Widespread Adoption of IP Telephony & Increase in WLAN Access Points Drives the Global PoE Chipsets Market, According to New Report by Global Industry Analysts, Inc.

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GIA announces the release of a comprehensive global report on Power-Over-Ethernet (PoE) Chipsets markets. The global market for Power-Over-Ethernet (PoE) Chipsets is projected to reach US$201.5 million by 2018, primarily driven by the ongoing enterprise transition from circuit-switched TDM networks to IP-centric architectures and the ensuing widespread adoption of IP telephony. Increased deployment of network security cameras and Ethernet-based RFID readers is also poised to drive growth in the market.

Power-over-Ethernet (PoE) Chipsets: A Global Strategic Business Report

Follow us on LinkedIn – Defined as a technology designed to supply power to Ethernet network devices over the same data connection cable, Power-over-Ethernet (PoE) has refined the nuances of functionality by integrating data, voice and power over standard LAN infrastructure. PoE is growing in popularity, thanks to the technology’s ability to integrate data and power over standard LAN, which drives significant benefits for users. For instance, by eliminating the need to run separate data and power cables/wires, PoE considerably reduces costs for the users. Also, PoE provides high levels of agility and flexibility in enterprises, as network devices can be re-positioned and re-installed anywhere without compromising performance, given that powered devices (PDs) are not tethered to AC cables. The centralized power source also adds to the reliability of power supply by automatically protecting against power fluctuations, spikes, outages and surges. Other advantages include increased control and monitoring capabilities, and minimal deployment costs.

Since its first shipment in 2003, Power-over-Ethernet has witnessed continuous expansion as the technology successfully breached newer applications. The technology also received a boost when the IEEE 802.2af-2003 standard capable of delivering a maximum of 15.4 W of DC power to each device was updated to IEEE 802.3at-2009 capable of providing over 25.5 W of power. Also known as PoE+ or PoE plus, the upgraded standard exhibit the potential to be used in a wide range of applications. As consumer awareness increases, the adoption of PoE is expected to further increase in various applications. The PoE technology has helped increase the number of devices that can be connected to network i.e. CCTV cameras, PTZ security cameras, WiFi Access Points, and IP Phones with advanced video conferencing features, among numerous others. As the number of networked devices in a LAN increase from a few to thousands, demand for PoE chipsets is forecast to have a free run in the upcoming years.

The PoE technology has played an instrumental role in eliminating a key barrier in the widespread adoption of IP telephony by offering a practical and efficient power transmission option. The last decade witnessed a fundamental technology shift in the enterprise telephony system marketplace with end-users migrating to IP (Internet Protocol) based communications. A factor which encouraged the migration was the need to reduce telephony transport costs. The transition from circuit-switched TDM networks to IP-centric architectures is still gaining momentum in several developing countries across the globe, especially among SMBs with limited resources for establishing communications infrastructure. The migration has and will continue to be driven by factors such as reduced capital expenditure, greater operational flexibility, enhanced ability to acclimatize organizational trends such as telecommuters and mobile workforce and increasing need to support capabilities such as VoWLAN (Voice over Wireless LAN). As enterprises demand mobile solutions and greater flexibility for their employees, market opportunities for IP telephony will continue to extend beyond basic telephony upgrades. Against this backdrop, increased deployment of IP telephones will generate increased demand for scalable and manageable power delivery and PoE as the technology of choice is poised to emerge into the greatest beneficiary of the trend.

While VoIP applications and wireless LAN access points currently account for a majority of PoE chipsets revenues, other application areas are rapidly gaining in momentum. Network security cameras represent an especially high-growth market. Increased deployment of PoE-enabled network security cameras is poised to benefit demand for PoE chipsets. PoE-enabled network security cameras eliminate the need to install two different cables for network connection and power connection and provide benefits such as, easy re-location, faster deployment, flexibility, safety, reliability, scalability, and time & cost savings.

Deployment of Ethernet-based RFID Readers is on the rise primarily as a result of strong opportunities in applications, such as, in supply chain management, cargo tracking, asset management, document tracking, contactless payments, and library systems. Demand is also driven by strong opportunities in RFID (Radio Frequency Identification) applications in transport and production logistics.

As stated by the new market research report on Power-over-Ethernet (PoE) Chipsets, the US represents the largest regional market, accounting for a majority share in the revenues generated in the global market. Asia-Pacific represents the fastest growing regional market with annual revenue from the region waxing at a CAGR of about 8.5% over the analysis period. By end-use, IP Telephony market is the largest end-use application segment for Power-over-Ethernet chipsets. IP Cameras market represents the fastest growing end-use application for PoE chipsets with annual revenue from the segment waxing at a CAGR of about 10.1% over the analysis period.

Major players in the global marketplace include Akros Silicon, Inc., ON Semiconductor, Linear Technology Corporation, Micrel Inc., Microsemi Corp., Silicon Laboratories Inc., and Texas Instruments, Inc., among others.

The research report titled “Power-over-Ethernet (PoE) Chipsets: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections for PoE Chipsets (in US$ thousands) for major geographic markets including the US, Canada, Japan, Europe, Asia-Pacific and Rest of World. The report also analyzes the market by end-use application segments like IP Telephony, IP Cameras and Others.

For more details about this comprehensive market research report, please visit –

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.

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Global Industry Analysts, Inc.
Telephone: 408-528-9966
Fax: 408-528-9977
Email: press(at)StrategyR(dot)com
Web Site: http://www.StrategyR.com/


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