Power over Ethernet Solutions Market

Power over Ethernet Solutions Market Outlook (2023 to 2033)

The global power over Ethernet (PoE) solutions market is poised to flex its financial muscles, with its worth predicted to hit US$ 1.0 billion in 2023. The market is expected to continue its upward trajectory, with FMI’s projections indicating a revenue surge to over US$ 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:

• Increasing demand for network devices and systems across industries
• Rising application of power over Ethernet-connected consumer electronics with low power consumption
• IP-based security access control systems are becoming more prevalent
• Growing demand for power-sourcing equipment in various industries
• Rising application of wireless technology and voice over internet protocol communication
• Increasing implementation of LED lighting control using PoE technology
• Data centers and commercial buildings require efficient and cost-effective power solutions
• Increasing use of powered device controllers in PoE systems
• Growing demand for PoE connections with increased power transmission capacities
• Increasing usage of wireless access points and Internet of Things devices
• Adoption of PoE-powered switches for efficient network management
• For workplaces, hospitals, and smart buildings, PoE technology offers dependable and secure wireless networking.
• Growing demand for device controllers ICs in PoE solutions
• PoE solutions are widely used in safety, wireless monitoring, and support for infrastructure projects such as smart grids, smart cities, and smart buildings

Challenges for Market Players in the Power over Ethernet Solutions Industry:

• PoE solutions have limited power delivery capacity compared to traditional power cables
• Compatibility issues may arise with devices that require higher power consumption
• Concerns exist regarding power loss and voltage drop over long cable distances
• Lack of awareness and understanding among end-users about the benefits and implementation of PoE solutions
• The high initial installation costs and infrastructure requirements associated with PoE Ethernet devices

2023 to 2033 Power over Ethernet Solutions Demand Outlook in Comparison to Sales Registered from 2018 to 2022

The power over Ethernet solutions market size was US$ 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.

Power over Ethernet Solutions Market Key Trends & Opportunities

• Growing adoption of RF power devices in PoE applications and Ethernet over powerline (EoP) technologies
• Integration of PoE with emerging technologies such as 5G and Wi-Fi 6
• The development of higher power delivery standards to support various devices
• Integration of PoE with access control, infotainment, and other systems
• PoE lighting systems are gaining popularity given their application in smart building solutions
• Increasing use of PoE adapters for non-PoE devices and integration of PoE with artificial intelligence (AI) and IoT devices
• Expansion of PoE applications in industries like energy & power, pharmaceutical, aerospace & defense, oil & gas, food & beverages, automotive, etc.
• Intelligent transportation systems are increasingly using remote power management and monitoring technologies
• PoE solutions are expanding into industrial automation and healthcare sectors
• Advancements in PoE voltage standards and capabilities and the emergence of PoE lighting solutions for energy-efficient lighting
• PoE has the potential to support emerging applications in edge computing and AI-powered devices
• The healthcare and hospitality sectors have a growing need for reliable and secure power solutions

Sudip Saha

Principal Consultant

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Exploring the Regional Patterns of the Power over Ethernet Solutions Market: An In-depth Examination at the Country Level

PoE Solutions are Set to Revolutionize Security & Access Control in the United States

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.

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 US$ 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.

Power over Ethernet Solutions Gain Traction in China's Telecommunication Industry

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.

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.

PoE Innovation Takes Japan by Storm, Revolutionizing Device Power Delivery

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.

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.

United Kingdom Embraces Seamless Power Delivery through Ethernet Technology

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.

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.

Power over Ethernet Solutions Spearhead Technological Revolution in South Korea

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.

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.

Exploring the Power over Ethernet Solutions Market: An In-depth Segment Analysis

The Reign of Powered Device Controllers & ICs in Power over Ethernet Solutions Industry

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.

The Rise and Rule of Connectivity in Power over Ethernet Solutions Industry

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.

Power over Ethernet Solutions Market: Analyzing Key Players, Strategies, and Market Share in the Global Landscape

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

• Broadcom Inc. declared in April 2023 that it has released Jericho3-AI, providing the powerful fabric for artificial intelligence networks in the market. High-performance Ethernet for a 32,000 GPU Cluster is provided by the new Jericho3-AI connected by Broadcom.
• Analog Devices revealed the world's first Single-pair Power over Ethernet solutions in November 2022. These solutions aim to help customers implement higher levels of cognition into smart buildings and factory automation. The company also introduced Power Sourcing Equipment (PSE) and Power Device (PD) solutions as part of its offering.
• Silicon Labs launched a comprehensive PoE portfolio in March 2020. The aim is to simplify and cost-effectively integrate 90 W PoE into power-sourcing equipment and powered devices. The portfolio follows the IEEE 802.3bt standard. This adherence allows for a significant increase in PoE power compared to the standard. It also enhances the functionalities of wireless access points and IoT wireless gateways.
• New power over Ethernet solutions for the new IEEE 802.3bt standard was made available by ON Semiconductor in September 2019 with the names NCP1905 and NCP1906. Applications like smart sensors, building automation, and connected lights can derive up to 90 Watts of electricity from them.
• Kinetic Technologies unveiled a highly integrated power single chip called the AS1114 in January 2017. It is designed for 13W PoE, Powered Devices, which demand great efficiency and minimal footprint. Customers can promote better-performance devices with the AS1114, which is particularly created to fully support IEEE Std. 802.3at Type 1 PDs.

How can PoE Solutions Market Players Grow Their Businesses?

• Diversify product offerings and expand the range of solutions to meet the varied needs of customers
• Allocate resources toward research and development to foster innovation to maintain a competitive edge
• Foster strategic alliances and collaborations with complementary technology providers and system integrators to enrich the product portfolio
• Provide customized services to customers and address their specific project requirements
• Boost marketing activities through multiple channels such as trade shows, industry publications, and social media platforms to enhance brand visibility
• Prioritize exceptional customer service and technical support to optimize customer satisfaction
• Embrace sustainability and energy efficiency by developing environmentally friendly PoE solutions to reduce the carbon footprint
• Expand geographical presence by forming strategic partnerships and creating robust distribution networks in new markets
• Maintain competitive pricing strategies while upholding the commitment to delivering high-quality products and services

Power over Ethernet Solutions Market Segmentation

By Type:

• Power Sourcing Equipment Controllers & ICs
• Powered Device Controllers & ICs

By Device Type:

• Power Sourcing Equipment
• Powered Devices

By Application:

• Connectivity
• Security & Access Control
• Infotainment
• LED Lighting & Control
• Others

By Vertical:

• Residential
• Commercial
• Industrial

By Region:

• North America
• Latin America
• Europe
• Asia Pacific
• The Middle East and Africa(MEA)