Home > Semiconductors & Electronics > Telecom and Networking > Telecom Software > Power over Ethernet (PoE) Solutions Market
Power over Ethernet Solutions Market Size
Power over Ethernet Solutions Market size exceeded USD 700 million in 2018 and is estimated to grow at a CAGR of over 15% from 2019 to 2025.
The Power over Ethernet solutions market demand is expected to increase sharply as PoE technology enables the centralization of power in one location and provides high-speed connectivity to support the growing number of wireless devices in business environments. For instance, as the IoT connected devices are rising in numbers, the need for solutions that can converge data and power infrastructure to meet the demands of network assets increases to a great extent. The PoE technology is widely being used to support IoT projects such as smart cities, smart grid projects, and smart buildings. IoT communication networks use PoE to power smart infrastructure, thus meeting the demands of IoT use cases. Another factor accelerating the PoE solutions market growth is the development of new standards to expand support to new network devices. The regulatory bodies are making continuous amendments to the existing standards, which will fuel the adoption of Power over Ethernet solutions to provide gigabit connectivity to network-connected devices and IoT use cases.
| Report Attributes | Details |
|---|---|
| Base Year: | 2018 |
| Market Size in 2018: | 700 Million (USD) |
| Forecast Period: | 2019 to 2025 |
| Forecast Period 2019 to 2025 CAGR: | 15% |
| 2025 Value Projection: | 2 Billion (USD) |
| Historical Data for: | 2014 to 2018 |
| No. of Pages: | 292 |
| Tables, Charts & Figures: | 431 |
| Segments covered: | Type, Powered Devices, Device, Application, End Use and Region |
| Growth Drivers: |
|
| Pitfalls & Challenges: |
|
Power over Ethernet Solutions Market Analysis
The Power Sourcing Equipment (PSE) segment is expected to hold a Power over Ethernet solutions market share of over 40% by 2025 as this equipment are widely used to meet power requirements of the powered devices including wireless access points, video cameras, VoIP phones, and Point of Sale (PoS) terminals. PSE equipment eliminates the need to deploy separate power supplying devices for each powered device, thus saving huge costs. To meet the growing network connectivity demands and power requirements, the governing bodies and industry associations are developing standards to support the existing non-complaint PSE devices.
The wireless radio access points segment in the Power over Ethernet solutions market is expected to exhibit a growth rate of over 18% over the forecast timeline. As these devices allow enterprises to establish connectivity among other devices connected to a wired & wireless network, the demand for indoor & outdoor wireless access points will increase over the forecast timeline. PoE-enabled access points can provide seamless data connectivity in high traffic indoor areas such as shopping centers, stadiums, university campus, and airports. To meet the ever-growing networking demands of enterprise networks, the companies present in the market are developing access points compliant to the latest Wi-Fi 6 Standards and capable of transferring data at a higher speed.
The IoT connectivity application segment held a major portion of the (PoE) Power over Ethernet solutions market share in 2018 and is expected to dominate the market with a share of over 30% in 2025. As the use of IoT technology in manufacturing, retail, healthcare, and transportation industry verticals is increasing, the deployment of PoE-enabled switches and routers providing gigabit speed to connected devices will also surge. Various government initiatives, such as Industry 4.0 and Smart Cities development, will also escalate the adoption of PoE solutions to promote energy efficiency by enabling power and data to share the same Ethernet cable infrastructure.
The industrial Power over Ethernet solutions market is projected to hold an industry share of around 40% in 2025 due to the rising demand for PoE solutions in the industrial sectors such as energy, oil & gas, telecom, and automotive & transportation. Technological advancements and the growing penetration of IoT in the industrial sectors have resulted in an increase in the number of wireless devices. To support a wide range of business-critical applications, these devices require high power and connectivity. This has led to a rise in the usage of Power over Ethernet solutions, such as PoE-enabled gigabit switches and routers, enabling high data transfer and low latency to support wireless devices deployed even in harsh environments. For instance, in March 2019, Digisol introduced L2-Managed Din-Rail Industrial Gigabit PoE switch to support industrial applications. The switch monitors LAN infrastructure for critical issues and operates in harsh environments to offer high performance.
The North America Power over Ethernet solutions market held an industry share of over 40% in 2018 and is expected to maintain its dominant position in the market from 2019 to 2025. The proliferation of IoT devices due to Industry 4.0 initiative and rise in the number of wireless devices, such as smartphones and access points, and network-connected devices, such as gateways, hubs, and routers, due to rising mobility trend will spur the Power over Ethernet solutions market size. The market growth is also attributed to the presence of several PoE solutions providers and powered device manufacturers in the region who are investing vigorously in their R&D activities to support the development of new offerings. The supportive government initiatives and policies for driving the adoption and industrial automation among the manufacturing industry will have a significant impact on the market demand.
Power over Ethernet Solutions Market Share
The companies present in the PoE solutions market are focusing on new product developments to gain a competitive market share. For instance, in June 2018, D-Link introduced four new Ethernet switches to support industrial automation applications in industries such as manufacturing, oil & gas, and mining. The growing adoption of VoIP phones to support business communications has also contributed to the rise in the deployment of wireless access points, which will further augment the market growth. Power over Ethernet solutions manufacturers are developing PoE-enabled IP phones to allow enterprises to communicate seamlessly.
Some of the major companies operating in the Power over Ethernet solutions market are
- Advantech Co., Ltd.
- Analog Devices, Inc.
- Avaya, Inc.
- Belden, Inc
- Broadcom
- Cisco Systems, Inc.
- CommScope Holding Company, Inc.
- Dell Technologies, Inc.
- euromicron AG
- HPE
- Huawei Technologies Co., Ltd
- Kinetic Technologies Holdings Limited
- Maxim Integrated Products, Inc
- Microchip Technology Incorporated
- Monolithic Power Systems, Inc.
- NETGEAR, Inc.
- ON Semiconductor Corp.
- Silicon Laboratories, Inc.
- STMicroelectronics N.V.
- Texas Instruments, Inc.
Industry Background
The growing trend of Bring Your Own Device (BYOD) and IoT has laid pressure on the enterprise LAN infrastructure to meet high connectivity demands. Earlier, the enterprises used to deploy a separate cable for power and data transmission, which resulted in huge operational & maintenance costs. To reduce the expenditure, they started using PoE-based cabling infrastructure, enabling the use of a single Ethernet cable for both data and power transmission. The demand for PoE solutions is expected to increase over the forecast timeline as it eliminates the need to install additional cables or power outlets at every endpoint, thus bringing a lot of convenience in home, offices, and industrial environments.
Frequently Asked Questions (FAQ) :