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The visible light communication market size is forecast to increase by USD 316.02 billion at a CAGR of 89.62% between 2023 and 2028. The market is experiencing significant growth due to the increasing demand for high-speed data services in various industries. One of the primary drivers of this market is the integration of process automation in industries, leading to the adoption of VLC technology for data transmission. Major verticals such as aerospace, automotive, consumer electronics, hospitals, and IOT are exploring the use of VLC technology for bidirectional transmission of data. However, environmental interferences and fading of signals pose challenges to the market. The integration of VLC technology in consumer electronic devices is on the rise, with applications spanning from smart homes to connected cars, smart manufacturing, and smart grid management. Ethernet-based network solutions, such as fiber-based Ethernet and fiber-optic lines, are emerging as potential alternatives to address these challenges. The dominance of competing technologies, such as Wi-Fi and Bluetooth, also impacts the market growth. The market trends indicate the growing adoption of VLC technology in 4G networks and its potential application in sectors like healthcare, where high-speed data services are crucial.
The market is gaining traction as an innovative solution for indoor navigation systems, offering several advantages over traditional radio frequency (RF) technology. Li-Fi, also known as light fidelity, utilizes light-emitting diodes (LEDs) as sources to transmit data, contrasting RF-based networks that rely on electromagnetic radiations. Optical and wireless communication systems, including Light-emitting diodes (LED) and Free Space Optics (FSO), are paving the way for faster and safer data transfer by leveraging advanced technologies that enable high-speed, reliable communication without the need for physical cables, making them ideal for modern networking and telecommunication applications. Li-Fi technology enables battery-free duplex communication between devices, allowing for seamless data transfer between smartphones and VLC receivers. This energy-efficient system is particularly attractive for consumer electronics, as it reduces the reliance on batteries and minimizes power consumption.
Furthermore, indoor navigation systems are a growing application for Li-Fi technology. By integrating Li-Fi into smart lighting systems, businesses, and organizations can provide accurate and reliable location-based services, enhancing the user experience and improving operational efficiency. Digitization and the increasing adoption of Internet of Things (IoT) devices have led to a rise in data transmission requirements. Li-Fi technology offers a potential solution, providing high-speed data transfer rates with minimal interference and improved security compared to RF communication. Cyber security is a critical concern in today's digital landscape. Li-Fi technology offers an added layer of security, as the data transmission occurs via light waves, which are difficult to intercept or hack.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The indoor networking segment is estimated to witness significant growth during the forecast period. Visible light communication (VLC) technology is making significant strides in the indoor navigation systems market, particularly in sectors such as retail and hospitality. This technology, also known as Li-Fi (Light Fidelity), utilizes LED lights to transmit data, offering several advantages over traditional Wi-Fi. With higher data transfer rates and immunity to electromagnetic interference, VLC is an attractive solution for crowded and sensitive environments. Indoor navigation systems equipped with VLC technology are enhancing the customer experience in retail and hospitality industries. These systems enable targeted advertising, improving sales for retailers.
Moreover, the use of existing infrastructure and low data rates significantly reduces installation costs. The market is expected to grow substantially during the forecast period, with major verticals like healthcare, education, and transportation also adopting this technology. Light-emitting diodes (LEDs) are the primary components of VLC systems, making LEDs an essential part of this growing market. The integration of IoT (Internet of Things) devices in VLC systems further expands their potential applications.
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The Indoor networking segment was valued at USD 2.46 billion in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 46% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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In North America, the visible light communication (VLC) industry is experiencing significant growth due to the spectrum crunch caused by the widespread use of radio frequency technologies like Wi-Fi and WiMAX in wireless networks. This issue has resulted in decreased bandwidth and affected high-speed communication. To address this challenge, new disruptive advances, such as VLC technology, are poised to take over in applications like horticultural lighting, industrial and commercial settings, and marine lighting. Major countries in the region, including the United States, Canada, and Brazil, are transitioning from traditional incandescent lamps to energy-efficient LEDs, to achieve complete LED replacement.
Furthermore, government agencies, such as the Department of Transportation (DoT) and the National Highway Traffic Safety Administration (NHTSA), mandate the use of LEDs for vehicle headlights and taillights. VLC technology utilizes white LEDs and white light for data transmission, offering several advantages over traditional radio frequency-based systems. Key applications of VLC technology include voice-only traffic, VR headsets, and other data-intensive applications. The shift towards energy-efficient lighting and the adoption of VLC technology is expected to fuel the growth of the North American VLC market.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Growing penetration of process automation in industries is the key driver of the market. In the realm of industrial automation, the integration of various communication networks has emerged as a significant challenge. As automation continues to expand in industries, particularly in discrete sectors, the need for seamless communication between different systems becomes increasingly crucial. Industrial communication gateways serve as a vital solution to this issue, enabling effortless navigation between diverse communication networks. One of the key applications of industrial communication gateways in automation is the bridging of two Programmable Logic Controllers (PLC) systems from different manufacturers. While this connection can be established using a PLC communication card, the employment of an automation gateway simplifies the process and reduces complexity.
