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How Lucrative is the Future of the Li-Fi Market?
Published Date: 22 Jun 2022

With significant technological developments over the years, communication has become very efficient in multiple ways. The most utilized communication technology, WiFi, has a massive user base across different regions worldwide. However, technologies always urge new advancements with greater efficiency, i.e., instigating the development of more sophisticated & robust communication solutions to cater to the burgeoning user requirements in more ways than conventional or existing technologies.

Li-Fi (Light Fidelity) is the latest technology offering wireless communication and holds immense potential in delivering data much faster than the existing models. It belongs to VLC (Visible Light Communication) system, which exhibits a photo-detector for receiving light and a signal processing element to convert data into streams. Compared to WiFi, the Li-Fi technology is more economical & environmentally friendly and provides secured connectivity and higher bandwidth & speed.

With the overburdened RF spectrum, growing user requirements for high-speed data, and various ongoing & upcoming smart city projects worldwide, there lies a pool of profitable opportunities for the Global Li-Fi Market, i.e., projected to witness over 60% CAGR during 2022-27. Also, owing to the characteristics cited above, the Li-Fi technology would find numerous applications in electromagnetic-sensitive areas, including nuclear power plants, hospitals, & airplanes in the years ahead.

How is Li-Fi different from WiFi?

It is quiet common among people to get confused between Li-Fi & Wi-Fi. So let us take a closer look into understanding these aspects to attain more clarity. While Wi-Fi has gained a prominent place in day-to-day communication over the years, Li-Fi is a new concept with the limited application so far. However, it still demonstrates an opportunistic prospect in the coming years, provided gradual developments. 

The most prominent difference is the use of light waves in Li-Fi, where wi-fi uses radiofrequency. Although both technologies are meant to serve the same purpose, Li-Fi may even replace Wi-Fi one day and offer greater benefits in the coming years. The key advantage of Li-Fi is its fast, secure, and no interference issues even across high-density areas, and accessibility anywhere where there are light fixtures. 

Key Advantages of Li-Fi

  • Overcoming Spectrum Crunch

It is quite uncommon to find a home where there is no internet connection, especially in the urban areas, these days. hence, it is quite evident that wireless internet traffic is increasing dramatically every passing year. However, as such a spectrum operates on radio frequency, there are higher chances of not having enough left for allocation anymore. This unavailability is called the spectrum crunch, where the radiofrequency becomes oversaturated. As close as this allocation becomes, communication is likely to witness more interferences in wireless connections. This is where Li-Fi comes into the picture. With li-fi, one can simply operate in areas with a high transmission density without interferences in the connection. 

  • More Speed

many tests associated with the Li-Fi technology have shown that Li-Fi has the potential to offer a data transmission speed at a high speed of around 224 Gbps. This high speed contributes to the vast size of the spectrum and is likely to bring revolution in the interface of the internet. 

  • Multipurpose & Sustainable

Li-Fi technology is projected to be more sustainable & multipurpose owing to its application in devices by combining the functions of illumination & data communication into the same device. This light fixture can multi-function by providing light & transmit data at the same time and can also replace the existing light fixtures & infrastructure.

  • A Secure Medium

We all know that light doesn’t travel through walls & other opaque objects. Hence, data transmission would remain within the premises where the user wants to stay. Although the inability of Li-Fi to permeate physical barriers is seen as a drawback, yet ti also means absolute security of the connection. As the cases of cyber threats & attacks are increasing swiftly, some hackers might even try to penetrate the network. However, as Li-Fi remains in a place illuminated by the transmitters, and not just anywhere, the chances of hacking are likely not happening.

Summing Up

A sustainable, cost-effective, & safer communication system is nowhere behind as the Li-Fi technology is becoming increasingly popular worldwide and holds immense potential to address issues like the shrinking of RF bandwidth and eliminate the disadvantages of radio communication technologies.

However, challenges like short-range and the need for a light source indicate that it would not entirely replace WiFi. Nevertheless, the use of both Li-Fi & WiFi can prove to enhance the life quality in the nearer future.

Hence, all the above-cited factors indicate highly lucrative prospects for the Global Li-Fi Market, with several new developments expected in the forthcoming period. Many companies are likely to increase their participation & various new entrants shall emerge to attain profitability in the industry over the years to come.

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