Industry: Semiconductor Electronics
Published Date: July-2024
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 190
Report ID: PMRREP34694
The global power over ethernet chipset market is anticipated to value at US$659.1 Mn in 2024 to US$1,225.1 Mn Bn by the end of 2031. The market is projected to expand at a CAGR of 9.6% during the forecast period between 2024 and 2031.
Key Highlights of the Market
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Attributes |
Key Insights |
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PoE Chipset Market Size (2024E) |
US$659.1 Mn |
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Projected Market Value (2031F) |
US$1,225.1 Mn |
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Forecast Growth Rate (CAGR 2024 to 2031) |
9.6% |
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Historical Growth Rate (CAGR 2018 to 2023) |
9.1% |
PoE technology is constantly evolving to minimize energy waste. Chip and adapter advancements reduce power loss over cables, and PoE-enabled devices integrate smarter power management features to decrease idle power consumption.
The introduction of the new standard, IEEE 802.3bt or PoE++, allows up to 90 watts of power delivery. This enables PoE to support even more powerful devices like digital signage, point-of-sale systems, and advanced surveillance cameras.
Power of Ethernet chipset can work with renewable energy systems. This market trend is likely to grow as sustainability becomes a bigger priority. This technology is constantly evolving to minimize energy waste.
Chip and adapter advancements reduce power loss over cables, and PoE-enabled devices integrate smarter power management features to decrease idle power consumption.
The Internet of Things (IoT) and smart building technologies are the key drivers for the power over ethernet chipset market growth. PoE simplifies powering these devices by using a single Ethernet cable for both data and power. This reduces installation complexity and costs, making PoE ideal for smart cameras, lighting systems, and building automation systems.
Surge in remote work and connected devices fuels the need for faster internet. PoE chipsets support high-speed data transmission, making them perfect for modern networking requirements.
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Growing Demand for IoT, and Smart Building Solutions
The proliferation of Internet of Things (IoT) devices and smart building technologies has created a significant demand for PoE chipsets. PoE offers several advantages in these applications, including simplified installation (since it combines power and data over a single Ethernet cable), flexibility in deployment, and cost-effectiveness.
As IoT devices continue to multiply across industries such as healthcare, retail, and industrial automation, the need for robust and efficient PoE chipsets becomes paramount.
The trend toward smart buildings, where various systems such as lighting, HVAC, security, and access controls are integrated into a centralized network, further drives the adoption of PoE chipsets. These systems require reliable power delivery and management, which PoE chipsets can effectively provide.
Advancements in PoE Standards and Technology
There has been a notable evolution in PoE standards, with the introduction of higher power delivery capabilities over recent years. The latest standard, IEEE 802.3bt (PoE++) significantly expands the power delivery capacity up to 60 watts (Type 3) and 100 watts (Type 4).
It also enables PoE to power a broad range of devices including IP cameras, wireless access points, and even small devices like LED lighting fixtures and IoT sensors. This standard has spurred innovation among chipset manufacturers to develop more efficient and higher-power PoE solutions.
Advancements in PoE technology such as intelligent power management, higher efficiency conversion, and better heat dissipation capabilities have contributed to the increased adoption of PoE across various applications.
Manufacturers are focusing on integrating these technological advancements into their chipsets to meet the growing demand for reliable and scalable PoE solutions. This will largely boost the growth of the power over Ethernet chipset market.
Power and Heat Management Concerns
Power management and heat dissipation become critical factors as PoE technology evolves to support higher power. High-power PoE applications, such as PTZ cameras, high-density Wi-Fi access points, and IoT devices, require efficient power management to ensure reliable operation and prevent overheating.
Chipset manufacturers face challenges in designing PoE solutions that can efficiently convert and manage power without compromising reliability or generating excessive heat.
Heat dissipation is particularly important in compact devices where space constraints limit the ability to dissipate heat effectively. Overheating not only affects the performance and longevity of PoE-enabled devices but also increases maintenance costs and potentially impacts safety.
As a result, chipset manufacturers must invest in research and development to improve thermal management techniques and enhance the efficiency of their PoE chipsets.
Compatibility Issues, and Standardization Challenges
One of the key challenges in the PoE chipset market is the diverse range of devices and equipment that require PoE support. While IEEE standards such as 802.3af, 802.3at, and 802.3bt provide guidelines for power delivery over Ethernet cables, there can still be compatibility issues between different generations of PoE equipment.
For instance, older devices may not support newer PoE standards, leading to interoperability issues. This fragmentation in standards and compatibility can complicate deployment scenarios, particularly in mixed-use environments where devices from various manufacturers and generations are present.
Lack of standardized implementation across all PoE-enabled devices can pose challenges for chipset manufacturers. They must ensure that their chipsets are compatible with a wide range of devices and adhere to evolving standards to maintain the competitiveness in the power over Ethernet chipset market.
The need for backward compatibility, and future-proofing solutions adds complexity and can slow down the adoption rate in some industries. This may remain a longstanding impediment for the growth of the PoE chipset market.
Reliance of Security and Surveillance Systems on PoE
Security and surveillance systems rely mainly on PoE for powering IP cameras, access control systems, and video analytics devices. Future opportunities lie in developing PoE chipsets that enhance the security features of these systems.
