Power Over Ethernet Lighting Market Research Report—Global Forecast till 2027

Power Over Ethernet Lighting Market Research Report: Information by Offering (Hardware and Software& Services), Wattage (Up to 25 Watt and Above 25 Watt), Application (Commercial, Residential, Industrial, and Others), and Region (North America, Europe, Asia-Pacific, South America, and Middle East & Africa) - Forecast to 2027

ID: MRFR/SEM/9258-HCR | February 2023 | Region: Global | 100 Pages         

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Power Over Ethernet Lighting Market

The global power over ethernet lighting market is projected to reach USD 1,157 million by 2027 with a CAGR of 29.7% during the forecast period, 2021-2027.

Segmentation
By Offering Hardware Software & Services
By Wattage Up to 25 Watt and Above 25 Watt
By Application Commercial Residential Industrial
Key Players
Companies Profiled   Cisco Systems (US)    Signify Holding (Netherland)    Hubbell Inc. (US)    H.E. Williams (US)    Herbert Waldmann GmbH & Co. Kg (Germany)    Siemon (US)    Ubiquiti Networks Inc. (US)    Prolojik (UK)    Silvertel (UK)    ALLNet GmbH (Germany)    Wipro Lighting (India)    Axis Lighting (Canada)    Ideal Industries (US)    NETGEAR (US)
Drivers
Market Driving Forces   Increased adoption in commercial and industrial sectors due to low maintenance costs   Improved PoE standards for high power speed and efficiency
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Power Over Ethernet Lighting Market Overview


The global power over ethernet lighting market is projected to reach USD 1,157 million by 2027 with a CAGR of 29.7% during the forecast period, 20212027.


Lighting systems that use power over ethernet reduce energy bills, enhance light quality, and extend bulb life significantly. Ethernet cables are used to power lights and communicate data between the luminaire and the control software on a PoE lighting platform. They also collect data, such as the position of a campus, by utilising motion sensors to identify people's presence and signal networks to turn off when not in use. End-users can remotely access lighting systems and platforms due to PoE smart technology, which connects LED light sources to the internet.


Through a single network cable, PoE provides electricity to devices. End-users can deliver power and data directly from power source equipment, such as switches, to the network port of connected powered devices, such as LED luminaires, using this technology. PoE solutions make network installation and expansion more cost-effective, especially in buildings where installing new power lines is too expensive or difficult.


Increased use in commercial and industrial sectors due to cheap maintenance costs are some of the factors driving the growth of the power over ethernet (PoE) lighting market. Installing PoE-enabled lighting solutions is simple and inexpensive. One of the key hurdles to the expansion of the PoE lighting industry is the high starting prices of PoE equipment and accessories. Furthermore, increasing adoption of smart and automated systems and rising demand for smart workplaces, power and efficiency which will further generate massive opportunities that will lead to the growth of the power over ethernet (PoE) lighting market.


Market Dynamics


Drivers

  • Increased Adoption In Commercial And Industrial Sectors Due To Low Maintenance Costs


Industrial and commercial sectors buildings such as office buildings, warehouses, and retail buildings are increasingly opting for PoE-lighting solutions, Due to the minimum number of ethernet connections required, PoE lights provide advantages such as lower installation and maintenance costs and reduced labour efforts. One of the most important factors driving the adoption of solutions in commercial spaces is the ability to reuse current IT networking infrastructure. An IP address is assigned to anything connected to an ethernet connection and connected to the PoE intelligent building automation platform. This allows the IoT & smart building management application to operate and monitor it.



  • Improved POE Standards for Speed, High Power, and Efficiency


By allowing network access points and terminals to be powered through the same cable that carries data, power over ethernet (PoE) technology has made it substantially easier to install them. The amount of power that PoE can deliver through ethernet cabling has continually risen, allowing a wider range of devices, such as cameras and access control systems, to be supported. It is now more critical than ever to distribute power as effectively as possible, due to the implementation of high-power IEEE 802.3at standards. In addition to the applications, PoE also works well for video surveillance, retail video kiosks, smart signs, building management, vending machines, and retail point-of-information systems.


