PoE Switches Market Expected to Reach $10.6 Billion by 2032—Allied Market Research

PoE Switches Market

Report Code : A10054

quote The PoE switches market is expected to continue to grow steadily in the coming years, driven by the rising need for network bandwidth from applications like video streaming and cloud services, which require advanced switches for power and high-speed data transmission. A key challenge is the limited power supply of PoE switches, limiting the number of devices they can support. However, an opportunity arises in enhancing PoE switches with advanced cybersecurity features, meeting the increasing security demands of modern organizations and potentially broadening market reach. quote

Minulata Nayak - Lead Analyst
Semiconductor and Electronics at Allied Market Research

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According to a new report published by Allied Market Research, titled, “PoE Switches Market by Type, Port Count, End Use: Global Opportunity Analysis and Industry Forecast, 2023-2032”, the PoE switches market was valued at $4 billion in 2022, and is estimated to reach $10.6 billion by 2032, growing at a CAGR of 10.2% from 2023 to 2032.

A PoE (Power over Ethernet) switch is a type of network switch capable of transmitting both electrical power and data through a single Ethernet cable to connected devices. This feature removes the requirement for individual power cables, thus making PoE switches a perfect choice for energizing devices like VoIP phones, IP cameras, wireless access points, and security systems.   

PoE switches use special circuitry to deliver power over the Ethernet cables. The power is supplied at a low voltage, typically 48 volts, which is safe for people and equipment. The power is delivered to the connected devices using two of the eight pins in the Ethernet cable. The other four pins are still used for data transmission.  

The growing need for network bandwidth, driven by the rising popularity of bandwidth-intensive applications such as video streaming and cloud-based services, is a primary driver of the PoE network switch, which has led to the development of Gigabit Ethernet and faster network technologies. Industrial PoE switch with greater port speeds, for example, are useful in a business setting where video conferencing and cloud computing are common. These switches can power and connect devices like high-definition IP cameras and VoIP phones, while ensuring that there is sufficient bandwidth for seamless video streaming and efficient cloud service access. By offering both power and high-speed data transmission through a single Ethernet cable, these advanced PoE switches cater to the dual needs of modern enterprises, facilitating a more efficient and robust network infrastructure that can handle the demands of contemporary bandwidth-heavy applications.  

However, the limited power budget of Power over Ethernet (PoE) switches is a significant restraint in their market. Each PoE switch can only supply a certain amount of power, which restricts the number and types of devices it can power simultaneously. This limitation becomes particularly noticeable in environments with high power-demanding devices. For example, a business aiming to use PoE switches for its entire office network might struggle if it needs to power multiple devices like advanced VoIP phones, wireless access points, and security cameras concurrently. If these devices require more power than the PoE switch can provide, the business would either need to limit the number of devices connected or invest in additional or more powerful switches. This power constraint can lead to increased costs and complexity in network infrastructure, especially in larger or more technologically advanced settings, potentially limiting the widespread adoption of PoE technology in such scenarios.  

Incorporating advanced cybersecurity features into Power over Ethernet (PoE) switches presents a notable opportunity in the PoE switch market. As organizations become increasingly aware of the advanced nature of cyber threats, the security of network infrastructure has become a top priority.  By adding strong cybersecurity functionalities to PoE switches, manufacturers can alleviate these security concerns, making their products more attractive to potential buyers. For example, a PoE switch equipped with built-in firewall capabilities, intrusion detection systems, and secure encryption functionalities is particularly attractive in a corporate setting where network-connected devices such as IP cameras, access control systems, and VoIP phones are common. These security features ensure the protection of data transmitted across the network and help prevent unauthorized access, thus strengthening the security framework of an organization. This emphasis on cybersecurity not only enhances the value of PoE switches but also meets the growing security demands of modern organizations, potentially leading to increased use of these advanced PoE solutions across various industries.  

The PoE switches market size has seen substantial growth, with a notable increase in PoE switches market share. This expansion is driven by strong PoE switches market growth, in line with evolving PoE switches market trends. A comprehensive PoE switches market analysis reveals the underlying factors propelling this upward trajectory. The proliferation of IoT devices and the demand for energy-efficient solutions are key drivers of this growth. Additionally, the PoE switches market's ability to support smart building initiatives and deliver cost-effective power and data solutions is contributing to its sustained expansion. As the market continues to evolve, businesses are increasingly recognizing the advantages of PoE technology, further fueling its market share and growth prospects.

The PoE switches market is segmented on the basis of type, port count, end use, and region. 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 end use, the PoE switches market is divided into commercial, industrial, and residential. 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).     

Key findings of the study 

  • In 2022, the segment of unmanaged PoE switches led the market in revenue, generating $2,355.18 million, and it's projected to grow to $3,806.53 million by 2032, at a compound annual growth rate of 4.9%. 

  • Regarding port count, PoE switches with 4-8 ports dominated in revenue terms, bringing in $1,340.94 million in 2022. This segment is expected to see a significant increase to $3,906.2 million by 2032, with a CAGR of 11.38%. 

  • Regarding end use, the residential segment led in revenue generation, with contributions of $1,749.79 million in 2022. This segment is predicted to grow to $4,504.8 million by 2032, exhibiting a compound annual growth rate of 10.02%. 

  • From regional perspective, North America was the leading market in revenue terms, achieving $1,406.14 million in 2022. The market in this region is projected to grow to $3,679.49 million by 2032, with a compound annual growth rate of 10.2%. 

The PoE switches market key players profiled 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. The market players have adopted various strategies, such as product launches, and acquisitions to expand their foothold in the PoE switches industry. 

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quote PoE Switches Market By Type (managed PoE switches, unmanaged PoE switches), By Port Count (4-8 ports, 9-16 ports, 17-24 ports, 25-48 ports, 48 above), By End Use (Residential, Commercial, Industrial): Global Opportunity Analysis and Industry Forecast, 2023-2032 quote

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