18 November 2016

Li-Fi/visible light communication market to grow at 116.8% CAGR to $115bn by 2022

The global Li-Fi market will rise at a compound annual growth rate (CAGR) of 116.8% from 2016 to $115bn by 2022, according to the report 'Light Fidelity (Li-Fi)/Visible Light Communication Market - Global Opportunity Analysis and Industry Forecast, 2014 – 2022' from Allied Market Research. In 2015, North America contributed the major share of the market and will continue to lead throughout the forecast period.

Li-Fi is a very high-speed, two-way wireless communication technique that uses visible light from LEDs to transmit data. The technology is an apt replacement for incumbent Wi-Fi technology, says the report, as Li-Fi is considerably faster, has almost 10,000 times broader bandwidth (because it uses visible light), and is safe to operate in electromagnetic sensitive areas. The Li-Fi market is currently in its introductory phase, although it is expected to growth rapidly in the next 5-6 years due to its exclusive advantages, such as being safe to use with medical and aviation equipment (due to the absence of electromagnetic interference), the very high data transmission speed, enhanced data security and the broader bandwidth compared with existing Wi-Fi technology.

Li-Fi incorporates three major components: the LED, photodetector, and microcontroller. Of these, in 2015, LEDs dominated the market by contributing more than 40% of the overall component segment revenue. Also, this segment is expected to grow at the highest CAGR (118.1%) during the forecast period due to its low cost and increased adoption in different applications (e.g. households, offices, vehicles, airplanes and retail stores etc). Further, LEDs are preferred over other lighting systems as they can easily be turned off and on using a microcontroller.

By industry vertical segment, the retail industry accounted for more than 30% of the overall Li-Fi market in 2015, and is projected to grow at a CAGR of 112.8% during the analysis period. Li-Fi enables storekeepers to monitor the positioning of customers by tracing their location and to provide notifications on their cellphones. However, the healthcare sector should be the fastest-growing industry and is expected to register the highest CAGR of 125.3% during the forecast period, since Li-Fi does not cause any electromagnetic interference and can safely be used with other medical apparatus (such as CT scanners, MRI machines, x-ray machines, and ultrasound machines etc).

North America dominated the market in 2015 by accounting for about 40% of total revenue, and is expected to remain dominant throughout the forecast period. This is attributed to the presence of various R&D facilities in the region and investment in implementation of this technology by the major companies in the region.

The Asia-Pacific region is expected to be the fastest-growing region, at a CAGR of 121.7%, due to the large electronics market in China and Japan as well as the presence of several developing regions where governments are promoting the use of LED lights. In the Asia-Pacific, China comprises about 50% of the market and is expected to maintain its lead throughout the forecast period.

The key players in the Li-Fi market are focused on intensive R&D (such as ongoing research at the University of Edinburgh and the research facility of pureLiFi in the UK) to improve their product quality and partnerships in order to reach untapped regions. Key players have adopted product launch as their key strategy to grow in the market (e.g. the launch of enhanced lighting named Atlanta for precise indoor positioning by Acuity Brands Inc and the Li-Fi-enabled route LiFi-x by pureLiFi). The key players profiled in the report include General Electric, Oledcomm S.A.S, Renesas Electronics Corp, pureLiFi, LVX System, Acuity Brands Lighting Inc, Qualcomm Technologies Inc, IBSENtelecom Ltd, Koninklijke Philips N.V., and Panasonic Corp.

Tags: LEDs

Visit: www.alliedmarketresearch.com/light-fidelity-visible-light-communication-market