4.1 The Broadcom and NVIDIA Approaches

2.5 Fiber, Connector and Couplers for CPO

2.5.1 Thoughts from Broadcom and NVIDIA

2.5.2 Vertical Coupling

2.6 Fiber Solutions for CPO

2.6.1 Multi-core fibers and Fiber Pitch Reduction

2.6.2 Reducing the Pitch

2.7 Lasers for CPO

2.7.1 External Lasers and ELSFP

2.7.2 Module-integrated lasers

Chapter Three: CPO Standards and Implications

3.1 OIF and the Emergence of Co-Packaged Optics

3.1.1 Framework IA (2022)

3.1.2 OIF standards 3.2T CPO Module

3.1.3 External Laser Small Form Pluggable ELSP IA (2023)

3.1.4 CEI-112G / CEI-224G Electrical Interfaces

3.1.5 IAs for CPO Management Interfaces

3.1.6 Future IAs of the CPO Kind

3.1.7 Telemetry and Management

3.2 CPO Standardization in China

3.3 UCIe and CPO

3.4 CPO and Ultra Ethernet

3.4.1 Ultra Ethernet

3.4.2 Advanced Photonics Coalition

Chapter Four: CPO Markets and Forecasts

4.1 Thoughts on the Growth and Size of the CPO Market

4.2 Organic Traffic Growth for CPO Impact on CPO Demand

4.2.1 What Video Taught Data Centers: Bandwidth and Latency

4.2.2 CPO Market by Size of Data Center

4.3 CPO and Hyperscale Data Centers

4.3.1 Hyperscale Data Center Evolution

4.3.2 A CPO Inflection Point by 2032: A Forecast

4.3.3 Penetration of CPO into Switches

4.3.4 Penetration of CPO into Data Servers

4.3.5 Impact on Fiber and Data Center Rack Design

4.3.6 Pricing of CPO Products

4.4 CPO and Conventional Data Centers: Prophesies

4.5 CPO and Edge Data Centers

4.5.1 CPO at the Edge

4.6 CPO Data Center Interconnection

4.6.1 Role of CPO in DCI

4.7 Non-AI Applications for CPO

4.7.1 High-Performance Computing

4.7.2 CPO's Impact on IoT

4.7.3 CPO and Sensors

4.7.4 Disaggregated Compute Systems: Applications for CPO

Chapter Five: End-user Perspectives, Strategies and Guidance: Problems Still to Overcome?

