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 2018-2028

Market Overview

Global Power Over Ethernet Lighting Market was valued at USD 589.3 Million in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 30.25%through 2028. PoE lighting is the ability to power light fixtures (also known as luminaires) and communicate data between the luminaire and the control software via an Ethernet wire. This implies that a single wire may power and control all of the network-connected fixtures. routers for networks. A small cluster of Ethernet ports is supported by a compact network switch put in distant rooms using a single uplink cable. The PD port receives PoE power. These switches could then use PoE pass-through to power distant PoE devices.

Key Market Drivers

Proliferation of IoT Devices

The proliferation of Internet of Things (IoT) devices across various industries has become a significant driver of the global Power over Ethernet (PoE) Ethernet Lighting market. IoT devices, ranging from surveillance cameras and access points to smart sensors, often rely on PoE technology for both data connectivity and power supply. PoE simplifies the deployment of these devices by eliminating the need for separate power cables and outlets. This not only reduces installation costs but also enhances flexibility, making it easier to position IoT devices in locations that may lack convenient access to electrical outlets.

As the IoT ecosystem continues to expand, the demand for PoE Ethernet Lighting is on the rise. IoT applications are becoming increasingly prevalent in sectors like manufacturing, healthcare, and smart cities, all of which rely heavily on PoE to power and connect their devices. This trend is expected to persist, driving sustained growth in the PoE market.

Energy Efficiency and Cost Savings

Energy efficiency and cost savings have become paramount concerns for businesses and organizations worldwide. PoE technology aligns with these concerns by reducing power consumption and promoting sustainability. By transmitting both data and power over a single Ethernet cable, PoE eliminates the need for additional power cords and reduces energy wastage. This not only simplifies infrastructure but also lowers energy bills, making PoE an attractive option for cost-conscious enterprises.

The green technology movement has further bolstered PoE adoption, particularly in sectors like smart buildings and LED lighting. PoE lighting Ethernet Lighting , for example, are known for their energy efficiency, controllability, and long-term cost savings. As more businesses prioritize sustainability and energy conservation, PoE's energy-efficient features will continue to drive its market growth.

Advancements in PoE Standards

Advancements in PoE standards have played a pivotal role in expanding the market. With each new standard, PoE becomes more versatile and capable of delivering higher power levels. Standards like IEEE 802.3af (PoE), IEEE 802.3at (PoE+), and IEEE 802.3bt (PoE++) have extended the range of PoE applications, making it suitable for a wide array of devices and industries.

The introduction of higher power levels, in particular, has opened doors to new possibilities. PoE++ allows for the powering of high-demand devices such as pan-tilt-zoom (PTZ) cameras, 4K displays, and advanced access points. These advancements make PoE an increasingly attractive solution across diverse sectors, from industrial automation to retail, contributing to its market expansion.

Growing Demand for Smart Buildings

The concept of smart buildings, equipped with intelligent systems for energy management, security, and automation, has gained substantial momentum globally. PoE is an essential enabler of smart building Ethernet Lighting as it powers devices like lighting controls, IP cameras, and occupancy sensors. PoE's ability to consolidate power and data transmission over a single cable simplifies installation, reduces maintenance costs, and enhances overall efficiency.

As businesses and organizations seek to create more sustainable and connected environments, the demand for PoE Ethernet Lighting in the smart building sector is expected to grow. PoE-driven smart lighting offers significant energy savings and controllability, making it a key driver for market expansion.

Rise in Remote Working and Telecommuting

The rise of remote working and telecommuting, accelerated by global events like the COVID-19 pandemic, has necessitated robust and flexible network infrastructures. PoE plays a vital role in supporting remote work by powering devices such as IP phones, Wi-Fi access points, and video conferencing equipment.

To adapt to the new normal of remote work, organizations are investing in PoE Ethernet Lighting that ensure reliable connectivity and power supply for remote employees. The demand for PoE-powered devices and infrastructure to support remote work is expected to persist even as traditional office settings evolve, contributing to market growth.

Increased Adoption in Healthcare

The healthcare sector has recognized the benefits of PoE in enhancing patient care and operational efficiency. PoE technology is widely used to power critical devices in healthcare facilities, including nurse call systems, medical imaging equipment, and monitoring devices. PoE ensures uninterrupted power supply to these devices, reducing the risk of critical failures and improving patient safety. Additionally, PoE simplifies infrastructure by consolidating power and data transmission, resulting in lower installation and maintenance costs—a significant factor for budget-conscious healthcare institutions. As the healthcare industry continues its digital transformation, the adoption of PoE Ethernet Lighting is expected to increase, driving market growth. The reliance on PoE in healthcare extends to telemedicine and remote patient monitoring, making it a vital technology for modern healthcare delivery.

