Main segments include components (optical engines, ICs, lasers, interposers) and integration approaches (on-board, fully integrated, hybrid). Applications reach across hyperscale data center switching, HPC, cloud networks, telecom core/metro, and edge computing. Co-Packaged Optics (CPO) Technology by Application (Data Center, Cloud Computing, 5G Communication, Other), by Types (Hardware, Software and Services), by North America (United States, Canada, Mexico), by South America (Brazil, Argentina, Rest of South America), by Europe (United Kingdom, Germany. 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 trends shaping AI systems in 2026 and the challenges designers will need to. Co-Packaged Optics (CPO) Market (By Component: Optical engines/transceivers, Photonic integrated circuits, Lasers, Modulators, Electrical ICs / SerDes, Optical fibers and waveguides, Connectors and interfaces, Thermal management solutions, Packaging substrates and interposers, Testing and alignment. Co-packaged optics (CPO) technology, a key enabler for next-generation data center architectures, promises unprecedented bandwidth density and power efficiency by tightly integrating optical engines with switch silicon. But after nearly a decade of existence, where does this next-generation optical. We'll break down the growth path, leading players, technology trends, regional demand, and the strategic moves shaking up silicon photonics in data centers, HPC, and cloud networks. Projections show the CPO market could jump from US$122.