Power over Ethernet Market

Adoption of cutting-edge technologies like the Internet of Things (IoT) and smart buildings to propel the market growth

According to market dynamics, Power over Ethernet systems are becoming more widely used in a variety of industries thanks to the installation of IoT technology, which is expected to fuel market expansion. The need for PoE solutions has been rising due to the increasing number of connected devices that produce more light, power, and data through converging networks in IoT-enabled infrastructure. PoE also makes it possible to integrate smart sensors into the network at any location without the need for electrical outlets.

In order to power and connect access points, VoIP networks, IP surveillance cameras, smart lighting luminaires, feature-rich video IP phones, other smart devices, and sensors in smart buildings, PoE enables the use of a single cable without the involvement of a human. PoE solutions are widely utilised in sectors due to their high efficiency and ability to lower system costs, which is what is driving the market. Thus, this factor is driving the market CAGR.

Furthermore, PoE is used in smart grids to send data and power by a single line to field devices that aid in the efficient use of space and data communication technologies. For sophisticated technologies and services to be supported by smart grids, network infrastructure needs to be strategically upgraded. Many nations have concentrated on making investments in the smart grid, which is expected to drive the industry. For instance, Ameren, one of the biggest utilities in the Midwest of the United States, has budgeted $7.6 billion for smart grid technologies over a five-year period.

Growing PoE use and investments in smart grid infrastructure are expected to boost market expansion.

Additionally, building automation is rapidly adopting PoE-based solutions due to its flexibility, dependability, scalability, and cost effectiveness due to the reduction of personnel and cabling infrastructure expenditures. With the help of PoE, advanced sensing technologies, such as those used to count people or monitor air quality, can be connected with lighting applications that use the data network. The use of Potin sensors, networked lighting, and other building controls is required by the growing need for intelligent buildings. For instance, the digital nature of light and low-voltage DC power enable the lighting use of Pot.

The increasing proliferation of smart devices globally is a primary driver of the Global Power Over Ethernet Market Industry. As more businesses and households adopt Internet of Things (IoT) technologies, the need for efficient power solutions rises. Power over Ethernet (PoE) technology simplifies installations by delivering both power and data over a single cable, reducing costs and complexity. For instance, in 2024, the market is projected to reach 1.72 USD Billion, reflecting the growing reliance on smart devices that require constant power supply. This trend is expected to continue as the demand for smart lighting, security cameras, and other connected devices escalates.

The expansion of network infrastructure across various sectors is significantly influencing the Global Power Over Ethernet Market Industry. As organizations upgrade their networks to accommodate higher data speeds and connectivity, PoE technology becomes increasingly attractive. It allows for the deployment of devices in locations without easy access to power outlets. This is particularly relevant in sectors such as healthcare and education, where reliable connectivity is essential. The market is anticipated to grow substantially, with projections indicating a rise to 16.5 USD Billion by 2035. This growth underscores the importance of robust network infrastructure in supporting modern technological demands.

The rising adoption of Power over Ethernet technology in commercial spaces is a notable driver of the Global Power Over Ethernet Market Industry. Businesses are increasingly recognizing the benefits of PoE in terms of cost savings and operational efficiency. For instance, PoE enables the easy installation of devices such as IP cameras and wireless access points without the need for additional electrical infrastructure. This trend is particularly evident in urban areas where space and resources are limited. The market's growth trajectory suggests that by 2035, it could reach 16.5 USD Billion, driven by the demand for efficient and flexible power solutions in commercial environments.

Regulatory bodies worldwide are increasingly emphasizing energy efficiency, which is propelling the Global Power Over Ethernet Market Industry forward. Governments are implementing standards and incentives that encourage the adoption of energy-efficient technologies, including PoE. This regulatory support not only promotes sustainability but also drives innovation in power delivery systems. For example, energy efficiency regulations in various regions are likely to enhance the appeal of PoE solutions, as they can reduce energy consumption and operational costs. As a result, the market is expected to experience a compound annual growth rate (CAGR) of 22.81% from 2025 to 2035, reflecting the growing alignment of technology with energy efficiency goals.

