Li-Fi technology is conquering the information communication world due to rising demand for better communication services in terms of bandwidth, efficiency, affordability and security. Li-Fi works by using the visible light emitted from the LEDs (Light Emitting Diodes) to transmit high speed data with lower interference and larger bandwidth.
A potential spectrum crisis has been put forward as a matter of concern by the US Federal Communications Commission. The reason for this was high data demand, which has made the Wi-Fi close to full capacity. Moreover, the Wi-Fi communication channel is more prone to hacking and works on radio waves which has been pointed out as a health and environmental concern. This has led to the focus been shifted towards a better communication channel known as Li-Fi.
According to a research conducted by Global Market Insights Inc., Li-Fi market revenue is expected to reach USD 75.5 Billion by 2023 at a CAGR of 80.8%. This growth will primarily be driven by high demand of 3G & 4G technology, strict security parameters, and hassle free and uncongested data transmission services.
U.S. Li-Fi market size, by component, 2013-2023 (USD Million)
In the coming years, there shall be a noticeable growth in the Li-Fi market size owing to factors like no bandwidth limitations, RF spectrum bandwidth crunch, and lesser energy consumption. This will dominate the usage of older communication technologies such as Bluetooth, Wi-Fi, and WiMax. However, lack of awareness, high installation cost, and limited network coverage may hamper the industry growth.
Li-Fi market can be segmented on the basis of its applications which include Indoor Networking, Aerospace, Healthcare, Automotive, Underwater Communication, Location Based Services, Intrinsically Safe Environment, and Defense & Security.
Li-Fi industry share in the intrinsically safe environment segment will grow at a CAGR over 88% during 2016-2023 primarily due to the health and environmental concerns which may be hampered by the Wi-Fi usage. Healthcare application segment is estimated to exceed USD 2.6 Billion by 2023. Factors like absence of radio waves which makes this technology environment and health friendly coupled with high speed data transmission enabling patient’s data to be shared across different departments at a very high speed will drive the segment growth. Additionally, location based services segment, which contributed towards 40% of the global revenue in 2015 is expected to register a CAGR of 79.5% over the period of 2016-2023.
Li-Fi components comprises of LED, Microcontroller, and Photodetector. LED market is expected to cross USD 33 Billion by 2023 at a growth rate of 79 % over the period of 2016-23 driven by increasing regulations pertaining to energy efficiency. Photodetector segment, which comprised of 30% of the overall market share in 2015 will also see significant growth in the coming years.
High demand for wireless communications will enhance the growth of this technology across the globe. Asia Pacific Li-Fi market, which had a revenue of approx. USD 185 million in 2015, is forecast to be the leading region over the coming years, according to Global Market Insights Inc.. This is on account of high internet connectivity demand along with poor radio communication infrastructure in rural regions of countries like India.
The US Li-Fi market share is expected to grow at a CAGR of 78 % over 2016-2023, having been valued at approx. USD 190 million in 2015. In the Middle East, UAE based technology company Zero.1 in partnership with telecommunication service provider du will soon launch Li-Fi service in Dubai.
Key Industry participants in the Li-Fi market are PureLifi, Philips, GE, LVX, Oledcomm, etc. The technology demands an advanced product portfolio which is encouraging strategic alliances and mergers & acquisitions amongst the corporate firms. The applications of this technology shall pave a way for the players to gain profitability by redesigning and expanding their product landscape. Some major opportunities in the Li-Fi industry shall be witnessed in the coming years in the areas like smart LED lighting for commercial buildings and private homes, smart lightening of public areas like stations & airports, smart stores, traffic updates from traffic lights and route management in railways etc.