Photonics packaging market set to grow
AI infrastructure, co-packaged optics and wafer-level integration are expected to drive growth in the global photonics packaging market through 2036.
The global photonics packaging market is set for significant development over the next decade as AI infrastructure, co-packaged optics (CPO), advanced semiconductor packaging and other emerging applications increase demand for higher levels of photonic integration, according to a new report from ResearchAndMarkets.com.
The Global Photonics Packaging Market 2026-2036 report identifies AI infrastructure as a key catalyst, with increasing bandwidth requirements placing greater pressure on conventional pluggable optical architectures. CPO, which integrates optical engines alongside switch or compute chips, is highlighted as an important approach for reducing electrical connection distances and improving power efficiency.
The report also points to a broader shift from module-level assembly towards wafer-level and heterogeneous integration. Technologies covered include 2.5D and 3D packaging, fan-out wafer-level packaging, micro-bump and Cu-Cu hybrid bonding, alongside photonic wire bonding and advanced fibre-to-chip coupling.
For photonic integrated circuits (PICs), the report examines the integration of electronic and photonic components across 2D, 2.5D and 3D architectures. It also covers optical engine configurations, external laser integration and packaging approaches for silicon photonics.
Beyond datacom and AI infrastructure, the analysis covers photonics packaging requirements for augmented reality displays, automotive FMCW LiDAR, quantum technologies, medical imaging, defence and industrial sensing.
Standardisation is identified as another factor influencing the adoption of photonics packaging at scale. The report highlights the ongoing development of process and assembly design kits, CPO fibre interfaces and electrical specifications linking switch ASICs with optical engines.
The study includes market forecasts through 2036, alongside analysis of the global supply chain, packaging technologies, regional ecosystems and competitive landscape. It profiles organisations across the photonics packaging value chain, including foundries, OSATs, equipment suppliers, PIC designers and module manufacturers.
