PoE Switches Market Research, 2032
The global PoE switches market was valued at $4 billion in 2022, and is projected to reach $10.6 billion by 2032, growing at a CAGR of 10.2% from 2023 to 2032.
A PoE switch, also known as a PoE network switch, is a standard Fast Ethernet or Gigabit network switch that combines the functionalities of a traditional switch with the ability to deliver power over Ethernet (PoE). This versatile device facilitates communication between network clients while simultaneously providing power to PoE-compatible devices like VoIP phones, network surveillance cameras, and wireless access points. It utilizes the same RJ45 network cable for both data and power transmission, enabling compatible devices to operate in locations where power outlets are scarce or absent. PoE switches offer a cost-effective solution to network deployments, eliminating the need for separate electrical wiring and reducing installation expenses. These switches come in various configurations to cater to diverse network requirements.
The PoE switches market is segmented into End Use, Type, and Port Count.
By end use, the PoE switches market is divided into commercial, industrial, and residential.
By type, the market is bifurcated into managed PoE switches and unmanaged PoE switches.
By port count, the market is fragmented into 4-8 ports, 9-16 ports, 17-24 ports, 25-48 ports, and above 48 ports.
By region, the PoE switches industry is analyzed across North America (the U.S., Canada, and Mexico), Europe (the UK, Germany, France, and rest of Europe), Asia-Pacific (China, Japan, India, South Korea, and rest of Asia-Pacific) and LAMEA (Latin America, Middle East, and Africa).
Country-wise, in North America, the U.S. acquired a prime PoE switches market share in the North American region and is expected to grow at a CAGR of 10.2% during the forecast period of 2023-2032. The U.S. occupies a leading position in the PoE switches market due to a robust demand for sophisticated network infrastructure.
In Europe, the Germany dominated the Europe PoE switch market share in terms of revenue in 2022 and is expected to follow the same trend during the forecast period. Additionally, the United Kingdom is poised to be among the swiftly advancing nations in Europe PoE switch sector, projecting a robust CAGR of 10.41%. This growth is driven by the growing incorporation of Internet of Things devices throughout the region.
In Asia-Pacific, China holds a dominant market share in Asia-Pacific region and is expected to follow the same trend during the forecast period, owing to increasing smart building projects. However, India is expected to emerge as the highest CAGR in PoE switch market in Asia-Pacific region.
In LAMEA, Latin America stands out as the fastest-growing market for PoE switches, propelled by its burgeoning economy, increasing disposable income, and ongoing infrastructure expansion. However, the Middle East is expected to experience significant growth, with a high projected CAGR of 9.9% from 2023 to 2032, driven by economic progress and continued infrastructure development.
The growing adoption of PoE-enabled devices in industrial applications is significantly driving the market for industrial PoE switches. Industrial environments, characterized by harsh conditions, demand reliable and durable power delivery solutions. PoE switches meet this need by efficiently powering devices like sensors, actuators, and control panels through Ethernet cables. For instance, in a manufacturing plant, PoE switches can be used to power and connect a network of sensors and control panels throughout the facility. This setup not only provides a stable and reliable power supply to these devices, which are crucial for monitoring and controlling manufacturing processes, but also reduces the need for separate power cables and outlets in challenging industrial settings. The robustness and simplicity of PoE solutions in such environments enhance operational efficiency and reliability, making PoE switches an increasingly popular choice for industrial network infrastructures.
Despite these developments, the possibility for Electromagnetic Interference (EMI) is a significant restraint for the PoE switches market. EMI occurs when the electromagnetic field generated by electronic devices disrupts the functioning of other nearby devices. In the case of PoE switches, which transmit both power and data over the same Ethernet cable, they can generate a substantial electromagnetic field. This field can interfere with the operation of sensitive electronic equipment located nearby, such as medical devices, precision measuring instruments, or other network equipment. For example, in a hospital setting, a PoE switch installed near sensitive medical equipment like MRI machines or patient monitors could potentially cause malfunctions or inaccuracies in these devices due to EMI, posing a risk to patient safety and the reliability of medical procedures. This risk of EMI limits the use of PoE switches in environments where interference with other electronic devices could have serious consequences.
However, the integration of Power over Ethernet (PoE) switches with advanced network technologies like Software-Defined Networking (SDN) and network virtualization represents a significant PoE switches market opportunity. This integration enhances network management, flexibility, and scalability. For instance, consider a smart building scenario where PoE switches are used to power and connect various devices like security cameras, Wi-Fi access points, and IoT sensors. By integrating these switches with SDN, the network administrators can centrally manage and automate network resources, dynamically allocating bandwidth and prioritizing network traffic based on real-time needs. This leads to a more efficient and responsive network. Additionally, with network virtualization, the same physical infrastructure can be segmented into multiple virtual networks, supporting different applications securely and efficiently. This integration enables businesses to adapt quickly to changing demands, scales up their network capabilities without extensive physical upgrades, and optimizes the overall network performance, making the PoE switches industry more attractive to customers seeking advanced, flexible networking solutions.
Top Impacting Factors
The PoE switches market is expected to witness notable growth owing to an increase in the adoption of IP-based devices, the need for centralized power management and rising demand for smart home devices. Moreover, the development of innovative PoE applications is expected to provide a lucrative opportunity for the growth of the market during the forecast period. On the contrary, higher initial cost limits the PoE switches market growth.
