Power over Ethernet splitters

Power-over-Ethernet (PoE) technology continues to revolutionize global communication systems and interface methods, slowly rendering bulky power lines and massive cables obsolete. Its advent is preparing the market for compact networking equipment such as VoIP, WLAN and AP devices, and IP cameras, giving way to new industries.

Despite growing adoption worldwide, PoE is still in its infancy, with technologically advanced regions such as Europe and the United States just laying the groundwork for industries founded on this interface.

The PoE industry in mainland China is, as yet, limited to the design of PCBs and modules, production of power supplies, and assembly of various PoE products. Companies that manufacture PoE products generally offer up to three models per type.

Market research firm Venture Development Corp. forecast the worldwide market for PoE assemblies to post a CAGR of 33 percent between 2005 and 2008. This year, terminals supporting the PoE interface will most likely take a larger chunk of the market, their value reaching $5.2 billion for a 38 percent CAGR. At present, VoIP, WLAN and AP products lead the line.

Emerging applications for PoE include network printers, wireless Ethernet bridges, security systems and RFID readers.

Although optimistic about PoE’s future, makers on the mainland generally give low priority to these products as demand from both domestic and overseas markets remains very low. According to interviewed companies, these products typically require huge investments, but offer low returns.

Suppliers’ biggest challenges to date are keeping pace with their technologically superior foreign counterparts, and ensuring compliance to international standards. Most makers are taking a wait-and-see stance, deferring production expansion efforts until the market proves profitable enough.

To date, the PoE segment in mainland China is limited to VoIP products, IP cameras, AP kits, WLAN devices, fiber-optic modems, power supplies and PCB assemblies for PoE products.

A fairly small number of companies offer the PoE line, including interviewed makers Acetech Electronic Industrial (Xiamen) Co. Ltd, Hainan Xiangfeixiang Network Technology Co. Ltd (HiXFX) and Shenzhen Acroid Communication Tech Co. Ltd.

These companies, like most mainland companies that produce PoE and PoE-related products, are situated in Shenzhen and Guangzhou in Guangdong province, and Beijing—two of Greater China’s export, manufacturing and R&D powerhouses. PoE products and equipment are mostly targeted at large-scale enterprises, and only a few are designed for the consumer market. Large-scale business enterprises make up their customer base.

Today, locally made PoE assemblies and products are mainly supplied to the domestic market and are seldom exported. However, efforts are underway to break into the North American and European markets, where Wi-Fi is predominant.

Prices vary depending on the number of ports and the output power—a 12-port PoE power supply is quoted at $200; four-port unit, $60; and single output, $10 or less.

Local makers, including major players in the communications industry, admit that they are not yet in a position to influence R&D on PoE. They do, however, have the capability to comply with the standards set by industry giants 3Com, Intel and PowerDsine.

Mainland companies generally purchase their PoE power management chips from Linear Tech, TI, Broadcom and PowerDsine, which in turn provide them with technical assistance on IC solutions.

Most of these mainland China makers cautiously select their chip and solution suppliers, and adopt these chips and solutions sparingly, aware of the fact that some standards used by other suppliers have yet to be verified by the industry.

Some components require further debugging, exhibiting problems related to power limit, heat dissipation and electric transmission. To be on the safe side, most semiconductor component makers of high-power PoE chips comply with pre-802.3aft standards.

Current IEEE802.3af standards set in 2003 restrict PoE technology to applications with output under 13W. Updated 802.3af or PoE Plus standards to be released this year will support output of 30W or more. By then, PDAs, notebook PCs and POS devices will be able to use greater power from Ethernet, thereby expanding PoE’s applications.

According to IEEE802.3af standards, there are two types of PoE power supplies: mid-span and end-span. The latter is expected to go mainstream in the near term because it has PoE function embedded into network switches, allowing PoE and 1000M Ethernet interface to coexist.

Local makers of communication equipment, such as Huawei and ZTE, produce network switches supporting PoE. Many mainland companies use these switches as they are the most cost-effective means to integrate PoE functions into traditional network systems and switches.

Because most mainland China makers produce PoE power supplies and surge protector modules and assemblies, product development is centered on enhancing overload, surge, electromagnetic compatibility and heat dissipation capabilities. Guangzhou Halotech, a supplier of surge protectors, recently released model SPD-POE48, a single-output PoE surge protector. This mid-span product meets 802.3af standards.

HiXFX mainly produces Wi-Fi related products with four to 16 ports. These multiple-output PoE products are mostly used in machine rooms by system integrators, Internet service providers and telecom operators. The company can produce up to 1,000 units of PoE equipment per month. It designs and manufactures these products in cooperation with its CMS partners.

HiXFX regards multiple-output and central mid-span PoE products as the mainstream products on the market today. Single-output mid-span PoE products, mostly targeted at the consumer market, are manufactured locally by large-scale power supply companies, but mostly as low-end models in small volumes. End-span PoE network switches will gradually ease out mid-span PoE equipment. To date, however, production costs are still too high for these switches to break into the mainstream.

Acetech manufactures PoE modules and assemblies embedded into other systems. These products are suitable for IP phones and cameras, and printer servers or hubs. NES50, for one, features 36V DC to 60V DC input, 12V or 12W output, 80 percent efficiency (min.) and air-cooled design. The company also offers PoE switches, output of which totaled 5,000 units last year.

Sales manager Neo Wong forecasts that Acetech’s annual output for PoE modules, which reached 10,000 units last year, will increase to 15,000 units this year as the company expands its product line.