Power over Ethernet (PoE) Chipset Market Size, Share & Trends Analysis Report By Type (PoE Power Sourcing Equipment (PSE) Chipset), By Standard, By End-use, By Device, By Region, And Segment Forecasts, 2023 - 2030

PoE Chipset Market Size & Trends

The global power over ethernet (PoE) chipset market size was valued at USD 678.4 million in 2022 and expected to grow at a compound annual growth rate (CAGR) of 12.2% from 2023 to 2030. The PoE technology is estimated to gain tremendous momentum over the coming years owing to the increasing demand for PoE-enabled devices such as IP cameras, wireless access points, and VoIP phones. Moreover, PoE chipset technology can transmit electrical power and networking through one cable. Thus, it reduces the number of wires and results in lower costs, simplified infrastructure management, easier maintenance, less downtime, greater installation flexibility, and reduced power consumption.

The market is expected to witness significant growth over the forecast period owing to several factors such as the increasing use of Internet Protocol (IP) technologies and the rising trend of transmitting data and power via a single cable over large distances using PoE switches and PoE injectors. Growing adoption and implementation of optical fiber cables for communication are likely to provide a fillip to the market.

With the rise of the Internet of Things (IoT) and smart building technologies, there is a growing need for devices that can be powered and controlled remotely. Power over Ethernet (PoE) technology is an ideal solution for these applications, as it allows for centralized power management and control. Furthermore, technological advancements such as big data analytics and cloud-based services are fueling the demand for data centers in developed countries such as the U.S., which is poised to drive the market.

The development of new PoE standards, such as the IEEE 802.3bt standard, which supports up to 90 watts of power, is driving the adoption of PoE technology in new applications. These advancements are also enabling the development of new PoE-enabled devices, such as LED lighting systems and wireless charging pads.

The use of PoE with LED lighting allows practical applications of the Internet of Things (IoT) and smart buildings. PoE LED lighting is still in the nascent stage and thus, its penetration in commercial buildings is low. But with cost-competitive benefits over other lighting technologies, PoE lighting is projected to experience deeper market penetration in the offing, thereby benefiting the growth of the market.

Type Insights

The PoE Powered Devices (PD) chipset segment dominates the market with a revenue share of 54.7% in 2022. There is a growing trend towards the miniaturization of PoE PDs, as manufacturers look to reduce the size and weight of PoE-enabled devices. This trend is driven by the growing demand for compact and lightweight PoE-enabled devices, such as IP cameras and access control devices.

Furthermore, PoE PDs are increasingly consuming higher power levels to support more advanced features and functions. For example, high-end IP cameras may require up to 60 watts of power, while PoE-powered LED lighting systems may require up to 100 watts of power. PoE injector eliminates the need for installing separate electrical cables to provide a power source. Increasing implementation of VoIP devices in telecommunication applications due to their cost-effectiveness is estimated to further augment the market over the forecast period.

The PSE segment is projected to grow over the forecasted period. The factor attributed to the market growth is the growing demand for PoE PSEs that can deliver higher power levels to support the increasing power requirements of PoE-enabled devices.

The latest PoE standards, such as IEEE 802.3bt, support up to 90 watts of power, and PoE PSEs are being developed to support these higher power levels. PSE chipsets support various levels of PoE and linear technology standards. These devices are solely responsible for detecting and classifying powered devices, along with providing the right amount of energy to said devices through Ethernet cables.

Standard Insights

The 802.3at standard segment dominates the market with a revenue share of 48.3% in 2022. The 802.3at, also known as PoE Plus, is an advanced version of PoE. It can deliver around 34.2 W of power to powered devices. The scope of applications of Ethernet cable is widening, which is expected to further contribute to the growth of the market.The adoption of PoE technology is increasing in various applications, such as smart buildings, industrial automation, and healthcare. This has led to an increase in demand for PoE chipsets that can provide power to a wide range of devices.

IEEE 802.3bt is a next-generation PoE standard that is likely to be implemented by 2018. It delivers ultra-high power of up to a range of 60 to 90 watts. It can support devices such as video-conferencing device components and building management devices, point of sale (PoS) devices, and digital signage devices. Power over Ethernet chipsets are now being integrated with advanced features such as intelligent power management, thermal protection, and remote monitoring. This has made PoE chipsets more versatile and has led to an increase in demand for these chipsets.

Device Insights

The ethernet switch & injector phone segment dominates the market with a revenue share of 25.2% in 2022. The factor attributed to the growth is the increasing demand for networked devices and the need for efficient power delivery. Increasing deployment of cameras, proximity sensors, and RFID readers for network security purposes in residential applications is projected to boost the demand for PoE chipsets.

Spiraling applications of security systems, IP cameras in VoIP, and webcams are anticipated to propel the market. Surging demand for PoE-based products in commercial buildings, especially for connectivity applications, and security & access control, is estimated to positively influence the overall market.

