Power over Ethernet (PoE) Solutions Market Size & Share, by Type (Power Sourcing Equipment, Powered Devices); Device Type (Ethernet Switches, Wireless Radio Access Points, IP Cameras, VOIP Phones); Application (Lighting Control, IoT Connectivity, Access Control & Security, Infotainment); End-user (Commercial, Industrial, Residential) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 5029
  • Published Date: Jun 14, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2023 - 2035

Power over Ethernet Solutions Market size is set to reach USD 5 Billion by the end of 2035, observing nearly 10% CAGR during the forecast period i.e., 2023 and 2035. In the year 2022, the industry of power over ethernet solutions was over USD 2 Billion. The major factor to boost the growth of this market is the rise in the adoption of VoIP services. Globally, the number of people using VoIP services is 2 million. Hence, with this, the adoption of PoE solutions is also growing. A router or other similar equipment injects a very small electrical current into an Ethernet cable to enable PoE to function. A VoIP phone is turned on when these cables are connected to an Ethernet port that supports PoE.

Additionally, the use of PoE is also growing in the smart grid to deliver data and power over a single line to field devices that support the effective utilization of physical space and data communication technologies. Smart grids require a systematic upgrading of the network infrastructure to enable advanced technologies and services. Hence, the demand for PoE solutions is growing. Furthermore, many countries are investing in smart grid projects which are further poised to fuel the market expansion. Additionally, data and power delivery over a single Cat5 or Cat6 Ethernet cable is the main benefit of power over ethernet. Building owners may save significant amounts of time and money with remote installation since it is typically less expensive than optical fiber and doesn't need a licensed electrician.


Power over Ethernet Solutions Market-min
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Power over Ethernet (PoE) Solutions Sector: Growth Drivers and Challenges

Growth Drivers

  • Growing Demand for LED Lights

The penetration of LED lighting is expected to have a boost in 2025 by about 75% globally. Hence, the demand for power over ethernet (PoE) is also set to have a dominating growth. When LED lights are used on a PoE network, wasteful power-conversion steps for LED lights used in a retrofitted, legacy AC-powered socket are reduced. Hence, this results in excellent energy efficiency.

  • Rise in Security Breaches

Owing to the rise in security breaches various companies have started deploying IP cameras in their organization to keep track of the number of people coming in and out daily. Further, since organizations deploy multiple security cameras, the PoE solution is the best choice for them, since they operate in just one cable providing both network connection and power.

  • Surge in the Use of PoE Solutions by Data Centers

Data centers are in constant need of power solution which is efficient and cost-effective. Hence, the PoE solution is estimated to satisfy that need.

Challenges

  • High Initial Cost of Installation - Insertion of power over Ethernet (POE) networks demands a significant initial financial outlay. This is owing to the high expense of Ethernet switches which necessities power source equipment (PSE) against the traditional analog, along with the PSE's maintenance costs. In addition, switches, ethernet cables, injectors, splitters, and PoE connections are used. The fact that the cost of procuring these components is included in overall start-up costs is a key impediment to the market's potential to grow in terms of revenue.
  • Have Limited Capacity to Deliver Power
  • Lack of Awareness Among People

Power over Ethernet Solutions Market: Key Insights

Base Year

2022

Forecast Year

2023-2035

CAGR

~10%

Base Year Market Size (2022)

~ USD 2 Billion

Forecast Year Market Size (2035)

~ USD 5 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Power over Ethernet Solutions Segmentation

Type (Powered Devices, Power Sourcing Equipment (PSE))

Power over ethernet solutions market from the power sourcing equipment segment is expected to garner the highest revenue by the end of 2035. The growth of this segment is poised to be influenced by its extensive use in meeting the power requirement in various powered devices application such as wireless access points, video cameras, VoIP phones, and more. As it saves cost by eliminating the necessity to deploy separate power supply, its use in this application is growing.

Application (Lighting Control, IoT Connectivity, Access Control & Security, Infotainment)

The IoT connectivity segment in the power over ethernet solutions market is predicted to have significant growth till 2035. This enlargement is estimated to be dominated by the growing use of IoT in various industries such as manufacturing, retail, healthcare, and transportation. Hence, with this, the deployment of PoE-enable switches, and routers is forecast to grow further boosting the market gain.

Our in-depth analysis of the global PoE solutions market includes the following segments:

     Type

  • Power Sourcing Equipment
  • Powered Devices

 

 

     Device Type

  • Ethernet Switches
  • Wireless Radio Access Points
  • IP Cameras
  • VOIP Phones

 

 

     Application

  • Lighting Control
  • IoT Connectivity
  • Access Control & Security
  • Infotainment

 

     End Use

  • Commercial
  • Industrial
  • Residential

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Power over Ethernet Solutions Industry- Regional Synopsis

North American Market Forecast

The PoE solutions market in the North America is anticipated to have the highest growth between 2023 and 2035, backed by a rise in demand for wireless devices, such as smartphones, and access points, which support PoE. There were about 306 million smartphone users in 2022 in the United States.

APAC Market Analysis

The Asia Pacific power over ethernet solutions market is estimated to have significant growth shortly. This market’s expansion in the region is dominated by growing demand for high-speed internet. Moreover, in China, the market is experiencing constant evolution owing to the surging focus on network security.

European Market Statistics

The market in the Europe region is set to grow over the forecast period. Government plays a dominant role in the extension of the market in the region since they are setting certain regulations to implement PoE solutions. Moreover, they are also initiating various strategies along with collaborating with stakeholders which would open the growth prospects.

Research Nester
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Top Featured Companies Dominating the Power Ethernet Solutions Landscape

top-features-companies
    • Cisco Systems, Inc.
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Avaya LLC
    • Analog Devices, Inc.
    • Dell Inc.
    • Broadcom Inc.
    • Silicon Laboratories
    • Netgear
    • Juniper Networks, Inc.
    • D-Link Corporation
    • Extreme Networks

In-the-news

In The News

  • To meet the connectivity requirements of industrial and process automation, motion control, transportation, and energy automation, Analog Devices, Inc. (ADI) introduced the ADIN2299, a multi-protocol industrial ethernet switch platform.
  • Silicon Labs has launched a comprehensive Power over Ethernet (PoE) portfolio that decreases the cost and complexity of integrating 90 W PoE into power source equipment (PSE) and powered devices (PD). The new 90 W PoE portfolio adheres to the IEEE 802.3bt standard, which more than doubles normal PoE power and broadens the possibilities of wireless access points and IoT wireless gateways. The portfolio's increased power capabilities make PoE-powered 5G small cells and smart buildings a viable possibility.

Author Credits:  Payel Roy, Dhruv Bhatia


  • Report ID: 5029
  • Published Date: Jun 14, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

The major factors driving the growth of the market are the growing demand for LED lights, the rise in security breaches, and the surge in the use of PoE solutions by data centers.

The market size of power over Ethernet (PoE) solutions is anticipated to attain a CAGR of ~10% over the forecast period, i.e., 2023 – 2035.

The major players in the market are Cisco Systems, Inc., Avaya LLC, Analog Devices, Inc., Dell Inc., and more.

The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.

The market is segmented by type, device type, application, end-user, and by region.

The power sourcing equipment segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

Having the limited capacity to deliver power, lack of awareness among people, and the high initial cost of installation are estimated to be the growth hindering factors for the market expansion.

The market in the North American region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Power over Ethernet Solutions Market Report Scope
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