CO-PACKAGED OPTICS MARKET

INTRODUCTION

In a single packed assembly,  co-Packaged Optics offers optical I/O for Ethernet switches or disaggregated computing and addresses some of the issues brought on by pluggable optics, such as port density, power consumption, thermal management, and bandwidth.

To increase bandwidth and energy efficiency, it is important to shift the electro-optic conversion process as close as feasible to the computation, switch, or ASIC die.

In terms of the necessary electrical and optical densities, thermal concerns, and power consumption, it is anticipated that the current form factors of pluggable optics will be unable to sustain capacities of 1.6 Tb/s, 3.2 Tb/s, and higher.

Future pluggable optics will be constrained by power dissipation and thermal management due to the deployment of discrete electrical devices.

A novel strategy called co-packaged optics (CPO) seeks to address these issues by moving the optics closer to the switch ASIC. The well-known pluggable optics are regarded to be obsolete by CPO technology, which is seen as a new deployment mechanism for the entire ecosystem.

When CPO reaches commercial status, it may take over in some applications, but this does not imply that pluggable optics will disappear entirely.

KEY FINDINGS

1. The data communication segment is expected to be the largest segment of the global co-packaged optics market in the coming years. This is due to the rapid growth of cloud computing and big data analytics, which are driving the demand for high-speed data communication networks.
2. The telecommunications segment is also expected to grow significantly in the coming years, driven by the deployment of 5G networks and the increasing adoption of fiber-to-the-home (FTTH) services.
3. The Asia Pacific region is expected to be the largest market for co-packaged optics in the coming years. This is due to the rapid growth of the data center and telecommunications industries in this region.
4. FTTH services are becoming increasingly popular, as they offer consumers high-speed internet access. Co-packaged optics are being used in FTTH networks to improve the performance and reliability of FTTH networks.
5. There are a number of technological advancements being made in the co-packaged optics market, such as the development of new materials and manufacturing processes. These advancements are leading to the development of co-packaged optics products with improved performance and lower cost.
6. Co-packaged optics are currently more expensive than traditional pluggable optics. This is due to the high cost of developing and manufacturing co-packaged optics products.
7. The lack of standardization in the co-packaged optics market is also a challenge. This is making it difficult for businesses to develop and adopt co-packaged optics products. The industry is working on developing standards for co-packaged optics, and it is expected that standards will be finalized in the coming years.
8. The co-packaged optics market is a global market, with opportunities for businesses in all regions of the world. However, the Asia Pacific region is expected to be the largest market for co-packaged optics in the coming years. This is due to the rapid growth of the data center and telecommunications industries in this region.

CO-PACKAGED OPTICS MARKET SIZE AND FORECAST

The Global co-Packaged Optics market accounted for $XX Billion in 2023 and is anticipated to reach $XX Billion by 2030, registering a CAGR of XX% from 2024 to 2030.

CO-PACKAGED OPTICS MARKET DYNAMICS

Broadcom and Tencent have joined forces to accelerate the implementation of high-bandwidth co-packaged optic switches. In a significant development, Broadcom is set to deploy its first switch, named Humboldt, equipped with internal optics in the data centers of the renowned cloud provider.

These switches are underpinned by an innovative architecture that has been integrated into traditional switches, introducing co-packaged optical interconnects. This approach, commonly referred to as co-Packaged Optics, involves the relocation of optics and digital signal processors (DSPs) from the pluggable modules typically located at the switch’s front. Instead, they are transformed into chiplets through silicon photonics and subsequently bundled together with the Application-Specific Integrated Circuit (ASIC).

This partnership represents a significant step forward in enhancing the capabilities of data center switches and their efficiency by seamlessly integrating optical and digital components into a single cohesive solution.

Ayar Labs, a leading provider of co-packaged optics solutions, raised $130 million in funding from a group of investors. The funding will be used to accelerate the development and commercialization of Ayar Labs’ co-packaged optics products.

Broadcom Inc.,acquired RainTree Photonics, a leading provider of co-packaged optics products. The acquisition is expected to strengthen Broadcom’s co-packaged optics portfolio and give the company a competitive advantage in the growing co-packaged optics market.

Intel Corporation and Cisco Systems, Inc., two leading technology companies, announced that they are collaborating to develop co-packaged optics for 5G networks. The two companies are working together to develop new co-packaged optics products that can support the high bandwidth and low latency requirements of 5G applications.