Moreover, the advent of advanced technologies such as 3G systems, 5G, and the increasing adoption of Li-Fi (Light Fidelity) communication in industries, aerospace, automotive, and autonomous vehicles, necessitates the need for backhaul carrier technologies that can ensure bidirectional transmission with high bandwidth. Battery-free duplex communication through bidirectional VLC (Visible Light Communication) technology is an attractive solution for these applications. Industrial communication gateways equipped with the latest technologies can facilitate the integration of these advanced communication systems, ensuring uninterrupted data flow and enhanced operational efficiency.
VLC-based 5G network is the upcoming trend in the market. Visible Light Communication (VLC), a significant component of the fifth generation (5G) technology, is poised to revolutionize wireless internet access. VLC utilizes LED bulbs that flicker at high speeds to transmit data, which is detected by specialized devices. This innovation offers high-speed data services, reaching up to 10 Gbps, approximately 250 times faster than current high-speed broadband connections. VLC's unique selling proposition lies in its ability to provide dependable connectivity in environments where Wi-Fi struggles, such as aircraft, submarines, nuclear power stations, and hospitals. Environmental interferences, like fog, do not affect VLC as they do with radio waves used in Wi-Fi.
Furthermore, ethernet-based network solutions, like fiber-based Ethernet and fiber-optic lines, can benefit from VLC's capabilities. The highest demand for high-speed, reliable data transfer in various industries will further fuel the growth of the VLC market.
The dominance of competing technologies is a key challenge affecting the market growth. In the realm of consumer electronics, the use of Visible Light Communication (VLC) technology is gaining traction as a cost-effective technique for high-speed data transfer. This innovative approach leverages blue LED lights for duplex communication, utilizing electromagnetic radiations in the visible light spectrum instead of traditional radio frequencies. VLC systems offer several advantages, including energy efficiency, cyber security, and the ability to integrate with data analytics. The proliferation of high-speed internet services from major providers such as AT&T, Comcast, Sprint, and Verizon, is fueling the adoption of these smart systems.
Furthermore, with the increasing digitization of various sectors, the demand for reliable and efficient network connectivity is paramount. VLC technology's ability to provide energy-efficient, secure, and high-data-rate communication makes it an attractive alternative to traditional wireless technologies. In conclusion, VLC technology's use in consumer electronics is poised for significant growth in the coming years. Its ability to offer energy efficiency, cyber security, and high-speed data transfer makes it an ideal solution for the increasing number of smart systems being adopted across various industries. As the world continues to digitize, the need for secure and reliable communication technologies will only become more pressing, and VLC technology is well-positioned to meet this demand.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Firefly Networks Ltd. - The company offers a platform for the digital landscape by addressing critical future digital challenges. The key offerings of the company include visible light communication.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The visible light communication (VLC) market is experiencing significant growth due to the adoption of Li-Fi technology in various industries. With the rollout of 5G and the increasing demand for high-speed data services, the need for energy-efficient, cost-effective techniques for data transmission is becoming increasingly important. VLC technology, which utilizes light-emitting diodes (LEDs) to transmit data, offers several advantages over traditional radio frequency (RF) communication. The use of Li-Fi in autonomous vehicles and indoor navigation systems is gaining popularity due to its reliability and ability to function in environments where RF signals may be obstructed by trees, buildings, or other environmental interferences.
Furthermore, VLC technology offers several advantages over traditional wired networks such as fiber-optic lines. It is energy-efficient, as it does not require batteries for duplex communication. It is also more secure, as it uses light as a medium for transmission, making it less susceptible to cyber security threats. The Li-Fi market is expected to grow at a significant rate due to the highest demand for high-speed data services in various industries. The use of VLC technology in smart lighting systems, smart stores, and smartphones is also expected to drive market growth. The technology offers data rates up to 224 Gbps and is not affected by fading of signals or scattering, making it a reliable alternative to RF communication.
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Market Scope |
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Report Coverage |
Details |
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Page number |
186 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 89.62% |
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Market growth 2024-2028 |
USD 316.02 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
82.31 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
North America at 46% |
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Key countries |
US, China, Japan, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Acuity Brands Inc., Firefly Networks Ltd., Fortive Corp., Fraunhofer Gesellschaft, fSONA Systems Corp., General Electric Co., Koninklijke Philips N.V., Latecoere, LightBee SL, Lucibel SA, nextLiFi, Oledcomm, Panasonic Holdings Corp., pureLiFi Ltd., Qualcomm Inc., Renesas Electronics Corp., Signify NV, To Be Srl, Viavi Solutions Inc., and VLNComm Inc. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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