Power-over-Ethernet (PoE) Chipsets Market | Analysis and Forecast, 2024-2032

Global Power-over-Ethernet (PoE) Chipsets Market Overview

Power-over-Ethernet (PoE) Chipsets Market Size Was Valued at USD 734.6 Million in 2023 and is Projected to Reach USD 2212.05 Million by 2032, Growing at a CAGR of 13.03 % From 2024-2032

Power over Ethernet is considered as an innovative technology that allows delivery of power over standard Ethernet infrastructure to facilitate quick and easy connection of Wireless Local Area Network access points which are generally used in surveillance cameras, telephones, and various IP-based devices. The production of Ethernet-connected devices such as security cameras, and access points, LED luminaires, and Internet of Things appliances has created an extraordinary demand for more power. PoE is the primary factor to connect the access points efficiently, cost-effectively, and reliably power network devices. One of the key features of PoE is to transmit the power supply and network connectivity in a single cable makes it convenient and allows it to use in various applications. PoE chipsets are being sued as a junction to connect and supply power and network cables and a variety of access point standards such as 802.11ac and 802.11ax.

Growing IT Sector and high usage of internet and network connectivity as well as security solutions in commercial and residential applications and also smart meter adoption to save the energy slippage due to network and power disability which boost the demand for seamless connections and minimum disruptions created a demand for PoE chipsets in the global market.

Market Dynamics and Factors:

Drivers

• POE is a technology that allows the transmission of the electric indications with data over connected Ethernet cables and enables the transfer of electric power with data through the same power cable to the power over Ethernet-enabled devices.The POE market is projected to witness significant growth over the forecast period due to various factors impacting the growing use of IP technologies and their usage in various applications and the growing trend of transmitting data and power through a singular cable covering large distances with POE injectors and switches. With large adoption of fiber cables for communication is expected to provide an upthrust to the market. Increasing energy costs and implementation of POE in the commercial sector have caused a major upsurge in the growth of the global PoE chipset market.
• Increase in demand of VoIP Deployments Shoots Market Opportunities for PoE Chipsets as major workforce around the world is working from home creating demand in setup for residential internet connection and broadband setups makes lucrative opportunity for PoE chipset market. LED lighting and digital signage is the new emerging trend replacing old-style billboard advertisement practices and large user and installation of PoE cables and network lines capturing vast area caused the major demand for top-quality PoE chipset globally.

Restraints

• To meet the high global demand and limited manufacturers creates an unproportionate demand-supply ratio. There is high demand in North America and the Asia Pacific creating pressure on the manufacturer to meet the global demand. The scarcity of raw materials like copper and steel creates a worldwide shortage of chipsets and hampers manufacturing.  2020-2021 global chip and chipset shortage due to unavailability of raw material is the most recent event and major restraining factor to the global PoE chipset market.

Opportunities

• Currently, PoE Chipsets are being used in various applications to Higher Power Intelligent Devices such as smart solar power solutions and power storage devices and also growing popularity in the internet of things and smart building infrastructure has the major application of PoE chipsets making a crucial link in vast applications. Security and defense sectors have a massive opportunity for PoE chipset as high-power data cables and connections which required high tolerance junction ports which need to sustain in a tough environment. Durable PoE chipsets have a massive opportunity in the defense and security sector globally.

Market Segmentation Analysis

• By Type, Powered devices are the dominating segment in the PoE Chipsets market. PoE chipsets are used in the devices which are powered through LAN cable avoiding two different cable connections or power sources. LAN cables can securely provide power and data for IoT devices without connecting long power cables. PoE-powered devices are being used in various applications such as lighting and digital signage, Computer displays and video conferencing systems, Telephones and phone charging stations, Internet access points, PoS (point of sale) systems, and Door access, security cameras, and fire alarm systems. Hence the PoE-powered devices have boosted the demand for PoE chipsets globally. Power Sourcing devices contain network switches, injectors, repeaters, and extenders that offer data, electricity which has relatively less demand in the global market.
• By Standard, 802.3bt Standard chipsets are leading in the standard segment of the PoE Chipsets market. 802.3bt is the newly introduced and widely adopted standard chipset due to Working over four pairs and providing low standby power support, automatic class functionality, and improved mutual identification process which is the key reasons for growth in the demand in the telecom and internet sector in the residential and commercial sector. A microchip is a leading manufacturer and innovator in PoE technology and a major developer of 802.3af, 802.3at, 802.3bt IEEE standards.
• By Device, Ethernet switch and injector dominating the segment in PoE chipset market. Ethernet switch and injector used in large applications such as internet and broadband connections also it is used in security camera and connections which has domestic and commercial applications globally making a large market for PoE chipsets to utilized in various devices as well. PoE chipset also used in wireless radio access points and VoIP phones which in security and defense sector. Seamless and uninterrupted connections make it a preferred option in such a sector. 
• By Application, Connectivity dominates the application segment in the PoE Chipset market as it is used heavily in ethernet connections, internet, and Wi-Fi router and also used as a junction to the power transmitting cables. Commercial buildings and offices require complex wired connections in all points to function smoothly in daily tasks especially in the IT sector which requires uninterrupted internet and internal device connections make it most widely applied. Security camera and wired and power connection is the second leading application of PoE Chipset globally.
• By End User, the Residential segment has seen the major growth in the use of PoE chipset as the internet connectivity boom has boosted the market due to the covid19 pandemic and the repercussions on the working and education culture. Lockdown, work from home and online schooling has boosted the demand for home internet connectivity which eventually reflected in the global demand for PoE Chipsets. Commercial utilization of in-office connectivity and also security camera connection required a PoE chipset in various designs and applications. Security companies with generic equipment opt for the high-quality chipset into integrated security solutions is also one of the reasons for the growth of the PoE chipset market globally.

Regional Analysis of PoE Chipsets Market

• North America is the dominating region in the global PoE chipset market accounting for the largest share in the market. The high installation rate of internet and ethernet connections in the domestic and commercial sector and the highest security systems operated and being installed making the growth of the PoE chipset market in the North America Region. The defense sector is one foe the major contributor of growth in PoE chipset demand as major surveillance and security connections required high-class PoE chipsets in the applications like wireless radio access points, proximity sensors, VoIP phones, and security systems.
• The Asia Pacific is the second leading region and is anticipated to witness significant growth in demand for high-speed internet amenities and automation in various industries. Moreover, Japan, China, India, Singapore, and Hong Kong are predicted to be the major contributors to the growth of the newly launched 802.3bt standard in the region.

Players Covered in PoE Chipsets Market are :

• 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
• STMicroelectronics
• Broadcom Ltd.
• Delta Controls Inc.
• Monolithic Power Systems
• NXP Semiconductors N.V.
• Semtech Corporation
• Shenzhen Lianrui Electronics Co. Ltd. and other major players.

Key Developments of PoE Chipsets Market

• In May 2023, Edgecore Networks is pleased to announce the launch of the EPS120 Series, its newest high-performance enterprise product family. These 1Gbps open switches, ideal for large retailers, campuses, and enterprise branches, offer robust performance with high data transmission bandwidth and large packet buffers. Powered by the latest Broadcom Trident3-X2 chipset and Intel Atom CPU, the EPS120 Series supports container-based NOS architectures like SONiC, enabling feature-rich, scalable 1G networks with full line-rate L2/L3 forwarding and switching, telemetry, and BGP EVPN-VxLAN deployments.
• March 2020, New Generation 802.3bt PoE chipsets deployment is the new opting standard practice in various sectors creating demand for 802.3bt standard chipset due to its key features like Working over four pairs and providing low standby power support, the automatic class functionality.