Light Fidelity (Li-Fi)/Visible Light Communication Market: Top Trends and Key Players Analysis Report

Light Fidelity (Li-Fi) is a very high speed, two-way wireless communication method which uses visible light from LEDs as the medium for transmitting the data by turning them on and off at very high frequency which human eyes cannot sense. This technology is an apt replacement for currently prevailing Wi-Fi technology as Li-Fi is considerably faster, has almost 10,000 times broader bandwidth because it uses visible light, and it is safe to operate in electromagnetic sensitive areas.

Light Fidelity (Li-Fi)/Visible Light Communication Market report, published by Allied Market Research, forecasts that the global market is expected to garner $115 billion by 2022, registering a CAGR of 116.8% during the forecast period 2016 - 2022. In 2015, North America contributed major share in the market and will continue to lead throughout the forecast period.

Li-Fi incorporates three major components, which are LED, photodetector, and microcontroller. Among the three components, in the year 2015, LED dominated the market by contributing over 40% share of the overall component segment revenue. Also, this segment is anticipated to grow with the highest CAGR 118.1% during the forecast period owing to its low cost, increased adoption in different applications such as households, offices, vehicles, airplanes and retail stores among others. Furthermore, LEDs are preferred over all other lighting systems as they can easily be turned off and on with the use of a microcontroller.

Under the industry vertical segment, retail industry contributed over 30% of the overall Li-Fi market, in 2015. Li-Fi enables the storekeepers to monitor the positioning of customers by tracing their location to improve shopping experience and provide notifications on their cellphones. However, healthcare sector would be the fastest growing industry and is expected to register highest CAGR 125.3% during the forecast period. This is because Li-Fi does not cause any electromagnetic interference and can safely be used with other medical apparatus such as CT scanner, MRI machine, X-ray machine, and ultrasound machine among others.

North America dominated the market in 2015 by accounting for around 40% of the total market revenue and it is expected to maintain its dominance throughout the forecast period. This is accredited to the presence of various research and development facilities in the region and investment for implementation of this technology by the major companies in the region.

Asia-Pacific is anticipated to be the fastest growing region among others with CAGR of 121.7% during the forecast period. This is attributed due to the large electronic market in China and Japan as well as presence of several developing regions where governments promote the use of LED lights. In Asia-Pacific, China holds about 50% of the market at present and is expected to maintain its leading position throughout the forecast period.

Light Fidelity (Li-Fi)/Visible Light Communication MarketKey findings:

• In 2015, LED component led the overall Li-Fi market revenue, and is projected to grow at a CAGR of 118.1% during the forecast period.

• Retail industry vertical segment is projected to grow at a CAGR of 112.8% during the analysis period.

• Asia-Pacific is anticipated to be the fastest growing region growing at a CAGR of 121.7% during the forecast period.

The key players in the Li-Fi market are focused on intensive research and development such as undergoing researches in Edinburgh University and the research facility of pureLiFi in United Kingdom, to improve their product quality and partnerships to reach untapped regions. Key players in the market have adopted product launch as their key strategy to grow in the market. For instance, launch of enhanced lighting named Atlanta for precise indoor positioning by acquity brands and the Li-Fi enabled router, LiFi-x by pureLiFi The key players profiled in the report include General Electric, Oledcomm S.A.S, Renesas Electronics Corporation, pureLiFi, LVX SYSTEM, Acuity Brands Lighting, Inc., Qualcomm technologies Inc., IBSENtelecom Ltd., Koninklijke Philips N.V., and Panasonic Corporation.

RF Spectrum Crunch Will Fuel Up the Market

The Li-Fi technology utilizes visible light spectrum for data transmission, which is different from radio frequency spectrum used in currently prevailing Wi-Fi technology. According to reports of US federal communication commission, radio frequency spectrum is slowly moving towards a spectrum crisis as its spectrum size is limited and the number of devices are increasing with time. On the contrary, Li-Fi uses visible light spectrum which is 10,000 times larger than whole RF spectrum. The impending RF spectrum crunch is expected to give boost to the adoption of Li-Fi technology and this will swell up the demand in overall visible light communication market in years to come.

Reducing Cost of LED across the Globe

Being an integral part of the Li-Fi systems LED plays a major role in the overall light fidelity (Li-Fi) market. Usage of LED is being promoted across the globe owing to its low power consumption, no harmful emission, and better illumination. Governments of various countries provide LED lights at subsidized rate, which in turn, has considerably reduced its price over the last few years. This trend is expected to follow in years to come which will aid in the adoption of Li-Fi across the globe.

Technological superiority over currently prevailing Wi-Fi technology

Li-Fi is a bi-directional wireless communication method that is similar as Wi-Fi technology. However, the former uses visible light for data transmission in place of RF communication used in Wi-Fi and cellular networks. The use of visible light makes the Li-Fi technology 100 times faster than Wi-Fi, lesser in cost, and it requires no external power source as it operates with the glowing LED light. Furthermore, absence of RF waves provides Li-Fi with an advantage of being used in electromagnetic sensitive areas, such as hospitals, aircrafts, and nuclear power plants, as it does not cause any electromagnetic interference. All these technical superiorities of Li-Fi over Wi-Fi technology drive its market in various applications such as retail, aerospace & defense, and indoor networking. These technical superiorities of LI-Fi over Wi-Fi are expected to fuel up the demand in the market during the next five to six years.

Light Fidelity (Li-Fi)/Visible Light Communication Market Key Benefits:

• This report provides an in-depth analysis of the global Li-Fi market along with the current trends and future estimations, which helps identify lucrative investment opportunities
• This report identifies the key drivers, opportunities, and restraints that prevail in the industry channels that shape the Li-Fi market along with their impact analysis
• Porter’s Five Forces analysis highlights the potency of buyers and suppliers that participate in this market to facilitate better business decisions for stakeholders and strengthen their supplier and buyer networks
• The projected Li-Fi market estimations of geographical regions are based on the current market scenario as well as future trends