Power Over Ethernet Lighting Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented By Offering (Hardware, Software And Services), By Application (Commercial, Industrial, Residential), By Region, Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 784.92 Million
CAGR (2026-2031)	28.25%
Fastest Growing Segment	Software
Largest Market	North America
Market Size (2031)	USD 3492.77 Million

Market Overview

The Global Power Over Ethernet Lighting Market will grow from USD 784.92 Million in 2025 to USD 3492.77 Million by 2031 at a 28.25% CAGR. Power over Ethernet lighting is a technology that utilizes standard Ethernet cables to transmit both electrical power and data to light-emitting diode fixtures, thereby eliminating the need for separate high-voltage wiring. The market is primarily driven by the convergence of information technology with operational technology and the increasing requirement for energy-efficient smart building management systems. These systems allow facility managers to centralize control and optimize energy consumption, which significantly reduces operational expenditures. According to the Ethernet Alliance, in 2024, 33 percent of industry respondents planned to install high-power PoE devices exceeding 51 watts within the coming year, indicating a substantial demand for higher-capacity applications essential for illumination infrastructure.

Despite these drivers, the market faces a significant challenge regarding the high initial capital expenditure required for specialized network switches and power sourcing equipment. While the technology offers long-term operational savings, the upfront investment can be substantial compared to traditional lighting methods, particularly in retrofit scenarios where legacy cabling is already present. This financial barrier, combined with the need for installers to possess both networking and electrical expertise, can impede widespread adoption in cost-sensitive construction projects.

Key Market Drivers

Accelerating Adoption of Internet of Things (IoT) in Smart Building Ecosystems is fundamentally reshaping the market by transforming lighting from a binary utility into an intelligent digital asset. Power over Ethernet (PoE) technology serves as the critical convergence layer, enabling luminaires to act as IP-addressable nodes that transmit granular occupancy and environmental data to centralized building management systems. This integration supports advanced automation strategies, such as space utilization tracking and asset monitoring, which are becoming essential for modern facility operations. The drive toward these interconnected environments is strongly reflected in strategic organizational priorities. According to Johnson Controls, September 2024, in the 'Cracking The Smart Buildings Code' report, 75 percent of commercial real estate and retail leaders now consider smart buildings important to accelerating their digital transformation efforts. This prioritization of digital infrastructure directly fuels the deployment of PoE solutions as the preferred connectivity backbone for these intelligent environments.

Growing Demand for Energy-Efficient and Sustainable Lighting Solutions acts as a parallel catalyst, propelling the shift from traditional high-voltage systems to low-voltage DC grids. By eliminating the AC-to-DC power conversion loss at every fixture and integrating seamlessly with renewable energy sources, PoE lighting significantly lowers the carbon footprint of commercial facilities. This alignment with sustainability goals is critical as organizations face increasing pressure to optimize resource usage globally. According to Signify, February 2024, in the 'Sustainability Supplements to the Annual Report 2023', lighting represents around 15 percent of global electricity consumption, necessitating urgent energy reduction measures. Consequently, market participants are increasingly prioritizing high-quality, certified infrastructure to ensure reliable long-term performance and efficiency. According to the Ethernet Alliance, February 2024, in the '2024 PoE Survey', 80 percent of respondents indicated they would be willing to pay a five percent or greater premium for certified PoE products, underscoring the market's shift toward value-driven, sustainable investments.

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Key Market Challenges

The primary obstacle impeding the Global Power Over Ethernet Lighting Market is the substantial initial capital expenditure required for specialized infrastructure. Unlike conventional lighting setups, PoE systems demand investment in costly power sourcing equipment and network switches, creating a steep financial barrier. This burden is particularly acute in retrofit scenarios where replacing existing legacy cabling with Category-rated Ethernet cables incurs significant labor and material costs that often negate immediate operational savings. Consequently, this high entry cost deters facility managers with limited budgets from transitioning to this technology, particularly when traditional high-voltage wiring is already in place.

Compounding this financial challenge is the necessity for installation teams to possess a hybrid skill set combining electrical knowledge with network administration expertise. This requirement limits the pool of qualified installers and increases the complexity of deployment, often leading to technical complications. According to the Ethernet Alliance, in 2024, 78 percent of industry respondents reported experiencing difficulties with PoE deployments, citing reliability and support issues during installation. Such technical hurdles increase the perceived risk of adoption, causing decision-makers to hesitate in implementing PoE lighting despite its potential for long-term efficiency.

