Co-Packaged Optics Market Size, Share & Forecast to 2035

The Co-Packaged Optics Market covers the optical subsystems that sit inside the package of a switch or compute chip instead of in a pluggable module at the front panel: silicon photonic optical engines, the external laser sources that feed them, optical input/output (I/O) chiplets for accelerators, and the fiber and connectivity that bring the light out of the package. DC Market Insights values the global Co-Packaged Optics Market at USD 159.31 million in 2025 and forecasts USD 23.43 billion by 2035, a CAGR of 64.72%. The 2025 value is built from bandwidth shipped: about 105 petabits per second (Pbps) of co-packaged switch optics at a blended USD 1.22 per gigabit per second (Gbps) gives USD 128.11 million, and about 26 Pbps of optical I/O chiplet bandwidth at USD 1.20 per Gbps adds USD 31.20 million. Optical I/O chiplets are the fastest-growing component at 71.57% a year because accelerator makers are moving scale-up links from copper to light, and the Middle East and Africa is the fastest-growing region at 75.29% a year because it starts from a base of only USD 4.62 million and DC Market Insights expects its new AI campuses to adopt co-packaged switches from their first phase.

Executive Summary

The Global Co-Packaged Optics Market size was valued at USD 8.75 million in 2020, reached USD 159.31 million in 2025, and is anticipated to reach USD 23.43 billion by 2035, at a CAGR of 64.72% during the forecast period.

Report attribute	Details
Historical Period	2020-2024
Base Year	2025
Forecast Period	2026-2035
Co-Packaged Optics Market Size 2025	USD 159.31 Million
Co-Packaged Optics Market, CAGR	64.72%
Co-Packaged Optics Market Size 2035	USD 23.43 Billion

The market grew at 78.67% a year between 2020 and 2025, from prototype optical engines and sample switches to the first deployments, and 2025 value was 93.9% above the USD 82.16 million of 2024. DC Market Insights expects 2026 to be the inflection year, with value tripling to USD 486.88 million as co-packaged switches from Broadcom and NVIDIA move into volume, and the market to pass USD 1 billion in 2027 at USD 1.45 billion. Growth slows to 64.72% a year over 2025 to 2035 because the price per Gbps falls sharply as volumes rise: DC Market Insights models switch optics content falling from USD 1.22 per Gbps in 2025 to about USD 0.19 per Gbps in 2035, while the bandwidth shipped grows more than 800 times.

Market Scope: What Does the Co-Packaged Optics Market Cover?

The Co-Packaged Optics Market covers optical components that are assembled on the same package or substrate as a switch application-specific integrated circuit (ASIC), a graphics processing unit (GPU) or another accelerator, valued at first sale in current US dollars, with 2025 as the base year and forecasts to 2035. DC Market Insights sizes it at USD 159.31 million in 2025.

Included. Silicon photonic optical engines (the photonic integrated circuit, its driver and receiver electronics and the fiber attach), external laser sources, including front-panel pluggable laser modules that feed continuous-wave light into the package, optical I/O chiplets and photonic interconnect fabrics for accelerators and memory, and the fiber, shuffles and connectors that run from the package to the front panel. Co-packaged optics used in data center switching, scale-up compute interconnect and memory disaggregation are covered.

Excluded. The switch ASIC, the GPU or accelerator die and the rest of the switch or server system; pluggable optical transceivers, including linear pluggable optics; active optical cables; structured cabling outside the switch; and installation labor. Pluggable transceivers are sized in the Optical Transceiver Market report.

How the segments fit together. The component split adds up the value of engines, lasers, I/O chiplets and connectivity. The application, lane-speed, modulator-type and end-user splits re-cut the same USD 159.31 million, and the country table allocates the regional totals.

Market Drivers: What Drives the Co-Packaged Optics Market?