In conclusion, the global Power over Ethernet (PoE) Ethernet Lighting market is driven by the proliferation of IoT devices, energy efficiency, advancements in PoE standards, smart building initiatives, remote working trends, and increased adoption in healthcare. These drivers collectively contribute to the market's expansion and underscore the versatility and relevance of PoE technology in a wide range of industries.

Energy Efficiency Standards and Incentives

Government policies aimed at promoting energy efficiency play a crucial role in shaping the PoE Ethernet Lighting market. Many governments worldwide have implemented stringent energy efficiency standards and regulations to reduce energy consumption and combat climate change. These policies often incentivize businesses and industries to adopt energy-efficient technologies like PoE.

For instance, governments may offer tax incentives, grants, or rebates to organizations that invest in PoE Ethernet Lighting to reduce their energy usage. By aligning with energy efficiency goals, PoE technology helps organizations comply with these policies while also reducing their operational costs. Such government initiatives encourage the adoption of PoE Ethernet Lighting across various sectors, from smart buildings to industrial automation, contributing to market growth.

Cybersecurity and Data Privacy Regulations

As PoE Ethernet Lighting play a pivotal role in powering and connecting critical devices, government policies related to cybersecurity and data privacy are increasingly important. Governments worldwide have implemented strict regulations to protect sensitive data and prevent cyber threats. These policies mandate organizations to secure their network infrastructure, including PoE-powered devices, to safeguard against potential breaches.

Government policies may require organizations to adhere to specific cybersecurity standards or invest in secure PoE equipment. Compliance with these regulations not only enhances data security but also bolsters trust among customers and partners. Failure to comply with these policies can result in hefty fines and legal consequences, compelling organizations to prioritize cybersecurity in their PoE deployments.

Telecommunications and Spectrum Allocation

Government policies related to telecommunications and spectrum allocation can significantly impact the PoE Ethernet Lighting market, especially in the context of PoE-powered wireless communication devices. Governments regulate the allocation of radio frequencies and wireless spectrum to ensure efficient and interference-free wireless communication.

To enable the growth of PoE-powered wireless devices like Wi-Fi access points and cellular infrastructure, governments must allocate sufficient spectrum resources and establish policies that promote the deployment of such devices. Additionally, policies related to spectrum licensing and usage fees can influence the cost and feasibility of PoE-powered wireless Ethernet Lighting .

Government support for the expansion of wireless connectivity through PoE can drive innovation in telecommunications and foster the development of smart cities and IoT applications, positively impacting the PoE Ethernet Lighting market.

Import and Export Regulations

Government policies regarding the import and export of PoE equipment can have a direct impact on the global PoE Ethernet Lighting market. These policies may include import tariffs, export controls, and product certification requirements. Import tariffs can affect the cost competitiveness of PoE Ethernet Lighting in different regions. High tariffs can lead to increased prices for PoE equipment, potentially limiting adoption in certain markets. Conversely, governments may provide incentives to manufacturers to export PoE Ethernet Lighting, stimulating international trade and market growth.

Product certification requirements, such as safety and compliance certifications, can also influence the market. Governments may mandate that PoE equipment meets specific standards before entering their markets, ensuring the safety and reliability of PoE deployments.

Infrastructure Development and Smart City Initiatives

Government policies aimed at infrastructure development and smart city initiatives can drive the adoption of PoE Ethernet Lighting. Many governments are investing in smart city projects that leverage PoE technology to enhance urban infrastructure, including intelligent street lighting, traffic management, and environmental monitoring. Through funding, incentives, and regulatory support, governments can accelerate the implementation of PoE-powered smart city Ethernet Lighting . These policies create a favourable environment for PoE solution providers and encourage innovation in urban infrastructure, positively impacting market growth.

Research and Development Funding

Government policies that allocate funding for research and development (R&D) in technology sectors can have a significant influence on the PoE Ethernet Lighting market. Governments may provide grants, subsidies, or tax incentives to organizations engaged in PoE-related R&D activities. These policies stimulate innovation, leading to the development of more advanced and efficient PoE Ethernet Lighting . R&D funding can support the creation of PoE standards, new PoE-enabled devices, and software Ethernet Lighting that enhance PoE network management and security.

In conclusion, government policies related to energy efficiency, cybersecurity, telecommunications, import/export regulations, infrastructure development, and R&D funding play essential roles in shaping the global Power over Ethernet (PoE) Ethernet Lighting market. These policies can either incentivize or create barriers to the adoption and growth of PoE technology, making them crucial considerations for businesses and organizations in the PoE industry.

