Sun, 13 Jun 2021

Power over Ethernet (POE) Market is forecast to reach $1.65 billion by 2025, after growing at a CAGR of 16% during 2020-2025. POE injector or midspans enables to carry both data and electricity, thus the Internet-based devices as VoIP phones can work by connecting to just one cable instead for two. The growth of this market is being propelled by the growing demand for PoE-based products such as VoIP phones, IP Cameras, Wireless access points and others. The benefits of VoIP phones such as low cost of communication, ease of installation, and maintenance, among others, have led to the increase in deployment of VoIP phones which will further boost the Power over Ethernet Market during the given forecast period 2020-2025.

Key Takeaways

  • Asia-Pacific dominates the Power over Ethernet Market owing high internet penetration and increasing need for wireless technologies in the developing countries such as India and others in the region.
  • The growing popularity of smart vehicles that enables manufacturers to develop vehicles with integrated infotainment ad hoc systems to boost the PoE market growth.
  • Increasing demand of PoE-based products, with the continuous rise in adoption of PoE-compatible VoIP phones and wireless access points has set to increase the market demand in the near future.
  • Limited distance transmission of PoE may retard its application over long-distance transmission and obstructs the market to grow

End Users Segment Analysis

The increasing demand for power over Ethernet technology-based products from office buildings, especially for connectivity and security & access control applications, is one of the major factors driving the growth of the market. The implementation of PoE to provide power for various endpoints in commercial buildings are creating huge opportunities for PoE market and impact the market positively.

Application - Segment Analysis

The infotainment segment in PoE solutions market is expected to grow at a highest CAGR during the forecast period due to the increase in the demand for enhanced in-vehicle experience which deploy PoE for electricity and data supply. Thus, the adoption of smart vehicles that enables manufacturers to develop vehicles with integrated infotainment systems, boost the growth of PoE as well. Thereby, the automakers are strongly competing to deploy advanced infotainment system for their upcoming vehicle models, during the forecast period.

Geography - Segment Analysis

The Power over Ethernet chipsets market in the APAC region is anticipated to witness highest growth rate during the given forecast period. High internet penetration and increasing need for wireless technologies in developing countries such as India, and others coupled with advancement in the network technologies are the various factors boosting the market in the APAC region. Also, the investment by the government for the development of smart grids has been contributing towards the growth of POE market in the region.

Drivers – Power over Ethernet Market

  • Increased demand for datacenters

With the adoption of technologies such as big data analysis, cloud based services, the number of datacenters has been enormously increased in the developed countries. Thus, data center colocation has been enormously rising in countries such as U.S. and others which may use the PoE to manage the networking infrastructure, energy savings purpose and others. And hence, the deployment of PoE for the data centers will leverage the market during the forecast period.

  • Deployment of PoE in Smart Grids

Most of the countries such as U.S., Canada and others are preferring smart grids to implement automated devices and machines to analyze data and for automatic response. Smart grid requires strategic up gradation in network infrastructure in order to support new technologies and services. Thereby, the adoption of PoE for the network infrastructure in smart grids which will drive the market during 2020-2025.

Challenges – Power over Ethernet Market

  • Limited Distance or Data Transmission

PoE cabling can transmit 100 meters from the switch or hub to the Network Interface Card (NIC). Thus, the Ethernet cabling standards limit the total length of cabling to 100 meters. There by the largest distance PoE switch can transmit simple data over Ethernet is 100 meters which may hinder its use where more than 100 meters transmission is required.

Market Landscape

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Power over Ethernet Market. Texas Instruments, Inc. (U.S.), Maxim Integrated Products, Inc. (U.S.), Linear Technology Corp. (U.S.), Microsemi Corp. (U.S.), and STMicroelectronics N.V. (Switzerland), and others.

Acquisitions/Technology Launches

  • In April 2019 STMicroelectronics has announced power-over-ethernet (PoE) chipset both for smart-building applications and 5G. PM8804 and PM8805 use the most recent IEEE 802.3bt PoE specification. Thus the launch of this PoE chipset will create a space-efficient and reliable solution for powered devices (PDs).
  • In Jan 30, 2018 Microsemi announces digital ceiling power-over-ethernet switch offering optimal and cost-effective solution for POE lighting and other digital ceiling applications.

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