Three drivers explain the growth of the Co-Packaged Optics Market from USD 159.31 million in 2025 to USD 23.43 billion by 2035: optics power that co-packaging cuts by 65% or more, the move of the largest switch and GPU suppliers into production, and supply agreements that lock in laser and photonics capacity years ahead.

Co-Packaged Optics Cut Optics Power by 65% to 70%

Power is the first reason buyers switch. Broadcom reports that its co-packaged optics reduce optics power by 65 percent against pluggable modules (Source: Broadcom press release), and that its third-generation Tomahawk 6-Davisson design reduces optical interconnect power consumption by 70%. NVIDIA states that its photonics switches use 4x fewer lasers and deliver 3.5x more power efficiency than traditional approaches. A pluggable transceiver draws somewhere between 9 and 15 watts depending on port speed, so a 128,000-GPU cluster that replaces nearly half a million transceivers with around 128,000 co-packaged links frees power that can go back into compute. DC Market Insights treats this saving as the main reason AI cluster operators accept a new supply chain.

Production Switches Lift Bandwidth Shipped from 105 Pbps to 87,640 Pbps

The Co-Packaged Optics Market is a bandwidth market. DC Market Insights models co-packaged switch optics shipped rising from about 105 Pbps in 2025, the equivalent of about 2,050 switches of 51.2 terabits per second (Tbps), to 13,240 Pbps in 2030 and 87,640 Pbps in 2035. Broadcom says it is shipping Tomahawk 6-Davisson, a 102.4 Tbps switch built with 16 optical engines of 6.4 Tbps each. NVIDIA announced Spectrum-X Photonics Ethernet and Quantum-X Photonics InfiniBand switches in March 2025, and by June 2026 its 144-port 800G Quantum-X switch was reported to be in full production, with neocloud operator Lambda testing one.

Laser Supply Deals Lock In Supply Ahead of Demand

Buyers now secure lasers before they secure switches. In March 2026, NVIDIA announced plans to invest USD 2 billion each in Lumentum and Coherent, USD 4 billion in total, including multibillion-dollar purchase commitments and future access to laser components. Laser sources are 13.8% of the Co-Packaged Optics Market in 2025, and DC Market Insights forecasts them to reach USD 2.60 billion by 2035, so supply agreements of this size convert forecast demand into committed volume.

Market Trends: How Is Co-Packaged Optics Technology Changing?

The Co-Packaged Optics Market is moving from 100G to 200G and faster lanes, from switches to accelerators, and toward lasers that can be replaced from the front panel.

200G Lanes Take 51.4% of Value by 2035

100G-per-lane designs accounted for 69.2% of 2025 value, but DC Market Insights forecasts 200G-per-lane engines to reach 51.4% of the market by 2035 and 400G-per-lane designs 46.3%. The IEEE P802.3dj task force covers Ethernet at 200 Gb/s, 400 Gb/s, 800 Gb/s and 1.6 Tb/s, and both Broadcom’s Davisson engines and NVIDIA’s Quantum-X switch run at 200G per lane.

Optical I/O Moves from the Switch to the Accelerator

Optical I/O chiplets are worth USD 31.20 million in 2025 and USD 6.90 billion by 2035, growing at 71.57% a year, the fastest of the four components. Lightmatter’s Passage M1000 offers 114 Tbps of total optical bandwidth, and Marvell expects its acquired Photonic Fabric business to reach a USD 1 billion annualized revenue run rate by the fourth quarter of its fiscal 2029. Scale-up compute interconnect grows from 18.2% of the market in 2025 to 37.4% in 2035.

Field-Replaceable Lasers Become the Design Standard

The newest designs keep lasers outside the package, where they can be swapped without touching the switch ASIC. Broadcom’s Davisson switch uses field-replaceable laser modules in the External Laser Small Form Factor Pluggable (ELSFP) format, and NVIDIA’s Quantum-X Q3450-LD uses 18 removable light-source modules. Meta’s testing of Broadcom co-packaged optics recorded one million link hours without a single link flap.

