Global PoE Switches Market Report and Forecast 2024-2032

Global PoE Switches Market Size

The global PoE switches market is expected to grow at a CAGR of 10.70% between 2024 and 2032. The key drivers of the market include increasing usage of power-sourcing equipment and development of IT infrastructure.

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PoE Switches Market Growth

PoE (Power over Ethernet) switches provide electrical power combined with data signals from a single ethernet cable to allow devices on a network to communicate. They minimise cable usage and aid in cost savings on power outlets, electrical installation, and infrastructure equipment.

The rising use of PoE switches in systems based on the Internet of Things, such as smart grids and smart cities, is boosting the growth of the PoE switches market as they help switch the flow of power between devices, enabling seamless operations.

PoE Switches Market Trends

Market key players are focussing on developing new technologies with improved capabilities such as smart home automation which includes heating and cooling systems and voice assistants, which would increase the demand for PoE switches.

Rising demand from industrial sectors is another crucial trend in PoE switches market as PoE switches are capable of working in harsh electromagnetic environments. Other factors such as the availability of corrosion-resistant PoE switches and lighting protection are further increasing their demand from various industries.

Recent Developments

As per the PoE switches market dynamics and trends, Microchip Technology announced the launch of the PDS-204GCO PoE switch in March 2023. This switch enhances cyber protection and allows power to be transferred over the standard Ethernet infrastructure for the easy installation of IoT endpoints.

Industry Outlook

According to the PoE switches industry analysis, as per the State of IoT – Spring 2023 report, around 29 billion IoT connections are expected to be there globally by 2027. China has been the market leader for new IoT device connections with cellular IoT connections in the country surpassing 2 billion in 2022. Wi-Fi accounted for around 31% of the IoT connections worldwide in 2022. Around half of the Wi-Fi-based devices that were shipped in 2022 were based on Wi-Fi 6 and Wi-Fi 6E technologies. Moreover, cellular IoT constituted around 20% of the global IoT connections in 2022. This rise in IoT technology is expected to boost the demand for PoE switches.

The PM of India launched the Smart Cities Mission in India in 2015 under which 100 cities were expected to be made smart cities by 31st March 2025. This mission consisted of 8017 projects with a total investment of Rs 7,20,000 crores. Rs 100 crore was the average investment for each city. Moreover, the Indian government also approved the extension of the CITIIS (City Investments to Innovate, Integrate and Sustain) Programme. This program was expected to run from 2023-27 and aid the development of innovative infrastructure, which can contribute to the growth of the PoE switches industry.

Market players are readily launching smart PoE switches to gain a competitive edge. For example, Digisol Systems Ltd., a pioneer of IT networking solutions, announced the launch of Multigig L3 switches in July 2024. These switches consist of 1 / 2.5G downlink ports with IEEE802.3af/at/bt functionality which can fulfil the requirement of WiFi-5 and WiFi-6 through different bandwidths on its interface and can contribute to the PoE switches industry revenue.

Increasing Adoption of IoT Devices and Wireless Networking Drive the Success of the Global PoE Switches Market

• Increasing adoption of IoT devices drives demand for Power over Ethernet (PoE) switches.

• Growing demand for wireless networking boosts the PoE switches  demand growth.

• Reduces the need for separate power cables, lowers installation costs, and enhances energy efficiency.

• Surge in IP surveillance systems requiring reliable power and data connections.

Challenges Impacting the Global Market Include High Initial Investments, Compatibility Issues, and Power Limitations

• Significant upfront investment required for advanced PoE switches.

• Compatibility issues with various devices and existing networks.

• Limited power delivery over ethernet cables can negatively impact PoE switches demand.

• Heat dissipation management.

Key Trends Shaping the Global Market Focus on Smart Building Integration, Edge Computing, and Security Enhancements

• Integration with smart building solutions for efficient power management.

• The rise of edge computing necessitates reliable and flexible PoE solutions.

• The emergence of Smart Cities drives demand for PoE-enabled devices and boost PoE switches demand forecast.

• Enhanced security features to protect against cyber threats.

Threats and Challenges in the Global Market Arise from Economic Uncertainty, Technological Advancements, and Intense Competition

• Economic uncertainty affecting investment in networking infrastructure.

• Rapid advancements in technology require continuous innovation and upgrades.

• Intense competition from both established and emerging players.

• Regulatory challenges across different regions.

Key Players in the Global Market and Their Strategic Initiatives

Cisco Systems, Inc.