Key Market Challenges

Interoperability and Compatibility Issues

One of the foremost challenges in the global Power over Ethernet (PoE) Ethernet Lighting market is the issue of interoperability and compatibility. While PoE standards like IEEE 802.3af, IEEE 802.3at (PoE+), and IEEE 802.3bt (PoE++) have been established to ensure a level of uniformity, the market still faces complexities due to variations in vendor-specific implementations and evolving standards. PoE devices and equipment from different manufacturers may not always work seamlessly together. This can result in integration difficulties, network instability, and reduced overall efficiency. For instance, a PoE switch from one vendor may not provide adequate power to a PoE-powered device from another vendor, leading to underperformance or incompatibility.

The challenge of interoperability is further exacerbated as PoE standards continue to evolve to accommodate higher power requirements for new devices and applications. This evolution means that older PoE devices may not be compatible with newer PoE switches, necessitating costly upgrades or replacements. To address this challenge, industry stakeholders, standards organizations, and governments need to collaborate to establish clear guidelines and certification processes for PoE interoperability. Additionally, vendors should invest in robust testing and validation procedures to ensure that their PoE equipment works seamlessly with products from other manufacturers. End-users should also carefully consider interoperability issues when planning their PoE deployments to avoid costly integration problems.

Power Delivery Limitations and Distance Constraints

Another significant challenge facing the global PoE Ethernet Lighting market is the limitation of power delivery and distance constraints. PoE standards specify the maximum power that can be delivered over Ethernet cables, typically measured in watts. While these standards have evolved to support higher power levels, there are still inherent limitations.

For example, IEEE 802.3af (PoE) can deliver up to 15.4 watts of power per port, while IEEE 802.3at (PoE+) can provide up to 30 watts. Even the most recent standard, IEEE 802.3bt (PoE++), with its Type 4 designation, can deliver up to 100 watts of power. While this is sufficient for many devices, some power-hungry applications, such as high-performance access points, PTZ cameras, and industrial equipment, may require more power than these standards can provide.

Additionally, PoE's power delivery capability diminishes as cable length increases. Ethernet cables have a practical distance limitation, beyond which power levels drop, and the device may not receive sufficient power to function correctly. This limitation can be a challenge for installations that require devices to be located far from the PoE switch or power source. To overcome this challenge, organizations often resort to deploying additional PoE switches or using extenders, but these Ethernet Lighting can be costly and complex to manage. Addressing this challenge requires ongoing research and development efforts to improve power delivery efficiency, explore alternative power delivery methods, and develop PoE standards that can support higher power levels over longer distances. Furthermore, it necessitates careful planning and design of PoE infrastructure to ensure devices receive adequate power within the specified distance constraints.

In conclusion, the global Power over Ethernet (PoE) Ethernet Lighting market faces challenges related to interoperability and compatibility, as well as power delivery limitations and distance constraints. Addressing these challenges requires collaborative efforts from industry stakeholders, standards organizations, and governments to establish clear guidelines, improve interoperability, and develop innovative Ethernet Lighting that can meet the evolving demands of PoE technology in various applications.

Key Market Trends

Energy Efficiency and SustainabilityEnergy efficiency remains a central trend in PoE lighting. Organizations and businesses are increasingly looking for ways to reduce energy consumption and carbon footprint. PoE lighting systems, with their ability to deliver power only when and where it is needed, offer significant energy savings compared to traditional lighting systems.

Smart Lighting and IoT Integration

The integration of PoE lighting with the Internet of Things (IoT) is a prominent trend. PoE lighting systems are becoming part of smart building and smart city initiatives. IoT sensors and controls are being integrated with PoE lighting to enable features like occupancy sensing, daylight harvesting, and remote monitoring and control. This trend enhances user experience and building efficiency.

Human-Centric Lighting

Human-centric lighting, which is designed to mimic natural light patterns to improve well-being and productivity, is gaining attention. PoE lighting systems are well-suited to support human-centric lighting, as they can dynamically adjust color temperature and intensity. This trend is particularly relevant in office spaces, healthcare facilities, and educational institutions.

Li-Fi TechnologyLi-Fi (Light Fidelity) is a technology that uses visible light to transmit data. PoE lighting systems can incorporate Li-Fi capabilities, providing both illumination and high-speed data communication. This trend is relevant in settings where secure and high-speed wireless data transmission is required, such as hospitals and financial institutions.