Restraints & Challenges

  • High Initial Costs of PoE Equipment


High initial costs of PoE equipment are the key barriers to global market growth. The high cost of ethernet switches that require power sourcing equipment over traditional counterparts, as well as the cost of maintaining power sourcing equipment, are the key reasons for this. Switches, injectors, ethernet cables, splitters, and PoE jacks, among other items, are also required. Setting up a PoE network requires a significant upfront financial expenditure. The PoE network, on the other hand, can be more cost-effective; but, the uncertainty regarding the return on investment can be a hindrance.


Opportunities

  • Development of Human-Centric Lighting Solutions


High adoption of human-centric lighting solutions, initiatives toward establishing smart cities, and the rise in the demand for energy-efficient lighting solutions. Human-centric lighting will be in demand to provide accurate lighting to patients for improved health for healthcare applications Human centric lighting enhances human performance, comfort, health, and well-being by balancing visual, and biological benefits of lighting for humans. It improves alertness and concentration during learning by providing a better light environment.



  • Increasing Adoption of Automated Systems by Commercial Enterprises


As a result of commercial companies' increased adoption of smart and automated systems, the PoE lighting market is expected to grow. In order to improve flexibility, efficiency, and performance, businesses are increasingly converging diverse systems into a unified, secure network infrastructure; this expands the demand for PoE lighting.


Impact of COVID-19


Introduction


The COVID-19 pandemic has ravaged numerous industries worldwide, including semiconductor and peripheral businesses like chips and other semiconductor devices. Many businesses were closed, and many people lost their employment as a result, affecting the broader economy. The coronavirus pandemic has impacted negatively on supply chain hubs all around the world. China, one of the world's most important manufacturing hubs, has seen a 14% drop in production capacity and a 40% drop in worldwide electronic component shipments. COVID-19 has infected the Global Value Chain hub, with China playing a key role in raw material supply, product assembly, and ultimate delivery. Textile raw materials, garments and clothing accessories, mechanical and electrical products, automatic data processing systems, central processing units, electrical equipment, and automobiles are majorly exported. This is because the PoE lighting has witnessed several changes in business strategies, mainly the adoption of automation during the pandemic. The device manufacturers are dealing with declined demand from various end-use segments. China is one of the largest exporters of devices such as PoE lighting, florescent lighting, and high intensity discharge light components to North America.


The semiconductor manufacturing companies are investing in PoE lighting manufacturing and other important digital market developments and mergers and acquisitions. Manufacturers have been concentrating on developing microchips as components of larger domain-specific systems for many years. Due to the decrease in the production of the products which require semiconductor devices or chips, the manufacturing of semiconductor devices was also halted, causing delays for other industries such as IT.


This, in turn, affected the IT industry, which develops software for the sensors used in the PoE lighting as components such as sensors, drivers, microprocessors & microcontrollers, switches & dimmers, transmitters & receivers were in short supply or delayed. The shortage resulted in poor software development as they need to be calibrated before integrating with the total system, which is a combination of hardware components and software components.


A large percentage of the components utilised by PoE lighting manufacturers come from China. The worldwide lockdowns hampered the manufacture of LEDs and other components, having a significant impact on the PoE lighting sector supply chain. Since most semiconductor material and production is done overseas, semiconductor firms around the globe had to accept and adapt to higher costs, longer lead times, and a supply deficit to meet consumer demand. These factors caused the supply chain of PoE lighting components to cause delay and, in turn, disrupted the adoption rate of the system.Global Power Over Ethernet Lighting Market, 2018–­2027 (USD Million)Power Over Ethernet Lighting Market 2018-2027 USD MillionSource: MRFR Analysis


Value Chain Analysis/Technology Analysis/Regulatory Implications


The global power over ethernet lighting market supply chain has evolved from a traditional approach to a set of highly efficient processes, including procurement, system integration, and distribution. The supply chain of the power over ethernet lighting market involves conventional approach to highly efficient supply chain processes. The value chain includes the stages of design & development, system integration, and end-use industry


Segment Overview


The global power over ethernet lighting market has been segmented into offering, wattage, application, and region/country.


Based on offering, the power over ethernet lighting market has been segmented into hardware, software& services. The hardware segment is anticipated to exhibit the faster CAGR growth rate during the projected period.


Based on wattage, the power over ethernet lighting market has been classified into up to 25 Watt, and above 25 Watt. The above 25-Watt segment is expected to account for the larger market share.


Based on application, the power over ethernet lighting market has been bifurcated into commercial, residential, industrial, and others. Commercial hold the larger market share within the global market and are expected to grow with the fastest CAGR during the forecast period.


Regional Analysis


The global power over ethernet lighting market is expected to gain significant revenue from the various continents during the projected period. The geographic analysis of the power over ethernet lighting market has been conducted for North America, Europe, Asia-Pacific, the Middle East & Africa, and South America. North America is classified into the US, Canada, and Mexico. Europe is divided into the UK, Germany, France, and the Rest of Europe. Asia-Pacific is segmented into China, Japan, India, and the Rest of Asia-Pacific.


Asia Pacific Leads the Power over Ethernet Lighting Market


Asia Pacific Leads the Power over Ethernet Lighting Market. Owing to the availability of cost-effective land for setting up manufacturing plants as well as new commercial constructions, the presence of multiple lighting manufacturers, and continued growth in commercial and industrial buildings as well as smart offices, China is expected to lead the PoE lighting market in APAC region. The country specializes in lighting equipment manufacture and embraces technology at a higher rate than other countries in the region. Rapid economic growth in China, Japan, India, and South Korea is expected to propel the APAC PoE lighting market in the coming years. Chinese cities are offering investments in industrial growth by providing a low-cost land, good infrastructure, and a large workforce.


North America Holds the Second Highest Share in the Market


North America holds the second position in the power over ethernet lighting market in terms of revenue. The US, Canada, Mexico are the major growth engines of the market. North America has the largest market share for PoE lighting market. Growth in this region is mainly due to the strong presence of technology and fast adoption of core technologies which will help to enhance light quality, and overall efficiency.


Europe is Expected to be the Lucrative Region for the Market


Europe is the third-largest market for the global power over ethernet lighting market. However, when compared to other areas, the industry is expected to develop at the highest rate. This is due to the region's rising enterprises as a result of the major company's expansion strategy. The demand for LAN switching technology is driving this rise. Rising emphasis on industry modernization and upgrading IEEE standards in the region, while the European region is expected to increase in the projection period of 2021-2028 as governments support energy conservation measures in various sectors, including industrial, commercial, and residential complexes. .


Competitive Analysis


The power over ethernet lighting market is highly competitive with the presence of several leading vendors. However, some of the players have created goodwill within the global market by offering advanced features at affordable prices. Cisco Systems (US), Signify Holding (Netherland), Hubbell Inc. (US), H.E. Williams (US), Herbert Waldmann GmbH & Co. Kg (Germany), Siemon (US), Ubiquiti Networks Inc. (US), Prolojik (UK), Silvertel (UK), ALLNet GmbH (Germany), Wipro Lighting (India), Axis Lighting (Canada), Ideal Industries (US), NETGEAR (US), are the prominent players within the market with large client bases across the globe. During the forecast period, the leading players in the market will strive to improve their worldwide footprint through mergers and acquisitions of local and regional players, and they will likely extend their presence in those nations. The power over ethernet lighting market is dominated by the development of the global economic condition combined with technical advancements in rising economies such as APAC and North America. As a result, suppliers must develop new technologies and trends that may affect their product lines' competitiveness in the worldwide market. .