The LED lighting segment is expected to grow the fastest CAGR from 2023 to 2030. The rising adoption of LED light and the growing integration of PoE in LED lighting technology are anticipated to augment the market over the forecast period. The adoption of LED lighting solutions is increasing due to their energy efficiency, longer lifespan, and cost-effectiveness compared to traditional lighting systems.

This trend is leading to a rise in demand for PoE-enabled LED lighting solutions that could be powered and controlled through the Ethernet network, simplifying installation and reducing energy consumption. Moreover, the increasing focus on sustainability and energy efficiency was also contributing to the growth of the PoE-enabled LED lighting segment.

End-use Insights

The industrial segment led the market with a revenue share of 44.8% in 2022. With the growing need for faster and more reliable communication in industrial automation and control systems, industrial Ethernet is becoming increasingly popular. PoE technology provides a cost-effective and efficient way to power and connects industrial Ethernet devices, such as switches and routers, in harsh environments.

Moreover, the industrial lighting market is also adopting PoE technology to power and control LED lighting systems. The segment is expected to continue to grow, driven by the increasing adoption of PoE-enabled devices in industrial automation and control systems. As more devices become PoE-enabled, the demand for PoE chipsets is expected to increase, driving further growth in the PoE chipset market.

The commercial segment is further classified into office buildings and small offices, retail, healthcare, and hospitality. The smart building market is rapidly adopting PoE technology to power and connect a wide range of devices, including lighting systems, HVAC systems, security systems, and other building automation systems.

PoE technology provides a cost-effective and efficient way to manage and control these systems, improving energy efficiency and reducing operating costs. Increasing penetration of PoE technologies in offices, hospitals, and hotels is likely to contribute to the growth of this end-user segment. Rising awareness regarding the benefits of PoE in lighting and connectivity solutions is projected to stir up the growth of the residential segment.

Regional Insights

North America dominated the market with a revenue share of 38.0% in 2022. North America is the largest market for PoE chipsets, driven by the high adoption of PoE-enabled devices in the region. The trend is expected to continue, driven by the increasing demand for PoE-enabled devices in smart buildings and industrial automation applications.

Moreover, the soaring use of high-speed internet is expected to bolster the demand for Power over Ethernet (PoE) chipsets across the region.Additionally, favorable regulatory frameworks in the European Union are projected to play a crucial role in the growth of the regional market. European countries such as the U.K., Spain, and France are anticipated to register a higher CAGR than other countries in the region over the forecast period.

The Asia Pacific region is expected to grow with the fastest CAGR of 16.4% from 2023 to 2030. The regional market is likely to witness a significant gain in revenue share over the forecast period, based on the growing demand for high-speed internet and the rising trend of automation across various industries in the region.

The trend is expected to continue, driven by the increasing demand for PoE-enabled devices in smart cities and industrial automation applications. Moreover, Japan, China, India, Singapore, and Hong Kong are expected to be the key contributors to the growth of the upcoming 802.3bt standard in the region.

Key Companies & Market Share Insights

The market is characterized by strong competition, with a few major worldwide competitors owning a significant market share. The major focus is on developing new products and collaboration among the key players.

In 2021, Maxim Integrated, a leading provider of integrated circuits, announced a collaboration with Universal Lighting Technologies, a global provider of lighting solutions, to develop a new PoE-enabled LED driver solution. The collaboration aimed to combine Maxim's expertise in PoE technology with Universal Lighting Technologies' expertise in lighting solutions to develop an innovative PoE-enabled LED driver that offers high efficiency and flexibility. Some prominent players in the global power over ethernet chipset market include:

• Analog Devices, Inc.

• Cisco Systems Inc.

• Microsemi Corporation (Microchip Technology Inc.)

• Monolithic Power Systems Inc.

• NXP Semiconductors N.V.

• On Semiconductor Corporation

• Semtech Corporation

• Silicon Laboratories Inc.

• STMicroelectronics N.V.

• Texas Instruments Incorporated

Power over Ethernet Chipset Market Report Scope

Global Power over Ethernet (PoE) Chipset Market Report Segmentation

This report forecasts revenue growth on global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global power over ethernet chipset market report based on type, standard, device, end-use, and region:

• Type Outlook (Revenue, USD Million, 2017 - 2030)

  • PoE Power Sourcing Equipment (PSE) Chipset

  • PoE Powered Devices (PD) Chipset

• Standard Outlook (Revenue, USD Million, 2017 - 2030)

  • 802.3af standard

  • 802.3at standard

  • 802.3bt standard

• End-use Outlook (Revenue, USD Million, 2017 - 2030)

  • Commercial

    • Office Buildings and Small Offices

    • Retail

    • Healthcare

    • Hospitality

  • Industrial

  • Residential

• Device Outlook (Revenue, USD Million, 2017 - 2030)

  • Network Cameras

  • VoIP Phone

  • Ethernet Switch & Injector

  • Wireless Radio Access Point

  • Proximity Sensor

  • LED Lighting

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • South America

    • Brazil

    • Mexico

  • Middle East and Africa

    • KSA

    • UAE

    • South Africa