Li-Fi Technology Market Growth, Size, Share, Trends, and Forecast 2032

Li-Fi Technology Industry Prospective:

The global Li-Fi technology market size was worth around USD 0.70 billion in 2023 and is predicted to grow to around USD 20.19 billion by 2032 with a compound annual growth rate (CAGR) of roughly 45.28% between 2024 and 2032.

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Li-Fi Technology Market: Overview

Light fidelity (Li-Fi) technology is a visible light communications (VLC) system. Market experts suggest that it is the future of the currently used Wi-Fi technology as Li-Fi systems promise to deliver data transmission speeds that are 100 times faster than Wi-Fi technology. The central points of light fidelity technology are light-emitting diode (LED) light bulbs and unlimited Wi-Fi technology that leverages the strengths of radio waves. LED bulbs are emission sources for million units per second of light pulses that are equipped with information and undetectable to the human eye. Data transmitted through LED bulbs can be compared to hyper-speed and advanced Morse code. The current digital world is dominated by Wi-Fi internet. Even though billions of investments have been directed toward improving Wi-Fi performance, consumers continue to face problems related to internet disruptions and connectivity issues. Li-Fi technology may act as an answer to these problems as apart from improving internet speed, the technology also simplifies the ways data is transmitted from one point to another. Li-Fi technology may extend internet access in airplanes and hospitals, areas that are known to face electromagnetic interferences.

Key Insights:

• As per the analysis shared by our research analyst, the global Li-Fi technology market is estimated to grow annually at a CAGR of around 45.28% over the forecast period (2024-2032)
• In terms of revenue, the global Li-Fi technology market size was valued at around USD 0.70 billion in 2023 and is projected to reach USD 20.19 billion, by 2032.
• The market is projected to grow at a significant rate due to the rising number of internet users across the globe
• Based on the application, the indoor networking segment is growing at a high rate and will continue to dominate the global market as per industry projection
• Based on the end-user, the consumer electronics segment is anticipated to command the largest market share
• Based on region, North America is projected to dominate the global market during the forecast period

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Li-Fi Technology Market: Growth Drivers

Rising number of internet users across the globe will drive the market demand

The global Li-Fi technology is expected to grow due to the rising number of internet users globally. The surging population rate which is currently over 8 billion is expected to reach around 9.5 billion by 2050. In addition to this, internet prices have reduced drastically in the last decade. This has further encouraged the internet adoption rate. For instance, as per official reports, India has recorded an internet price decline of over 96% in cost per gigabyte since 2012. One of the prominent factors that has led to higher internet usage is improved access to smart consumer electronics such as smartphones, tablets, and laptops. Consumer electronics developers are constantly investing in innovating novel products and experimenting with new technologies thus attracting a higher consumer base. On the other hand, the availability of smart devices across price ranges including high-end devices and more affordable versions has allowed digital inclusivity. More than 66% of the world's population relies heavily on Internet technology. Moreover, the modern digital world is driven by high-speed internet connectivity for information transfer. The rise in commercialization, urbanization, and industrialization has created immense pressure on technology companies to develop a robust internet infrastructure that can handle the mounting pressure of increasing users. The Li-Fi technology, as per claims, holds the potential to deliver an uninterrupted supply of cost-effective internet.

Consideration as an ideal technology for hospital applications will fuel the market expansion rate

Light fidelity technology is considered an ideal engineering tool for the healthcare sector since Li-Fi allows efficient transfer of energy without interference from electromagnetic energy. Hospitals and healthcare facilities house several types of equipment and machinery that generate high amounts of electromagnetic waves. Scientific studies prove that waves generated from electrical devices can cause disruptions in the WiFi signals thus compromising the quality of data transfer processes. The rising healthcare expenditure worldwide will help fuel the global Li-Fi technology market.

Li-Fi Technology Market: Restraints

Extensive market penetration of WiFi technology may restrict the market growth rate

The global industry for Li-Fi technology is expected to be restricted due to the extensive proliferation of Wi-Fi technology. Since its invention, more efforts have been directed toward constantly improving WiFi solutions by providing faster and more secure data transfer options. In addition to this, WiFi technology enjoys the existence of a robust network of supporting infrastructure that allows easy access to Wireless Fidelity (Wi-Fi). In addition to this, the growing introduction of the 5G version of Wi-Fi will further promote its adoption. Such events will create difficulties for the commercial mass-scale adoption of Li-Fi technology.