TRENDS IN CO-PACKAGED OPTICS MARKET

• Increasing demand for co-packaged optics in data centers: Co-packaged optics are increasingly being used in data centers to improve the performance and efficiency of data center networks. This trend is expected to continue in the coming years, as data centers become more and more important for businesses of all sizes.
• Growing adoption of co-packaged optics in telecommunications networks: Co-packaged optics are also being used in telecommunications networks, such as 5G networks and FTTH networks. This trend is expected to continue in the coming years, as telecommunications providers deploy new networks and upgrade existing networks to support the growing demand for high-speed data communication services.
• Development of new co-packaged optics products and solutions: The co-packaged optics market is still in its early stages of development, and there is a lot of room for innovation. Businesses are developing new co-packaged optics products and solutions that offer improved performance, lower cost, and other benefits.
• Decreasing cost of co-packaged optics: The cost of co-packaged optics is expected to come down in the coming years as the technology matures and production volumes increase. This will make co-packaged optics more affordable for businesses of all sizes.
• Growing market awareness of co-packaged optics: Many businesses are not yet aware of the benefits of co-packaged optics. This is expected to change in the coming years, as more businesses learn about the benefits of co-packaged optics.

CO-PACKAGED OPTICS MARKET RECENT DEVELOPMENT

Marvell Technology Group announced the launch of its new co-packaged optics technology for cloud data centers. The new technology is designed to improve the performance and efficiency of cloud data center networks.

Considerations for Testing High-Density Co-Packaged Optical Devices. Datacenter, machine learning, and artificial intelligence applications currently require more than 25.6Tb/s of bandwidth. However, attaining the high channel counts required to achieve these speeds using the existing approach of pluggable modules that insert into the faceplate of the rack mount switch is extremely difficult.

To overcome these issues and minimise data transmission bottlenecks, optical engineers are developing co-packaged optical devices, which bring optics and electronics closer together in a single packaged component. However, like with any new technology, engineers must not only work through the complexity of building the actual devices, but they must also have the technology to swiftly test the functionality of these channel-dense systems.

The work being done on the 3.2T Co-Packaged Optical Module Implementation Project to produce devices that will boost bandwidth without significantly increasing energy consumption or transceiver footprint.

CO-PACKAGED OPTICS MARKET SEGMENTATION

Co-Packaged Optics Market By Type

• Optical transceiver/light engine
• Electric chip

Co-Packaged Optics Market By Application

• Data communication
• Telecommunications
• Information technology
• Others

Co-Packaged Optics Market By Region

• North America
• Europe
• China
• Asia Ex China
• ROW

Co-Packaged Optics Market By Data Rate

• Less than 1.6T
• 1.6T – 3.2T
• Above 3.2T

KEY PLAYERS IN CO-PACKAGED OPTICS MARKET

• IBM
• Marvell
• Lumentum
• Ranovus
• SENKO
• TE Connectivity
• Cisco Systems, Inc.
• Broadcom Inc.
• Intel Corporation
• Ayar Labs, Inc.
• RainTree Photonics
• SENKO Advanced Components, Inc.

THIS CO-PACKAGED OPTICS MARKET REPORT WILL ANSWER FOLLOWING QUESTIONS

1. Market share of Global Co-Packaged Optics market manufacturers and their upcoming products
2. key predictions for next 5 years in Global Co-Packaged Optics market
3. Latest trends in Co-Packaged Optics market, by every market segment
4. The market size (both volume and value) of the Co-Packaged Optics market in 2024-2030 and every year in between?
5. What is the current size and growth rate of the global co-packaged optics market?
6. What are the key drivers and challenges influencing the co-packaged optics market’s growth?
7. Which industry sectors are the primary adopters of co-packaged optics technology, and what are their specific use cases?
8. Who are the leading companies in the co-packaged optics market, and what is their market share?
9. What are the latest technological advancements in co-packaged optics, and how do they impact the market?
10. What are the key regional markets for co-packaged optics, and how do they differ in terms of adoption and growth?
11. What are the major trends and developments in co-packaged optics technology, such as power efficiency and thermal management?
12. What is the competitive landscape of the co-packaged optics market, and what strategies are companies employing to gain a competitive edge?
13. How is the co-packaged optics market expected to evolve in the next 5-10 years, and what opportunities does it present?
14. What are the cost considerations associated with adopting co-packaged optics, and how are they changing over time?
15. How do co-packaged optics compare with other optical interconnect technologies like AOCs and optical transceivers?
16. What are the potential use cases for co-packaged optics in emerging technologies like 5G, data centers, and edge computing?
17. What are the environmental sustainability aspects of co-packaged optics, and how are companies addressing them?