Power over Ethernet (PoE) Solutions Market Analysis

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.