Global Co-Packaged Optics Market projected to grow from USD 91.27 million in 2025 to USD 1,923.64 million by 2035 at a CAGR of 35.70%

The Co-Packaged Optics market is forecast to reach USD 1,923.64 million by 2035, up from USD 91.27 million in 2025, with a CAGR of 35.70% over 2026–2035.

Growth is driven by hyperscale AI infrastructure investments from cloud providers (Amazon Web Services, Microsoft Azure, Google Cloud, Meta, Oracle) and increased adoption of silicon photonics technology, which addresses bandwidth constraints in GPU connectivity for AI training clusters.

The U.S. market is predicted to reach USD 834.82 million by 2035 (from USD 39.61 million in 2025 with a CAGR of 30.25%), while the Europe market is forecasted at USD 468.24 million by 2035 (from USD 24.86 million in 2025 with a CAGR of 34.15%).