Technological advancements in Power over Ethernet standards are shaping the Global Power Over Ethernet Market Industry. The introduction of new standards, such as IEEE 802.3bt, allows for higher power delivery, making PoE suitable for a broader range of applications, including high-performance devices. These advancements enable businesses to leverage PoE for more demanding applications, such as video conferencing systems and advanced lighting solutions. As technology evolves, the market is likely to expand, with projections indicating a CAGR of 22.81% from 2025 to 2035. This growth reflects the increasing versatility and capability of PoE solutions in meeting diverse power needs.

By region, the study provides the market insights into North America, Europe, Asia-Pacific, and the Rest of the World. North America power over ethernet market accounted for USD 0.4 billion in 2021 and is expected to exhibit a 43.20% CAGR during the study period. The majority of the key businesses in the sector are located here, which is the main justification. The existence of several information technology (IT) and telecom enterprises is another factor promoting rapid growth in this market. As a result, demand for PoE controllers and ICs is increasing quickly.

Further, the major countries studied in the market report are: The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: POWER OVER ETHERNET MARKET SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe power over ethernet market is expected to grow at a significant CAGR from 2022 to 2030. The European Union is likewise experiencing robust growth. The European Union's most economically powerful nations are propelling growth. Germany and the UK are two of these. The two industries that are driving expansion in this area are the healthcare and automobile sectors. Further, the UK power over ethernet market held the largest market share, and the Germany power over ethernet market was the fastest-growing market in the region.

Asia Pacific power over ethernet market accounts for the second-fastest growing market share. The Asia Pacific market is now mostly untapped despite having a sizable population and moderately high potential, particularly in its urban centers. Long term market growth may be facilitated by the development of smart cities, higher living standards, and rising incomes in this region. Moreover, China power over ethernet market held the largest market share, and the India power over ethernet market was the fastest-growing market in this region.

Major market players are spending a lot on R&D to increase their product lines, which will help the power over ethernet industry grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, market developments and collaboration with other organizations. According to the market competitive landscape, players in the industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market industry.

One of the primary business strategies manufacturers adopt in the power over ethernet industry to benefit clients and expand the sector is manufacturing locally to reduce operating costs. In recent years, power over ethernet industry has provided medicine with some of the most significant benefits. The power over ethernet market major player such as Axis Communications AB (Sweden), Maxim Integrated Products Inc. (U.S.), Texas Instruments Inc. (U.S.), STMicroelectronics N.V. (Switzerland), Linear Technology Corp. (U.S.), Broadcom Ltd. (U.S.), Microsemi Corp. (U.S.), ON Semiconductor (U.S.), Silicon Laboratories Inc. (U.S.) and Monolithic Power Systems Inc. (U.S.).

Silicon Laboratories, Inc. is a fabless multinational technology firm that creates and markets semiconductors, other silicon products, and software for use in Internet of Things infrastructure around the world. In 2020, it introduced three new integrated circuits (ICs) for PSE and PD products: the Si3471 PSE controller, the Si3474 quad Ethernet port PSE controller, and the Si34071 single-chip PD solution. These three new ICs simplify and lower the cost of adding 90 W of power to powered devices (PD) as well as to power sourcing equipment (PSE).

Also, STMicroelectronics N.V., also known as ST or STMicro, is a multinational Dutch company that specializes in technology with French and Italian roots. Its headquarters are in Plan-les-Ouates, which is close to Geneva, Switzerland, and it is listed on the French stock exchange. The largest semiconductor contract manufacturing and design business in Europe is ST. In 2019, Power over Ethernet (PoE) controllers for networked devices has been introduced by STMicroelectronics.

These devices adhere to the IEEE 802.3af specification for powered devices (PD), which provides all the necessary control capabilities to allow a PD to request and draw power from a PoE network. Power over Ethernet market share is expected to increase with the introduction of standardized PoE solutions, propelling the market.