Power Over Ethernet Chipsets Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (PoE Power Sourcing Equipment (PSE) Chipset, PoE Powered Devices (PD) Chipset), By Standard (802.3af standard, 802.3at standard, 802.3bt standard), By End-use (Commercial, Industrial, Residential), By Device (Network Cameras, VoIP Phone, Ethernet Switch & Injector, Wireless Radio Access Point, Proximity Sensor, LED lighting), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 2.78 Billion
CAGR (2026-2031)	12.28%
Fastest Growing Segment	PoE Powered Devices (PD) Chipset
Largest Market	North America
Market Size (2031)	USD 5.57 Billion

Market Overview

The Global Power Over Ethernet Chipsets Market will grow from USD 2.78 Billion in 2025 to USD 5.57 Billion by 2031 at a 12.28% CAGR. Power over Ethernet chipsets are integrated circuits designed to manage the simultaneous transmission of data and electrical power over Ethernet cabling. The primary driver supporting market growth is the rising demand for flexible and cost-effective network infrastructure to support Internet of Things endpoints like IP cameras and wireless access points. According to the Ethernet Alliance, in 2024, 33 percent of survey respondents planned to install high-power PoE devices exceeding 51 watts over the next twelve months. This reflects a measurable increase in the adoption of higher-capacity power delivery systems which directly stimulates demand for advanced chipsets.

However, a significant challenge impeding market expansion is the issue of interoperability between different equipment standards and proprietary solutions. Incompatibility can result in device malfunction or power delivery failures which creates hesitation among network administrators regarding infrastructure upgrades. Ensuring consistent performance across diverse hardware ecosystems remains a substantial hurdle for manufacturers to overcome to ensure broad market acceptance.

Key Market Drivers

The Expansion of Smart Building Automation and Connected Lighting Networks is a primary force propelling the adoption of advanced Power over Ethernet chipsets. As commercial facilities prioritize energy efficiency and centralized control, PoE technology is increasingly utilized to power intelligent lighting systems, occupancy sensors, and HVAC controllers through a single Ethernet cable. This convergence eliminates the need for separate electrical wiring, thereby reducing installation complexity and capital expenditures for facility managers. According to the Association for Smarter Homes & Buildings, December 2025, in the '2025 Smart Building Trends & Technology Adoption' report, 91% of respondents already use smart building systems, marking a significant increase in the integration of automated infrastructure. This widespread implementation drives the necessity for sophisticated chipsets capable of managing dynamic power loads and ensuring seamless communication between a multitude of connected endpoints in modern intelligent environments.

Concurrently, the Accelerated Deployment of 5G Small Cells and Wi-Fi 6/7 Access Points is reshaping the market landscape by demanding higher power levels and faster data throughput. Modern wireless access points, particularly those supporting the Wi-Fi 7 standard, require robust PoE++ solutions to function optimally without performance degradation. According to the Wireless Broadband Alliance, December 2025, in the 'WBA Industry Report 2025', 19% of industry executives stated they had deployed the latest Wi-Fi 7 standard, reflecting a rapid shift towards next-generation connectivity that relies on high-performance silicon. Furthermore, the proliferation of cellular densification strategies utilizes PoE for backhauling small cells to support growing mobile traffic. According to Ericsson, in 2025, worldwide 5G subscriptions are anticipated to reach 2.9 billion, underscoring the massive scale of network expansion that chipsets must support. Consequently, manufacturers are prioritizing the development of chipsets that comply with IEEE 802.3bt standards to accommodate these power-intensive wireless technologies.

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Key Market Challenges

The issue of interoperability between different equipment standards and proprietary solutions stands as a critical barrier impeding the expansion of the Global Power Over Ethernet Chipsets Market. When chipsets do not strictly adhere to universal protocols, network administrators face a high risk of device malfunctions or complete power delivery failures. This technical inconsistency introduces significant operational volatility, causing buyers to hesitate before integrating new endpoints into their existing infrastructure. As the ecosystem becomes more complex, the fear of investing in incompatible hardware creates a bottleneck, preventing the seamless deployment of advanced power delivery systems.

The market’s acute sensitivity to this challenge is evident in recent purchasing behaviors. According to the Ethernet Alliance, in 2024, 96 percent of PoE professionals indicated that Ethernet Alliance certification would influence their buying decision. This statistic demonstrates that the vast majority of the market views unverified interoperability as a disqualifying risk. Consequently, the pervasive uncertainty regarding equipment compatibility directly restricts the addressable market for new chipsets, as stakeholders delay procurement to avoid the financial and technical repercussions of non-compliant infrastructure.

Key Market Trends

The Convergence of IT and Operational Technology (OT) Networks in Industrial IoT is fundamentally altering chipset requirements. As factories migrate from legacy fieldbus architectures to unified Ethernet-based infrastructures, there is a critical need for ruggedized PoE chipsets capable of powering sensors and actuators directly from the data cable. This shift simplifies cabling in harsh environments and enables seamless data flow for predictive maintenance. According to HMS Networks, June 2024, in the 'Industrial Network Market Shares 2024' report, Industrial Ethernet captured 71% of all newly installed nodes in factory automation, confirming the dominant transition toward standard Ethernet protocols that support advanced power delivery.

