Global Power Over Ethernet Market Size, Share & Trends Analysis Report By Type, By End Use, By Application, By Regional Outlook and Forecast, 2024 - 2031

Global Power Over Ethernet Market Size, Share & Trends Analysis Report By Type, By End Use, By Application, By Regional Outlook and Forecast, 2024 - 2031

The Global Power Over Ethernet Market size is expected to reach $5.0 billion by 2031, rising at a market growth of 20.4% CAGR during the forecast period.

This growth is considerably influenced by the region's rapid expansion of IoT and smart building projects, as well as its robust adoption of advanced networking technologies. The United States has seen widespread implementation of PoE technology across industries such as telecommunications, healthcare, and commercial real estate. The presence of leading tech companies and high demand for scalable, flexible network infrastructure to support cloud computing, remote work, and hybrid offices has further driven the market's growth. Thus, the North America segment procured 34% revenue share in the power over ethernet market in 2023.

The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, In March 2024, Analog Devices, Inc. partnered with BMW Group, a German automotive company, to utilize ADI's 10BASE-T1S Ethernet to the Edge bus (E²B) technology for automotive applications. The partnership would streamline implementation, reduce costs, and advance standardization in automotive Ethernet. Additionally, In April, 2023, Siemens AG partnered with IBM, an American technology company, to develop solutions for service lifecycle management, systems engineering, and asset management. The partnership would allow the joint customers of the two companies to reduce their operational costs and drive operational efficiencies.

Based on the Analysis presented in the KBV Cardinal matrix; Broadcom, Inc. and Cisco Systems, Inc. are the forerunners in the Power Over Ethernet Market. In February, 2024, Cisco Systems, Inc. partnered with NVIDIA, an American technology company, to provide AI infrastructure solutions for data centers, combining Cisco’s Ethernet expertise with NVIDIA’s GPUs. The partnership would simplify AI deployment and management, offering integrated solutions and optimized performance for enterprises. Companies such as Texas Instruments, Inc., Hitachi, Ltd., STMicroelectronics N.V. are some of the key innovators in Power Over Ethernet Market.

Market Growth Factors

in industrial automation, PoE is being used to support the deployment of IoT sensors and controllers on factory floors. These devices are essential for monitoring production processes, collecting data on equipment performance, and enabling predictive maintenance. PoE simplifies the installation of these sensors by reducing the need for extensive wiring, which is especially valuable in large-scale manufacturing facilities.

Additionally, by using PoE, these smaller, decentralized data centers can be deployed with greater flexibility and efficiency, making it easier to meet the demands of IoT and real-time data processing. Therefore, as data centers expand globally, PoE is becoming a critical component of next-generation network infrastructure, facilitating market growth.

Market Restraining Factors

As industries continue to integrate more advanced and power-intensive technologies such as artificial intelligence (AI) systems, virtual reality (VR) headsets, and industrial IoT (IIoT) devices, the current power limitations of PoE could further restrict its growth in the long term. Thus, this use restriction impedes the market's expansion into broader applications.

The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Partnerships & Collaborations.

Type Outlook

Based on type, the market is bifurcated into power sourcing equipment controllers & ICs and powered device controllers & ICs. The power sourcing equipment controllers & ICs segment garnered 57% revenue share in the market in 2023. The segment's growth is largely due to the increasing demand for PoE-enabled switches, routers, and other network infrastructure components.

Application Outlook

On the basis of application, the market is classified into connectivity, security & access control, infotainment, LED lighting & control, and others. The LED lighting & control segment recorded 13% revenue share in the power over ethernet market in 2023. PoE-enabled LED lighting systems are increasingly popular in commercial buildings, campuses, and smart cities because they offer energy-efficient, cost-effective solutions that can be centrally managed.

End Use Outlook

By end use, the market is divided into commercial, industrial, and residential. The industrial segment garnered 24% revenue share in the market in 2023. The growth in industrial applications can be linked to the rising demand for IoT devices, sensors, and automation systems in manufacturing facilities, warehouses, and factories.

Region Outlook

Region-wise, the over ethernet market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Europe segment acquired 32% revenue share in the market in 2023. Europe has been at the forefront of adopting smart building technologies and green energy initiatives, directly benefiting from PoE technology.

Market Competition and Attributes

The Power over Ethernet (PoE) market is competitive, driven by increasing adoption of IoT devices and demand for efficient power solutions in networking. Key attributes include advancements in PoE standards (like IEEE 802.3bt), expanding applications in smart buildings and IP surveillance, and integration with wireless technologies. Market players focus on developing high-power PoE solutions, enhancing energy efficiency, and ensuring compatibility across diverse devices. Innovation in PoE technology and robust infrastructure development are critical factors shaping market dynamics.

Recent Strategies Deployed in the Market

• May-2024: Broadcom introduced its new 400G PCIe Gen 5.0 Ethernet adapters, designed for high-performance, low-power data centre connectivity. Built with 5nm technology, these adapters address AI data centre bandwidth challenges with advanced features like low-latency congestion control and telemetry, supporting rapid XPU growth and cluster expansion.
• Mar-2024: Analog Devices, Inc. partnered with BMW Group, a German automotive company, to utilize ADI's 10BASE-T1S Ethernet to the Edge bus (E²B) technology for automotive applications. The partnership would streamline implementation, reduce costs, and advance standardization in automotive Ethernet.
• Feb-2024: Cisco Systems, Inc. partnered with NVIDIA, an American technology company, to provide AI infrastructure solutions for data centres, combining Cisco’s Ethernet expertise with NVIDIA’s GPUs. The partnership would simplify AI deployment and management, offering integrated solutions and optimized performance for enterprises.
• Apr-2023: Siemens AG partnered with IBM, an American technology company, to develop solutions for service lifecycle management, systems engineering, and asset management. The partnership would allow the joint customers of the two companies to reduce their operational costs and drive operational efficiencies.
• Nov-2022: Siemens AG announced the acquisition of Avery Design Systems, Inc., a simulation-independent verification IP provider. The acquisition would allow Siemens to strengthen its mainstream verification IP portfolio.

List of Key Companies Profiled

• Siemens AG
• STMicroelectronics N.V.
• Cisco Systems, Inc.
• Broadcom, Inc.
• Texas Instruments, Inc.
• Hitachi, Ltd.
• Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.)
• Analog Devices, Inc.
• Axis Communications AB (Canon, Inc.)
• Silicon Laboratories, Inc.

Global Power Over Ethernet Market Report Segmentation

By Type

• Power Sourcing Equipment Controllers and ICs
• Powered Device Controllers and ICs

By End Use

• Commercial
• Industrial
• Residential

By Application

• Connectivity
• Security and Access Control
• Infotainment
• LED Lighting and Control
• Other Application

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Australia
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA