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The visible light communication market is estimated to grow by USD 316.02 billion at a CAGR of 89.62% between 2023 and 2028. The market is experiencing significant growth, driven by the increasing penetration of process automation in industries and the emergence of VLC-based 5G networks. VLC technology, which utilizes visible light for data transmission, offers numerous advantages such as high data transfer rates, energy efficiency, and security. The market is, however, faced with challenges from competing technologies like cloud computing, Bluetooth, and Wi-Fi, as well as edge computing. VLC's dominance in specific applications, such as indoor positioning and lighting systems, provides growth opportunities. Moreover, the integration of VLC with the Internet of Things (IoT) and Artificial Intelligence (AI) is expected to further fuel market expansion. Overall, the VLC market is poised for robust growth, driven by its unique capabilities and the increasing demand for efficient and secure communication solutions.
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The market share growth by the indoor networking segment will be significant during the forecast period. VLC technology has penetrated the indoor networking segment. The retail and hospitality industries are using indoor networking systems to enhance the shopping and service experience of customers and improve the value delivered.
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The indoor networking segment was valued at USD 2.47 billion in 2018. The adoption of this technology, along with indoor position apps, will improve the targeted advertising of retailers and enhance their sales. In addition, low data rates and the existing infrastructure will reduce costs considerably. With the growing demand for Internet of Things (IoT) devices and connections, VLC offers a promising solution for indoor navigation systems and other applications. The interest shown by major lighting manufacturers will further boost this market. Hence, such factors are fuelling the growth of this segment during the forecast period.
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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.
North America is the largest revenue contributor to the global VLC market. The use of radio frequency for Wi-Fi has created a severe spectrum crunch in the region. This has led to the fall in bandwidth offered and affected high-speed communication. The new disruptive advances will take over the Wi-Fi market in applications such as horticultural lighting, industrial and commercial, and marine lighting. Major nations in the region, including the US, Canada, and Brazil, have started phasing out incandescent lamps and are adopting better energy-efficient light sources such as LEDs to achieve 100% LED replacement. The Department of Transportation (DoT) and the National Highway Traffic Safety Administration (NHTSA) mandate the use of LEDs for headlights and taillights of vehicles. The demand for faster and safer wireless communication in the region will drive the adoption of this technology in North America. Hence, such factors are driving the market in North America during the forecast period.
Visible Light Communication (VLC), also known as Li-Fi (Light Fidelity), is a revolutionary technology that uses light to transmit data wirelessly. Unlike Wi-Fi, which uses radio waves, VLC utilizes LED light bulbs to transmit data. VLC's market is expanding rapidly, driven by its benefits such as battery-free duplex communication, high data transfer rates, and energy efficiency. It also provides a more secure alternative to radio frequency-based networks, reducing the risk of cyber security attacks. As VLC technology continues to advance, it is expected to play a significant role in the future of optical and wireless communication systems. Our researchers analyzed the data with 2023 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing penetration of process automation in industries is notably driving market growth. Automation is steadily growing in industries, particularly in discrete industries, where automated systems and robots are finding new applications. Different types of industrial networks are used in industries based on different standards, leading to network interoperability issues. These issues can be addressed using an automation gateway, which can easily navigate from one communication network to another, thereby increasing the availability of controllers and devices. This technology is vital for the growth of indoor navigation systems, the Li-Fi market, and battery-free duplex communication. It also plays a significant role in the advancement of VLC receivers and the digitization of industries. Additionally, automation gateways can enhance the connectivity of smartphones and improve VLC technology, especially in radio frequency-based networks. This technology is crucial for enhancing the efficiency of VLC sources and creating energy-efficient systems in industrial settings.
One important application of industrial communication gateways in automation is bridging two programmable logic controller (PLC) systems from different companies. While this bridging can be achieved using a PLC rack-based communication card, using an automation gateway simplifies the process. Additionally, with a gateway, an operator can select the best device available for the process instead of relying solely on one device. This flexibility is particularly beneficial in scenarios where different communication technologies, such as Visible Light Communication (VLC), RF technology, Free Space Optics (FSO), RF communication, and others like LEDs, IoT, and 5G, are available, allowing for optimal device selection based on the specific requirements of the process. As automation technology advances and technical breakthroughs reduce the cost of optimization, automation will become more accepted in various application areas, leading to increased demand for wireless communication technology. These factors will drive the growth of the industrial communication gateway market during the forecast period.
The adoption of LEDs is an emerging trend in the market. The energy efficiency, longevity, and cost-effectiveness of LEDs will boost the adoption of these lighting devices. LEDs will gradually replace all fluorescent and incandescent lights in the market soon. The possibility of using LEDs for lighting, as well as communication, will likely be a factor that will speed up the adoption of these lights. For instance, if the lights in offices and houses are replaced with LEDs, free-space optical communications can be achieved. This will allow wireless optical communication between phones, computers, sensors, and other indoor devices such as office and household applications. This model is also simple and easy to implement, as it requires no additional hardware or infrastructure.
Some countries, such as the US, Japan, and China, have adopted LED and have taken steps to promote a reduction in energy consumption using LED lighting technology. For instance, in China, the government is providing profitable incentives, resources, and financial subsidies to promote the adoption of LED lighting across businesses. It has also taken several steps to support and advance the capabilities of LED manufacturers nationwide. Therefore, factors like these will boost the global VLC market's growth during the forecast period.
The dominance of competing technologies is a major problem impeding market growth. Wi-Fi and WiMAX technology-based devices have dominated the market for decades. These have replaced analog and digital technologies used for different sectors. Reliable and efficient network connectivity helps in the proper monitoring and controlling of home appliances. Smart systems are gaining momentum with the advent of high-speed internet services from leading internet service providers.
Most smart systems function effectively with the help of wireless connectivity. High penetration of Wi-Fi connectivity across the globe is fueling this adoption of smart systems, as numerous devices can easily get added to the common network without the use of external controllers. In addition, many advanced low-power consumption communication technologies have been put into use, such as ZigBee and Z-Wave, to operate effectively. The growth of the VLC market is curtailed by the presence of these alternatives. Therefore, these factors will likely hinder the global market growth 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.
Market 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 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 research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market is witnessing rapid growth, driven by the increasing adoption of Li-Fi technology in various sectors such as aerospace, hospitals, and smart stores. VLC offers bidirectional transmission using LED lights to transmit data, making it a cost-effective technique for high-speed data services. With LED lights becoming more common in consumer electronics and smart lighting systems, Ethernet-based network solutions, Electromagnetic radiations , Faster and safer data transfer. VLC has found applications in autonomous vehicles and smart cities. However, challenges such as environmental interferences and reliability issues due to scattering and fading of signals need to be addressed. The VLC industry is expected to grow significantly, especially in network-connected devices and connections.
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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 forecasting, market report, market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our 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
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