The global Light Fidelity (Li-Fi) Market was valued at around USD 455 million in 2015. It is expected to grow beyond USD 101 billion during the forecast period (2016- 2024).
Light fidelity is a visible light communication (VLC) system. This system runs high speed wireless communications. Li-Fi uses common household LED light bulbs to transfer data boosting speed up to 224 gb (gigabits) per second.
Increasing need for eco-friendly technology is expected to drive the market. Moreover, longer life, low power consumption, and high illumination are expected to augment market growth in the coming years. Government promotion for these lights is expected to boost market growth till 2024. The light fidelity market is split into components, application, and geographies.
Li-Fi components include LED, photo-detector, and microcontroller. LED based light-fidelity devices held over 40% of the market share in 2015.
These LED lights can be controlled to switch on and off to generate a digital string of binary numbers. Moreover, it can also change colors to red, green, and blue.
Photo-detectors, accounted for over 30% of market revenue in 2015. Microcontroller segment was valued at more than USD 95 million that year.
On the basis of application, the industry is split into automotive & transportation, consumer electronics, defense & security and aviation, healthcare, and retail. Retail sector held market shares surpassing 30% in 2015.
The automotive & transport segment is anticipated to witness a CAGR of over 80%. This segment is expected to grow at the fastest rate. Technological advancements and communication machinery of cars is expected to increase adoption of these lights in traffic and car lights.
Geographies comprise of North America, Latin America, Asia Pacific, Europe, and the Middle East & Africa (MEA). North America light fidelity industry accounted for more than 40% of the global market share, in 2015. This region is expected to grow at a CAGR of around 76% during the forecast period.
Europe has established the infrastructure of Li-Fi communication systems and is expected to show positional growth in the region. This will create a large platform for market growth in the coming years.
The light fidelity market in Asia Pacific was valued at over USD 95 million in 2015. It will witness a significant growth of around 30% by 2024. This growth can be attributed to the contribution made by countries like Korea, China, and Japan.
Key market players encompass ByteLight Incorporated, Lightbee Corporation, Ibsentelecom Limited, and PureLifi Limited. The adoption of Li-Fi is at its budding stage and is used in limited niche applications. Therefore, an extensive research & development investment could benefit the players in the long run.