Power over Ethernet Market Size, Trends and Growth Analysis by 2027

The global Power over Ethernet (PoE) market was valued at approximately US$ 820.4 million in 2019 and is projected to experience a compound annual growth rate (CAGR) of 11.8% throughout the forecast period, ultimately reaching around US$ 1,917.4 million by 2027.

In recent years, the adoption of LED lighting has surged significantly, driven by decreasing prices and advancements in technology. The growing emphasis on energy efficiency has led to a decline in the use of traditional fluorescent and incandescent lighting, thereby increasing the demand for LED solutions globally. According to data from the International Energy Agency (IEA), the penetration of LED lighting in residential settings escalated from 5% in 2013 to 40% by 2018. LED lighting is recognized for its durability, lower environmental impact, cost-effectiveness, and extended lifespan. Additionally, government initiatives aimed at phasing out inefficient halogen and fluorescent lamps, along with the establishment of minimum quality standards for LED lighting integrated with Power over Ethernet, are further propelling this trend.

Numerous companies are concentrating on the development of LED lighting systems that incorporate Power over Ethernet technology. For example, Wipro Lighting provides PoE-based solutions that integrate LED technology, enabling customizable environments for various sectors, including data centers, modern workplaces, education, healthcare, and retail. These PoE-enabled LED lighting systems offer diverse options for both centralized and distributed architectures, allowing flexibility in the placement of related switches, whether in an Intermediate Distribution Frame (IDF) or electrical panel room, or mounted on the ceiling. Such innovations in PoE-based LED lighting are significantly contributing to the expansion of the PoE market.

However, the COVID-19 pandemic has led to the abrupt shutdown of numerous industries worldwide, resulting in a decrease in power demand that adversely affects the electronics and semiconductor sectors. The temporary halt of economic activities has also disrupted the supply chain for manufacturing goods, which has impacted the production of Power over Ethernet technologies globally. These factors are currently restraining market growth.

The global PoE market is categorized based on type, application, and end user. In terms of type, the market is divided into Power Sourcing Equipment (PSE) and Powered Devices (PDs). When considering applications, the market encompasses IoT connectivity, lighting control, infotainment, access control and security, communication applications, and others. By end user, the market is segmented into residential, commercial, and industrial sectors. Geographically, the Power over Ethernet market is divided into North America, Europe, Asia Pacific (APAC), the Middle East and Africa (MEA), and South America (SAM). In 2019, North America dominated the market share, followed by Europe and APAC. The APAC region is anticipated to witness the highest growth rate during the period from 2020 to 2027.

The overall size of the Power over Ethernet market has been determined through a combination of primary and secondary research methodologies. The research process commenced with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data relevant to the market. This approach also aids in forming an overview and forecast for the Power over Ethernet market across all segments. Furthermore, multiple primary interviews have been conducted with industry participants and experts to validate the data and gain deeper analytical insights. Participants in this research include industry professionals such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the Power over Ethernet sector.

Key players profiled in this market study include Broadcom, Inc.; Cisco Systems, Inc.; Dell Inc.; Huawei Technologies Co., Ltd.; Maxim Integrated Products, Inc.; STMicroelectronics N.V.; Texas Instruments Incorporated; Silicon Laboratories, Inc.; ON Semiconductor Corporation; and Monolithic Power Systems, Inc.