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PoE Chipset Market Forecasted to Expand at 9.6% CAGR Through 2031, Fueled by Smart Building and IoT Adoption | Persistence Market Research
Power over Ethernet (PoE) Chipset Market
As industries embrace smarter, more connected infrastructure, Power over Ethernet (PoE) technology is gaining prominence across various verticals. PoE chipsets are core components that enable the transmission of both power and data through a single Ethernet cable. This integration reduces the complexity and cost of wiring, making PoE an attractive solution in sectors like smart buildings, industrial automation, and IoT ecosystems.
The global Power over Ethernet (PoE) chipset market is expected to grow significantly, from a valuation of US$659.1 million in 2024 to US$1,225.1 million by 2031, expanding at a CAGR of 9.6% over the forecast period. This growth is primarily driven by the increasing adoption of connected devices, the surge in smart building infrastructure, and the growing emphasis on energy-efficient networking solutions.
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Market Overview and Key Growth Trends
PoE technology offers a simplified approach to network design by eliminating the need for separate power supplies and cables. This efficiency makes it an ideal solution for deploying IP cameras, VoIP phones, wireless access points, and other powered devices in modern infrastructure. As enterprises digitize their operations, the demand for PoE chipsets is surging, leading to robust market growth.
The powered devices segment holds the lion's share of the market, fueled by the rising deployment of security cameras, smart lighting systems, and access control devices. Geographically, the Asia Pacific region is expected to lead the market during the forecast period, thanks to its rapid urbanization, increasing investments in smart city projects, and expansion of industrial automation across countries like China, Japan, and India.
🔍 Key Highlights from the Report
• The global PoE chipset market is projected to grow at a CAGR of 9.6% between 2024 and 2031.
• In 2024, the market is valued at US$659.1 Mn, and it's projected to reach US$1,225.1 Mn by 2031.
• Smart buildings and IoT integration are the key market growth drivers.
• Manufacturers are focusing on energy-efficient PoE chipsets that support renewable integration.
• Asia Pacific will likely be the fastest-growing region due to increased adoption in smart infrastructure.
• Powered devices continue to dominate the market owing to widespread usage in commercial and industrial sectors.
Market Segmentation: A Diverse Application Landscape
The power over Ethernet chipset market can be segmented based on product type, such as PoE PSE (Power Sourcing Equipment) chipsets and PoE PD (Powered Device) chipsets. Among these, PD chipsets dominate due to their deployment in a wide array of end devices like IP cameras, wireless access points, and VoIP phones. These devices are essential to modern communication and security systems.
In terms of end-user industries, the market is segmented into residential, commercial, and industrial sectors. The commercial segment is leading, driven by high adoption in smart office buildings and enterprise networks. Meanwhile, the industrial segment is rapidly catching up, spurred by the need for robust, scalable, and energy-efficient network infrastructure in manufacturing and logistics operations.
Regional Insights: PoE Market Expansion Across the Globe
The Asia Pacific region is poised for the highest growth rate during the forecast period. Countries such as China, India, and South Korea are witnessing increased investments in smart cities, industrial automation, and telecommunication infrastructure-all of which drive PoE chipset adoption.
In North America, the market remains strong due to mature IT infrastructure, early adoption of smart technologies, and the presence of key players. The European market is also witnessing steady growth, particularly in Western Europe, where sustainable and energy-efficient building practices are driving demand for PoE-enabled solutions.
Market Dynamics: Drivers, Restraints, and Opportunities
Market Drivers
The proliferation of smart buildings and IoT-connected devices is significantly fueling the demand for PoE chipsets. These technologies require reliable and centralized power and data management, which PoE efficiently provides. Furthermore, increasing energy efficiency standards and cost-saving initiatives in enterprise infrastructure encourage the adoption of PoE-based systems.
Market Restraints
Despite the growth potential, challenges such as limited power supply over long distances, voltage drop concerns, and compatibility issues with legacy systems may hinder widespread adoption. Moreover, the relatively higher initial installation costs compared to traditional wiring can be a deterrent for small-scale deployments.
Market Opportunities
Future opportunities lie in the integration of PoE with renewable energy sources and the development of high-power PoE chipsets. These innovations can address current limitations and expand the application of PoE to more power-intensive devices such as HVAC systems, LED lighting grids, and networked medical equipment. Additionally, edge computing and 5G rollout present fertile ground for PoE expansion in telecommunications and data centers.
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🏢 Company Insights
Key Players Operating in the Market:
1. Texas Instruments Incorporated
2. Analog Devices, Inc.
3. STMicroelectronics
4. Microchip Technology Inc.
5. Silicon Laboratories Inc.
6. Broadcom Inc.
7. ON Semiconductor Corporation
8. Maxim Integrated (now part of Analog Devices)
9. Realtek Semiconductor Corp.
10. Linear Technology Corporation
Recent Developments:
• Texas Instruments introduced a new range of PoE controllers with integrated surge protection and high-efficiency performance for industrial applications.
• Analog Devices launched a low-power PoE chipset optimized for smart home and commercial lighting applications, aligning with the sustainability goals of modern infrastructure.
Conclusion: The Future of Power Over Ethernet Chipsets
As digital infrastructure continues to evolve, PoE technology is becoming an indispensable part of modern networking solutions. The demand for seamless, cost-effective, and energy-efficient power and data delivery is transforming how devices connect and operate across sectors. With increasing investments in smart cities, industrial automation, and connected buildings, the power over Ethernet chipset market is set to experience significant momentum.
Players who innovate around energy efficiency, higher power output, and broader compatibility with modern devices will be best positioned to capitalize on emerging opportunities. From regional expansion in Asia Pacific to technology integration in developed economies, the market offers promising prospects for stakeholders across the value chain.
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