The PoE solutions market in Asia Pacific is likely to grow at a CAGR of 20 per cent due to increased automation across several industries in the region
Driven by the growth in number of connected devices creating demand for more power, light and data converged networks in Internet of Things (IoT)-enabled infrastructure, the power over ethernet (PoE) solutions market is expected to reach US$ 2 billion by 2025, according to a latest report by Global Market Insights, Inc.
The PoE solutions market was valued at around US$ 700 million in 2018, the report says.
Citing the reasons for such growth, the report notes, “The PoE solutions allow companies to manufacture PoE-compatible network devices to offer a cost-effective solution for bigger installations. The PoE solutions-enabled network infrastructure is enabling companies to remove the requirement of additional hardware and reduce costs to deliver connectivity and power to connected devices separately.”
Segment-wise, the powered devices (PDs) market is likely to grow at a compound annual growth rate (CAGR) of more than 15 per cent during the forecast period. The PDs market growth would be supported by increase in adoption of wireless devices like access control systems, VoIP phones, lighting controls, barcode scanners, RFID, alarms, clocks, IP security cameras, computer monitors, digital signage displays and PoS terminals.
The VoIP phones captured the biggest share in the PoE solutions market in 2018, due to the demand for cost-effective and reliable solutions for enterprise communication. The PoE-enabled VoIP phones enable enterprises to cut down on costs related to the network hardware infrastructure by utilising a single cable for power and data transmission.
During the forecast period, the infotainment segment is likely to grow at a CAGR of 15 per cent due to the increased demand for improved in-vehicle experience. The rising demand for smart vehicles is pushing vehicle manufacturers to produce vehicles with integrated infotainment systems, the report states.
On the other hand, due to increasing demand for autonomous driving, technology companies are developing PoE-based infotainment systems to suit the changing bandwidth and connectivity demands of driverless cars.
The report notes that the rising demand for smart workplaces is also supporting PoE solutions market growth in office spaces. The commercial sector held more than 30 per cent market share in 2018 due to the growth in the adoption of smart and automated systems in commercial buildings.
Asia Pacific to witness major growth
Region-wise, the PoE solutions market in Asia Pacific is likely to grow at a CAGR of about 20 per cent over the forecast period due to increased automation across several industries in the region.
On the other hand, the governments in countries like India and China are supporting digital transformation initiatives such as Smart City, Make in India and Made in China 2025, to promote the IoT adoption across various industries.
According to the report, major players operating in the PoE solutions market are Analog Devices, Advantech B+B SmartWorx, Avaya, Broadcom, Belden, Cisco, CommScope, Dell, euromicron, Huawei, HPE, Kinetic Technologies, Microchip, Maxim Integrated, Monolithic Power Systems, NETGEAR, ON Semiconductor, STMicroelectronics, Silicon Laboratories and Texas Instruments.