Power Over Ethernet POE Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product Type (Power Sourcing Equipment, Powered Devices), By Component (Injectors, Splitters, Switches, Converters), By End User (Enterprises, Small & Medium Businesses, Residential), By Region, By Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 1.91 Billion
CAGR (2026-2031)	22.42%
Fastest Growing Segment	Powered Devices
Largest Market	North America
Market Size (2031)	USD 6.43 Billion

Market Overview

The Global Power Over Ethernet POE Market will grow from USD 1.91 Billion in 2025 to USD 6.43 Billion by 2031 at a 22.42% CAGR. Power over Ethernet is a technology that facilitates the simultaneous transmission of electrical power and data to remote devices over standard twisted-pair cables. The market is primarily driven by the increasing deployment of Internet of Things devices, including IP cameras and wireless access points, which necessitate simplified installation and reduced cabling infrastructure. Furthermore, the rising adoption of energy-efficient smart building automation systems supports sectoral growth as facilities seek centralized power management solutions to lower operational costs and improve floorplan flexibility.

However, the market faces a significant challenge regarding interoperability and power delivery limitations, where the requirements for high-performance devices may exceed the capabilities of existing non-standardized infrastructure. This emerging pressure on network capabilities is highlighting the urgent need for updated equipment certification. According to the Ethernet Alliance, in 2024, 33 percent of survey respondents indicated plans to install high-power PoE devices exceeding 51 watts within the upcoming year. Failure to address these escalating power demands with fully interoperable equipment could impede the seamless expansion of next-generation network endpoints.

Key Market Drivers

The growth in PoE-based smart lighting solutions is emerging as a primary catalyst for market expansion, fundamentally shifting how commercial and industrial facilities manage energy and data. This transition is driven by the capability of Power over Ethernet to deliver centralized control and granular energy monitoring through a single cable, eliminating the need for separate electrical wiring and reducing installation costs. As organizations prioritize sustainability and operational efficiency, connected lighting systems are being deployed not just for illumination, but as intelligent nodes within a broader digital ceiling architecture. A testament to this surging adoption is found in the latest operational data from a market leader; according to Signify, October 2025, in the 'Third Quarter Results 2025', the company's installed base of connected light points increased to 160 million, reflecting the accelerating scale of intelligent lighting integration across global markets.

Simultaneously, the expansion of smart building and automation ecosystems is fueling the demand for robust PoE infrastructure to support a diverse array of sensors, actuators, and control units. Modern facility management increasingly relies on the seamless convergence of IT and OT (Operational Technology) networks, where PoE serves as the backbone for powering and communicating with devices that regulate HVAC, security, and occupancy management. This consolidation streamlines maintenance and enables real-time data analytics for building optimization. The financial performance of key infrastructure providers underscores this trend; according to Siemens, August 2025, in the 'Earnings Release Q3 FY 2025', revenue for the Smart Infrastructure sector increased 9 percent on a comparable basis to €5.7 billion, driven largely by demand from data centers and electrification customers. To support the massive data fluxes generated by these expanding ecosystems, network capacity is expanding globally; according to Ericsson, June 2025, mobile network data traffic grew 19 percent between the first quarter of 2024 and the same period in 2025, highlighting the critical need for high-performance wired backhaul solutions like PoE to handle the aggregate traffic from wireless access points and connected endpoints.

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Key Market Challenges

Interoperability and power delivery limitations regarding non-standardized infrastructure present a critical barrier to the expansion of the Global Power Over Ethernet POE Market. As network endpoints evolve to require higher wattage, the continued presence of non-compliant or legacy cabling systems creates substantial integration bottlenecks. These technical discrepancies frequently result in device malfunctions or total power failures during deployment, which significantly increases the complexity and cost of installation. When network integrators face uncertainty regarding the compatibility of power sourcing equipment with powered devices, it erodes market confidence and causes organizations to delay capital investments in advanced PoE infrastructure, thereby stalling broader adoption rates.

The economic impact of this technical fragmentation is measurable and indicative of the severity of the obstruction. According to the Ethernet Alliance, in 2024, 80 percent of survey respondents indicated a willingness to pay a premium of at least five percent for certified products to ensure performance reliability. This statistic highlights the substantial operational risks currently associated with non-standard equipment, as buyers are financially incentivized to avoid the costs of troubleshooting incompatible systems. Consequently, the financial burden and risk aversion generated by these interoperability challenges directly constrict the market's ability to scale efficiently.

Key Market Trends

The deployment of PoE infrastructure is being rapidly accelerated by the rollout of Wi-Fi 7 access points, which necessitate significantly higher power budgets and multi-gigabit throughput capabilities compared to previous wireless generations. Unlike legacy standards, these next-generation endpoints often require IEEE 802.3bt Type 4 power delivery to function at full capacity, compelling organizations to perform comprehensive upgrades of edge switching hardware to avoid performance throttling. This technological shift is driving an immediate equipment refresh cycle across the enterprise sector; according to Hewlett Packard Enterprise, September 2025, in the 'Q3 2025 Earnings Conference Call', demand for Wi-Fi 7 products is ramping substantially, with orders increasing triple digits sequentially as enterprises modernize their connectivity layers.

