The Power over Ethernet market in APAC is expected to grow from US$ 156.95 million in 2019 to US$ 455.59 million by 2027; it is estimated to grow at a CAGR of 13.1% from 2020 to 2027.
In 2020–2021, The popularity of LED lighting has grown at an unprecedented rate during the past few years owing to the falling price of LED and rising technological advancements. Moreover, increasing need for energy-savings through efficient lighting is phasing down the adoption of fluorescent and incandescent lighting, which, in turn is fuelling the demand for LED lighting. As per the International Energy Agency (IEA) statistics, the uptake of LED lighting in the residential sector rose from 5% in 2013 to 40% in 2018. The LED lighting solutions are considered highly durable and have a lower environmental footprint; moreover, they are cost-efficient and have longer lifespan. Further, the governments are initiating to phase out inefficient halogen lamps, fluorescent lights and introduce minimum quality standards for LED lighting that are integrated with the Power over Ethernet. Several market players are focusing on the development of LED lighting and connecting it with the Power over Ethernet technology. For instance, Wipro Lighting offers Power over Ethernet solutions integrated with the LED lighting technology, facilitating customizable environments for data centers, modern workspaces, education, healthcare, and retail segments. This Power over Ethernet LED lighting offers varied options for centralized and distributed architectures, which provides flexibility to either mount the related switches in an IDF/ electrical panel room or the ceiling. Such developments and facilities related to Power over Ethernet LED lighting are propelling the growth of the APAC Power over Ethernet market. Additionally, increasing smart city projects are fueling the adoption of Power over Ethernets in APAC.
Based on end user, the commercial segment led the APAC Power over Ethernet market in 2019. The commercial segment includes office buildings, healthcare, and retail. Increasing concerns associated with the security and communication across the commercial buildings is boosting the installation of Power over Ethernet based VoIP and IP camera for efficient operations. Power over Ethernet application for sensors, connected lighting, digital signage, or smart thermostats permits real estate developers, property owners, and corporations to meet the customer demands for a smart building and offer an enhanced experience. Further, the healthcare facilities are robustly focusing on the sites to be equipped with a Power over Ethernet-enabled network, which are integrally compatible with a Power over Ethernet/IP Network Synchronized Clock System. Rising investment toward the new construction or renovation projects of healthcare sites to meet the cabling requirements that may be addressed during the pre-construction phase, which demands the installation of Power over Ethernet systems.
The ongoing COVID-19 outbreak has badly impacted the APAC region. The region is the manufacturing hub of semiconductors and electronics thus containment measure undertaken by the governments in this region has negatively affected the production in this region. China is the leading manufacturing country in this region and is among the worst-hit country which has ultimately impacted the production of semiconductors and electronics facilities. Further, due to the interruption in supply chain and logistics, the procurement rate of various industrial equipment has been quite affected. In India, South Korea, Japan, Vietnam, and others have witnessed a sharp decline in manufacturing activities and new projects owing the lack of availability of work force and movement restrictions. Hence, the disruptions in supply of raw materials and components and also demand from China & other Asian countries is expected to negatively impact the growth of the market in coming quarters.
The overall APAC Power over Ethernet market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining an overview and forecast for the APAC Power over Ethernet market with respect to all the segments pertaining to the region. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. The participants who typically take part in such a process include industry experts, such as VPs, business development managers, market intelligence managers, and national sales managers along with external consultants, such as valuation experts, research analysts, and key opinion leaders specializing in the APAC Power over Ethernet market. Broadcom Ltd.; Cisco Systems, Inc.; Dell Inc; Huawei Technologies Co., Ltd.; Maxim Integrated Products, Inc; Monolithic Power Systems Inc.; ON Semiconductor Corporation; Silicon Laboratories Inc.; STMicroelectronics N.V.; and Texas Instruments, Inc. are among the key players operating in the APAC Power over Ethernet market.