The global power over Ethernet (PoE) solutions market is poised to flex its financial muscles, with its worth predicted to hit USD 1.0 billion in 2023. The market is expected to continue its upward trajectory, with FMI’s projections indicating a revenue surge to over USD 2.5 billion by 2033, exhibiting a CAGR of 9.2%. In other words, the market is set to power up its growth potential and make an indelible mark on the global economic landscape.
Key Drivers Boosting the Demand for Power over Ethernet Solutions:
Challenges for Market Players in the Power over Ethernet Solutions Industry:
| Attributes | Details |
|---|---|
| Current Year Value (2023) | USD 1.0 billion |
| Expected Forecast Value (2033) | USD 2.5 billion |
| Projected CAGR (2023 to 2033) | 9.2% |
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The power over Ethernet solutions market size was USD 935 million in 2022. Between 2018 and 2022, the market exhibited a CAGR of 12.2%. Market revenue growth was driven by factors like the rapid adoption of advanced lighting systems. The market also experienced growth given the rising adoption of smart and automated systems coupled with the increasing need for smart workplaces.
Between 2023 and 2033, the market is anticipated to witness remarkable growth opportunities, with projections indicating a 2.5X increase in its size. This growth can be attributed to the increased utilization of PoE-compatible devices. Moreover, the improved network control offered by PoE solutions is estimated to support market growth.
Building automation is rapidly adopting PoE-based solutions since they are adaptable, dependable, scalable, and economical. As a result, staff and infrastructure costs for the cabling are decreased. The increasing demand for intelligent buildings drives the need for PoE sensors, networked lighting, and other building controls.
The digital nature of light and low-voltage DC power make PoE suitable for lighting applications. By implementing PoE, low-voltage devices can be positioned far from AC power sources, providing low-voltage DC power and data for phone systems, CCTV cameras, and other devices. Consequently, this trend is anticipated to fuel global revenue growth in the PoE solutions market.
The utilization of power over Ethernet facilitates smooth data transmission in manufacturing plants through a secure network connection. This enhances productivity in the supply chain and production processes, reducing downtime caused by power issues. Many industries are adopting PoE for process automation. The integration of PoE with IoT and IIoT in manufacturing and process industries boosts the value of the PoE market. Government initiatives promoting Ethernet use in these industries, along with the adoption of the current technologies, drive market revenue growth.
Principal Consultant
| Countries | Projected Market Value (2033) |
|---|---|
| United States | USD 813.8 million |
| United Kingdom | USD 122.6 million |
| China | USD 211.3 million |
| Japan | USD 178.6 million |
| South Korea | USD 99.6 million |
The United States power over Ethernet solutions market has been witnessing steady growth given the rising demand for network security and surveillance systems. The healthcare sector has emerged as a prominent end-use industry of PoE solutions in the United States. The deployment of PoE-powered devices, such as IP phones, security cameras, and access control systems, has improved operational efficiency and patient safety in healthcare facilities.
| Country | United States |
|---|---|
| Forecasted CAGR (2023 to 2033) | 8.0% |
The communication between PoE lighting technology and smart home devices like Alexa and Siri led to its widespread adoption among consumers in the country. Additionally, the market witnessed increasing sales of power over Ethernet solutions given the emergence of next-generation Light-Fidelity (Li-Fi) technology. Market development is also anticipated to be aided by rising power over Ethernet solution applications and investments in smart grid infrastructure. One of the leading utilities in the Midwest of the United States, Ameren, has allocated USD 7.6 billion over five years for smart grid technology.
Market players are emphasizing the integration of PoE technology into their diverse range of products. Legrand and Superior Essex Communications collaborated at the BICSI Winter Conference and Exhibition in February 2023. They introduced the innovative and dynamic nCompass Systems Extended Distance cabling system for deploying high-power Power over Ethernet (Hi-PoE) on an IP network.
China power over the Ethernet solutions market has experienced trivial evolution in recent years. Rising demand for network security solutions and efficient power transmission are fueling the market expansion. The government has made significant investments in infrastructural development. This is expected to create opportunities for the market.
| Country | China |
|---|---|
| Forecasted CAGR (2023 to 2033) | 10.2% |
Expanding telecom industry as well as rising internet and mobile usage have also contributed to the market growth. The rate of voice and data usage is dramatically accelerating since there are so many people using the internet. This is anticipated to create enormous development prospects for power over Ethernet suppliers.
Additionally, the growing popularity of connected devices has enabled telecom carriers to expand and offer services beyond connection. Key market players are concentrating on technological advancements in PoE technology. For instance, in March 2023, MERCUSYS announced the release of a new line of Power over Ethernet (PoE) switches. The switches offer lightning-fast speeds ranging from 100 to 1000 Mbps. They are equipped with 5 to 8 interfaces to accommodate multiple devices.
Power over Ethernet-connected consumer electronics is in high demand right now since they are affordable and consume minimal power. This has resulted in significant growth of Japan power over the Ethernet solutions market. The adoption of cutting-edge technologies such as blockchain, 5G, and monopole computing is on the rise. Policymakers and regulators are fostering a favorable growth and investment environment to support these technological advancements.
| Country | Japan |
|---|---|
| Forecasted CAGR (2023 to 2033) | 8.6% |
Market players focus on product innovation and partnerships with system integrators and technology providers to enhance their market presence. Two complete system solutions supporting widely-used building automation network protocols, Power over Ethernet (PoE) and KNX, were introduced by On Semiconductor Corp in June 2022.