Market Challenges: What Holds the Co-Packaged Optics Market Back?

Serviceability, supplier lock-in and manufacturing yield are the three constraints that DC Market Insights expects to keep co-packaged optics at about 1.5% of combined pluggable and co-packaged optics value in 2026, against USD 31.94 billion for pluggable transceivers in DC Market Insights’ own transceiver model.

A Failed Engine Can Mean a Failed Switch

A co-packaged optical engine sits on the same package as the switch ASIC, so it cannot be swapped like a pluggable module. Liquid cooling adds a second change: NVIDIA’s Quantum-X Photonics switch uses liquid cooling for its on-board silicon photonics. Operators without liquid-cooled networking racks face facility changes before they can deploy, which DC Market Insights expects to keep enterprise and colocation buyers at 4.8% of 2025 value.

Fewer Suppliers and Less Interoperability

A pluggable market has many module makers that each work with many switches. In co-packaged optics the engine comes with the switch: Broadcom’s Davisson switch, for example, uses Broadcom’s own Davisson optical engines, which reduces buyer choice and second-source options. DC Market Insights estimates that Broadcom and NVIDIA together held about 70% of 2025 value. Common laser form factors such as ELSFP reduce this risk for lasers but not yet for engines.

Yield and Test at Wafer Scale

Each NVIDIA Quantum-X package combines 18 silicon photonics engines, 324 optical connections and 36 laser inputs, so one weak fiber attach or ring modulator can scrap a whole package. DC Market Insights models a 19.3% a year fall in engine cost per Gbps from 2025 to 2030, and slower yield learning in assembly and test is the main risk to that curve.

Market Opportunities: Where Are the New Revenue Pools?

The two largest new revenue pools in the Co-Packaged Optics Market are scale-up interconnect inside AI racks, worth USD 8.76 billion by 2035, and GPU and neocloud operators, whose spending grows at 73.33% a year.

Scale-Up Interconnect Reaches USD 8.76 Billion by 2035

Scale-up links tie accelerators into one memory and compute domain, and copper reach limits the size of that domain. DC Market Insights forecasts scale-up compute interconnect to grow from USD 28.99 million in 2025 to USD 8.76 billion in 2035, at 77.03% a year. Marvell’s acquisition of Celestial AI and AMD’s purchase of Enosemi show accelerator and custom silicon suppliers buying photonics teams to compete for this pool.

GPU and Neocloud Operators Reach USD 5.69 Billion

Specialist GPU cloud operators spent USD 23.26 million on co-packaged optics in 2025, and DC Market Insights expects their spend to reach USD 5.69 billion by 2035, 24.3% of the market. Lambda and CoreWeave were named as adopters of NVIDIA’s Quantum-X Photonics switches. The photonic chips behind these engines are covered in the Silicon Photonics Market report.

Pricing: How Much Do Co-Packaged Optics Cost per Gbps?

Co-packaged switch optics cost about USD 1.22 per Gbps in 2025, or about USD 125,000 of optics for one 102.4 Tbps switch, according to DC Market Insights estimates covering the optical engines, laser sources and fiber connectivity, excluding the switch ASIC.

Price per Gbps (USD)	2020	2025	2030	2035
Optical engines	2.40	0.875	0.299	0.141
External laser sources	0.70	0.210	0.065	0.030
Fiber and connectivity	0.40	0.135	0.040	0.018
Switch optics total	3.50	1.220	0.404	0.189
Optical I/O chiplets	3.00	1.200	0.361	0.204

Prices fall fastest in the first five years, at about 19.8% a year for switch optics from 2025 to 2030, as production moves from sample lots to volume and from 100G to 200G lanes, which doubles the bandwidth of each optical channel. From 2030 to 2035 the decline slows to about 14.1% a year. Optical I/O chiplets keep a premium per Gbps because they are built in smaller volumes and are tied to specific accelerator packages.