Coinciding with these hardware upgrades is the emergence of cloud-managed PoE network solutions, which are transforming how administrators monitor and control power distribution across distributed environments. By leveraging cloud-native architectures and artificial intelligence, organizations can now remotely cycle power to unresponsive devices, analyze consumption patterns in real-time, and implement automated energy-saving schedules without requiring on-site manual intervention or complex local configurations. This transition toward software-defined management models is evidenced by the growing reliance on subscription-based network services; according to Extreme Networks, August 2025, in the 'Fourth Quarter and Fiscal Year 2025 Financial Results', SaaS Annualized Recurring Revenue (ARR) increased 24.4 percent year-over-year, highlighting the market's decisive pivot toward cloud-driven infrastructure operations.

Segmental Insights

The Powered Devices segment is the fastest-growing category in the Global Power Over Ethernet POE Market, primarily due to the extensive deployment of Internet of Things (IoT) endpoints in modern infrastructures. This expansion is driven by the increasing necessity for IP surveillance cameras, VoIP phones, and wireless access points that utilize centralized power to minimize cabling complexity. Furthermore, the adoption of advanced standards by the Institute of Electrical and Electronics Engineers (IEEE) facilitates higher wattage support for applications like connected LED lighting. Consequently, the demand for energy-efficient, integrated building automation systems continues to propel the rapid development of this segment.

Regional Insights

North America maintains a leading position in the global Power over Ethernet market due to the extensive implementation of industrial automation and smart building infrastructure. The region benefits from high demand for powered devices such as IP cameras and wireless access points within the corporate and healthcare sectors. Market expansion is further strengthened by the Institute of Electrical and Electronics Engineers (IEEE), which establishes essential interoperability standards. These frameworks encourage consistent adoption by enterprises seeking efficient energy management and simplified cabling architectures across their facilities.

Recent Developments

• In June 2025, Netgear expanded its M4350 managed switch portfolio by introducing four new models specifically engineered for the professional audiovisual and broadcast markets. These switches were designed to support high-performance protocols such as SMPTE ST 2110 and featured robust Power over Ethernet (PoE++) capabilities with a total power budget of up to 2,520 watts. The launch addressed the increasing demand for scalable AV-over-IP networks, allowing users to power demanding endpoints like LED video walls and pan-tilt-zoom cameras directly through the network infrastructure.
• In September 2024, Penetek Technology Inc. announced a strategic collaboration with Silvertel to integrate advanced Power over Ethernet (PoE) technology into its range of industrial panel PCs and modular point-of-sale systems. This partnership focused on utilizing high-efficiency PoE modules to enable single-cable solutions that transmit both power and data, thereby eliminating the need for separate power adapters. The collaboration aimed to streamline installation processes and enhance the flexibility of hardware deployments in retail, hospitality, and industrial automation environments by leveraging the reliability of the IEEE 802.3bt standard.
• In July 2024, the Ethernet Alliance released its 2024 Ethernet Roadmap, which detailed the industry's trajectory and included significant updates to the Power over Ethernet (PoE) Certification Program. This strategic release highlighted the growing integration of PoE technology with artificial intelligence and machine learning applications, emphasizing the need for rigorous interoperability testing. The organization announced that the certification program now designates specific power classes and product types to ensure reliable operation across a diverse ecosystem of PoE-enabled devices, ranging from smart building sensors to high-speed wireless access points.
• In June 2024, Silvertel launched the Ag6810, which the company described as the world's smallest IEEE 802.3bt Power Sourcing Equipment (PSE) module. Designed for space-constrained applications, this ultra-miniature surface-mount package delivers up to 95 watts of power through a single port, making it suitable for high-power devices such as IP cameras, wireless access points, and industrial sensors. The module also supports an alternative connection mode to power two separate 30-watt ports, providing flexibility for developers of compact Power over Ethernet (PoE) systems.

Key Market Players

• Cisco Systems, Inc
• Siemens AG
• Huawei Technologies Co., Ltd
• NETGEAR, Inc
• Ubiquiti Inc.
• TP-Link Systems Inc.
• Extreme Networks, Inc.
• Comtrend Corporation.
• Zyxel Group.
• Nokia Corporation

By Product Type	By Component	By End User	By Region
Power Sourcing Equipment Powered Devices	Injectors Splitters Switches Converters	Enterprises Small & Medium Businesses Residential	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Power Over Ethernet POE Market, By Product Type:

• Power Sourcing Equipment
• Powered Devices

• Power Over Ethernet POE Market, By Component:

• Injectors
• Splitters
• Switches
• Converters

• Power Over Ethernet POE Market, By End User:

• Enterprises
• Small & Medium Businesses
• Residential

• Power Over Ethernet POE 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