The global Li-Fi market exhibited strong growth during 2015-2020. Looking forward, the market is expected to grow at a CAGR of around 45% during 2021-2026, according to ResearchAndMarkets.
Light fidelity (Li-Fi), or visible light communication (VLC), refers to a wireless optical networking technology that utilizes light to transfer data at high speeds. It uses the visible light spectrum, ultraviolet (UV) and infrared radiations (IR).
The system operates through light-emitting diodes (LEDs) and microcontrollers that trigger the conversion of light waves into electric signals. These signals are then received by photodetectors that interpret the changes in light intensity as data.
This technology can connect remote and distant terrains across vast areas that cannot be reached through optical fibers, owing to which it finds extensive applications across various industries, including healthcare, automotive, aerospace, electronics, information technology (IT) and defense.
Factors driving Li-Fi market growth
The primary factors driving the market growth include hyper-urbanization and the increasing construction of smart cities across the globe. Furthermore, widespread adoption of cloud computing, big data tools and multi-tier data center architectures across industries is also providing a boost to the market growth.
In comparison to the traditionally used alternatives, such as Wi-Fi, Li-Fi systems offer massive bandwidth spectrum, higher speeds, enhanced data security and minimal network and radio interference.
Additionally, the increasing adoption of automated systems across residential and commercial sectors is creating lucrative opportunities for the industry players for business expansion. The growing applications of indoor location-based services, such as smart car parking, smart lighting, health monitoring, logistics and shopping assistance have increased the demand for high-speed data communication systems.
Other factors, including the rising need for advancements in the existing technologies, lowering prices of LED systems and extensive research and development (R&D) activities, are projected to drive the market in the upcoming years.