Standards and Regulation: Which Specifications Shape Co-Packaged Optics?

Two specification families decide how co-packaged optics interoperate: the laser form factors of the Optical Internetworking Forum (OIF) and the Ethernet physical-layer work of the Institute of Electrical and Electronics Engineers (IEEE).

OIF ELSFP. The OIF External Laser Small Form Factor Pluggable Implementation Agreement (OIF-ELSFP-02.0, dated January 8, 2025) defines a form factor optimized for external lasers delivering continuous-wave light to optical transceivers co-packaged within a system. Broadcom’s Davisson switch uses field-replaceable ELSFP laser modules, a common form factor that more than one laser maker can build to and that can be replaced from the front panel.

IEEE P802.3dj. The IEEE P802.3dj task force covers Ethernet at 200 Gb/s, 400 Gb/s, 800 Gb/s and 1.6 Tb/s. These speeds set the port rates that co-packaged Ethernet switches are built around, and DC Market Insights expects 200G per lane to be the common building block of the 2026 to 2030 product generation.

Packaging processes. NVIDIA’s Quantum-X package is made by TSMC with a 200 Gb/s micro ring modulator on TSMC’s COUPE process. Foundry packaging flows such as this are not open standards, but they set the design rules engine makers must follow.

Market Segmentation: Which Segment Leads the Co-Packaged Optics Market?

Optical engines lead the Co-Packaged Optics Market with 57.7% of 2025 value, Ethernet scale-out switching leads applications with 65.6%, and hyperscale cloud providers lead buyers with 68.2%. Optical I/O chiplets are the fastest-growing segment among components at 71.57% a year, because accelerator makers are bringing optics into the GPU package for scale-up links that copper cannot reach.

By Component: Optical Engines Lead with 57.7%

Component	2025 (USD million)	Share 2025	2035 (USD billion)	CAGR 2025-2035
Optical Engines	91.88	57.7%	12.38	63.29%
Optical I/O Chiplets	31.20	19.6%	6.90	71.57%
External Laser Sources	22.05	13.8%	2.60	61.14%
Fiber and Connectivity	14.18	8.9%	1.55	59.86%

Optical engines stay above half of the market through 2035 at 52.9%. Optical I/O chiplets gain 9.8 points of share. Fiber and connectivity grows slowest because its cost per Gbps falls fastest as fiber counts per engine are standardized.

By Application: Ethernet Scale-Out Switching Leads with 65.6%

Application	2025 (USD million)	Share 2025	2035 (USD billion)	CAGR 2025-2035
Ethernet Scale-Out Switching	104.51	65.6%	10.94	59.22%
Scale-Up Compute Interconnect	28.99	18.2%	8.76	77.03%
InfiniBand Scale-Out Switching	20.55	12.9%	2.20	59.59%
Memory and Resource Disaggregation	5.26	3.3%	1.52	76.27%

Ethernet switching leads because the first deployments, such as Meta’s Broadcom Bailly switches and the 51.2 Tbps switch shipped by Micas Networks, are Ethernet. Scale-up interconnect is the fastest-growing application and reaches 37.4% of the market by 2035.

By Lane Speed: 100G per Lane Leads with 69.2%

100G-per-lane engines are worth USD 110.25 million in 2025 but only USD 538.88 million by 2035, as the market moves to faster lanes. 200G-per-lane designs grow from USD 42.85 million (26.9%) to USD 12.04 billion (51.4%) at 75.74% a year. 400G-per-lane and faster designs start at USD 6.21 million (3.9%) and reach USD 10.85 billion (46.3%) by 2035.

