The Global Power over Ethernet Chipsets Market size is expected to reach $1.63 billion by 2031, rising at a market growth of 12.0% CAGR during the forecast period.
The North America segment witnessed 38% revenue share in the market in 2023. The widespread implementation of smart city projects and the expansion of 5G networks have fueled the demand for PoE technology in the United States and Canada. Additionally, IT, healthcare, and manufacturing industries rely heavily on PoE to power and connect devices like wireless access points, IP cameras, and VoIP phones.
IoT devices are integral to smart homes, enabling automated lighting, climate control, and security systems. According to the World Bank’s Digital Progress and Trends Report 2023, in 2022, more than 13 billion IoT devices were in use. Driven largely by the almost real-time connectivity of 5G technology, these devices are expected to more than double between 2023 and 2028. These devices require power and data transfer through a streamlined infrastructure, making PoE an ideal choice. Hence, as the IoT ecosystem expands across sectors, the demand for PoE chipsets to support efficient and scalable power delivery is expected to grow exponentially.
Additionally, the rise of smart city initiatives worldwide transforms urban living, with governments leveraging technology to improve resource efficiency, public safety, and sustainability. Power over Ethernet (PoE) has become a critical enabler in these projects by providing a cost-effective and reliable solution for powering and connecting smart infrastructure. PoE simplifies deployment by combining power and data in a single Ethernet cable, making it ideal for systems like smart lighting, surveillance, and traffic management. Thus, as smart city initiatives expand globally, the reliance on PoE will continue to grow, underpinning the evolution of urban infrastructure.
However, While power over Ethernet (PoE) technology offers significant benefits, such as simplified cabling and centralized power management, it often comes with high upfront costs. Implementing a PoE system requires investment in specialized infrastructure, including PoE-enabled switches, routers, injectors, and compatible end devices. These components are typically more expensive than their non-PoE counterparts due to the additional technology required to deliver data and power over the same Ethernet cable. Hence, the high cost may substantially hamper the market's adoption.
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 Acquisitions, and Partnerships & Collaborations.
The North America segment witnessed 38% revenue share in the market in 2023. The widespread implementation of smart city projects and the expansion of 5G networks have fueled the demand for PoE technology in the United States and Canada. Additionally, IT, healthcare, and manufacturing industries rely heavily on PoE to power and connect devices like wireless access points, IP cameras, and VoIP phones.
IoT devices are integral to smart homes, enabling automated lighting, climate control, and security systems. According to the World Bank’s Digital Progress and Trends Report 2023, in 2022, more than 13 billion IoT devices were in use. Driven largely by the almost real-time connectivity of 5G technology, these devices are expected to more than double between 2023 and 2028. These devices require power and data transfer through a streamlined infrastructure, making PoE an ideal choice. Hence, as the IoT ecosystem expands across sectors, the demand for PoE chipsets to support efficient and scalable power delivery is expected to grow exponentially.
Additionally, the rise of smart city initiatives worldwide transforms urban living, with governments leveraging technology to improve resource efficiency, public safety, and sustainability. Power over Ethernet (PoE) has become a critical enabler in these projects by providing a cost-effective and reliable solution for powering and connecting smart infrastructure. PoE simplifies deployment by combining power and data in a single Ethernet cable, making it ideal for systems like smart lighting, surveillance, and traffic management. Thus, as smart city initiatives expand globally, the reliance on PoE will continue to grow, underpinning the evolution of urban infrastructure.
However, While power over Ethernet (PoE) technology offers significant benefits, such as simplified cabling and centralized power management, it often comes with high upfront costs. Implementing a PoE system requires investment in specialized infrastructure, including PoE-enabled switches, routers, injectors, and compatible end devices. These components are typically more expensive than their non-PoE counterparts due to the additional technology required to deliver data and power over the same Ethernet cable. Hence, the high cost may substantially hamper the market's adoption.
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 Acquisitions, and Partnerships & Collaborations.