Key Developments in Global Power over Ethernet Lighting Market:



  • On 3rd August 2021, Signify launches new range of Philips Smart Wi-Fi lights in India. Signify has expanded its Philips Smart Wi-Fi ecosystem with new products unders its Wiz smart range.

  • On 3rd June 2021, Signif, the world leader in lighting, launches the fourth generation of the Philips Hue app. The all-new Philips Hue app has been designed as the foundation for the future of smart lighting

  • In March 2021, Hubbell Lighting announced its partnership with LightAZ, Hubbell Lighting continues their commitment to the lighting community to provide tools to be easy to do business with by adding their architectural luminaire portfolio to LightAZ.


Report Overview


This study estimates revenue growth at the global, regional, and country levels and offers an overview of the latest developments in each of the sub-sectors from 2018 to 2027. For this analysis, MRFR segmented the power over ethernet lighting market has based on offering, wattage, application, and region/country.




  • Based on Offering

    • Hardware

    • Software & Services




  • Based on wattage

    • Up to 25 Watt

    • Above 25 Watt




  • Based on Application

    • Commercial

    • Residential

    • Industrial

    • Others




  • Based on Region

    • North America

    • Europe

    • Asia-Pacific

    • South America

    • Middle East & Africa




Intended Audience



  • Component Manufacturers

  • Semiconductor Vendors

  • System Integrators

  • Manufacturing Companies

  • Research Institutes and Organizations

  • Technology Standards Organizations



Report Scope:

Report Attribute/Metric Details
  Market Size   USD 1,157 million
  CAGR   27.8%
  Base Year   2020
  Forecast Period   2021–2027
  Historical Data   2018 & 2019
  Forecast Units   Value USD Million
  Report Coverage   
  Segments Covered   • By Component (Hardware and Software & Services) • By Wattage (Up to 25 Watt, above 25 Watt) • By Application (Commercial, Residential, Industrial, Others)
  Geographies Covered   • North America (US, Canada, and Mexico) • Europe (UK, Germany, France, and Rest of Europe) • Asia-Pacific (China, Japan, India, and Rest of Asia-Pacific) • Middle East & Africa • South America
  Key Vendors   • Cisco Systems (US) • Signify Holding (Netherland) • Hubbell Inc. (US) • H.E. Williams (US) • Herbert Waldmann GmbH & Co. Kg (Germany) • Prolojik (UK) • Siemon (US) • Ubiquiti Networks Inc. (US) • Silvertel (UK) • ALLNet GmbH (Germany) • Wipro Lighting (India) • Axis Lighting (Canada) • Ideal Industries (US) • NETGEAR (US)
  Key Market Opportunities   
  Key Market Drivers   • Drivers • Increased adoption in commercial and industrial sectors due to low maintenance costs • Improved PoE standards for high power, speed, and efficiency • Opportunities • Development of human-centric lighting solutions • Increasing adoption of smart and automated systems by commercial enterprises • Restraints • High initial costs of PoE equipment • Impact of COVID-19 • Impact on Semiconductor Manufacturers • Impact on Component Manufacturers • Impact on Device Manufacturers • Covid-19 Impact on Supply Chain Delay


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Frequently Asked Questions (FAQ) :

The global power over ethernet lighting market was valued at USD XX million in 2020.

The global power over ethernet lighting market is expected to exhibit an 27.8% CAGR rate by 2027.

The Asia Pacific region currently dominates the market and is expected to retain its dominance throughout the forecast period.

Commercial is the most lucrative application in the global power over ethernet lighting market.

Cisco Systems (US), Signify Holding (Netherland), Hubbell Inc. (US), H.E. Williams (US), Herbert Waldmann GmbH & Co. Kg (Germany), Prolojik (UK), Siemon (US), Ubiquiti Networks Inc. (US), Silvertel (UK), ALLNet GmbH (Germany), Wipro Lighting (India), Axis Lighting (Canada), Ideal Industries (US), NETGEAR (US) are the key companies of the global power over ethernet lighting market.