Concurrently, the Advancement in Energy-Efficient and Low-Standby Power Designs has become a decisive factor in chipset engineering. Manufacturers are aggressively optimizing silicon architectures to minimize power loss and meet stringent environmental regulations, particularly for devices that remain idle for long periods. This green focus is driving the production of responsible silicon solutions that lower the carbon footprint of large-scale network deployments. According to STMicroelectronics, April 2024, in the '2024 Sustainability Report', the company identified 82% of its new products as responsible, specifically categorized for their power efficiency and low-carbon characteristics, reflecting the industry-wide prioritization of sustainable performance metrics.

Segmental Insights

The PoE Powered Devices (PD) Chipset segment is the fastest-growing category within the Global Power Over Ethernet Chipsets Market. This expansion is driven by the rising adoption of network equipment such as IP cameras, VoIP phones, and wireless access points. Furthermore, the Institute of Electrical and Electronics Engineers (IEEE) has introduced standards supporting higher power levels, allowing devices like smart lighting and digital signage to use Ethernet for both power and data. This capability simplifies infrastructure and supports the Internet of Things, directly increasing the demand for powered device chipsets across commercial sectors.

Regional Insights

North America leads the Global Power Over Ethernet Chipsets Market due to the widespread integration of advanced networking technologies across industrial and commercial sectors. The region's dominance is driven by the extensive deployment of high-power internet of things devices, such as IP cameras and wireless access points, supported by robust infrastructure. Furthermore, the presence of major semiconductor manufacturers and favorable government initiatives, such as the CHIPS Act in the United States, bolster domestic production and innovation. The early adoption of higher power standards established by the Institute of Electrical and Electronics Engineers also accelerates market expansion.

Recent Developments

• In February 2025, Kinetic Technologies expanded its Power over Ethernet portfolio with the introduction of the KTA1142, a highly integrated single-chip Powered Device (PD) interface controller. The device was designed to fully support the IEEE 802.3bt standard, capable of handling input power levels up to 90 watts for demanding applications like 5G small cells and videophones. The new controller featured an integrated DC-DC controller and high-efficiency power conversion capabilities, aiming to simplify system design and reduce the printed circuit board footprint for manufacturers of high-power PoE devices.
• In June 2024, Silvertel introduced the Ag6810, describing it as the world's smallest surface-mount IEEE 802.3bt Power Sourcing Equipment (PSE) module. The module was designed to deliver up to 95 watts of power through a single port or support dual-port configurations for lower power requirements. Its ultra-miniature form factor was developed to save board space in compact equipment such as IP cameras, industrial automation controllers, and internet of things (IoT) gateways. This product launch highlighted the company's focus on miniaturization and high-power delivery within the PoE market.
• In May 2024, MaxLinear, Inc. launched a new family of 2.5G Ethernet switches and PHYs, including the MxL86282, which were specifically optimized to power next-generation 2.5G PoE switches. These single-chip System-on-Chip (SoC) solutions integrated 2.5GBASE-T PHYs and offered low power consumption, making them suitable for fanless enterprise and industrial PoE switch designs. The launch addressed the growing demand for higher bandwidth and power delivery in applications such as wireless access points and security cameras, with the chipsets providing advanced power management features for energy efficiency.
• In April 2024, Microchip Technology announced the release of its seventh-generation Power over Ethernet (PoE) chipset, comprising the PD77020 PoE PSE Controller and the PD77728 PoE PSE Manager. This new chipset family was designed to enable scalable solutions ranging from 4 ports to 48 ports, fully compliant with the IEEE 802.3bt standard, and capable of delivering up to 90 watts of power per port. The solution targeted industrial and outdoor environments by offering enhanced surge protection and reducing power dissipation, thereby eliminating the need for external heat sinks in many applications.

Key Market Players

• Analog Devices, Inc.
• Cisco Systems Inc.
• Microchip Technology Inc.
• Monolithic Power Systems Inc.
• NXP Semiconductors N.V.
• On Semiconductor Corporation
• Semtech Corporation
• Silicon Laboratories Inc.
• STMicroelectronics N.V.
• Texas Instruments Incorporated

By Type	By Standard	By End-use	By Device	By Region
PoE Power Sourcing Equipment (PSE) Chipset PoE Powered Devices (PD) Chipset	802.3af standard 802.3at standard 802.3bt standard	Commercial Industrial Residential	Network Cameras VoIP Phone Ethernet Switch & Injector Wireless Radio Access Point Proximity Sensor LED lighting	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Power Over Ethernet Chipsets Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Power Over Ethernet Chipsets Market, By Type:

• PoE Power Sourcing Equipment (PSE) Chipset
• PoE Powered Devices (PD) Chipset

• Power Over Ethernet Chipsets Market, By Standard:

• 802.3af standard
• 802.3at standard
• 802.3bt standard

• Power Over Ethernet Chipsets Market, By End-use:

• Commercial
• Industrial
• Residential

• Power Over Ethernet Chipsets Market, By Device:

• Network Cameras
• VoIP Phone
• Ethernet Switch & Injector
• Wireless Radio Access Point
• Proximity Sensor
• LED lighting

• Power Over Ethernet Chipsets Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE