What is PoE? PoE (power over Ethernet) is a technology to provide both data connection and electric power to the PoE enabled devices (also called PDs) over a single Ethernet cable. Featured with low maintenance, low cost, less downtime, and easy installation, the power over Ethernet market demand has been increasing sharply over the years. Coming along with the booming PoE solutions market, the power over Ethernet applications also has penetrated everywhere.
According to the global power over the Ethernet market forecast from 2016 to 2022, the global PoE market is expected to grow at CAGR (compound annual growth rate) of 13% and estimated to reach a market size of 1 billion US dollars by the end of the year 2022. Within such a global market, North America plays a dominant role, followed by Europe and Asia-Pacific.
According to different features, the PoE market can be further divided into various segments:
By Types: In terms of PoE types, there are power sourcing equipment (PSE) and powered device (PD). Technically, a PSE like PoE switch is used to connect PDs like VoIP phones to supply power and data simultaneously. With a PSE, the need for separate power supply devices for each PD can be eliminated greatly.
By Power to Port: Based on specified power over Ethernet standards, such as IEEE802.3af or IEEE802.3at, there are four types of PoE wattage per PSE port available in the market: up to 15.4W, up to 30W, up to 60W, and up to 100W. To get more information about PoE standard and power consumption, you can move to What Is Power over Ethernet (PoE) and How to Add PoE in the Network?
By Device: To realize a wide range of applications, the PoE devices have kept upgrading all the time. PoE devices like power over Ethernet switch, PoE injector, IP camera, VoIP phone and wireless access points (WAP) are the top five popular devices. According to the power over Ethernet market forecasts from the Dell’Oro Group, the PoE devices like WAP and the PoE lighting will be the two largest driving forces for the PoE industry in the upcoming 10 years.
By Application: In all kinds of PoE applications, the connectivity, access control & security, lighting control, and infotainment hold the four largest PoE market shares.
By End-User: In the PoE end-user market, industrial, commercial, and residential markets can be found. In these three markets, the industrial PoE market is expected to hold a dominant share of around 40% in 2025 due to the rising demand for PoE solutions in the industrial sectors such as energy, oil & gas, telecom, and automotive & transportation.
As the above introduction has said, there are industrial, commercial, and residential end-user types in the power over Ethernet market. Considering the specific end-user types, PoE applications show differences.
In recent years, PoE devices for home have been in its new application stage with the arrival of PoE smart homes. By connecting PoE devices of homes together, the PoE smart home enables centralized management.
For example, by connecting a managed PoE switch with PoE LED lights and other smart home accessories such as wireless communication modules, a PoE lighting network can be built. Within that network, the user is able to dynamically monitor and control the whole LED lighting system.
Generally, office, retail, and health care are the top three contributors to the PoE commercial field. Similar to the PoE smart home, the PoE smart office building also is one of the most popular power over Ethernet solutions in the PoE market. Especially with the IEEE802.3bt standard carried out, more power-hungry devices now can be involved in the PoE office network.
For instance, in a PoE plus plus (PoE++) network, the power over Ethernet switch delivers a max. power per port up to 100W. In that case, commonly used PoE devices in office buildings like digital signage displays, point-of-sale systems, LCD televisions, and computer monitors can be connected together to build a PoE smart building.
In an industrial environment, especially for the manufacturing field, industrial automation has been an overwhelming trend. With that trend, the PoE industrial applications have also accelerated its pace to stay competitive over the PoE market.
PoE devices like sensors and IP cameras can be used for managers to observe manufacturing floors to monitor automated equipment and employee behaviors. With the use of those PoE devices, the operation cost and administrative time can be greatly reduced for manufacturers.
To meet the growing PoE applications, the power over Ethernet market share is expected to increase over the forecast timeline. Since PoE technology enables both data and power transmission over the same network cable, it indeed brings great convenience to not only the residential and commercial users, but also the industrial users.