Power Over Ethernet Market

Market Definition

The market encompasses technologies, components, and applications that facilitate the simultaneous transmission of power and data over ethernet networks. Key segments include power sourcing equipment (PSE) controllers & ICs and powered device (PD) controllers & ICs , which are essential for efficient power delivery to networked devices. 

The market spans applications such as networking infrastructure, security and access control systems, commercial and automotive infotainment, LED lighting and control systems, and other smart building technologies. The report presents a comprehensive analysis of key market drivers, emerging trends, and the competitive landscape influencing growth through the forecast period.

Power Over Ethernet Market Overview

The global power over ethernet market size was valued at USD 1352.6 million in 2023 and is projected to grow from USD 1631.9 million in 2024 to USD 6901.1 million by 2031, exhibiting a CAGR of 22.87% during the forecast period. 

Market growth is driven by the increasing adoption of smart and connected devices across industries. The rising demand for efficient network infrastructure, particularly in smart buildings, industrial automation, and intelligent security systems, is further fueling this expansion.

Major companies operating in the power over ethernet industry are Proscend Communications Inc., STMicroelectronics, Infinite Electronics International, Inc., Hubbell, Broadcom, H.E. Williams, Inc., Cisco Systems, Inc., Axis Lighting, Ubiquiti, Inc., Avalan Networks, Microchip Technology Inc., ANTAIRA TECHNOLOGIES, LLC., Allied Telesis, Inc., Phihong USA Corp, Analog Devices, Inc., and others.

The growing adoption of LED lighting and control systems, along with the expansion of infotainment and connectivity solutions in commercial spaces, contributes to market growth. Additionally, advancements in PoE standards, particularly in power delivery, are enabling the integration of higher-power devices, expanding the scope of applications.

Key Highlights:

1. The power over ethernet industry size was recorded at USD 1352.6 million in 2023.
2. The market is projected to grow at a CAGR of 22.87% from 2024 to 2031.
3. North America held a share of 33.75% in 2023, valued at USD 456.5 million.
4. The power sourcing equipment controllers & ICs segment garnered USD 736.1 million in revenue in 2023.
5. The connectivity segment is expected to reach USD 1973.3 million by 2031.
6. The commercial segment is projected to generate a revenue of USD 2853.6 million by 2031.
7. Asia Pacific is anticipated to grow at a CAGR of 23.87% over the forecast period.

Market Driver

Expansion of Data Centers and Network Infrastructure

The market is witnessing significant growth, prinmarily due to the increasing adoption of smart building solutions and the expansion of data centers and network infrastructure. 

As businesses and urban developments focus on smart building automation, PoE has emerged a key enabler for powering and connecting IoT-driven systems, including intelligent lighting, security cameras, and access control. Its ability to simplify installations, reduce wiring costs, and enhance energy efficiency makes it an ideal choice for modern connected environments.

Additionally, the rapid expansion of data centers and high-speed network infrastructure is fueling demand for PoE-enabled networking equipment. With the growing reliance on cloud computing, 5G technology, and enterprise communication systems, PoE solutions provide seamless power and data transmission across an increasing number of interconnected devices. These factors are accelerating PoE adoption across commercial, industrial, and residential sectors.

• In June 2023, NTT Ltd. launched its Chennai 2 hyperscale data center campus Ambattur, featuring two buildings with a planned capacity of 34.8 MW critical IT load; the first facility is operational at 17.4 MW.

Market Challenge

Power Limitations and Heat Dissipation

The power over ethernet market faces a major challenge in managing power limitations and heat dissipation in high-power applications. Although standards such as IEEE 802.3bt have increased power delivery to 90W per port, higher transmission levels increase cable heat, leading to performance issues, energy loss, and safety concerns in dense networks. 

To address this challenge, manufacturers are enhancing cable designs and implementing efficient power management techniques. Using higher-category Ethernet cables with superior heat dissipationcan help mitigate overheating risks.

Market Trend

Advancements in High-Power PoE and Smart City Integration

The market is experiencing notable expansion, propelled by advancements in high-power PoE standards and increasing adoption in LED lighting and smart city infrastructure. The introduction of IEEE 802.3bt, supporting up to 90W per port, is extending PoE applications beyond traditional networking to include digital displays, industrial automation equipment, and advanced security cameras. 

This shift enhances scalability and reduces power infrastructure costs, making PoE a preferred choice for modern enterprises. Additionally, the integration of PoE in LED lighting systems is reshaping energy management in commercial spaces and urban settings. PoE-enabled lighting allows for centralized control, remote dimming, and automation, enhancing enerfy-efficeinct and sustainability. 

The technology is also gaining traction in smart city projects, where it supports intelligent street lighting, traffic monitoring, and surveillance networks, contributing to improved urban efficiency and security. As demand for energy-efficient and connected infrastructure grows, PoE is set to play a pivotal role in smart infrastructure development.

• In January 2024, Ikan launched its patent-pending Power over Ethernet (PoE) lighting products, the LBX8-POE and LBX10-POE. These lights operate via a single Ethernet cable, eliminating wiring needs and reducing installation costs.

