Report predicts big demand for power over Ethernet

Shipments of power-over-Ethernet enabling ICs are forecast to grow at a 55% compound annual growth rate through 2007, according to a new report.

Power over Ethernet technology is fast becoming a standard feature in a wide variety of products ranging from wireless access points to RFID tag readers.

In these devices, it is the semiconductor silicon (PoE-enabling ICs) that enables the transmission or acceptance of power over the Ethernet cable.

The PoE ASIC market is one that can be quantified in terms of the number of chips that are needed to support PoE functions on both ends of the cable.

PoE ASICs are essentially hot-swap controllers with additional circuitry to perform the PSE (power sourcing equipment) and PD (powered devices) operations defined by the IEEE802.3af standard.

Shipments of PoE-enabling ICs are forecast to grow at a 55% compound annual growth rate (CAGR) through 2007, according to a new report from Venture Development Corp.

One obstacle semiconductor manufacturers should be aware of is price erosion predicted between 2004 and 2007.

The average selling price per unit is expected to drop from more than a dollar per unit to less than 50 cents per unit.

"Power over Ethernet: a global market demand analysis", is available from Venture Development Corp.

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