Competitive Analysis
The PoE switches market outlook report highlights the highly competitive nature of the PoE switches market, owing to the strong presence of existing vendors. Vendors with extensive technical and financial resources are expected to gain a competitive advantage over their counterparts by effectively addressing market demands. The competitive environment in this market is expected to increase as product launches, and acquisition strategies adopted by key vendors increase. Competitive analysis and profiles of the major PoE switches market players that have been provided in the report include Advantech Co., Ltd., Allied Telesis, Inc., Broadcom Inc., Cisco Systems, Inc., Digi-Key Corporation, D-Link Corporation, Maiwe Communication, Netgear Inc., Patton LLC, TP-Link Corporation Limited.
Key Developments/ Strategies
According to the latest PoE switches market forecast, Cisco Systems, Inc., Allied Telesis, Inc., Broadcom Inc., Netgear Inc., and Advantech Co., Ltd. are the top 5 players in the PoE switches industry. Top market players have adopted various strategies, such as product launches, and acquisition to expand their foothold in the PoE switches market.
June 2023 Advantech Co., Ltd. launched the EKI-8510G Time-Sensitive Networking (TSN) Ethernet switch. EKI-8510G obtained CC-Link IE TSN Class A & B certifications, enabling a wide variety of applications in industrial environments. TSN is the industrial communication technology that realizes the integration of information technology (IT) and operation technology (OT), bringing the benefits of time synchronization, high bandwidth, and reduced transmission latency.
July 2023 Allied Telesis, Inc. launched the IE220 Series of industrial-grade switches ruggedized for enduring performance in harsh environments, such as those found in OT networks and outdoor installations.
September 2023 Digi-Key launched PDS-204GCO. It is a next-generation outdoor Power over Ethernet (PoE) switch for smart cities. It allows Wi-Fi access points, security network cameras, and many other IoT devices to receive power and data over standard Ethernet cables, leaving network infrastructure completely unaltered.
Key Benefits for Stakeholders
This study comprises analytical depiction of the PoE switches market size along with the current trends and future estimations to depict the imminent investment pockets.
The overall PoE switches market analysis is determined to understand the profitable trends to gain a stronger foothold.
The report presents information related to key drivers, restraints, and opportunities with a detailed impact analysis.
The PoE switches market forecast is quantitatively analyzed from 2022 to 2032 to benchmark the financial competency.
The Porter's five forces analysis illustrates the potency of the buyers and suppliers in the PoE switches market.
The report includes the share of key vendors and PoE switches market trends.
PoE Switches Market Report Highlights
| Aspects | Details |
 Market Size By 2032 | USD 10.6 billion |
 Growth Rate | CAGR of 10.2% |
 Forecast period | 2022 - 2032 |
 Report Pages | 296 |
 By End Use |
|
 By Type |
|
 By Port Count |
|
 By Region |
|
 Key Market Players | Netgear Inc., Maiwe Communication, Digi-Key Corporation, Allied Telesis, Inc. , TP-Link Corporation Limited, D-Link Corporation, Broadcom Inc., Cisco Systems, Inc., Patton LLC, Advantech Co., Ltd. |
Analyst Review
The PoE switches market is anticipated significant expansion in the upcoming period. The main catalyst for this growth is the extensive use of IP-based devices like VoIP phones, IP cameras, and wireless access points, which are crucial components of current communication and surveillance systems. These devices need power for operation, and PoE switches streamline this requirement by removing the necessity for individual power cords. Offering a dual functionality of transmitting both power and data through a singular Ethernet cable, PoE switches present an economically efficient solution that also helps in reducing cable clutter.
Another key factor is the ever-increasing need for bandwidth, driven by cloud computing, video streaming, and other data-intensive applications. PoE switches, supporting higher bandwidths compared to traditional switches, are ideally positioned to fulfill these needs. Consequently, organizations that need to support such bandwidth-intensive applications are increasingly opting for PoE switches.
The expanding Internet of Things (IoT) market also presents a substantial growth opportunity for PoE switches. As billions of devices are expected to connect to the internet, many will require power. PoE switches, with their built-in power delivery capabilities, are perfectly suited to support the diverse range of devices that comprise the IoT ecosystem.
For instance, consider a large hospital undertaking network modernization to accommodate new medical devices and applications, along with an IP-based surveillance system. The hospital's IT department, recognizing the efficiency and cost-saving benefits of PoE switches, chooses to deploy them for powering these new devices and cameras. This decision not only simplifies network management but also reduces installation costs, making PoE switches an appealing solution for organizations looking to enhance their network infrastructure.
In summary, the market for PoE switches is set for significant expansion in the coming years. This growth is propelled by the rising demand for IP-based devices, the need for higher bandwidth solutions, and the growing IoT landscape. CXO insights from leading companies further acknowledge the recognition of PoE switches as a versatile and efficient solution for evolving organizational network requires across various sectors.
Some key players profiled in the study include Advantech Co., Ltd., Allied Telesis, Inc., Broadcom Inc., Cisco Systems, Inc., Digi-Key Corporation, D-Link Corporation, Maiwe Communication, Netgear Inc., Patton LLC, TP-Link Corporation Limited. These players have adopted various strategies to increase their market penetration and strengthen their position in the PoE switches industry.
The PoE switches market was estimated to be around $4,017.54 million in 2022.
North America is the largest regional market for PoE Switches.
The leading application of the PoE switches market is in powering and connecting network devices such as IP cameras, VoIP phones, and access points in enterprise and surveillance systems.
The upcoming trends in the PoE switches market include increasing adoption of higher power PoE standards, greater demand for IoT devices, and growing interest in smart building solutions.
The top 5 companies to hold the market share in PoE Switches market are Cisco Systems, Inc., Allied Telesis, Inc., Broadcom Inc., Netgear Inc., and Advantech Co., Ltd.
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