Power Over Ethernet Market Report Snapshot

Segmentation	Details
By Type	Power Sourcing Equipment Controllers & ICs, Powered Device Controllers & ICs
By Application	Connectivity, Security & Access Control, Infotainment, LED Lighting & Control, Others
By End User	Commercial, Industrial, Residential
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, UAE, Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation

• By Type (Power Sourcing Equipment Controllers & ICs and Powered Device Controllers & ICs): The power sourcing equipment controllers & ICs segment earned USD 736.1 million in 2023 due to the rising deployment of PoE-enabled networking infrastructure across enterprises and industrial settings.
• By Application (Connectivity, Security & Access Control, Infotainment, and LED Lighting & Control, and Others): The connectivity segment held a share of 28.47% in 2023, attributed to the increasing demand for seamless data transmission in smart buildings, data centers, and enterprise networks.
• By End User (Commercial, Industrial, and Residential): The commercial segment is projected to reach USD 2853.6 million by 2031, propelled by the widespread adoption of PoE solutions in office spaces, retail environments, and hospitality for enhanced networking, security, and automation.

Power Over Ethernet Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.

North America power over ethernet market share stood at around 33.75% in 2023, valued at USD 456.5 million. This dominance is facilitated by the region's advanced IT infrastructure, widespread adoption of smart building technologies, and a well-established ecosystem of networking and telecom industries. 

The U.S. dominates the market due to significant investments in enterprise networking solutions, the proliferation of data centers, and the presence of major technology providers such as Cisco, Broadcom, and Texas Instruments, which fuel continuous PoE innovation. 

The rapid adoption of PoE-based solutions across various applications, including security and access control systems, VoIP phones, wireless access points, and LED lighting control. Increasing demand for energy-efficient solutions is further accelerating the integration of PoE-enabled lighting and building automation systems.

Asia Pacific power over ethernet industry is poised to grow at a staggering CAGR of 23.87% over the forecast period. This rapid growth is bolstered by increasing industrialization, urbanization, and the growing adoption of smart city initiatives across key economies such as China, India, Japan, and South Korea. 

Surge in demand for PoE solutions across applications such as connectivity, security, and LED lighting control is further aiding this growth, supported by rising investments in digital infrastructure and advancements in wireless communication technologies. The expansion of co-working spaces, hybrid work environments, and cloud service adoption is boosting regional market expansion. 

With ongoing advancements in networking technology and a strong push toward digital transformation, Asia Pacific is emerging as the fastest-growing regions in the global PoE market.

• In February 2025, CtrlS inaugurated the second and final facility of its Namma data center park in Chennai, India. Located in the Ambattur industrial area, the campus spans 1 million sq ft with a total capacity of 72MW. This  large-scale expansion is expected to boost demand for power over ethernet (PoE) technology to support efficient networking, security, and remote power management.

Regulatory Frameworks

• In the United States, the Federal Communications Commission (FCC) regulates power over ethernet (PoE) devices to ensure electromagnetic compatibility and safe operation in networking environments.
• In Europe, power over ethernet (PoE) devices are primarily regulated by the Low Voltage Directive (LVD) and the Electromagnetic Compatibility (EMC) Directive. The LVD ensures ensures safe operation within defined voltage limits, addressing insulation, electrical shock, and fire hazards.

Competitive Landscape

Companies operating in the power over ethernet market are investing in research and development, offering higher power delivery, improved energy efficiency, and seamless integration with IoT and smart building solutions. The introduction of advanced PoE controllers and ICs designed for next-generation networking infrastructure has further intensified market competition. 

Furthermore, industry players are expanding their product portfolios by launching PoE-enabled switches, injectors, and splitters that support higher wattage requirements for a wide range of applications, including security cameras, wireless access points, and LED lighting systems. 

To gain a competitive edge, companies are increasingly integrating intelligent power management features into their PoE solutions, allowing for remote monitoring, automation, and enhanced network security. Market participants are further forming alliances with technology providers, telecom operators, and cloud service providers to enhance their PoE offerings. Expanding distribution channels and strengthening global supply chains are key strategies to meet the rising demand for PoE solutions across various regions.

List of Key Companies in Power Over Ethernet Market:

• Proscend Communications Inc.
• STMicroelectronics
• Infinite Electronics International, Inc.
• Hubbell
• Broadcom
• H.E. Williams, Inc.
• Cisco Systems, Inc.
• Axis Lighting
• Ubiquiti, Inc.
• Avalan Networks
• Microchip Technology Inc.
• ANTAIRA TECHNOLOGIES, LLC.
• Allied Telesis, Inc.
• Phihong USA Corp
• Analog Devices, Inc.

Recent Developments (Product Launch)

• In February 2024, Edgecore Networks introduced the ECS4650 Layer 3 Ethernet Switch series to address growing network demands in SMBs, enterprises, and campus networks. The series includes ECS4650-54T with six 25G SFP28 uplinks for scalability, and the ECS4650-54P, offering up to 90W PoE for high-power devices such as wireless access points, VoIP phones, surveillance cameras, and IoT devices.