Li-Fi Market: Current Analysis and Forecast (2023-2030)

Li-Fi technology, short for Light Fidelity, is a wireless communication technology that utilizes light to transmit data at high speeds over the visible light spectrum. It works by using light-emitting diodes (LEDs) to send data in the form of binary code by modulating the light intensity at a rapid rate that is imperceptible to the human eye. Furthermore, Li-Fi offers several advantages over traditional radio frequency-based technologies such as Wi-Fi, including higher data transfer rates, increased security due to the confined nature of light, and reduced interference with other wireless devices. Additionally, Li-Fi can be deployed in environments where radio frequency usage is restricted, such as hospitals and aircraft cabins.

The Li-Fi Market is expected to grow at a strong CAGR of around 36.76% owing to the growing demand for the high speed internet and increasing internet penetration. The exponential growth of data consumption, driven by the surge on the Internet of Things (IoT) devices, is propelling the demand for Li-Fi technology. As the number of connected devices increases, traditional wireless technologies face challenges in handling simultaneous connections. Li-Fi's ability to handle massive device connectivity makes it an ideal solution for smart homes, smart cities, and industrial applications. For instance, as per Intel, the number of connected devices is estimated to reach 200 billion by 2025, with 55% of global data traffic transmitted through wireless networks. Moreover, Li-Fi's inherent security advantages contribute to its growth in various sectors. Unlike Wi-Fi, Li-Fi operates within a confined area with light signals, significantly reducing the risk of data interception or hacking. Additionally, Li-Fi signals cannot pass through walls, limiting the potential for unauthorized access. For instance, a study by the University of Edinburgh demonstrated that Li-Fi offers enhanced security with virtually no interference, making it ideal for industries handling sensitive data such as finance, healthcare, and the military.

Based on components, the li-fi market is categorized into LED, photodetector, microcontroller, and software. The photodetectors holds the majority share of the market in terms of value. The primary factor that is responsible for this domination is its critical functionality. The photodetectors are crucial components in Li-Fi technology as they receive the light signals carrying data and convert them into electrical signals. Without photodetectors, the transmission of data via light signals would not be possible. Furthermore, the photodetectors can be easily integrated into various Li-Fi systems and configurations, making them highly scalable components that can adapt to different environments and requirements.

Based on transmission type, the li-fi market is bifurcated into unidirectional and bidirectional. The bidirectional segment holds the significant share of the market. The primary factor that is responsible for this domination is the fact that bidirectional transmission type provides increased data transfer efficiency. Where bidirectional transmission allows for simultaneous data transmission in both directions, leading to faster and more efficient data transfer compared to unidirectional transmission. Furthermore, bidirectional transmission can incorporate advanced encryption and authentication protocols to ensure secure data transfer, making it a preferred choice for sensitive and confidential data communication.

Based on vertical, the li-fi market is segmented into IT and telecommunication, aerospace and defense, consumer electronics, automotive, and others (healthcare, industrial, etc.). The IT and Telecommunication industry majorly supports the widespread adoption of the Li-Fi in the global markets. The primary factors that are pivotal for this high demand generation for the Li-Fi products from IT and Telecommunication industry are the high data transfer speed of the Li-Fi technology from the traditional Wi-Fi technology that are widely in used. Furthermore, the Li-Fi technology also offers high bandwidth efficiency, enhanced security, interference free communications, encounters low latency problem, and ensures spectrum congestion relief.

For a better understanding of the market adoption of Li-Fi, the market is analyzed based on its worldwide presence in countries such as North America (The U.S., Canada, and the Rest of North America), Europe (Germany, The U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. Europe holds a significant portion of the Li-Fi market and is projected to experience substantial growth in the predicted timeframe. Europe has witnessed a remarkable surge in internet usage over the past decade. The continent boasts a high penetration of internet users, with both common individuals and industries driving the demand for high-speed internet connections. Furthermore, Europe's digital economy has been expanding rapidly, with e-commerce becoming a significant driver. For instance, according to the European Commission, in 2020, over 72% of EU citizens made online purchases, representing a 36% increase compared to 2014. This surge in online shopping necessitates fast and reliable internet connections. Additionally, the adoption of smart home devices in Europe has been steadily increasing. For instance, recent data from IDC reveals that the smart home device market in Western Europe alone experienced year-on-year growth of 28.5% in the second quarter of 2021. Reliable and high-speed internet connections are essential for the optimal functioning of these devices. These factors play a crucial role in the widespread adoption of Li-Fi technology in Europe, contributing significantly to its penetration and growth.

Some of the major players operating in the market include Wireless Excellence Limited; Signify Holding; Oledcomm; pureLiFi; ACUITY BRANDS, INC.; To Be Srl.; Consolite Group; Global LiFi Tech,; Feit Electric; and Velmenni