Power over Ethernet (PoE) Market was valued at $685.1 million in 2020 and expected to grow at a CAGR of 12.6% during forecast period 2021-2026. PoE is a technology which describes several standard ad-hoc systems that are used for power and data transmission over an existing data connection with a single Ethernet cabling. Low cost, low maintenance, easy installation and less downtime are some of the factors make it more advanced than traditional network power cables. The rising energy cost and adoption of PoE midspans in commercial and industrial sectors for injecting power without affecting the data are expected to surge the overall Power over Ethernet market demand during the forecast period.
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 2021-2026.
Power over Ethernet Market Segment Analysis – By Standard
802.3Bt Standard holds the major share in Power over Ethernet market at 42% in 2020. Growing demand for high powered devices in order to support smart devices connected to the Ethernet network set to drive the PoE market growth. In 2018, The Institute of Electrical and Electronics Engineers (IEEE) had ratified as in order to meet the power demand of smart buildings and IoT applications. Integration of smart devices has become cost effective with the PoE compared to traditional wiring.
This standard increases the maximum PoE, and enable multiple and high power management capability. It also enables PoE injectors in order to carry out power and data transmission using large bandwidth to wired and wireless devices such as PTZ security cameras, exterior-mounted IP cameras, and next-generation wireless access points (WAPs), interactive and self-service kiosks and others. This increases the demand for 802.3Bt Standard, thereby driving the PoE market.
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Power over Ethernet Market Segment Analysis – By Application
LED Lighting has been the primary application for Power over Ethernet market and is expected to grow at a CAGR of 13.1% during forecast period 2021-2026. In LED Lighting, PoE can be used to eliminate separate power supplies and additional AC electrical infrastructure to power IP enabled building systems. With growing adoption of IoT technology in industries, there has been wide adoption of LED lighting owing to its high efficiency.
PoE is highly used in simplified deployment of LED lighting as it doesn’t require a home gateway, unlike Zigbee Z-Wave home automation standard, making them ideal for home and industrial automation. Many companies have been introducing PoE solutions for LED lighting applications as it can be easily operated through mobile using internet. For instance, in 2019, Philips Lighting had installed its first-ever Power over Ethernet connected lighting system. This boosts the demand for PoE in LED lighting application, thereby creating opportunities for the market.
Power over Ethernet Market Segment Analysis – By Geography
North America dominated the Power over Ethernet market with a share of 34% in 2020, followed by Europe and APAC. The presence of large number of PoE power sourcing equipment as well as powered device manufacturers in this region set to drive the PoE market. Growing adoption of PoE systems and early adoption of this technology for various commercial and industrial applications have also been pushing the market growth in North America region. High adoption of PoE with increasing adoption of automation and IoT technologies in various industries and growing investments in smart grid infrastructure set to increase the North American PoE market
Power over Ethernet Market Drivers
Adoption of advanced technologies such as Internet of Things (IoT) and Smart buildings
With the implementation of IoT technology, there has been increasing adoption of power over Ethernet systems in various industries which set to drive the market growth. Growing number of connected devices that generate more power, light, and data converged networks in IoT-enabled infrastructure have been escalating the demand for PoE solutions. Additionally, PoE assists in eliminating the need for electric points for the smart sensors that can be integrated on the network at any location. With the help of PoE, smart buildings can utilize a single cable without the need of human touch for powering and communicating with the access points, VoIP networks, IP surveillance cameras, smart lighting luminaries, feature rich video IP phones, other smart devices, and sensors. High adoption of PoE solutions in industries as they are used for high efficiency applications and helps in reducing system cost, thereby driving the market.
Growing adoption of PoE in smart grids
In smart grids, PoE is used to transfer data and power by a single wire to field devices that assists in the optimum consumption of space and effective utilization of data communication technologies. Smart grids need strategic up gradation of network infrastructure in order to support advanced technologies and services. Many countries have been focusing on investments on smart grid which set to drive the market. For instance, in 2020, Ameren which is one of the largest utility companies in the Midwest U.S. has planned to spend $7.6 billion in smart grid technology for five year grid modernization. Increasing adoption of PoE with increasing investments in smart grid infrastructure set to drive the market growth.
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Power over Ethernet Market Challenges
Limited Power Capacity hamper the market growth
Power over Ethernet has limited power capacity which hampers the market growth. PoE has capacity to supply ample power to standard pan tilt zoom (PTZ) cameras but they cannot provide sufficient electrical energy for high power consumption devices such as network PTZ cameras which restraints the market growth. In addition to this, usually single PoE power source or switch is connected to multiple powered devices, in this case, if any of the PoE network devices encounter a problem or an issue, there is a chance in which all the devices will stop working. This limits the growth of PoE market.
Power over Ethernet Market Landscape
Product launches, acquisitions and R&D activities are the key strategies adopted by players in the Power over Ethernet market. The market of Power over Ethernet top 10 companies are Microsemi Corp., Linear Technology Corp., Maxim Integrated Products Inc., Cisco Systems, Inc., STMicroelectronics N.V., Texas Instruments Inc., Cree, Inc., Koninklijke Philips N.V. Axis Communications AB, Panasonic Corp., D-Link Corp., and among others.
In September 2019, STMicroelectronics had launched Power over Ethernet (PoE) controllers for networked devices. These devices have standards of IEEE 802.3af specification for powered devices (PD), which deliver all the control functions that are required to enable a PD to request and draw PoE network through a power source. Introduction of standardized PoE products set to escalate the power over Ethernet market share, thereby driving the market.
In January 2019, Microsemi Corporation had introduced PDS-208G PoE switch which is mainly developed for digital ceiling installations. This new device is compatible with IEEE 802.3af or 802.3at PoE lighting fixture and can be installed in ceiling or communication room racks. The company is focusing on introducing advanced PoE products in order withhold its market share.
North America dominates the Power over Ethernet market owing to high investments and early adoption of advanced technologies such as IoT and smart buildings.
Growing adoption of PoE for smart buildings as it reduces installation costs, offer responsive deployment. It benefits building owners as they are cost effective compared to traditional electrical wiring.
High adoption of PoE in smart grids with increasing investments in smart grid infrastructure and its up gradation set to boost the PoE market demand.
Limited power capacity and limited distance for data transmission has been hampering the growth of the market. However, high investments and development of new standards and solutions with advancing technologies are creating opportunities for the market growth.
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