Driving and Restraining Factors
Drivers- Rising Adoption Of Internet Of Things (Iot) Devices
- Growth In Smart Cities Projects
- Expansion Of 5G Networks Across The Globe
- Substantially High Initial Costs
- Complex Installation And Maintenance
- Increasing Use Of Security And Surveillance Systems
- Rapidly Growing Industrial Automation
- Competition From Alternative Technologies
- Introduction Of Unique Cybersecurity Challenges
Standard Outlook
Based on standard, the market is classified into 802.3at standard, 802.3bt standard, and 802.3af standard. The 802.3af standard segment garnered 24% revenue share in the market in 2023. The 802.3af standard, supporting up to 15.4 watts of power per port, is primarily driven by the increasing deployment of low-power devices across various sectors. This standard is widely used for powering VoIP phones, basic IP cameras, and wireless access points in small and medium-sized enterprises (SMEs) and residential settings.End-user Outlook
On the basis of end-user, the market is divided into industrial, commercial, and residential. The commercial segment recorded 36% revenue share in the market in 2023. The commercial sector is experiencing advantages due to the increasing demand for intelligent building solutions and energy-efficient technologies. PoE is widely used to power and connect IP cameras, VoIP phones, access control systems, and wireless access points, making it ideal for office buildings, retail spaces, and hospitality venues.Type Outlook
By type, the market is bifurcated into PoE powered devices (PD) chipset and PoE power sourcing equipment (PSE) chipset. The PoE power sourcing equipment (PSE) chipset segment garnered 48% revenue share in the market in 2023. PSE chipsets are essential for delivering power to multiple connected devices, such as IP cameras and LED lighting systems, making them a cornerstone of modern PoE networks. The rising adoption of high-power applications, supported by advanced PoE standards like IEEE 802.3bt, has further propelled the demand for PSE chipsets.
Device Type Outlook
Based on device type, the market is segmented into ethernet switch & injector, network cameras, LED lighting, VoIP phone, wireless radio access point, and others. The network cameras segment acquired 20% revenue share in the market in 2023. The increasing demand for sophisticated security and surveillance solutions across industrial, commercial, and residential sectors is propelling the adoption of network cameras. PoE technology enables seamless installation of these cameras by eliminating the need for separate power cables, reducing costs, and simplifying infrastructure.Regional Outlook
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Europe segment garnered 30% revenue share in the market in 2023. European countries, particularly Germany, the UK, and France, are adopting PoE technology in smart building projects and industrial automation to optimize energy usage and reduce costs. The region's strong focus on Industry 4.0 has increased the adoption of PoE-powered devices like sensors and IoT gateways in manufacturing and logistics.List of Key Companies Profiled
- STMicroelectronics N.V.
- Microchip Technology Incorporated
- ON Semiconductor Corporation
- Texas Instruments, Inc.
- Robert Bosch GmbH
- NXP Semiconductors N.V.
- Honeywell International Inc.
- Analog Devices, Inc.
- Cisco Systems, Inc.
- Silicon Laboratories, Inc.
Market Report Segmentation
By Standard- 802.3at standard
- 802.3bt standard
- 802.3af standard
- Industrial
- Commercial
- Residential
- PoE Powered Devices (PD) Chipset
- PoE Power Sourcing Equipment (PSE) Chipset
- Ethernet Switch & Injector
- Network Cameras
- LED lighting
- VoIP Phone
- Wireless Radio Access Point
- Other Device Type
- 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
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market at a Glance
Chapter 3. Market Overview
Chapter 4. Competition Analysis - Global
Chapter 5. Global Power over Ethernet Chipsets Market by Standard
Chapter 6. Global Power over Ethernet Chipsets Market by End-user
Chapter 7. Global Power over Ethernet Chipsets Market by Type
Chapter 8. Global Power over Ethernet Chipsets Market by Device Type
Chapter 9. Global Power over Ethernet Chipsets Market by Region
Chapter 10. Company Profiles
Companies Mentioned
- STMicroelectronics N.V.
- Microchip Technology Incorporated
- ON Semiconductor Corporation
- Texas Instruments, Inc.
- Robert Bosch GmbH
- NXP Semiconductors N.V.
- Honeywell International Inc.
- Analog Devices, Inc.
- Cisco Systems, Inc.
- Silicon Laboratories, Inc.
Methodology
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