The United Kingdom power over Ethernet solutions market has perceived significant growth lately. The increasing adoption of networked devices and the need for efficient power delivery solutions primarily contributed to this growth. During the forecast period, appropriate governmental regulations for implementing PoE systems are likely to open growth prospects. Government initiatives and collaborations with industry stakeholders are likely to drive the adoption of power over Ethernet solutions in various sectors.
| Country | United Kingdom |
|---|---|
| Forecasted CAGR (2023 to 2033) | 8.3% |
Market players focus on product innovation and the development of advanced PoE solutions to cater to evolving customer requirements. For instance, ABB introduced the first Power over Ethernet flowmeters in May 2021. The current versions of ABB's electromagnetic flowmeter ProcessMaster and mass flowmeter CoriolisMaster now have the power supply through Ethernet connectivity, ushering in a new era for instrumentation and business communication.
South Korea power over Ethernet solutions market has shown tremendous expansion in the past few years. Growing deployment of IP-based security systems, government initiatives promoting smart city development, and focus on energy efficiency and cost savings have contributed to this growth.
| Country | South Korea |
|---|---|
| Forecasted CAGR (2023 to 2033) | 9.6% |
Market players emphasize customization and tailored solutions to meet the unique power requirements of industrial applications. LS Cable & System unveiled a new range of intelligent cables in December 2020. This includes a long-range Power over Ethernet solution.
| Segment | Type |
|---|---|
| Top Sub-segment | Powered Device Controllers & ICs |
| Forecasted CAGR (2023 to 2033) | 9.1% |
| Segment | Application |
|---|---|
| Top Sub-segment | Connectivity |
| Forecasted CAGR (2023 to 2033) | 9.0% |
The powered device controllers & ICs segment dominated the market during the historical period and is expected to retail its dominance over the forecast period. Powered device controllers & integrated circuits are integral components in power over Ethernet solutions. They enable the transmission of power and data over Ethernet cables. These controllers and ICs are responsible for managing power delivery.
PoE technology is widely used in various industries and applications. These applications include network cameras, wireless access points, IP phones, industrial automation, and lighting systems. The powered device controllers & ICs segment caters to the diverse needs of these applications.
These controllers & ICs continuously evolve to meet the growing demands of PoE technology. Manufacturers are incorporating advanced features into these controllers and ICs. These advanced features include power management, intelligent power prioritization, thermal monitoring, and diagnostics. The integration of enhanced functionality allows for better power optimization, diagnostics, and device management.
In 2022, the connectivity application category accounted for a sizable chunk of the market share and is anticipated to stay at the forefront during the projected period. Businesses and industries depend heavily on network connectivity, leading to an increasing demand for network infrastructure. Power over Ethernet (PoE) technology offers a convenient and cost-effective way to power network devices. The convenience and cost-effectiveness of PoE have resulted in the widespread adoption of PoE-enabled switches and injectors.
The industry has experienced the development of standards that have substantially enhanced the capabilities of PoE. The connectivity segment consists of PoE switches and injectors that adhere to these standards. Moreover, in comparison to conventional power supply techniques, PoE solutions can reduce costs and increase operational efficiencies. Businesses can leverage their existing Ethernet infrastructure. This eliminates the requirement for extra electrical wiring and reduces installation and maintenance costs. These factors have fueled the growth of the connectivity segment in the market.
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Maxim Integrated Products Inc, Texas Instruments, Analog Devices, Microsemi Corp., STMicroelectronics N.V., Broadcom Ltd., Monolithic Power Systems, Inc., On Semiconductor Corp, Cisco Systems Inc., Silicon Laboratories Inc, and Kinetic Technologies are the top market players.
These market players employ several strategies to gain a competitive edge. They focus on research and development to enhance the efficiency of their PoE solutions. They also emphasize product differentiation by offering a wide range of PoE devices. Additionally, they prioritize strategic partnerships and collaborations with technology providers and system integrators to expand their customer base. They also invest in marketing and promotional activities to create awareness and highlight the benefits of PoE solutions.
Recent Developments of Key Market Players
The market is valued at USD 1.0 billion in 2023.
Texas Instruments, and Analog Devices, are key market players.
From 2018 to 2022, the market registered a CAGR of 12.2%.
Rising demand for wireless technology to boost the growth.
Powered Device Controllers & ICs segment is likely to remain preferred through 2033.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Type 5.1. Power Sourcing Equipment Controllers & ICs 5.2. Powered Device Controllers & ICs 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Device Type 6.1. Power Sourcing Equipment 6.2. Powered Devices 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 7.1. Connectivity 7.2. Security & Access Control 7.3. Infotainment 7.4. LED Lighting & Control 7.5. Others 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Vertical 8.1. Residential 8.2. Commercial 8.3. Industrial 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 9.1. North America 9.2. Latin America 9.3. Europe 9.4. Asia Pacific 9.5. MEA 10. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. Maxim Integrated Products Inc 17.2. Texas Instruments 17.3. Analog Devices 17.4. Microsemi Corp. 17.5. STMicroelectronics N.V. 17.6. Broadcom Ltd. 17.7. Monolithic Power Systems, Inc. 17.8. On Semiconductor Corp 17.9. Cisco Systems Inc. 17.10. Silicon Laboratories Inc 17.11. Kinetic Technologies 18. Assumptions & Acronyms Used 19. Research Methodology
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Power over Ethernet Solutions Market
