Power over Ethernet Solutions Market Trends

Growth Drivers

• Growing Demand for LED Lights

The penetration of LED lighting is expected to have a boost in 2025 by about 75% globally. Hence, the demand for power over ethernet (PoE) is also set to have a dominating growth. When LED lights are used on a PoE network, wasteful power-conversion steps for LED lights used in a retrofitted, legacy AC-powered socket are reduced. Hence, this results in excellent energy efficiency.

• Rise in Security Breaches

Owing to the rise in security breaches various companies have started deploying IP cameras in their organization to keep track of the number of people coming in and out daily. Further, since organizations deploy multiple security cameras, the PoE solution is the best choice for them, since they operate in just one cable providing both network connection and power.

• Surge in the Use of PoE Solutions by Data Centers

Data centers are in constant need of power solution which is efficient and cost-effective. Hence, the PoE solution is estimated to satisfy that need.

Challenges

• High Initial Cost of Installation - Insertion of power over Ethernet (POE) networks demands a significant initial financial outlay. This is owing to the high expense of Ethernet switches which necessities power source equipment (PSE) against the traditional analog, along with the PSE's maintenance costs. In addition, switches, ethernet cables, injectors, splitters, and PoE connections are used. The fact that the cost of procuring these components is included in overall start-up costs is a key impediment to the market's potential to grow in terms of revenue.
• Have Limited Capacity to Deliver Power
• Lack of Awareness Among People