Crozet VA: Industry analyst firm, CIR, has issued its latest report on the co-packaged optics modules market. In the report the firm predicts that the co-packaged optics modules market will reach $5.5 billion in 2027, including NPO products. Driven by the new OIF Implementers Agreement (IA), co-packaged optics now has a much clearer adoption path within data centers. In addition, this new interface standard created specifically for the age of latency sensitive traffic such as that created by the current AI boom provides an additional, and crucial enabling factor.
“CIR sees tremendous potential for co-packaged optics that can begin to be realized in the next two years,” according to CIR’s President and the report’s author, Lawrence Gasman. “CPO provides a pathway to 1.6T and beyond.”
Additional details about the report, “Markets for Co-Packaged Optics 2023-2028” are available at: https://cir-inc.com/reports/co-packaged-optics-market-analysis-2023-2028/
About the Report:
This report updates CIR’s forecasts of the co-packaged optics modules market with breakouts by network segment application and data rate. It also provides an update on CPO strategy from the key influencers in the market. In terms of speed, we look at 800G and 1.6T. Another objective of our latest report includes efforts to better present the product roadmap for CPO in the near- to medium-term future. The report includes some analysis of important subsystems of CPO devices, notably the external lasers and the potential additional cooling for the CPO module. We also address the role of silicon photonics and the impact of optical integration on the future of CPO.
In terms of coverage, the report concerns itself with CPO and precursors to CPO, meaning near-packaged optics (NPO). In terms of applications, we cover all likely applications, but aside from organic traffic growth made up of voice, data and video traffic, the forecasts also reflect an expected boom for low-latency traffic and how the growth of AI (enterprise, SaaS and individual) is resetting the thinking. The market for CPO in HPC, disaggregated computing applications and sensors are also analyzed and forecasted. Finally, the report considers the market impact of the emerging standards for CPO including the just-released OIF standard and the work on standards setting beginning in China.
CIR sees data centers generating $19 plus billion revenues of aggregate spending on CPO over the 2023-2028 period. CIR believes that there will be significant deployment of CPO in the access network reaching $323 million in access deployments in 2027.
An inflection point in the evolution of optical integration is rapidly emerging that is bringing together CPO with chiplets and a new take on silicon photonics. This new type of optical integration does not yet have a name but differs from the approach that is based on novel materials.
Until recently CPO has seemed a way to protect US firms from Chinese competition in the transceiver module space. However, the Chinese have set up their own CPO development organization with widespread ambitions to place CPO deep in the network. At the same time a review of technical papers suggests that some of the more prominent Chinese transceiver companies have advanced plans to offer CPO products.
CIR has published hype-free industry analysis for optical networking and photonics for more than 35 years. Our reports provide informed and reasoned market forecasts and industry analysis to a global roster of clients. In addition, to market analysis reports, CIR provides data sets of optical components with breakouts by types of data center and end user.
Visit http://www.cir-inc.com for a full listing of CIR’s reports and other services.