Power over ethernet solutions market is set to grow from its current market was valued at over $700 million in 2018 to $2 billion by 2025, according to a new research report by Global Market Insights.
The Power over ethernet solutions market growth is driven by the increase in the number of connected devices generating demand for more power, light, and data converged networks in IoT-enabled infrastructure. The enterprises are facing challenges while designing a network infrastructure that can support several IoT devices.
They are continuously seeking new ways to address network capacity planning for high-speed performance. The PoE solutions enable companies to manufacture PoE-compatible network devices to provide a cost-effective solution for larger installations. The PoE solutions-enabled network infrastructure is helping companies to eliminate additional hardware and reduce costs required to provide connectivity and power to connected devices separately.
The PoE solutions offers flexibility to enterprises by eliminating the need to locate powered devices such as IP cameras, VoIP phones, and access control systems close to the power source. The PoE solutions offers uninterrupted power supply to powered devices, which helps in continuous operations of physical security applications such as IP cameras and access controllers.
The PoE technology reduces the total cost of ownership of enterprise network hardware by providing connectivity & power to wireless devices through a single ethernet cable.
The Powered Devices (PDs) segment is expected to grow at a CAGR of over 15% in the PoE solutions market during the forecast period due to the increase in the adoption of wireless devices such as VoIP phones, access control systems, lighting controls, alarms, barcode scanners, RFID, clocks, IP security cameras, digital signage displays, computer monitors, and PoS terminals. The complexities and costs required to manage power & connectivity to these devices are enabling enterprises to shift to the PoE-enabled PDs. The PoE solutions is helping enterprises in reducing costs and complexities associated with the maintenance of these devices by eliminating additional network hardware.
In 2018, the VoIP phones held the major share in the Power over ethernet solutions market due to the need for a cost-effective and reliable solution for enterprise communication. The enterprises are using VoIP phones to reduce costs & complexities associated with the legacy telephony system. The PoE-enabled VoIP phones allow enterprises to reduce costs associated with the network hardware infrastructure by using a single cable for power & data transmission. The PoE solutions providers are developing network devices, which can support the changing network demand of enterprise customers. For instance, in May 2019, IP-COM, a leading networking solution provider, introduced eight-port managed Gigabit PoE switch in India. This new product launch helped SMEs in India to reduce complexities & costs associated with the deployment of VoIP phones.
The infotainment segment in Power over ethernet solutions market is expected to grow at a CAGR of over 15% during the forecast period due to the increase in the demand for enhanced in-vehicle experience. The growing demand for smart vehicles is enabling vehicle manufacturers to develop vehicles with integrated infotainment systems. The existing infotainment system is complex and lacks the bandwidth and packet data capabilities required for network support system updates.
The automotive manufacturers are shifting to PoE-enabled infotainment systems for transforming the in-car experience through the delivery of features such as in-vehicle navigation, audio, video, and internet connectivity. The increasing demand for autonomous driving is enabling technology companies to develop PoE-based infotainment systems to match the changing bandwidth and connectivity demands of driverless cars.
The commercial sector held a significant market share of over 30% in 2018 due to the increase in the adoption of smart & automated systems in commercial buildings. The growing demand for smart workplaces is supporting Power over ethernet solutions market growth in office spaces.
The PoE solutions improves productivity in office spaces through connected & remotely controlled lighting. PoE infrastructure is a key asset for the implementation of the IoT technology in offices. PoE-enabled lighting improves the quality of the light with smoother intensity, dimming functions, and adjustable lighting color options to provide a comfortable and productive working environment.
Asia Pacific is expected to grow at the highest CAGR of around 20% in the Power over ethernet solutions market over the forecast period due to the rising automation across various industries in the region. The governments in India and China are supporting digital transformation initiatives such as ‘Make in India’, Smart City, and ‘Made in China 2025’, to promote the adoption of IoT across various industries.
Many Chinese local governments are collaborating with foreign companies to implement smart infrastructure in their cities. In March 2019, China Shanghai Yangpu government collaborated with MXC Foundation to develop its IoT standards for smart cities to improve efficiency and life of citizens.Source:www.gminsights.com/pressrelease/poe-solutions-market