High-end packaging market to hit $51bn
AI accelerators, HBM integration and advanced 2.5D and 3D packaging are driving rapid growth in high-end performance packaging.
The high-end performance packaging market is forecast to exceed $51 billion by 2031, growing at a 27% CAGR between 2025 and 2031, according to a new report from Yole Group.
The market is being driven by increasing demand for AI accelerators, GPU and ASIC packages, high-bandwidth memory (HBM) integration and increasingly complex heterogeneous integration architectures. Package unit volumes are forecast to grow at a 33% CAGR, while wafer demand is expected to increase at 30%.
Telecom and infrastructure applications are expected to account for more than $36 billion of the market by 2031, representing around 70% of total revenue. AI computing and data-centre infrastructure are key drivers, alongside the emergence of co-packaged optics (CPO).
Yole identifies mold interposer packaging, including CoWoS-L-type architectures, as the largest and fastest-growing 2.5D segment, with a projected 28.1% CAGR. The increasing size of AI accelerator packages is also pushing existing interposer technologies toward reticle-size limits, with CoPoS and CoWoP formats expected to emerge from 2028-2029.
Meanwhile, 3D hybrid bonding is expanding across logic, memory and chiplet applications. Die-to-wafer hybrid bonding is currently the larger segment, while wafer-to-wafer approaches are also gaining adoption.
CPO optical engine packaging is expected to grow from a negligible market in 2025 to several hundred million dollars by 2031. Yole points to the increasing use of hybrid bonding, TSVs and microbumps as part of the move toward 3D integration for optical engines in AI data-centre networks.
The competitive landscape remains highly concentrated, with Yole estimating that the six largest players accounted for approximately 97% of high-end performance packaging revenue in 2025.
Yole's High End Performance Packaging 2026 report examines the technology roadmaps, supply chain, competitive landscape and market outlook across high-end packaging technologies and applications.
