Power Line Communication (PLC) Systems Market By Component (Coupling Capacitor, Line Trap Unit, Line Turners, Transmitters & Receivers, and Others), Frequency (Narrowband and Broadband), Solution (PLC over AC Lines, and PLC over DC Lines) End-user (Commercial, Residential, and Industrial), and Region - Market Perspective, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecast for 2023 – 2032

Market Perspective

The global Power Line Communication (PLC) Systems Market size was worth around USD 10.78 billion in 2022 and is anticipated to grow to around USD 22.01 billion by 2032 at a CAGR of around 7.4% between 2023 and 2032 due to the ever-changing technological advancements in various domains and end-user markets.

The adoption of PLC technology has been particularly beneficial to the ICT and IoT sectors. PLC solutions use the existing infrastructure of power grids and stations, which is cost-effective, as no additional infrastructure is needed. The accessibility of fast and efficient internet connectivity has been widely adopted by many countries around the world.

North America, Europe, and Asia Pacific regions have shown remarkable growth opportunities for the power line communication market. Developing countries are also contributing significantly, to the urbanization of infrastructure and the growth of business hubs. Many governments are promoting the implementation of PLC in power grids and cable networks, creating opportunities for market growth.

Key Insights

• Based on frequency, the broadband segment generated the highest revenue
• By solution, the power over AC lines segment has dominated the market share in 2022
• By end-user, commercial segments are expected to dominate over the forecast period
• On the basis of region, North America accounted largest market share

Upsurge in the Growth of Smart Building Infrastructure Drives Market Growth

The market for smart building infrastructure is expanding rapidly, driven by the increasing demand for uninterrupted power connectivity in commercial and industrial spaces. Smart buildings offer a range of benefits, including high data transmission speeds, uninterrupted connectivity, and easy maintenance processes. With the rise of smart technology, the demand for smart building infrastructure is expected to continue to grow, driving market demand and revenues.

Significant Increase in The Establishment of Smart Grids Boosts Market Growth

The global shift towards sustainable energy generation and systems has led to a significant increase in the establishment of smart grids. These grids are equipped with Power Line Communication (PLC) components and solutions that maximize efficiency and minimize energy loss. Smart grids are now being used not only in energy generation markets but also in commercial and industrial applications. As a result, the market for smart grids is growing rapidly, contributing to overall market growth. 

Recent Developments

February 2023:  Siemens introduced a new product under its portfolio at ISH 2023. The newly developed product would drive smart buildings based on IoT solutions. This innovation is developed with the focus on transforming buildings into smart buildings and reducing the complexity of automating any building.

August 2022: Broadcom signed a partnership agreement with Tencent with the aim of bolstering the Co-Packaged Optics Network commercially. The agreement states the development of the new products by using Broadcom’s best-in-class products along with Tencent’s hardware solutions.

May 2022: Broadcom acquired VMware for a value of approximately USD 61 billion. The acquisition would help in enhancing Broadcom’s strategy for building the best-in-class company of infrastructure technology. Post this acquisition, Broadcom Software Group would be rebranded and will operate under the name of VMware.

Segmentation Analysis

The power line communication (PLC) market can be segmented based on frequency, end-user, and solution segments.

The market is divided into narrowband and broadband categories based on frequency. In 2022, the broadband category dominated the market in terms of revenues, owing to its cost-effectiveness as it eliminates the need for separate routers or antennas. Broadband is expected to maintain its dominance throughout the forecast period, supported by technological and structural advancements through R&D departments.

Based on end-user, the market is segmented into commercial, industrial, and residential categories. The commercial end-use of PLC dominated the segment in terms of increasing demand and revenues due to its faster connectivity with less interference and space consumption. Increasing demand from commercial applications, driven by the development of new solutions, is expected to further boost the commercial end-use segment. The industrial end-use segment is expected to observe the fastest growth, driven by salient features that prevent power leakage and provide power management. These units are also utilized in power or smart grids to increase efficiency.

The market is further segmented into PLC over AC lines and PLC over DC lines based on the solution segment. PLC over AC lines dominated the solution segment in 2022, owing to its mass utilization in commercial and residential end-users. Growth in demand and revenues of the end-use segment directly fuels the power over AC lines solution. The power over DC lines solution is estimated to grow rapidly due to advancements and developments in products utilized in industrial applications. Increasing demand from solar applications and the transportation industry will further bolster the demand for power over DC lines.

North America to Hold the Largest Share due to Increasing Adoption of Smart Technology Solutions

In 2022, North America dominated the market by accounting for more than 32% of market revenue, which translates to over USD 3.6 billion. This can be majorly attributed to the widespread acceptance of smart technological solutions by end-users is one of the key factors driving the dominance. Innovations and technological upgrades in PLC products have provided end-users with solutions that empower high connectivity while avoiding complexities. Ever-expanding IT hubs and significant growths observed in the IoT domain have added more value to the market. The presence of strong and established players in the region is accelerating the development of new products owing to high competition.

The U.S. is the most prominent country in North America and is significantly contributing to the regional market. On the other hand, Canada is anticipated to grow at the fastest CAGR in the region owing to the increasing need for connectivity through smart grids in the country. Industrial and commercial developments in Canada are the key factors contributing to the strong demand for PLC solutions in the region.

Europe to Continue Experiencing an Exponential Growth

In 2022, Europe's contribution to the total revenue was approximately 27%, which was 6% lower than that of North America. The demand for neighbor area networks (NAN) has increased in several European countries, such as Italy, Germany, Sweden, and Norway, which has further boosted market growth. Germany has emerged as the most prominent country in the region in recent years. The market is expected to grow exponentially during the forecast period, with advanced solutions for metering and the expansion of substation communications leading the way.

Asia Pacific to Observe Fastest Growth Due to the Presence of Developing Economies

The Asia Pacific region is expected to experience the fastest compound annual growth rate (CAGR) of more than 10% during the forecast period. One of the key drivers of the power line communications market in the region is the urbanization of key developing economies such as India. China is a prominent country that contributes significantly to the growth of the power line communications market in the Asia Pacific.

Moreover, the region benefits from the presence of large-scale manufacturers and service providers in China, as well as the rapid development of information and communication technology (ICT) and the Internet of Things (IoT) domains in India, China, Australia, and New Zealand. These factors have played a significant role in the rapid growth of the market in the region, and this trend is expected to continue in the coming years.

Competitive Landscape

• Aclara Technologies Llc
• AMETEK Power Instruments
• Belkin
• Broadcom
• CYPRESS SEMICONDUCTOR CORPORATION
• ECHELON INDUSTRIES CORPORATION
• Siemens
• STMicroelectronics
• Tp-link corporation limited
• Renesas electronics corporation

The global power line communication systems market is segmented as follows:

By Component

• Coupling Capacitor
• Line Trap Unit
• Line Turners
• Transmitters & Receivers
• Others

By Frequency

• Narrowband
• Broadband

By Solution

• PLC over AC Lines
• PLC over DC Lines

By End-user

• Commercial
• Residential
• Industrial

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Reunion
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America