Global Power-Over-Ethernet (PoE) Chipsets Market to Reach US$2.5 Billion by 2030
The global market for Power-Over-Ethernet (PoE) Chipsets estimated at US$2.2 Billion in the year 2023, is expected to reach US$2.5 Billion by 2030, growing at a CAGR of 1.8% over the analysis period 2023-2030. Powered Devices (PD) Chipset, one of the segments analyzed in the report, is expected to record a 2.2% CAGR and reach US$1.5 Billion by the end of the analysis period. Growth in the Power Sourcing Equipment (PSE) Chipset segment is estimated at 1.4% CAGR over the analysis period.
The U.S. Market is Estimated at US$608.9 Million While China is Forecast to Grow at 0.4% CAGR
The Power-Over-Ethernet (PoE) Chipsets market in the U.S. is estimated at US$608.9 Million in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$368.5 Million by the year 2030 trailing a CAGR of 0.4% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of -0.4% and -0.7% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately -2.0% CAGR.
Global Power-Over-Ethernet (PoE) Chipsets Market - Key Trends and Drivers Summarized
Power Over Ethernet (PoE) chipsets, integral to modern networking, combine power and data transmission over a single Ethernet cable, simplifying the infrastructure for devices like Wireless Access Points (APs) by eliminating the need for separate power cables. This dual-functionality of PoE chipsets enhances installation flexibility and reduces costs, although it faces limitations set by IEEE standards, such as IEEE802.3af and IEEE802.3at, which restrict power delivery to 12W and 24W, respectively. For devices that require more power, alternatives exist that bypass these restrictions, broadening the application scope of PoE technology. At its core, PoE enables devices to receive electrical power along with data through Ethernet cabling, facilitated by devices such as CAT5 Injectors and Splitters for non-PoE-compatible devices, ensuring a versatile and simplified connectivity solution for various network components.
The evolution of PoE standards from IEEE 802.3af to IEEE 802.3at reflects the increasing demand for higher power capacities to support more power-intensive devices. These standards help maximize the efficiency of cable length and power transmission by standardizing voltage levels, typically around 48VDC, to reduce current load, although some manufacturers opt for lower voltages like 24VDC or 12VDC. The implementation of PoE significantly simplifies the installation process by reducing dependency on proximity to electrical outlets, allowing for flexible device placement such as in high or remote locations. This not only streamlines the setup but also provides substantial cost savings in the long run, offsetting initial costs associated with integrating PoE technology. Safety features of PoE, like automatic power cutoff in case of cable damage, add an essential layer of security, preventing accidents typical of standard electrical wiring setups.
The growth of PoE chipsets is driven by several key factors. The integration with Internet of Things (IoT) devices, which are proliferating across both commercial and residential spaces, highlights the need for efficient power and network connectivity solutions provided by PoE. This is further amplified by the rising demand for smart home and office automation, where devices such as IP cameras, smart lights, and access control systems are increasingly common. PoE chipsets support these applications by enhancing energy efficiency, reducing waste, and streamlining power management in cable systems. Expansion of telecommunication infrastructure and advancements in wireless technology, like Wi-Fi 6 and 5G, necessitate robust, remotely powered devices that PoE chipsets can support. Additionally, regulatory developments and standards evolution ensure safety and compatibility across devices, encouraging wider adoption. As network security becomes a growing concern, the deployment of networked security devices also propels the demand for reliable PoE solutions, highlighting its critical role in enhancing system reliability and security in real-time operations.
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