Power over Ethernet to Grow at 55% Compound Annual Growth Rate Through 2007

Aug 1, 2004 12:00 PM

Power over Ethernet (PoE) technology could change computing, control, and communications market segments over the next five years

Power over Ethernet (PoE) technology could change computing, control, and communications market segments over the next five years, according to Venture Development Corporation (VDC), a Natick, Mass.-based technology market research and consulting firm. PoE is becoming a standard feature in such products as wireless access points and RFID tag readers. The technology modifies the way that certain lower-power consumption electronic devices are powered. For example, in the case of the Voice over IP (VoIP) and wireless LAN access point markets, the installations only require one wire rather than two. PoE has also changed the way wireless networks and VoIP telephones are implemented. Semiconductor manufacturers have been able to provide PoE products at both ends of the cable, and UPS manufacturers have voiced a greater need for longer backup power times. Because powered devices like VoIP phones are considered mission-critical applications, VDC forecasts an increased emphasis on smarter power, redundancy, and backup power in the future. These changes in the PoE market have led to a growth in the industry. According to VDC, the growth of the PoE market is measured in terms of the number of chips needed to support PoE functions on both ends of the cable. VDC forecasts an increase in the worldwide shipment for PoE-enabling silicon from 133.2 million ports in 2004 to 495.8 million ports by 2007.