Li-Fi Technology Market: Opportunities

Increasing investments in the development of sturdy Li-FI technologies will generate higher growth opportunities

The global Li-Fi Technology market will generate high growth opportunities due to the rising investments in the development of novel Li-Fi solutions with improved performance. In February 2024, pureLiFi, a leading provider of Li-Fi technology, debuted its latest solutions at the Mobile World Congress (MWC) 2024 held in Spain. The company showcased the potential of the Li-Fi system to contemporary alternatives with the unveiling of the LINXC Bridge. It is a partnership-based project between Solace Power and pureLiFi. The new project aims to mitigate the challenges users face in connectivity in an indoor setting, especially for 5G mmWave signals. In 2023, another Li-Fi solutions provider, Oledcomm, launched LIFIMAX2G® thus providing a more secure and faster connectivity tool. The new range boasts a speed two times faster than the previous generation technologies as it now reaches 2 Gigabits per second downstream and 2 Gigabits per second upstream at a distance of 1-5m.

Increasing research on underwater or spacecraft application of Li-Fi technology may promote market expansion

Researchers across the globe are working and exploring the Li-Fi technology for its application in underwater and spacecraft settings. Scientists are investing in leveraging light’s property to penetrate deep water and since Li-Fi can operate without interference caused by electromagnetic waves, the technology can also be used in spacecraft, satellites, and aircrafts. The increasing number of underwater exploration activities as well as the rising expansion in space will help the global Li-Fi technology market flourish at an unprecedented level.

Li-Fi Technology Market: Challenges

Limited application of light fidelity restricted to enclosed spaces may challenge the market growth rate

The global Li-Fi technology market is projected to be challenged due to the limited application of the novel innovation in outdoor spaces. Moreover, Li-Fi connectivity can be easily disrupted in case of disruptions caused by concrete structures such as walls. Li-Fi systems are ideal for short-range applications such as enclosed areas thus further limiting the market growth rate.

Li-Fi Technology Market: Segmentation

The global Li-Fi technology market is segmented based on application, component, end-user, and region.

Based on application, the global market segments are underwater communication, in-flight communication, location-based services (LBS), indoor networking, and others. In 2023, the highest demand was witnessed in the indoor networking segment. Li-Fi technology performs exceptionally well in indoor settings with negligible physical obstructions. However, the industry is registering a surge in investments related to underwater and in-flight communication. During the projection period, the global underwater communication market is expected to grow at a CAGR of over 12%.

Based on component, the global Li-Fi technology industry is segmented into optical sensors, LED lamps, software, microcontrollers, and others.

Based on end-user, the global market divisions are automotive & transportation, consumer electronics, retail, defense & security, healthcare, and others. In 2023, the highest growth was observed in the consumer electronics segment. Li-Fi technology can be easily used to develop connectivity between smart devices such as television units, smartphones, laptops, and other devices. The growing investment in smart home technology may help the segment generate additional revenue. In 2024, the global smart home market is expected to reach over USD 6.6 billion.

Li-Fi Technology Market Report Scope

Li-Fi Technology Market: Regional Analysis

North America will lead the market growth rate during the projection period

The global Li-Fi technology market will be led by North America during the forecast period. The US is expected to deliver the highest revenue due to the presence of an extensive number of internet users in the region. As of 2021, around 92% of the American population had access to the internet. In addition to this, the region has been the cradle for several novel engineering technologies due to the presence of an innovation-supporting infrastructure. Moreover, the Wi-Fi sector in the US has matured to a large extent and now there is a growing need to revolutionize the connectivity industry which can be achieved using Li-Fi systems. The surging applications of Li-Fi systems in the space sector are expected to deliver exceptional growth opportunities. In April 2023, SpaceX launched the first satellite equipped with Li-Fi technology in space. The launch was a part of the company’s Transporter-7 mission and the nanosatellite is called the INSPIRE-SAT 7. The Li-Fi module used in the satellite is called SatelLife. In May 2023, European pureLiFi entered a partnership with Fairbanks Morse Defense for the deployment of Li-Fi technology thus expanding the former’s presence across the global market.

Li-Fi Technology Market: Competitive Analysis

The global Li-Fi technology market is led by players like:

• VLNComm
• Acacia Communications
• Oledcomm
• Zero1
• pureLiFi
• Panasonic Corporation
• LiFi Labs
• Lucibel
• IBSENtelecom
• Signify (formerly Philips Lighting)
• ByteLight (acquired by Acuity Brands)
• LightPointe Communications
• Axrtek
• Velmenni
• Fraunhofer HHI.

The global Li-Fi technology market is segmented as follows:

By Application

• Underwater Communication
• In-Flight Communication
• Location-Based Services (LBS)
• Indoor Networking

By Component

• Optical Sensor
• LED Lamps
• Software
• Microcontroller

By End-User

• Automotive & Transportation
• Consumer Electronics
• Retail
• Defense & Security
• Healthcare

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa