LIGHT FIDELITY MARKET SIZE & SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

The global Light Fidelity (Li-Fi) market size was valued at US$ 423.6 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 36.1% from 2023 to 2030. This growth is driven by the need for a secure network and higher data transfer rates. The market is expected to witness a significant demand from the indoor networking sector, especially in retail and hospitality. In addition, the adoption of this technology will help improve targeted advertising for retailers and enhance customer experience in these sectors. Furthermore, the global Light Fidelity market is also supported by the robust growth of the electronics manufacturing industry.

Global Light Fidelity (Li-Fi) Market: Regional Insights

North America is anticipated to show substantial growth in the global light fidelity (Li-Fi) market over the forecast period, owing to increasing developments in information technology such as, Internet of Things, Smartphones, Big Data, and wireless sensor networks are driving the development of smart buildings in the region. Furthermore, the smart homes penetration is likely to increase in the region due to such advancements in various technologies. As a result, the region is expected to gain major share in the global market.

Asia Pacific to account for dominating share in the global light fidelity (Li-Fi) market over the forecast period. The growth of this region can be attributed to massive investments in technologies to boost the internet infrastructure of the region, growing research and development activities for development of a high-quality visible light communication system.  Moreover, technological advancements in the region are also expected to support growth of the market in Asia Pacific region.

Figure 1. Global Light Fidelity Market Share (%), By Region, 2022

Global Light Fidelity (Li-Fi) Market Drivers:

Increasing high-speed network demand to accelerate market pace

Li-Fi technology makes use of the infrared and visible light spectrum for high speed data communication. This technology is capable of transmitting data at a very high speed and can deliver 224 GB of data every second. Due to the emergence of LED, the use of Li-Fi has become simple and has enabled high-speed networks. Thus, adoption of li-fi technology is increasing to achieve high-speed networks. As a result, the global light fidelity (Li-Fi) market is expected to gain major growth in the coming future.

Rise in demand for energy-efficient solutions to boost the market growth

The ICT sector is transforming with growing efforts from governments around the world. This is due to rise in need for energy management. Due to various government initiatives such as, implementation of smart city transformations, market players now have to invest and innovate in Li-Fi technology. For instance, the seven-year Dubai Plan 2021 has ICT at its heart, which will build on investment in advanced technology. Thus, rising demand for energy-efficient solutions is expected to drive growth of the global light fidelity (Li-Fi) market over the forecast period.

Global Light Fidelity (Li-Fi) Market Opportunities:

Growing adoption of Lighting-as-a-service (LaaS) is expected to create growth opportunities in the global light fidelity (Li-Fi) market over the forecast period. There is a paradigm shift in the lighting industry, and old business models have started to fade away, owing to the limited lifetime of 20 years if an LED light bulb. The adoption of Lighting-as-a-service is thus increasing rapidly, and it is likely to draw significant attention. This is further anticipated to offer lucrative opportunities in the global light fidelity (Li-Fi) market in the coming future.

Rise of portable technology along with growth of Internet of Things (IoT) is projected to create lucrative environment for growth opportunities in the global light fidelity (Li-Fi) market over the forecast period. As the portable technology along with IoT is growing, the need for additional clean communication layer is now of extreme importance. Li-Fi technology does not need electromagnetic smog and radio waves. Moreover, it offers advanced approach on design. Thus, the demand for Li-Fi is increasing due to rising portable technology, which in turn is creating growth opportunities in the market.

Global Light Fidelity (Li-Fi) Market Trends:

Emergence of IoT and smart buildings is a major trend in the market

With the convergence of wireless communications and lighting, the emergence of IoT and smart buildings is growing rapidly. The convergence of market metric of lighting industry with bit/dollars due to long lifetime of LED lighting solutions is likely to drive the inclination toward highly data-focused value propositions from the lighting suppliers. As a result, the adoption of Li-Fi is growing. This trend is expected to continue in the global light fidelity (Li-Fi) market in the coming future.

