The power line communication (PLC) market is expected to see considerable growth by 2027 owing to mounting product demand in various end-use applications. In addition, increasing focus of manufacturers on product development with technology integration is anticipated to further support market growth through the forecast period.
Power line communication (PLC) is a communication technology that allows the transmission of data over existing power cables. Power line transformers are conventionally used in home networking and are primarily leveraged to extend the range of LAN connections from the modem or central router in home offices without the need for adding new wiring to the building.
By eliminating the need for Cat5 cable in locations where establishing a wireless solution is challenging, PLC uses the mains power ring to enable data signals. This makes PLC-based communications suitable for off-grid back-up of ???green??? energy and EV charging points, which is boosting market demand across diverse sectors.
Moreover, industry players are expanding their offerings with products that deliver higher functionality to increase their consumer reach, which has positively influenced product adoption worldwide. For instance, in June 2021, Pulse Electronics, an electronic components manufacturer, introduced its Pulse PLC series in SMD packages. The product range provides high isolation up to 4KV and rivals against leading broadband PLC chipsets with a 3-30MHz wideband frequency range.
Additionally, market leaders are developing products that give consumers quality and performance assurance, which has propelled market demand across the globe. To cite an instance, in June 2021, semiconductor manufacturer STMicroelectronics' chipsets - ST8500 and S2-LP - became the first to receive the G3-PLC Hybrid communication standard certification, which outlines seamless connectivity over both power line and wireless media.
The G3-PLC Alliance is the leading industry alliance in the world for power line communication (PLC) in smart grid applications. Its Hybrid PLC&RF certificates assure both customers and manufacturers that their device has the proper implementation of the G3-PLC standard, is interoperable with other certified devices, and meets specific performance levels. As a result, improving product landscape is bolstering market dynamics across key regions.
For comprehensive assessment, the power line communication (PLC) market has been segmented on the basis of offering, application, frequency, industry vertical, and region. With respect to industry vertical, the market has further been categorized into commercial, residential, and industrial (energy & power and automotive & transportation).
The energy & power industrial segment accounted for over 50% of the power line communication (PLC) market in 2020 and is expected to witness substantial growth over 2021-2027. Surging demand for smart grids across the power sector is projected to fuel segmental growth through the assessment timeframe.
From the perspective of region, the Latin America power line communication (PLC) market is estimated to observe notable growth at a CAGR of approximately 15% over the forecast period. Growing investments towards smart energy infrastructure across the region are likely to support market demand through the following years.