The features include integrating encryption protocols, secure boot mechanisms, and authentication mechanisms to protect against cyber threats and unauthorized access.
Enhanced reliability and robustness of PoE chipsets can also be crucial in critical surveillance applications where uninterrupted operation is essential. Security and surveillance applications require uninterrupted operation to ensure continuous monitoring and protection.
PoE technology offers enhanced reliability by providing a centralized power source that can include backup power solutions such as uninterruptible power supplies.
Expansion into Industrial Automation
Industrial automation and control systems are increasingly adopting Ethernet-based communication protocols for data exchange and control, which is propelling the expansion of the power over Ethernet chipset market.
PoE chipsets can play a pivotal role in industrial environments by powering devices such as industrial sensors, actuators, and robotic systems over the same Ethernet cables used for communication.
Future opportunities include developing ruggedized PoE chipsets capable of withstanding harsh industrial conditions and complying with industrial communication standards like PROFINET, and EtherCAT.
PoE Powered Devices Command a Significant Market Share
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Category |
Market Share in 2023 |
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PoE powered devices |
55.2% |
PoE powered devices (PDs) encompass a wide range of end devices across various industries and applications. These include IP phones, wireless access points (WAPs), IP cameras, IoT sensors, VoIP devices, and even smart lighting fixtures.
The versatility of PoE allows these devices to receive both power and data through a single Ethernet cable, simplifying installation, reducing deployment costs, and enhancing flexibility in network design. The PoE powered devices (PD) chipset leads the market. This segment held market share of 55.2% in 2023.
As more devices become network-connected, the demand for PoE-powered solutions continues to grow, thereby driving the dominance of the PD chipset segment.
In response to market demands, manufacturers are increasingly focused on miniaturizing PoE powered devices (PDs). This market trend reflects a broader shift toward more compact and lightweight PoE-enabled solutions, including IP cameras and access control devices
Industrial Segment to Emerge as a Leader in the Market
Industrial operations rely on uninterrupted power delivery to maintain productivity and ensure operational continuity.
PoE chipsets designed for industrial applications prioritize reliability, with features such as advanced power management, surge protection, and fault detection mechanisms. These capabilities minimize downtime and contribute to overall system reliability in critical industrial processes.
The industrial segment has emerged as a leader in the power over ethernet (PoE) chipset market market capturing a significant revenue share. As the demand for swift and dependable communication rises in industrial automation and control systems, industrial Ethernet is gaining traction.
PoE technology offers a cost-efficient and effective method to power and link industrial Ethernet devices like switches and routers, even in challenging environments. The industrial segment led the market with a notable revenue share in the market.
North America Continues to Dominate with over 40% Revenue Share
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Region |
Market Share in 2023 |
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North America |
40% |
North America has a well-established infrastructure with high internet and ethernet connection penetration in both residential and commercial sectors. This existing foundation fosters widespread adoption of PoE-enabled devices.
North America leads the power over ethernet (PoE) chipset market due to extensive adoption of PoE-enabled devices in the region. This regional market trend is set to persist, fueled by growing demand for PoE-enabled devices in smart buildings and industrial automation applications. North America led the market accounting for a revenue share of 40.0% in 2023.
Asia Pacific to Demonstrate a Remarkable CAGR of 16.9% by 2031
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Region |
CAGR through 2031 |
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Asia Pacific |
16.9% |
Asia Pacific is a hub for IT and telecom industries, characterized by robust growth in network infrastructure and digital transformation initiatives. PoE chipsets play a crucial role in powering and networking devices such as IP phones, Wi-Fi access points, and network switches in these sectors.
The adoption of PoE technology enhances network efficiency, reduces operational costs, and supports scalable network expansions across diverse geographical locations.
Asia Pacific region is projected to expand at a CAGR of 16.9% during the forecast period. Moreover, Japan, China, India, Singapore, and Hong Kong are poised to play pivotal roles in driving the adoption and growth of the emerging 802.3bt standard within the region
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Strategic alliances, partnerships, and acquisitions play a pivotal role in shaping the competitive landscape of the PoE chipset market. Companies forge collaborations to expand product portfolios, integrate complementary technologies, and enhance market reach.
Acquisitions are often used to acquire niche expertise, intellectual property rights, or to consolidate market position through mergers with complementary businesses.
Recent Industry Development
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Attributes |
Details |
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Forecast Period |
2024 to 2031 |
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Historical Data Available for |
2018 to 2023 |
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Market Analysis |
US$ Million for Value |
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Key Regions Covered |
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Key Countries Covered |
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Key Market Segments Covered |
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Key Companies Profiled |
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Report Coverage |
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Customization & Pricing |
Available upon request |
By Standard Type
By Type
By Device
By End Use
By Region
To know more about delivery timeline for this report Contact Sales
The market is projected to expand at a CAGR of 9.6% during the forecast period between 2024 and 2031.
Some of the top industry participants in the market include Cisco Systems Inc., Microsemi Corporation, and Analog Devices, Inc.
Growing demand for IoT and smart building solutions is a key driver for market growth.
Reliance of security and surveillance systems on PoE provides a prominent opportunity for the market players.
North America is estimated to stand out in the market with significant market share.