Growing investment in R&D by market players is a recent trend

Several major players in the tech industry are investing resources into research and development of Li-Fi technology and Visible Light Communications (VLC). This in turn is likely to drive advancements and innovations in the market, further promoting adoption of Li-Fi technology. Thus, the trend of growing investment in R&D is anticipated to continue in the global light fidelity (Li-Fi) market over the forecast period.

Global Light Fidelity (Li-Fi) Market Restraints:

Limited connectivity and range to hinder the market growth

Due to limitations of the visible light, Li-Fi gains a security advantage over Wi-Fi. Even so, these limitations are also the reason behind disadvantages of Li-Fi technology. Due to physical barriers, such as doors and walls, the operational scope of a Li-Fi enabled LED lamp is limited. As a result, the data from Li-Fi product stays confined within a close space, owing to the incapability of light penetrating opaque objects. This factor in turn is expected to hinder growth of the global light fidelity (Li-Fi) market over the forecast period. However, with increasing technological advancements, the limitations of Li-Fi technology are likely to be reduced, which will support the market growth in the near future.

Lack of awareness regarding the Li-Fi technology to limit the market growth

As the Li-Fi technology is still in its early stage, only few of them have reached the stage of commercialization. The awareness about the advantages of using this technology is not highly widespread, which acts as a challenge in adoption of Light fidelity systems. Thus, this factor is expected to obstruct growth of the global light fidelity (Li-Fi) market over the forecast period.

Figure 2. Global Light Fidelity Market, By End Use

Global Light Fidelity (Li-Fi) Market Segmentation:

The global Light Fidelity (Li-Fi) market report is segmented into Application.

Based on Application, the market is segmented into Indoor, Outdoor. Out of which, Indoor is expected to dominate the global market over the forecast period and this is attributed to the growing adoption of light fidelity in smart buildings. Smart buildings are increasingly adapting to accommodation of their residents for improving the comfort and user experience of the residents, through knowing the locations of every occupant and then offering location-based services such as intelligent car parking, logistics, and more. Thus, the demand for light fidelity is increasing in indoor applications, which is expected to drive growth of the segment in the near future.

Outdoor segment is also expected to witness significant growth in the near future and this is owing to the growing demand for light fidelity in outdoor applications due to its various benefits. Li-Fi is an emerging technology that mainly makes double use of illumination as it embeds the data in LED light waves. Thus, it uses luminaires as light sources as well as an internet transmitter. Thus, the demand for Li-Fi technology is increasing in outdoor applications, which is likely to boost growth of the global market.  

Global Light Fidelity (Li-Fi) Market: Key Developments

In August 2022, PureLiFi released Kernel 5.19, widely known as a sizable upgrade that incorporates network and security improvements including LiFi drivers for supporting pureLiFi systems.

In January 2022, Kyocera SLD Laser, announced commercialization and demonstration of a 90Gbps LiFi data rate from their LiFi system at the CES 2022.

In September 2021, Lucibe announced the Lucipanel, the 3^Rd Generation of its LiFi products with enhanced performance and sleek design.

In January 2023, Oledcomm announced plans to unveil their new system named, LiFiMAX2G in the upcoming CES 2023 to enable the transportation and factory of the future to connect via invisible light.

Global Light Fidelity (Li-Fi) Market: Key Companies Insights

The global Light Fidelity (Li-Fi) market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global Light Fidelity (Li-Fi) market are Panasonic Corporation, Koninklijke Philips NV, Renesas Electronics Corporation, Siemens AG, Velmenni, Zero1 Pte Ltd., PureLi-Fi, Oledcomm, LightBee Corp., and IDRO Co. Ltd.

*Definition: Light Fidelity is a new and advance technology that has the potential to change the world of wireless communication. This technology will be able to solve most of the problems faced by today’s wireless networks like security, speed and accessibility. It uses LEDS to transmit data