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The Light Fidelity market is projected to reach at USD 7.98 billion, and will grow at a CAGR of 64.84% during forecast year. The growth of the market depends on several factors, including the increase in end-user applications, the availability of greater bandwidth, and IoT enabled by the light-fidelity market.
|Market Size (2017) Historic Year
|USD 0.08 bn
|Market Size (2027) - Forecasted Year
|USD 7.98 bn
|Historic Opportunity (2017-2021)
|USD 0.34 bn
|Forecasted Opportunity (2023-2027)
|USD 7.33 bn
|Market Opportunity Transformation Growth
|Market Opportunity Capitalization
|USD 7.67 bn
This report extensively covers market segmentation by application (indoor networking, LBS, IFCE, underwater communication, and others), end-user (retail, consumer electronics, automotive and transportation, healthcare, and others), and geography (North America, APAC, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increase in end-user applications is notably driving the market growth, although factors such as the dominance of competing technologies may impede the market growth. Our researchers analyzed the data with 2022 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.
An increase in end-user applications is a key factor driving the growth of the global light fidelity market. LiFi is a new wireless data transfer technology that is 100 times faster and ensures better security than any other competing technology. This technology is used in offices that require a secure and very fast network for exchanging, transferring, and sending files. Unlike WiFi, which uses radio waves, Lifi utilizes light waves. Light is used as a medium to send information. Light travels faster from one end of the cable to the other. Lifi uses LED lights that can quickly transfer data from and to supported devices. Moreover, the use of light fidelity is safe, as it does not use radio frequencies that may harm nature and people.
Furthermore, light fidelity .technology can be applied in almost all environments. For instance, transmission using RF in water is difficult, but the same can be achieved through light fidelity (li-fi). Besides, RF can interfere with the electronic circuitry in hospitals, aircraft, mines, and petrochemical plants. Thus, Lifi is a safe option, as it does not pose any health hazards and can be utilized in areas where RF cannot be used. This will drive the adoption of Lifi, which, in turn, will lead to a surge in its global demand during the forecast period.
An increase in end-user applications is the primary trend in the global light fidelity market growth. The attractiveness of various end-user applications will drive the growth of the market during the forecast period. Numerous sectors will benefit from using light-fidelity (li-fi) systems. Moreover, Lifi will also ensure a shift from RF communication in industrial sectors such as mining, oil and gas, and petrochemicals to eliminate any problem related to safety.
The Walt Disney Company also has plans to use these systems for communicating with toys. These applications will ensure the rapid adoption of Lifi technology in the consumer electronics sector during the forecast period.
The dominance of competing technologies is a major challenge to the growth of the global light fidelity market. WiFi and WiMAX technology-based devices have dominated the communications industry for decades. These have replaced analogue and digital technologies used in various sectors. Reliable and efficient network connectivity helps in the proper monitoring and control of home appliances. Smart systems (smart homes, connected cars, smart manufacturing, and smart grid management) are gaining momentum due to the introduction of high-speed internet services from leading Internet service providers, such as AT and T, Comcast, Sprint, and Verizon.
However, the development of light fidelity (li-fi) technology has reduced the demand for WiFi and WiMAX technologies to a certain extent; however, the market is still dominated by these technologies (WiFi and WiMAX) in most regions across the world. Such factors will hinder the growth of the market during the forecast period.
The 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 growth strategies.
Global Light Fidelity Market Customer Landscape
Vendors 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.
Acuity Brands Inc. - The company offers light-fidelity services such as eldoLED ECOdrive.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the indoor networking segment will be significant during the forecast period. The indoor network segment is expected to grow rapidly during the forecast period. Indoor networking has penetrated the global light fidelity (Li-Fi) market. The retail and hospitality industries are using indoor networking systems to enhance the shopping and service experience of customers and improve the value that they deliver. Due to the intrinsic characteristics of light, the light fidelity (li-fi) network is more secure, more power-efficient, and can provide higher network data transmission rates than radio frequency communications.
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The indoor networking segment was valued at USD 61.23 million in 2017 and continue to grow by 2021. The adoption of this technology, along with indoor position apps, will improve the targeted advertising of retailers and enhance their sales. The rapid increase in the use of LEDs and their ability to perform dual functions of illumination as well as communication have provided a unique opportunity for Lifi to be used for indoor lighting. Moreover, low data rates and the use of existing infrastructure will reduce costs considerably. Also, the interest shown by major lighting manufacturers like General Electric and Philips will further boost this market. However, in an indoor light fidelity (li-fi) based network, every space for lighting in a room can act as an optical access point (AP). If the distance between these APs is small, then interference between them becomes unavoidable. This issue can affect the performance of a network considerably, thereby hampering the growth of the market in indoor networking applications. These factors are expected to drive the growth of the indoor networking segment, which, in turn, will propel the growth of the light fidelity (Li-Fi) market during the forecast period.
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North America is estimated to contribute 38% 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. The use of radiofrequency for WiFi has created a severe spectrum crunch in North America. This has led to a decline in the bandwidth offered, thus affecting high-speed communications. Therefore, the new disruptive light fidelity (li-fi) technology is expected to take over the WiFi market in applications such as horticultural lighting, industrial and commercial, and marine lighting. The US, Canada, and Mexico have started to phase out incandescent lamps in favor of more energy-efficient light sources, such as LEDs, and aim to achieve 100% LED deployment. The Department of Transportation (DOT) and the National Highway Traffic Safety Administration (NHTSA) in the US mandate the use of LEDs in the headlights and taillights of vehicles. Therefore, the demand for faster and safer wireless communication in the region will likely drive the adoption of this technology in the region.
In 2020, due to lockdown restrictions imposed worldwide following the outbreak of COVID-19, most people avoided going outside unnecessarily due to fear of contracting the disease. However, in Q4 2020, most countries lifted their lockdown restrictions. Furthermore, growing initiatives such as smart city development will help accelerate the growth of the global light fidelity (li-fi) market. For instance, countries such as India, Qatar, and Singapore have already launched plans to develop their cities into smart cities. This is expected to increase the demand for light fidelity (li-fi) technology for intelligent traffic system applications during the forecast period. Furthermore, economic conditions improved owing to the large-scale vaccination drives in the region introduced in 2021. This has resulted in the resumption of end-user industries, which has increased the demand for Lifi in the region. Hence, the regional market is expected to grow during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
LiFi (Life Fidelity) Market Scope
Growth momentum & CAGR
Accelerate at a CAGR of 64.84%
Market growth 2023-2027
USD 7,325.58 million
YoY growth 2022-2023(%)
North America, APAC, Europe, South America, and Middle East and Africa
Performing market contribution
North America at 38%
US, China, Japan, Germany, and UK
|Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled
Acuity Brands Inc., Fujitsu Ltd., General Electric Co., Global LiFi Tech, Koninklijke Philips NV, KYOCERA corp., LIFX, LightBee SL, Lucibel SA, Luciom, LumEfficient Lighting Corp., LVX System, nextLiFi, Oledcomm, pureLiFi Ltd., Signify NV, Velmenni, VLNComm Inc., Wipro Ltd., and Zero1 Pte Ltd.
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period.
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