Power over Ethernet (PoE) Chipsets Market Size, Share & Trends Analysis Report By Type (Powered Devices, Power Sourcing Equipment), By Standard, By Application, By End Use, By Device Type, And Segment Forecasts, 2018 - 2025

Industry Insights

The global Power over Ethernet (PoE) chipsets market size was valued at USD 464.8 million in 2017. It is anticipated to rise at a CAGR of 12.6% from 2017 to 2025. The Power over Ethernet technology is estimated to gain tremendous momentum over the coming years owing to its ability to 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 increasing use of Internet Protocol (IP) technologies and 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 an upthrust to the market. 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.

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

Based on type, the market has been segmented into PoE Power Sourcing Equipment (PSE) Chipset and PoE Powered Devices (PD) Chipset. The PoE PD chipset segment accounted for 59.1% of the overall market in 2017. The segment is anticipated to maintain its position in the market throughout the forecast period.

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 right amount of energy to said devices through Ethernet cables.

PoE injector eliminates the need for installing separate electrical cables to provide a power source. Increasing implementation of VoIP devices in telecommunication application due to their cost-effectiveness is estimated to further augment the market over the forecast period.

Standard Market Size

On the basis of standard, the market has been classified into 802.3af, 802.3at, and 802.3bt. Growing adoption of the Power over Ethernet technology for security applications is working in favor of the overall market. 802.3af finds application in IP cameras.

802.3at, also known as PoE Plus, is an advanced version of PoE. It is able to deliver around 34.2 W of power to powered devices. Furthermore, the scope of applications of Ethernet cable is widening, which is expected to further contribute to the growth of the market.

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 is able to support devices such as video-conferencing device components and building management devices, point of sale (PoS) devices, and digital signage devices.

Application Insights

By application, the market is categorized into connectivity, infotainment, LED lighting, security, and others. Rising adoption of LED light and growing integration of PoE in LED lighting technology are anticipated to augment the market over the forecast period.

Burgeoning demand for PoE chipsets in security, connectivity, and lighting applications from commercial and industrial users is estimated to supplement the growth of the Power over Ethernet chipsets market. Improving internet infrastructure and proliferation of internet of things are expected to assist the growth of the market.

Device Type Insights

On the basis of device type, the market has been divided into network cameras, VoIP phones, ethernet switches and injectors, wireless radio access points, proximity sensors, and others. Growing implementation of VoIP devices in networking and communication, owing to cheaper and cost-effective solutions offered by such devices, is poised to supplement the growth of the segment.

Increasing deployment of proximity sensors, cameras, and RFID readers for network security purposes in residential applications is projected to boost the demand for PoE chipsets. Spiraling applications of IP cameras in VoIP, security systems, and webcams are anticipated to propel the market.

Surging demand for PoE-based products in office buildings, especially for security & access control, along with connectivity applications, is estimated to positively influence the overall market.

End-user Insights

Based on end user, the market has been segmented into commercial, industrial, and residential. The commercial segment is further classified into office buildings and small offices, retail, healthcare, and hospitality. The segment is expected to post the highest CAGR over the forecast period.

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 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 in terms of revenue in 2017. The regional market was valued at USD 209.9 million in 2017. Soaring use of high-speed internet is expected to bolster the demand for PoE chipsets across the region.

The Asia Pacific regional market is likely to witness a significant gain in revenue share over the forecast period, on account of growing demand for high-speed internet and rising trend of automation across various industries in 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.

Power over Ethernet Chipsets Market Share Insights

Akros Silicon, Inc.; Cisco Systems, Inc.; Flexcomm Technology Limited; Maxim Integrated Products, Inc.; Microsemi Corporation; Texas Instruments Incorporated; Linear Technology Corporation; ON Semiconductor; Silicon Laboratories; and STMicroelectronics are some of the key players in the market.

Industry participants are entering into strategic partnerships and mergers & acquisitions to strengthen their product portfolio and foothold. For instance, in February 2016, Cisco Systems, Inc. collaborated with Koninklijke Philips N.V., a Dutch technology solution provider. With increased sales of smart lighting solutions, both the companies witnessed a hike in profitability as the former company provided networking gears and the latter offered commercial lighting solutions.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global PoE chipsets market report based on type, standard, end-use, and region:

• Type Outlook (Revenue, USD Million; 2014 - 2025)

  • PoE Power Sourcing Equipment (PSE) Chipset

  • PoE Powered Devices (PD) Chipset

• Standard Outlook (Revenue, USD Million; 2014 - 2025)

  • 802.3af standard

  • 802.3at standard

  • 802.3bt standard

• Application (Revenue, USD Million; 2014 - 2025)

  • Connectivity

  • Infotainment

  • LED Lighting

  • Security

  • Others

• End-user Outlook (Revenue, USD Million; 2014 - 2025)

  • Commercial

    • Office Buildings and Small Offices

    • Retail

    • Healthcare

    • Hospitality

  • Industrial

  • Residential

• Device Type Outlook (Revenue, USD Million; 2014 - 2025)

  • Network Cameras

  • VoIP Phone

  • Ethernet Switch & Injector

  • Wireless Radio Access Point

  • Proximity Sensor

  • Others

• Regional Outlook (Revenue, USD Million; 2014 - 2025)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

  • Asia Pacific

    • China

    • Japan

    • India

  • South America

    • Brazil

  • Middle East and Africa (MEA)