Currently, the most trending communication technology adopted by the masses is WiFi, of which the user base is rapidly expanding every year. As a result, it has instigated the need for developing a more robust solution to cater to user requirements.
Li-Fi (Light Fidelity) is the latest wireless communication technology that holds immense potential to deliver data speeds faster than what presently is available. It belongs to VLC (Visible Light Communication) system and thus comprises a photo-detector to receive light and a signal processing element that converts the data into streams. It uses visible light waves for high-speed 2D (bi-directional) data transmission, is believed to be more secure & efficient than current wireless technologies, and offers 100 times more range than WiFi.
The Global Li-Fi Market is expected to register more than 60% CAGR during the forecast period, i.e., 2022-27. Presently, the Li-Fi technology is in the early stage but gaining significant attention worldwide. The mounting demand for high-speed & secured data transmission across various industries would primarily drive the Li-Fi market globally in the future.
Besides, the projected crunch of RF spectrum, various ongoing & upcoming smart city projects promoted by governments of several countries worldwide, and the mounting adoption of advanced technologies like cloud computing, big data, etc., across several industries would further boost the global market through 2027.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Regions Covered||North America: The US, Canada, Mexico|
|Europe: Germany, The UK, France, Italy, Benelux, Rest of Europe|
|Asia-Pacific: China, Japan, India, South Korea,|
|South America: Brazil, Rest of South America|
|Middle East & Africa: UAE, Saudi Arabia, Rest of Middle East & Africa|
|Key Companies Profiled||
Acuity Brands, Inc., Fujitsu Ltd., Fsona Networks Corporation, General Electric, Global Li-Fi Tech, Inc, Integrated System Technologies Ltd, Lightbee S.L., LumEfficient Lighting Corporation, LVX System, Lucibel SA, Oledcomm SAS, Panasonic Corporation, PureLiFi Limited, Renesas Electronics Corporation
|Unit Denominations||USD Million/Billion|
The Li-Fi technology is more economical & environmentally friendly than WiFi, with great potential in applications like smart lighting, location-based services, etc. Due to its higher bandwidth & speed and secured connectivity, it is expected to find substantial use in electromagnetic-sensitive areas like nuclear power plants, hospitals, & airplanes over the forecast years.
As a result, government authorities across several countries worldwide are massively investing in R&D activities to promote developments in the technology, which project lucrative prospects for the Global Li-Fi Market in the coming years.
The Li-Fi market comprises numerous suppliers of raw materials like LEDs, photodetectors, microcontrollers, etc., required for manufacturing Li-Fi solutions. Since the LED infrastructure globally has become enormous, owing to various factors like enhanced energy efficiency, reduced prices, & increasing installation in residential & public spaces, it would also generate remunerative opportunities for the Li-Fi market through 2027. Furthermore, Industry 4.0 and the burgeoning penetration of the IoT are also expected to be high revenue-generating aspects for the Li-Fi industry in the nearer future.
Based on Components:
Amongst them all, LEDs are projected to dominate the Global Li-Fi Market with the largest share during 2022-27. It attributes to their mounting adoption across numerous industries worldwide. Benefits like longevity, power efficiency, high energy output, & reducing costs are leading to the extensive deployment of LEDs & LaaS (Light as a Service) models across various industries for different purposes.
LEDs are the integral components of Li-Fi systems and can be well-used off-the-shelf since they have superior illumination & can modulate brightness, which can be received & used as data. Hence, these aspects project the largest share of LEDs in the global market over the forecast years.
Based on End-User:
Here, the retail sector is a significant contributor to the market expansion. Across indoor retail stores, Li-Fi is deployed mainly as a positioning element, which allows retailers to significantly improve the customer shopping experience by providing them with the latest promotional offers.
The flickering light emitted by LEDs & fluorescent lamps that smartphones can detect & enable indoor navigation help enhance customer loyalty toward retailers. Hence, the increasing installation of Li-Fi systems in supermarkets is helping retailers understand customer buying behavior, track their location, & secure their shopping history. As a result, the fact that businesses are able to deliver on-site information to customers as per their preferences is promoting the demand for Li-Fi solutions globally across retail outlets.
Geographically, the Global Li-Fi Market expands across:
Among all regions, North America is the largest Li-Fi Market globally. It attributes to the increasing deployment of indoor location-based utilities & light fixtures in hotels & retail outlets across the region, coupled with notable advancements in communication technologies like wireless sensor networks, the Internet of Things (IoT), Big Data, & smartphones.
North America is the early adopter of modern technologies and has an excellent infrastructure. As a result, implementing these technologies & providing enhanced overall connectivity is hassle-free throughout the region. Moreover, being a leader in innovations like Cloud Computing, Internet of Things (IoT), Smart buildings & cities, electronic products, etc., the region has emerged as the hub of the Li-Fi industry.
Besides, the burgeoning requirements for energy-efficient devices & high-speed bandwidth across several countries in North America are other prominent aspects driving the Li-Fi Market. In addition, the US Navy has been actively working on curating Li-Fi-based communication technology to counter issues associated with subsea or marine communication, i.e., another prominent factor projected to boost the regional market through 2027.
On the other hand, Asia-Pacific is set to register significant market growth over the forecast years. It owes primarily to massive investments in Li-Fi technology, increasing collaborations among Lighting & Li-Fi solution providers, and inadequate communication infrastructure, especially in rural areas of several countries in the region. Moreover, the mounting utilization of automation technologies in several industries across the region, i.e., surging the need for secure & high-speed communication, is another notable factor projected to drive the Li-Fi industry in Asia-Pacific during 2022-27.
Key Driver: Overburdened RF Spectrum & Declining Prices of LEDs
With the rapidly rising number of users & devices, there's a substantial risk of RF (Radio Frequency) spectrum crunch in the coming years, as its size is limited. The Li-Fi technology uses a visible light spectrum for high-speed data transmission, which is different from & 10000 times larger than the RF spectrum currently used in WiFi technology. As a result, the gradually diminishing RF spectrum is projected to tremendously boost the adoption of Li-Fi technology and drive the Global Li-Fi Market through 2027.
Moreover, governments of various countries worldwide are actively encouraging the use of more and more LEDs, owing to their low power usage, better illumination, & zero harmful emissions. In fact, some nations are also offering LED lighting solutions at subsidized rates, which, as a result, has notably reduced their prices in the previous few years. The same trend is expected in the coming years, which would drive more users toward adopting Li-Fi systems and fuel the overall market growth.
Growth Restraint: High Installation Costs Associated with Li-Fi Systems
The primary aspect acting as a growth restraint for the Global Li-Fi Market is the high cost of implementing the technology. Li-Fi solutions have immense potential to deliver superior performance using components like LEDs, microcontrollers, & photodetectors that are expensive and require high power. As a result, the overall cost of Li-Fi systems becomes very high, which acts as a barrier for consumers. Besides, the complex architecture of these systems necessitates the need for skilled professionals for their installation & maintenance, i.e., another factor hampering the industry's growth.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Global Li-Fi Market is expected to register over 60% CAGR during 2022-27.
A. The overburdened RF spectrum owing to increased data usage worldwide, coupled with continuously reducing LED prices, are the prime aspects likely to drive the Global Li-Fi Market through 2027. On the other hand, the high costs of installing Li-Fi solutions would act as a major growth restraint for the global market in the coming years.
A. Asia-Pacific is anticipated to emerge as an area of remunerative opportunities for the leading players in the Li-Fi Market globally over the forecast years.