By Modulator Type: Mach-Zehnder Modulators Lead with 70.8%

Mach-Zehnder modulators account for USD 112.79 million (70.8%) of 2025 value and grow at 55.35% a year to USD 9.23 billion. Micro-ring modulators, used in NVIDIA’s Quantum-X Photonics engines, hold USD 39.03 million (24.5%) and become the largest type by 2035 at USD 12.02 billion (51.3%), growing at 77.36% a year. Other modulators, including electro-absorption and thin-film designs, hold 4.7% and reach USD 2.18 billion.

By End User: Hyperscale Cloud Providers Lead with 68.2%

End user	2025 (USD million)	Share 2025	2035 (USD billion)	CAGR 2025-2035
Hyperscale Cloud Providers	108.65	68.2%	14.46	63.08%
GPU and Neocloud Providers	23.26	14.6%	5.69	73.33%
HPC and Research Centers	19.75	12.4%	1.31	52.14%
Enterprise and Colocation	7.65	4.8%	1.97	74.20%

High-performance computing (HPC) and research centers, such as the Texas Advanced Computing Center, which has announced plans to deploy co-packaged switches, hold 12.4% in 2025, but grow slowest at 52.14% a year. Enterprise and colocation grow fastest from the smallest base, at 74.20% a year, once liquid-cooled networking racks become common.

DC Exclusive: The Bandwidth × Price Model and Component × Buyer Matrix

At USD 63.62 million in 2025, optical engines bought by hyperscale cloud providers are the single largest cell of the matrix and 39.9% of all co-packaged optics spending. The matrix below cross-tabulates what is bought and who buys it.

2025, USD million	Optical Engines	Laser Sources	Fiber and Connectivity	Optical I/O Chiplets	Total
Hyperscale Cloud Providers	63.62	15.25	9.87	19.91	108.65
GPU and Neocloud Providers	12.20	2.98	1.79	6.29	23.26
HPC and Research Centers	11.81	2.78	1.83	3.33	19.75
Enterprise and Colocation	4.25	1.04	0.69	1.67	7.65
Total	91.88	22.05	14.18	31.20	159.31

GPU and neocloud providers spend 27.0% of their co-packaged optics budget on optical I/O chiplets, against 18.3% for hyperscale cloud providers, because DC Market Insights assumes neocloud racks adopt vendor-integrated scale-up domains as soon as they ship. HPC and research centers spend the largest share on optical engines, at 59.8%, because their deployments are switch-led. A supplier with only switch engines is therefore exposed to the slowest-growing buyer.

The matrix is a DC Market Insights model, not a shipment count. It is built from 89 inputs: 32 annual bandwidth cohorts (16 years of switch optics and 16 years of optical I/O), 17 price anchors per Gbps for 4 components, 28 segment shares (2025 and 2035) across 4 dimensions, 10 regional shares and 2 bound checks. Multiplying bandwidth shipped by price per Gbps gives the market; the splits divide it without changing the total. The model and its assumptions are explained on our research methodology page.

Regional Insights: Which Region Leads the Co-Packaged Optics Market?

North America leads the Co-Packaged Optics Market with 61.4% of 2025 value, and the Middle East and Africa is the fastest-growing region at 75.29% a year, because it starts from USD 4.62 million and DC Market Insights expects its new AI campuses to adopt co-packaged switches from their first phase.

North America Leads with 61.4% Share

North American buyers spent USD 97.81 million on co-packaged optics in 2025, and the region is forecast to reach USD 11.79 billion in 2035, a CAGR of 61.47%. Meta has deployed co-packaged switches, and the Texas Advanced Computing Center, Lambda and CoreWeave have announced plans to deploy them. North America loses 11.1 points of share by 2035 as DC Market Insights expects AI builds in Asia and the Gulf to adopt the same switches.

Asia Pacific Holds 24.7% Share

Asia Pacific is worth USD 39.35 million in 2025 and USD 7.17 billion by 2035, growing at 68.29% a year. TSMC makes the package for NVIDIA’s Quantum-X Photonics switch, and DC Market Insights expects China, Japan and South Korea to add co-packaged fabrics as their domestic AI clusters move to 200G lanes. Asia Pacific gains 5.9 points of share, the largest gain of any region.