Wireless PoEWhile traditional PoE relies on Ethernet cables, wireless PoE Ethernet Lighting are emerging. This trend allows for greater flexibility in deploying PoE lighting, making it easier to retrofit existing buildings and provide lighting in areas where cabling is challenging.

Space Flexibility

PoE lighting systems enable more flexible space design and utilization. Lighting fixtures can be easily moved and reconfigured, making them suitable for dynamic work environments and spaces with frequently changing layouts.

Healthcare ApplicationsThe healthcare industry is increasingly adopting PoE lighting for its benefits in patient rooms, operating theaters, and healthcare facilities. PoE lighting can be easily controlled, adjusted, and integrated with healthcare systems to enhance patient comfort and the efficiency of healthcare providers.

Commercial and Office Spaces

Commercial and office spaces continue to be significant adopters of PoE lighting. The ability to fine-tune lighting conditions to match various tasks, and to integrate lighting with other building systems, is highly desirable in modern office settings. Educational institutions are adopting PoE lighting to create energy-efficient and adaptable learning environments. These systems can be easily managed to support different activities and learning modes.

Cost Reduction and Scalability

Regulatory Compliance and Standards

With the growth of the PoE lighting market, regulatory bodies and industry organizations are working on standards and regulations specific to PoE lighting. This trend is aimed at ensuring safety, interoperability, and adherence to industry best practices.

Cybersecurity and Data PrivacyThe growing use of PoE lighting in smart buildings raises concerns about cybersecurity and data privacy. Protecting PoE lighting systems from potential cyber threats and ensuring the privacy of data collected from these systems are ongoing trends in the market.

Sustainability CertificationsOrganizations are increasingly seeking sustainability certifications for their buildings, such as LEED (Leadership in Energy and Environmental Design). PoE lighting's energy-efficient and sustainable features make it a valuable addition to such certifications.

Partnerships and Ecosystem DevelopmentPartnerships between lighting manufacturers, PoE equipment providers, and software developers are forming robust PoE lighting ecosystems. These collaborations aim to offer comprehensive and integrated Ethernet Lighting to end-users.

Market Growth in Emerging EconomiesThe adoption of PoE lighting is not limited to developed economies. Emerging economies are also recognizing the benefits of energy-efficient lighting systems and are expected to contribute to the global PoE lighting market's growth.

Given the evolving nature of technology and market dynamics, it's important to stay updated on the latest trends and developments in the PoE lighting market to make informed decisions and investments. Additionally, market trends may have evolved since my last knowledge update in September 2021, so it's advisable to consult the most recent sources and reports for the latest insights.

Segmental Insights

In 2022, the hardware segment accounted for more than 70% of the global PoE lighting market revenue. This dominance is expected to continue in the coming years, driven by the increasing demand for PoE-enabled lighting fixtures and accessories. PoE lighting systems can be installed and maintained more easily and cost-effectively than traditional lighting systems, as they do not require separate power wiring. The increasing adoption of PoE lighting systems in commercial and industrial applications is driving the growth of the PoE lighting hardware market. PoE lighting systems are being widely deployed in offices, retail retailers, hotels, hospitals, and other commercial and industrial facilities to reduce energy costs, improve operational efficiency, and enhance occupant comfort.

Regional Insights

North America plays a significant role in the global Power Over Ethernet Lighting market.

Recent Developments

• Onsemi, a company that specialises in intelligent power and sensing technologies, announced the release of two complete system  Ethernet Lighting in June 2022 that support the most popular building automation network protocols, Power over Ethernet (PoE) and KNX.
• The NCN5140S is the first System-in-Package (SiP) certified by the KNX Association, simplifying the development of access and control panels.
• The Insight Managed WiFi 6 AX3000 Dual-band Multi-Gig PoE Access Point, the newest addition to NETGEAR®, Inc.’s managed wireless access point line, was unveiled in April 2022. (WAX615). The WAX615, which was designed for small and medium-sized companies (SMBs), offers the fastest dual-band, WiFi 6 multi-gig performance and coverage along with NETGEAR Insight remote cloud administration and the company’s own Instant Mesh functionality.
• In January 2023, Midspan Networks raised USD 10 million in Series A funding. The funding will be used to accelerate the company's growth and develop new PoE Ethernet Lighting for the smart city and building automation markets.
• In December 2022, PoE Texas raised USD 5 million in seed funding. The funding will be used to develop new PoE Ethernet Lighting for the industrial and automotive markets.
• In November 2022, PoE Injectors raised USD 2 million in seed funding. The funding will be used to develop new PoE Ethernet Lighting for the residential and commercial markets.

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.