• Global Expansion and Localization: Pursues global expansion by establishing new manufacturing facilities and R&D centers in key regions, tailoring products to meet regional preferences and regulatory requirements.

• Integration of AI and IoT: Integrating AI and IoT technologies into PoE switches to enable smarter and more connected network infrastructures, enhancing functionality and user experience, can boost PoE switches market value.

Hewlett Packard Enterprise (HPE)

• Innovative Product Development: Invests heavily in R&D to develop advanced PoE switches with higher power outputs, enhanced security features, and improved efficiency.

• Intelligent Edge Solutions: HPE’s Aruba PoE switches are part of its Intelligent Edge portfolio, offering AI-driven insights and automation for network optimization and can aid PoE switches market revenue.

NETGEAR, Inc.

• ProSAFE Line: Expanding its ProSAFE line of PoE switches, which are known for reliability and affordability in the SMB market.

• Advanced Manufacturing Techniques: Utilizes advanced manufacturing techniques such as automation and precision engineering to improve production efficiency and reduce costs.

Huawei Technologies Co., Ltd.

• Sustainability and Energy Efficiency: Focus on developing energy-efficient PoE switches to reduce power consumption and environmental impact, which can aid PoE switches industry expansion.

• High-Capacity Switches: Huawei offers high-capacity PoE switches designed for large-scale deployments in enterprise and telecom environments.

TP-Link Technologies Co., Ltd.

• Cost-Effective Solutions: TP-Link focuses on delivering cost-effective PoE switches that do not compromise on performance, targeting home and small business users.

• User-Friendly Interfaces: Emphasizes user-friendly interfaces and easy setup processes to attract non-technical users.

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PoE Switches Market Industry Segmentations

Based on type, the market is segmented into below 12 ports, 12-24 ports, 24-32 ports, 32-48 ports, and above 48 ports. On the basis of device, the market is divided into ethernet switches and injectors, IP cameras, VoIP phones, and wireless radio access points, among others. By application, the market is categorised into IoT connectivity, LED lighting control, and security and access control, among others. Based on end use, the market is divided into residential, commercial, and industrial. On the basis of region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the global PoE switches market, covering their competitive landscape and latest developments like mergers, acquisitions, investments, and expansion plans.

• NETGEAR Inc.

• Advantech Co., Ltd.

• Broadcom Inc.

• Cisco Systems, Inc.

• Digi-Key Corporation

• Dell Inc.

• TP-Link Corporation Limited

• Communication Networks LLC

• 3onedata Co., Ltd.

• Maiwe Communication

• Perle Systems Limited

• Allied Telesis, Inc.

• Patton LLC

• Others

PoE Switches Market Share by End Use

Industrial end uses of PoE switches are observing an exponential demand globally in the PoE switches industry as they exhibit enhanced durability and have better immunity to lightning. PoE switches intended for industrial end uses are designed with more ruggedness and are capable of withstanding harsh environments which makes them more desirable among industrial end users. Moreover, inbuilt features to absorb vibrations and shock without becoming loose is further increasing the demand for PoE switches for industrial end uses.

Competitive Landscape

NETGEAR Inc. was founded in 1996 and is headquartered in California, United States. A networking hardware company, NETGEAR develops networking hardware for businesses and service providers.

Advantech Co., Ltd. is a computer manufacturing company in the PoE switches industry that was founded in 1983. It is headquartered in Taipei, Taiwan, and they focus on providing automation and embedded solutions and products.

Broadcom Inc. was founded in 2012 and has its headquarters located in California, United States. This semiconductor manufacturing company offers a wide range of infrastructure software and semiconductor products.

Other market players include Cisco Systems, Inc., Digi-Key Corporation, Dell Inc., TP-Link Corporation Limited, Communication Networks LLC, 3onedata Co., Ltd., Maiwe Communication, Perle Systems Limited, Allied Telesis, Inc., and Patton LLC, among others.

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PoE Switches Market Regional Analysis

The Asia Pacific is anticipated to account for a large PoE switches market share owing to the growing development of IT infrastructure in the region and a strong industrial base in countries such as China. IT infrastructure development has led to the rising adoption of new technologies such as PoE switches by various governments and enterprise sectors in the Asia Pacific region. With the growing demand for Internet of Things services, the demand for power over ethernet is also rising rapidly contributing to the growth of the market for PoE switches in the region.

Key Highlights of the Report

PoE Switches Market Report Snapshots

PoE Switches Market Size

PoE Switches Market Growth

PoE Switches Market Trends

PoE Switches Companies

PoE Switches Market Regional Analysis