Europe Holds 9.2% Share

Europe is worth USD 14.66 million in 2025 and USD 2.58 billion by 2035, a CAGR of 67.69%. The United Kingdom and Germany are the largest European buyers at USD 3.82 million and USD 3.35 million in 2025.

Middle East and Africa Holds 2.9% Share

The Middle East and Africa is worth USD 4.62 million in 2025 and USD 1.27 billion by 2035, the fastest growth of any region at 75.29% a year. Saudi Arabia accounts for USD 1.43 million of 2025 value and reaches USD 445.16 million by 2035.

Latin America Holds 1.8% Share

Latin America is worth USD 2.87 million in 2025 and USD 632.60 million by 2035, a CAGR of 71.52%, the second-fastest regional growth rate.

Country Analysis: Which Countries Buy the Most Co-Packaged Optics?

The United States is the largest country market for co-packaged optics at USD 90.49 million in 2025, 56.8% of global value, followed by China at USD 22.14 million (13.9%) and Canada at USD 7.32 million (4.6%). The 12 largest countries account for 91.9% of 2025 spending.

Rank	Country	Region	2025 (USD million)	Share 2025	2035 (USD billion)	CAGR 2025-2035
1	United States	North America	90.49	56.8%	10.66	61.11%
2	China	Asia Pacific	22.14	13.9%	3.70	66.85%
3	Canada	North America	7.32	4.6%	1.12	65.44%
4	Taiwan	Asia Pacific	5.74	3.6%	0.96	66.86%
5	Japan	Asia Pacific	4.14	2.6%	0.77	68.71%
6	United Kingdom	Europe	3.82	2.4%	0.66	67.30%
7	Germany	Europe	3.35	2.1%	0.61	68.26%
8	South Korea	Asia Pacific	3.03	1.9%	0.68	71.82%
9	France	Europe	2.07	1.3%	0.37	68.19%
10	India	Asia Pacific	1.59	1.0%	0.56	79.83%
11	Saudi Arabia	Middle East and Africa	1.43	0.9%	0.45	77.55%
12	Singapore	Asia Pacific	1.27	0.8%	0.26	70.11%

India is the fastest-growing country at 79.83% a year, ahead of Saudi Arabia at 77.55%, as both build AI capacity from a small base. The United States stays the largest market in 2035 at USD 10.66 billion. The country figures are a DC Market Insights allocation of the regional totals, weighted by each country’s estimated share of AI cluster capacity and switch deployments.

Forecast Scenarios: How Could the 2035 Forecast Change?

The Co-Packaged Optics Market reaches USD 23.43 billion by 2035 in the base case, with a range of USD 16.21 billion to USD 30.16 billion across the low and high scenarios.

Scenario	Assumption from 2026	2035 (USD billion)	CAGR 2025-2035
Low	Pluggable and linear pluggable optics keep most 200G-lane switch ports; scale-up stays on copper longer	16.21	58.76%
Base	Bandwidth shipped reaches 87,640 Pbps for switches and 33,860 Pbps for optical I/O	23.43	64.72%
High	Co-packaged optics become the default for AI back-end fabrics and optical I/O reaches most accelerator packages	30.16	68.94%

The low case is what slower yield learning and buyer resistance to single-vendor optics look like. The high case assumes field-replaceable lasers and a reliability record in line with Meta’s one million flap-free link hours remove the main objections. The share of scale-up links that move to optics is the largest swing factor in both directions.

Competitive Insights: Who Leads the Co-Packaged Optics Market?

