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 scale-up 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.
