PoE Market and Its Application Trends

The term PoE may not be new to you. It refers to a Power over Ethernet technology that provides both data transmission and power support to PoE powered devices (PDs) mainly through network cables. The PoE market has been on a significant rise in recent years due to its easy maintenance, easy installation, short recovery period and low cost, and the prosperity of the PoE market has also contributed to the widespread adoption of Power over Ethernet technology in various industries.

PoE Market Overview

According to the Power over Ethernet market survey data and market forecast for 2016-2022, the global PoE market is expected to grow at a compound annual growth rate (CAGR) of 13% by the end of 2022, accounting for a combined total market share of approximately USD 1 billion. In terms of the participation of different regions across the globe, North America currently dominates, followed by Europe as well as Asia Pacific.

PoE Market Segmentation and Its Types

Based on different criteria and characteristics, the PoE market can be further segmented into different types.

Device Type: The device type of PoE can be mainly classified into PoE Power Supply End Equipment (PSE) and PoE Powered End Equipment (PD). Generally, power supply side devices (e.g. PoE switches) are mainly used to connect to power receiving side devices (e.g. VoIP phones), while providing stable power and data transmission support to these end devices. The use of powered devices greatly reduces the need for separate power supply units for each powered device.

Power supply types: According to different Power over Ethernet standards (IEEE802.3af standard/ IEEE802.3at standard/ IEEE802.3bt), there are four main types of power supply types available in the market: 15.4W, 30W, 60W and 100W.

Product type: With the continuous maturity and improvement of PoE technology, the application of products based on PoE technology has emerged. The five most popular PoE products are switches, power supplies, IP cameras, VoIP phones, and wireless APs. And according to a recent forecast by market research firm Dell’Oro, wireless APs and PoE lights will become the two main growth drivers of the PoE market in the next decade.

Application types: In terms of PoE application types, the four areas that currently account for the major share are device connectivity, access control and security, lighting control systems, and infotainment systems.

Terminal types: In terms of PoE terminal markets, there are three main market types: industrial, commercial, and residential. Among them, the industrial market is expected to gain 40% of the market share by 2025, dominating the PoE market. This trend is mainly due to the sharp growth in demand for PoE applications in the energy, oil and gas, telecom, automotive, and transportation industries.

Terminal-based PoE Applications

From the previous section, we can understand that the PoE market is divided into industrial, commercial and residential market types according to the terminal type. Generally speaking, the terminal types are different, and the specific PoE-based applications will show different characteristics.

PoE Applications in Residential Areas

In recent years, with the emergence of PoE smart home, the application of PoE technology in the home has stepped into a new stage. PoE smart home refers to a centralized management by connecting various types of home terminal devices through PoE technology.

For example, we can connect a managed PoE switch with PoE LED lights and other accessories such as wireless network accessories to create a PoE lighting system. Users can control the entire LED lighting system with a few mobile devices equipped with supporting software.

PoE Applications in Commercial Areas

PoE technology is used in commercial applications, mainly in office areas as well as retail and health care. In recent years, one of the most popular major applications in PoE commercial is PoE smart office building, which is similar to the PoE smart home mentioned in the residential application above. After the release of IEEE802.3bt, a new PoE standard, last year, more and more high power consumption terminal devices are beginning to be used in the commercial sector. For example, in the network of PoE++ applications, a PoE++ switch has a maximum output power of 100W per port. in this way, those terminal devices such as digital signage displays, point-of-sale systems, LCD screen TVs, and computer monitors commonly found in office buildings can be interconnected to build a PoE smart system.

PoE Applications in Industrial Areas

In the industrial sector, especially in the manufacturing industry, the popularity of industrial automation has become an irreversible industry trend. Driven by this trend, the application of PoE technology in the industrial area has also accelerated its development to keep entrepreneurs competitive enough in the industry.

The application of PoE devices in the industrial sector can significantly reduce operational and management costs for various manufacturing industries. For example, PoE devices such as sensors and IP cameras can effectively help managers to view the situation on each production floor and monitor the operation of workshop equipment and the work of employees in a timely manner.

Summary

With the growing demand for PoE applications, the PoE market share will continue to expand in the next decade or so, and this feature of PoE technology enables both power and data transmission over the network cable, bringing convenience to not only residential and commercial users but also industrial users.