• Broadcom
• NVIDIA
• Marvell Technology
• TSMC
• Lumentum
• Coherent
• Corning
• Ayar Labs
• Lightmatter
• AMD
• Micas Networks
• Fabrinet
• Foxconn
• SENKO
• Sumitomo Electric

Broadcom is the market leader with about 55% of the Co-Packaged Optics Market in 2025, and Broadcom and NVIDIA together hold about 70% (DC Market Insights estimate, based on the model’s Ethernet and InfiniBand switching values and the reported deployments of each supplier’s switches). Broadcom calls Tomahawk 6-Davisson its third-generation co-packaged optics switch and is developing a fourth generation; its earlier Bailly switches are deployed at Meta and shipped by Micas Networks. NVIDIA builds its Spectrum-X and Quantum-X Photonics switches with TSMC, Coherent, Corning, Foxconn, Lumentum and SENKO, with Fabrinet and Sumitomo Electric in its wider photonics supply chain. Marvell entered through Celestial AI, paying about USD 1.0 billion in cash plus about 27.2 million shares valued at about USD 2.25 billion at closing, with up to about 27.2 million more shares tied to revenue milestones (Source: Marvell filing with the US Securities and Exchange Commission). Ayar Labs, which raised a USD 500 million Series E at a valuation of about USD 3.75 billion, and Lightmatter compete in optical I/O for accelerators, and AMD bought Enosemi for silicon photonics chiplets and design IP. Lumentum and Coherent make laser components for co-packaged optics, and NVIDIA announced in March 2026 that each would receive a USD 2 billion investment.

Recent Developments

• In March 2025, NVIDIA announced Spectrum-X Photonics and Quantum-X Photonics co-packaged optics switches, with Quantum-X expected later that year and Spectrum-X in 2026 (Source: NVIDIA press release).
• In March 2025, Lightmatter unveiled the Passage M1000 photonic interconnect with 114 Tbps of total optical bandwidth and the 34 Tbps Passage L200 (Source: Data Center Dynamics news report).
• In October 2025, Broadcom said it was shipping Tomahawk 6-Davisson, a 102.4 Tbps Ethernet switch with co-packaged optics and field-replaceable laser modules (Source: Broadcom press release).
• In February 2026, Marvell completed its acquisition of Celestial AI and set a target of a USD 1 billion annualized revenue run rate by the fourth quarter of fiscal 2029 (Source: Marvell press release).
• In March 2026, NVIDIA announced plans to invest USD 2 billion each in Lumentum and Coherent, including multibillion-dollar purchase commitments and future access to laser components (Source: SiliconANGLE news report).
• In March 2026, Ayar Labs closed a USD 500 million Series E led by Neuberger Berman to expand high-volume manufacturing and test capacity (Source: Ayar Labs announcement).

We follow these deals, launches and capacity announcements as they happen in our data center industry updates.

Methodology: How We Built the Co-Packaged Optics Market Model

DC Market Insights built this market bottom-up from 16 annual cohorts of co-packaged switch optics bandwidth and 16 annual cohorts of optical I/O bandwidth (2020 to 2035), each priced per Gbps with separate curves for optical engines, laser sources, fiber connectivity and optical I/O chiplets. Price anchors were set for 2020, 2025, 2030 and 2035 (and 2028 for optical I/O) and interpolated on a log scale. The total was split by 4 components, 4 applications, 3 lane speeds, 3 modulator types, 4 end users and 5 regions, and every split sums to the market total. Because no supplier discloses co-packaged optics sales, the result is a DC Market Insights model with bound checks instead of a single top-down check. First, the 2025 value of USD 159.31 million is 0.7% of the USD 23.96 billion optical transceiver market and 3.0% of the USD 5.24 billion silicon photonics market in DC Market Insights’ own models, below both ceilings. Second, the optical I/O chiplet segment of USD 1.23 billion in 2028 sits above Marvell’s target of a USD 500 million annualized run rate for Celestial AI products by the fourth quarter of fiscal 2028, which acts as a floor for the segment. Country values allocate each regional total by country weights. The analyst named on this page built the model, and the reviewer checked the arithmetic, the sources and the dates before publication.