5.1 AI Exaggerates the Importance of CPO!

5.2 Stage One: The Path to CPO - NPO, LPO and "Real" CPO

5.3 NPO (Near-packaged Optics)

5.3.1 LPO (Linear Pluggable Optics)

5.4 Stage Two: Rebuilding the Infrastructure for CPO: Practical Considerations for Processes and Components

5.4.1 Availability of Commercial Component Choices

5.4.2 CPO and the Old Copper vs. Glass Debate

5.4.3 Cooling, Power and Sustainability

5.4.4 ELSFP and the CPO Supply Chain

5.5 Stage Three: Pilot Project, Plugfests and Demos

5.5.1 Multivendor Plugfests

5.5.2 Hyperscaler Internal Trials

5.5.3 Vendor Demos

Chapter Six: Profiles: Suppliers and Influencers

6.1 AMD (United States)

6.1.1 Acquisition of Enosemi

6.2 Ayar Labs (United States)

6.2.1 Product Evolution

6.2.2 Alchip Technologies/TSMC alliance

6.2.3 Partnership with Quantifi Photonics

6.2.4 Partnership with HPE

6.2.5 Ayar the AI Infrastructure

6.2.6 Financing and Collaborators

6.3 Broadcom (United States)

6.3.1 Emerging CPO Product Range

6.3.2 The Bailly Switch

6.3.3 Long-term CPO Strategy at Broadcom

6.4 Ciena/Nubis (United States)

6.4.1 Ciena's Long-term Participation in the CPO Market

6.5 Cisco (United States)

6.6 Coherent (United States)

6.6.1 CPO Product Evolution

6.7 Corning (United States)

6.8 DuPont (United States)

6.9 Furukawa Electric (Japan)

6.10 Google (United States)

6.11 Hengtong Optic-Electric (China)

6.12 Huawei (China)

6.12.1 Huawei Thinking on CPO

6.13 IBM (United States)

6.13.1 IBM CPO-related Innovations in 2024-2025

6.14 Intel (United States)

6.14.1 First Bi-Directional Compute Interconnect

6.14.2 CPO and Multiwavelength Integrated Optics

6.14.3 The Future of CPO at Intel

6.15 Kyocera (Japan)

6.16 Lightmatter (United States)

6.17 Lumentum (United States)

6.17.1 CPO Related Activity

6.18 Marvell (United States)

6.18.1 CPO and the Marvell XPU Architecture

6.18.2 CPO and Marvell Switches

6.18.3 Acquisition of Celestial AI

6.19 Meta/Facebook (United States)

6.20 Microsoft (United States)

6.21 Micas Networks (United States)

6.22 Molex (United States)

6.23 NVIDIA (United States)

6.23.1 Silicon Photonics: Strengths and Architectures

6.23.2 The NVIDIA Switch Family

6.23.3 Emerging Markets for NVIDIA CPO Switches

6.24 POET Technologies (Canada)

6.24.1 The POET Interposer

6.24.2 Light Sources and Collaboration with Semtech and Sivers Semiconductors

6.24.3 Recent Alliance with Quantum Computing Inc. (QCI)

6.24.4 POET Products for AI Data Centers

6.24.5 Manufacturing and Foreign Subsidiaries

6.25 Quantifi (New Zealand)

6.26 Ranovus (Canada)

6.26.1 ODIN Optical Engine and its Versions

6.26.2 Collaborations with AMD

6.26.3 Collaborations with IBM

6.26.4 DARPA, Cerebras Systems and Ranovus

6.26.5 Alliance with Jabil

6.27 SABIC (Saudi Arabia)

6.27.1 EXTEM Resin

6.27.2 ULTEM Resin

6.28 Senko Advanced Components (United States)

6.28.1 Acquisition of Cudoform

6.29 Skorpios Technologies (United States)

6.29.1 The Skorpios Technologies Chip

6.29.2 Applications

6.30 Sumitomo Electric (Japan)

6.30.1 External Lasers

6.30.2 Electronic Integration on Glass

6.30.3 Fiber-array Interconnects for CPO

6.31 TE Connectivity (United States)

6.31.1 The TE Path to CPO

6.32 Teramount (Israel)

6.33 Third-party Transceiver Suppliers and Distributors and the Future of CPO

6.34 Startups, Investors and Pure Players in CPO

6.34.1 Product/Technology Focus of Future CPO Start-ups

Acronyms and Abbreviations Used in this Report

List of Exhibits

Exhibit E-1: Summary of CPO Markets by Type of Data Center ($ Millions)

Exhibit 2-1: AI Data Center Switches Today

Exhibit 2-2: Thermal Management for Future CPO: Technology and Opportunities

Exhibit 2-3: Current Use of Silicon Photonics for CPO

Exhibit 2-4: CPO Testing Functionality

Exhibit 2-5: ELSFP: Possible Project Range

Exhibit 3-1: Future IAs of the CPO Kind

Exhibit 4-1: Types of AI Data Centers in 2025

Exhibit 4-2: CPO Markets by Product Type in Hyperscale AI Data Center

Exhibit 4-3: Switches in Hyperscale Network Racks

Exhibit 4-4: How CPO Changes the Physical Rack Layout

Exhibit 4-5: CPO Markets by Product Type in Non-Hyperscale AI Data Center

Exhibit 5-1 NPO vs. LPO

Exhibit 6-1: CPO Start-Ups

Companies Featured

For more information about this report visit https://www.researchandmarkets.com/r/4h4fo

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