Co‑Packaged Optics (CPO) – 2025： The Year of Arrival

Co‑Packaged Optics (CPO) has been steadily paving the way for next generation data center interconnects. 2025 marks the year of CPO’s arrival, with key industry milestones demonstrating its growing impact:

In March, NVIDIA announced its 200G/lane CPO for InfiniBand and Ethernet switches.

Broadcom introduced its 3rd generation 200G/lane CPO, showing the technology is ready for commercial deployment.

These developments signal a major advance for the data center optics industry.

Market forecasts are strong:

LightCounting has increased its CPO market forecast, expecting both Broadcom and NVIDIA to introduce scale-up switches, GPUs, or XPUs with integrated CPO in 2026, with shipments beginning in 2027.

The CPO engine market, covering both scale-up and scale-out applications, is projected to reach $10 billion by 2030, with close to 100 million CPO ports shipped.

Customer interest is accelerating:

Lumentum’s CEO highlighted that hyperscalers are increasingly adopting CPO as a key solution for AI clusters, with a significant ramp scheduled for late 2026.

AI-driven growth:

According to LightCounting, the market for LPO and CPO used in scale-out and scale-up AI networks is expected to double from $5 billion in 2024 to over $10 billion by 2026.

Growth is projected to moderate in 2026-2027 as the first wave of AI expansion stabilizes, but scaleup deployments using LPO and CPO will drive double-digit growth again from 2028 to 2030.

Conclusion:

CPO is no longer a concept—it is here and growing. 2025 marks the year CPO truly arrives, laying the foundation for high-performance AI and hyperscale data center networks.