Global Power Over Ethernet (POE) Solutions Market Size, Forecast and Trend Highlights Over 2025-2037
Power Over Ethernet Solutions Market size was over USD 2.42 billion in 2024 and is expected to reach USD 8.66 billion by 2037, reflecting a CAGR of over 10.3% during the forecast period, from 2025 to 2037. In 2025, the industry size of power over ethernet solutions is assessed at USD 2.59 billion.
The major factor to boost the growth of this market is the rising installation of security cameras. Power over Ethernet is helpful in the flexible fitting of the cameras for enhancing security coverage, even in areas without power outlets. For instance, according to data published by the Delhi Government in 2023, the city has 1,826 cameras installed pr square mile. Governments worldwide are installing security cameras to avert crimes like vandalism and theft.
Additionally, the use of POE is also growing in the smart grid to deliver data and power over a single line to field devices. This further supports the effective utilization of physical space and data communication technologies. Smart grids require systematically upgrading the network infrastructure to enable advanced technologies and services. Here are some of the prominent progresses made by various countries in deploying smart grids:
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Regions |
Funding for establishing the Smart Grid |
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European Union Action Plan |
USD 633 billion by 2030 |
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China |
USD 442 billion between 2021-2025 |
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Japan |
USD 155 billion in 2022 |
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India |
USD 38 billion in 2022 |
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United States |
USD 10.5 billion in 2022 |
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Canada |
USD 100 million in 2024 |
Source: International Energy Agency
Power over Ethernet (POE) Solutions Sector: Growth Drivers and Challenges
Growth Drivers
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Surge in demand for LED lights: LEDs are widely integrated into smart building systems, inculcating intelligent control of the lighting system for the conservation of energy. The amalgamation of the Power over Ethernet technology in LED lighting helps in connecting, monitoring, and controlling light fixtures utilized in smart building solutions. According to the Department of Energy, residential LEDs, particularly products rated with “Energy Star”, utilize at least 75% less energy. These factors are leading to increased demand for the LEDs. For instance, according to The Observatory of Economic Complexity, the worldwide trade of light-emitting diode lamps reached USD 6.47 billion in 2023.
- Rising adoption of Internet of Things: Power over Ethernet remarkably influences the deployment of IoT by streamlining the device management. PoE eradicated the need for separate wiring and outlets for power. This makes it extremely easy to deploy and connect IoT devices, particularly in locations that are difficult to access. According to the World Economic Forum, industrial IoT alone adds USD 14 trillion of financial value to the economy globally. These factors are propelling the market growth during the forecasted period.
- Increasing usage of PoE in retail display: With the rising establishment of retail stores, PoE is extensively used to attract customers. It is used in retail displays at the aisles, entrances, store windows, shelves, etc. Dump bins, freestanding shelves, countertops, and windows are some of the most common places where displays are used in a retail store. Also, the advent of AI-powered solutions renders remarkable benefits to retailers by optimizing resource utilization. AI is fueling the adoption of Power over Ethernet for establishing faster and more resilient networks in the retail sector. The data published by the World Economic Forum in January 2023, Artificial Intelligence services in the retail sector are anticipated to reach USD 31 billion by 2028.
Challenges
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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.
- Limited power output and incompatibility: A PoE connection usually connects with multiple devices. That means, if one fails, all other devices connected to the stream shut down. Also, some of the devices, particularly those with higher power requirements, might not be compatible with the older PoE standards.
Power Over Ethernet Solutions Market: Key Insights
| Report Attribute | Details |
|---|---|
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
10.3% |
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Base Year Market Size (2024) |
USD 2.42 billion |
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Forecast Year Market Size (2037) |
USD 8.66 billion |
|
Regional Scope |
|
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 2037. The growth of this segment is poised to be influenced by its extensive use in meeting the requirements in various powered devices applications such as wireless access points, video cameras, VoIP phones, and more. As it saves cost by eliminating the necessity to deploy a separate power supply, its use in this application is growing. Power-sourcing equipment is widely used in home automation for installing smart doorbells, smart speakers, LED lighting, and voice assistants. The World Economic Forum in April 2022 stated that by 2027, the number of households with at least 1 smart speaker would reach 335 million.
Application (Lighting Control, IoT Connectivity, Access Control & Security, Infotainment)
The IoT connectivity segment in the POE solutions market is predicted to experience significant growth till 2037. 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-enabled switches and routers is forecast to grow further, boosting the market gain. The data published by the European Union in 2021, 29% of enterprises use Internet of Things devices, mostly for keeping their premises secure. These factors are bolstering the growth of the segment.
Our in-depth analysis of the global POE solutions market includes the following segments:
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Type |
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Device Type |
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Application |
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End use |
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Customize this ReportPower Over Ethernet Solutions Industry - Regional Synopsis
North America Market Forecast
The POE solutions market in North America is anticipated to have the highest growth during the forecast period, backed by a rise in demand for wireless devices. Federal and provincial initiatives are green energy and smart infrastructure in North America. A surge in the inclusion of IoT devices and energy-efficient networking solutions also drives the growth in the region. For instance, in the U.S., the National Institute of Standards and Technology (NIST) has supported the inclusion of POE in smart cities and commercial buildings due to the demand for cost and energy savings. Additionally, in the U.S., the Bipartisan Infrastructure Law in 2021 included USD 510 million for smart grid grants and USD 1.2 billion for establishing smart infrastructure in the reconnecting communities pilot program. Additionally, in Canada, Innovation, Science, and Economic Development reported a surge in the deployment of Power over Energy in the last year, especially in the healthcare and education sectors.
Asia Pacific Regional Analysis
The power over ethernet solutions market in Asia Pacific is projected to witness staggering growth due to the rise in the development of smart buildings and IoT adoption. Also, the market is backed by the expansion of 5G and Wi-Fi networks that require robust POE infrastructure. For instance, in China, the government has infused almost USD 310 billion during 2021-2025 for smart city infrastructure and developed almost 5.1 million POE-enabled IP cameras under the National Safe Cities Project. Additionally, the market growth has also been propelled by mandates for developing energy-efficient buildings in the 14th 5-year plan. In Japan, the inclusion of IoT and automation in various industries and offices is fueling POE demand, supported by the Society 5.0 program.
Companies Dominating the Power Over Ethernet Solutions Landscape
- Cisco Systems
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Huawei
- Aruba Networks
- Dell Technologies
- TP-Link
- Ubiquiti
- Siemens
- Schneider Electric
- Juniper Networks
The competitive landscape of the POE solutions market is rapidly evolving as established key players, telecom giants and new entrants are investing in novel technologies. Key players in the market are focused on developing products that cater to the stringent regulatory norms and consumer demand. These key players are adopting several strategies, such as mergers and acquisitions, joint ventures, partnerships, and novel product launches to enhance their product base and strengthen their market position. Here are some key players operating in the global market:
In the News
- In April 2024, Siemens launched Single-Pair Ethernet (SPOE) for Industrial IoT to enable long-distance POE for factories and oil rigs. The companies’ industrial automation division reported 9.1% revenue growth due to SPOE adoption.
- In March 2024, Cisco launched the Catalyst 9600 Series POE for high-power devices like digital signage and IoT sensors. The data center & IoT segment for Cisco surged 8.2% Y-o-Y in Q1 2024. The system has also been deployed in Singapore’s Smart Nation Initiatives.
Author Credits: Dhruv Bhatia
- Report ID: 5029
- Published Date: May 21, 2025
- Report Format: PDF, PPT
