The Power over Ethernet market in MEA is expected to grow from US$ 61.56 million in 2019 to US$ 151.08 million by 2027; it is estimated to grow at a CAGR of 12.5% from 2020 to 2027.
As the governments and businesses realize the significance of technology, various government and private initiatives are emerging for the development of smart cities. A smart city is characterized by various connected devices such as cameras, sensors, recorders, and other smart devices, which utilize information and communication technologies to provide better public wellbeing, service levels, economic development, and sustainability. Moreover, smart city is known for its enhanced safety levels, efficient public utilities, improved public transport services, efficient utilization of energy, economic development opportunities, and data-driven decision-making system, among other benefits. The growing need for optimum utilization of resources to create sustainable development is paving the way for smart cities, which is expected to create growth opportunities for Power over Ethernet market players. Additionally, escalating LED lighting adoption owing to supportive government initiatives is among the other factors expected to fuel the demand for Power over Ethernets in MEA.
Based on application, the infotainment segment is expected to be fastest growing segment for the MEA Power over Ethernet market during the forecast period. Emerging demand for smart vehicles enables vehicle manufacturers to invest heavily toward developing vehicles with the integration of infotainment systems. Current infotainment systems are complex and they lack the packet data and bandwidth capabilities required for network support system updates. Automotive manufacturers are shifting toward the development of Power over Ethernet-enabled infotainment systems to boost the in-car experience by offering different features, such as in-vehicle navigation, video, audio, and internet connectivity. Growing interest of the masses for autonomous driving is permitting technology companies to develop Power over Ethernet-based infotainment systems further to match the changing connectivity and bandwidth demands of driverless cars.
The ongoing COVID-19 outbreak has badly impacted the MEA region. Among the MEA countries, Iran has faced the highest number of COVID-19 confirmed cases. Other significant countries facing the economic impact of COVID-19 include Turkey, Saudi Arabia, the UAE, Egypt, Morocco, and Kuwait. Due to their heavy reliance from European and Asian regions for various automotive OEMs and their aftermarket products, the regions witnessed a sharp decline in the MEA regions. The power over Ethernet market in the MEA is majorly affected by the disruption in the distribution of components and equipment. Owing to the various containment measure initiated by the government, such as travel restrictions, factory shutdown, and lockdowns, the supply and distribution of semiconductors and electronics had been hampered. The demand for electronics, including power over Ethernet systems has weakened over the past couple of months, which has impacted the revenue streams of players operating in this region.
The overall MEA Power over Ethernet market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining an overview and forecast for the MEA Power over Ethernet market with respect to all the segments pertaining to the region. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. The participants who typically take part in such a process include industry experts, such as VPs, business development managers, market intelligence managers, and national sales managers along with external consultants, such as valuation experts, research analysts, and key opinion leaders specializing in the MEA Power over Ethernet market. Broadcom Ltd.; Cisco Systems, Inc.; Dell Inc; Huawei Technologies Co., Ltd.; Maxim Integrated Products, Inc; Monolithic Power Systems Inc.; ON Semiconductor Corporation; Silicon Laboratories Inc.; and Texas Instruments, Inc. are among the key players operating in the MEA Power over Ethernet market.