by Light Fidelity (Li-Fi) is a wireless communication technology that uses light to transmit data and enables connectivity at speeds many times faster than current Wi-Fi and 5G networks. It provides high-speed wireless data communication to various electronic devices using light from LED bulbs as the medium. Li-Fi technology uses visible light communication (VLC) to transmit data at higher bitrates. Li-Fi offers several advantages compared to conventional Wi-Fi connectivity such as higher speeds, reduced electromagnetic interference, increased bandwidth, more reliable connectivity, and augmented security through restricted coverage area. It is primarily used for indoor applications in various sectors including retail, healthcare, education, transportation, and defense. The global light fidelity (Li-Fi) Market is estimated to be valued at US$ 664.16 billion in 2023 and is expected to exhibit a CAGR of 11% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing Demand for High-Speed Wireless Data Transfer Technology – With the rising adoption of Internet of Things (IoT) devices and the growing need for high-speed data connectivity, the demand for Li-Fi technology is expected to surge over the forecast period. Li-Fi offers data transfer speeds around 100 times faster than Wi-Fi and delivers connectivity without any interference. This will foster its adoption across several verticals including industrial automation, healthcare, manufacturing, and education.
Emergence of Smart Cities – Integration of advanced technologies including IoT, big data analytics, and artificial intelligence (AI) is promoting the development of smart cities globally. Deployment of Li-Fi micro-cells in public infrastructure including street lights, indoor settings like shopping malls, and transportation facilities will facilitate high-speed connectivity required for numerous smart city applications. This will provide an impetus to light fidelity market expansion.
Segment Analysis
The global light fidelity market is dominated by the indoor sub segment, accounting for around 60% share in 2024. This is because indoor applications have immense scope for implementing Li-Fi technology in offices, homes, hospitals etc. for connectivity needs. Installing Li-Fi compatible light bulbs and lamps provides easy access to wireless internet through light. The demand for outdoor sub segment is also expected to rise in the forecast period with increasing adoption in street lighting, vehicular connectivity etc.
PEST Analysis
Political: Favorable government regulations around the world promoting green technology adoption is a key driver for light fidelity market growth. Many countries offer incentives for Li-Fi installations.
Economic: Rising disposable incomes globally is expanding the spending on connectivity solutions. The cost effectiveness of Li-Fi compared to other technologies will augment its demand from cost sensitive customers.
Social: Increasing digitization and dependence on wireless internet for various activities is propelling the need for high speed connectivity solutions. Growing remote working culture post pandemic also favors light fidelity technology uptake.
Technological: Advancements in LED lighting technologies and photonics is enabling improved Li-Fi capabilities with higher speed and longer ranges. Integration of Li-Fi in various IoT devices would further spur the market expansion.
Key Takeaways
The Global Light Fidelity Market Demand is expected to witness high growth at a CAGR of 11% during the forecast period of 2024 to 2031.
Regional analysis comprises the Asia Pacific region dominates currently with a 40% share led by countries like China, India and South Korea. Rapid infrastructural development and growing electronics industry is driving Li-Fi installations across public places, industries and enterprises.
Key players operating in the light fidelity market are DuPont de Nemours, Inc., Lenzing AG, Kelheim Fibres GmbH, Asahi Kasei Corporation, Grasim Industries Limited (Aditya Birla Group). Key players are focusing on partnerships, new product launches catering to outdoor applications to consolidate their market shares. Lenzing AG for example partnered with PureLifi in 2021 to launch customized Li-Fi solutions for smart factories.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
