The global power over Ethernet (PoE) market is anticipated to attain nearly USD 3.8 billion by 2025. It was estimated at USD 445.3 million in 2015. The industry is driven by the need for faster communication speeds to cater to a large base of internet users worldwide. Adoption of VoIP (voice-over Internet protocol) by various end-users is a vital demand driver.
PoE is a technology for Ethernet LANs (local area network) which is powered by data cables. The data cables provide electricity and internet connectivity at the same time. This reduces the number of wires required to install the Ethernet system as well as its overall cost. The latest IEEE (Institute of Electrical and Electronics Engineers) protocol, 802.3at, of 2009 allows 34.2W to be supplied to powered devices (PD). It is also known as the PoE plus (PoE+). This is anticipated to boost market growth over the forecast period (2014 to 2025). Moreover, applications which allow users to switch to an IP service from POTS (plain old telephone service) may drive demand for VoIP and also favor further market progress. However, overall demand is hampered by the problem of rising cable temperatures which leads to reduced performance.
The global power over Ethernet market is segmented according to products, applications, and geographies. Products are bifurcated into powered devices (PD) and power sourcing equipment (PSE). PSEs comprise a power supply module, a switch circuit, a logic device, and a PSE chip module. These provide power to the Ethernet cable. The maximum output given under 802.3af standard per cable is 15.4W. IP phones, IP cameras, and wireless access points make up powered devices (PDs). The PD segment can grow at a CAGR above 11% over the forecast period.
In-depth research report on global power over Ethernet (PoE) market - http://www.grandviewresearch.com/industry-analysis/power-over-ethernet-poe-market
Industrial, commercial, and residential are key industry applications. The commercial segment is predicted to generate high revenues for the global market. This can be attributed to PoE implementation in healthcare, retail, and offices. The residential segment may lead the market over the next couple of years on account of increasing penetration of VoIP phones, webcams, and IP phones. Home automation and centralized management of home appliances may fuel this segment. Popularity of VoIP phones has induced major industry players, such as SBC Telecom and Verizon to invest robustly in fiber-optic cables.
Latin America, North America, Asia Pacific (APAC), Middle East & Africa (MEA), and Europe are the regional segments of the global market. North America generates the highest revenues in the overall industry. This owes to growing demand for PoE controllers and integrated circuits (ICs). Tridonic, a subsidiary of Zumtobel Group of Companies, may soon venture into the North America market for PoE. It functions as a provider of lighting solutions. The company may focus on Internet of Things (IoT) and PoE to expand its presence in the region. APAC exhibits substantial growth potential due to the growing need for high-speed internet in the region.
Major players in the worldwide PoE industry are Cisco Systems, Inc.; Shenzhen Quanma Industry Co. Ltd.; Microsemi Corporation; and Maxim Integrated Products, Inc. These companies focus on scientific breakthroughs to sustain their industry shares. Recently, Cisco Systems launched a new Ethernet data switch to control building operations including lighting. Early adopters of this technology are Alpiq InTec, a Swiss energy service provider and a Texas based Marriott hotel. The product “Catalyst Digital Building Series Switch” has 8 ports and can deliver data and electricity at 8 different points. It does not require a cooling fan and could be vital in hospitals, hospitality, offices, and other such settings in the near future.