Key Market Trends

Rising Adoption of Human-Centric and Circadian Rhythm Lighting is becoming a defining trend in the Power over Ethernet lighting sector, prioritizing occupant well-being alongside energy efficiency. Unlike traditional LED retrofits, this approach utilizes the precise digital control capabilities of PoE infrastructure to dynamically adjust color temperature and intensity throughout the day, mimicking natural daylight patterns to regulate biological rhythms. This functionality is increasingly critical in commercial and healthcare environments where environmental quality directly influences employee productivity and patient recovery. According to the American Lighting Association, November 2025, in the 'Beyond Efficiency' industry update, the adoption of human-centric lighting in commercial projects has grown by over 35 percent since 2022, reflecting a decisive market shift toward health-oriented smart building infrastructure.

A Shift Towards Lighting-as-a-Service Business Models is simultaneously reshaping the market's financial landscape, moving procurement from capital-intensive hardware purchases to subscription-based operational expenses. This model leverages the software-defined nature of PoE networks to bundle luminaires, maintenance, and analytics into a recurring service contract, reducing upfront risk for facility managers while ensuring continuous system optimization. The demand for these managed services is rapidly expanding as organizations seek to maximize the value of their digital real estate assets without managing complex IT integrations internally. According to Acuity Brands, January 2025, in the 'Fiscal 2025 First Quarter Results', revenue for the Intelligent Spaces Group increased by 14.5 percent, signaling a robust market pivot toward software-driven, recurring revenue streams within the lighting ecosystem.

Segmental Insights

Based on recent industry analysis, the Software segment is recognized as the fastest-growing component of the Global Power Over Ethernet Lighting Market. This expansion is primarily driven by the increasing demand for intelligent energy management and data-driven operations in commercial infrastructure. Software platforms enable seamless integration with Building Management Systems, allowing facility managers to execute centralized control and real-time usage monitoring. These capabilities are essential for organizations striving to meet rigorous sustainability benchmarks, such as those promoted by the U.S. Green Building Council. Consequently, the shift toward fully connected, smart building environments is actively accelerating the adoption of software solutions.

Regional Insights

North America leads the global Power over Ethernet lighting market, driven by the extensive adoption of smart building infrastructure across commercial sectors. This dominance is supported by stringent energy efficiency mandates and initiatives from organizations like the U.S. Department of Energy, which encourage the transition to connected lighting systems. Additionally, the presence of major technology manufacturers in the region facilitates the rapid integration of advanced control systems. These factors collectively establish North America as the central hub for the expansion and application of network-connected lighting solutions.

Recent Developments

• In October 2024, Allied Telesis launched the x240 Series of multi-gigabit edge switches, which included models supporting high-power Power over Ethernet (PoE++). These switches were engineered to deliver up to 90 watts of power per port, making them suitable for energy-intensive connected devices such as advanced lighting controllers, high-resolution cameras, and wireless access points. The release addressed the increasing demand for robust network infrastructure capable of supporting the high power and data requirements of modern smart building ecosystems and converged lighting networks.
• In June 2024, Sinclair Digital announced a strategic partnership with Environments to integrate an AI-driven building systems platform into its AGILE-CORE™ family of DC microgrid products. This collaboration combined Sinclair’s distributed networking technology, which powers and controls building infrastructure such as lighting and shading, with the "Elevated" IoT software from Environments. The integration was designed to provide a comprehensive smart building solution that optimizes climate control, health, and security measures while leveraging the efficiency of direct current power distribution and Power over Ethernet connectivity.
• In June 2024, Panduit Corp. collaborated with Zumtobel Lighting, Luum, and Sinclair Digital to present a major technological demonstration at the Realcomm | IBcon conference. The companies showcased a "1 Million Lumen" LED lighting display powered by Fault Managed Power Systems (FMPS) and Extended Power over Ethernet (X-PoE). This joint effort highlighted the capability of Class 4 power systems to safely deliver high loads of DC power to lighting fixtures without traditional drivers, emphasizing a shift towards more sustainable and efficient plug-and-play lighting architectures for commercial real estate.
• In May 2024, Versa Technology joined the PoE Consortium to collaborate with other industry leaders in promoting and standardizing Power over Ethernet technology. This membership was aimed at enhancing implementation practices and raising awareness of the benefits of PoE in smart building solutions. By aligning with the consortium, the company intended to support the development of universal standards that ensure consistent experiences for end users deploying PoE-supported platforms. The initiative highlighted the growing importance of standardized infrastructure in facilitating the adoption of digital workplace technologies and energy-efficient lighting systems.

Key Market Players

• Cisco Systems Inc.
• Ubiquiti Inc
• Hewlett Packard Enterprise Company
• NETGEAR Inc
• Allied Telesisc Holding
• Axis Communications
• Microsemi Corporation
• PoE Texas
• PLANET Technology Corporation

By Offering	By Application	By Region
Hardware Software And Services	Commercial Industrial Residential	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Power Over Ethernet Lighting Market, By Offering:

• Hardware
• Software And Services

• Power Over Ethernet Lighting Market, By Application:

• Commercial
• Industrial
• Residential

• Power Over Ethernet Lighting 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