These pressures are driving renewed momentum behind co-packaged optics (CPO). According to LightCounting, sales of lasers and photonic integrated circuits for optical transceivers are expected to grow from $2. 9B by 2029, fueled largely by AI data centers. Read on to learn key CPO. Co-packaged optics (CPO) is a disruptive approach to increasing the interconnecting bandwidth density and energy efficiency by dramatically shortening the electrical link length through advanced packaging and co-optimization of electronics and photonics. CPO is widely regarded as a promising. Small amounts of CPO may start to appear in 2026, but real deployment at scale looks more likely to arrive in 2027/8 or later. This report dives deeper into CPO for insight on the technology and applications, the benefits and issues, its impact on pluggable optics, and Cignal AI's predictions for. As a result, many in the industry expect the transition to progress directly toward fully integrated solutions such as co packaged optics.
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