FSO VLC Li-Fi Market Analysis

Global FSO and VLC / Li-Fi Market Overview

FSO and VLC / Li-Fi Market Size was valued at USD 3.1 Billion in 2022. The FSO and VLC / Li-Fi Market industry is projected to grow from USD 4.37 Billion in 2023 to USD 69.16 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 41.20% during the forecast period (2024 - 2032). Fast and secure data transmission capabilities, reduced energy consumption, and extensive applicability across diverse sectors such as healthcare, defense, and commercial industries are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

FSO and VLC / Li-Fi Market Trends

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  Growing demand for high-speed internet connectivity and faster and safer data transfer technologies is driving the market growth

  
  

Market CAGR for FSO and VLC / Li-Fi Market is being driven by the Growing Demand for High-Speed Internet Connectivity and Faster and safer data transfer than other challenging technologies. VLC/Li-Fi technology stands out for its exceptional energy efficiency, particularly in its minimal energy consumption when employing LEDs for data transmission. Research supported by the Engineering and Physical Sciences Research Council (EPSRC) through the Ultra-Parallel Visible Light Communications (UP-VLC) program has demonstrated impressive data rates, achieving up to 3.5 Gbps with a single blue LED or up to 1.7 Gbps with white light. Utilizing LEDs enables the transfer of large data volumes across a spectrum that's 10,000 times wider than the RF spectrum. Notably, VLC technology is environmentally friendly, generating no hazardous emissions unlike RF, and is biologically safe. Consequently, its capacity for faster and safer data communication compared to rival technologies is a key driver for the adoption of VLC technology.

It offers an alternative solution to alleviate the burden on RF technology for outdoor networking, enhances last-mile connectivity, enables faster and safer data transfer compared to other challenging technologies, and consumes less energy thanks to LEDs. The global demand for Li-Fi technology is on the rise as it provides secure communications with high data bandwidth. This technology finds applications in various sectors such as healthcare, consumer electronics, defense, and commercial, contributing to efficient industrial operations and ultimately boosting the FSO & VLC/Li-Fi market growth.

As a result, it is anticipated that throughout the projection period, demand for FSO and VLC / Li-Fi Market will increase due to the Growing Demand for High-Speed Internet Connectivity and Faster and safer data transfer than other challenging technologies. Thus, driving the FSO and VLC / Li-Fi Market revenue.

FSO and VLC / Li-Fi Market Segment Insights:

FSO and VLC / Li-Fi Component Insights

The FSO and VLC / Li-Fi Market segmentation, based on Components includes LED, IR emitters, Opto-couplers, and image sensors. The LED segment dominated the market, accounting for 58% of market revenue (1.8 Billion). VLC/Li-Fi technology utilizes LEDs for data transmission. LEDs can be modulated at high speeds to encode data, and this modulation is imperceptible to the human eye. This technology is safer and more secure than traditional radio frequency (RF) communication. It is gaining traction in various applications, such as indoor positioning, smart lighting, and wireless data transfer.

Figure 1: FSO AND VLC / LI-FI MARKET, BY COMPONENTS, 2022 & 2032 (USD BILLION)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

FSO and VLC / Li-Fi Application Insights

The FSO and VLC / Li-Fi Market segmentation, based on Application, includes ITS, indoor networking, in-flight entertainment and communication, Health care and underwater communication, and location-based services. The health care segment dominated the market, accounting for 55% of market revenue (1.70 Billion). The modern healthcare ecosystem relies heavily on interconnected devices and systems. From patient monitoring devices to electronic health records (EHRs), seamless data transmission is crucial for accurate and timely patient care. FSO and VLC/Li-Fi technologies provide reliable, high-speed data transmission within healthcare facilities. This enables real-time monitoring, quick access to patient data, and efficient communication among medical staff and devices.

FSO and VLC / Li-Fi Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. FSO and VLC/Li-Fi are known for their high-speed data transfer capabilities. In North America, where industries rely heavily on data-intensive applications, including financial transactions, video streaming, and cloud computing, the need for faster and more reliable communication is driving the adoption of these technologies. The region is experiencing a notable increase in the adoption of hybrid cloud solutions, which combine on-premises and off-premises cloud services. According to research conducted by MeriTalk, a government news analysis organization, in 2021, 92% of federal IT managers expressed a preference for a hybrid cloud environment to ensure government resilience. Moreover, more than two-thirds (67%) of respondents stated that the COVID-19 pandemic accelerated their organizations' adoption of hybrid cloud by at least a year.

Further, the major countries studied in the market report are The US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: GLOBAL FSO AND VLC / LI-FI MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe FSO and VLC / Li-Fi Market account for the second-largest market share as Europe has been actively investing in smart city initiatives to enhance urban living, transportation, and overall infrastructure. FSO and VLC/Li-Fi play a crucial role in these initiatives by providing high-speed and secure connectivity for various applications, including smart traffic management, public Wi-Fi, and environmental monitoring. FSO and VLC/Li-Fi are known for their enhanced security features. In Europe, where data privacy regulations like GDPR are stringent, these technologies are appealing because they do not emit radio waves and are less susceptible to eavesdropping. This makes them suitable for industries dealing with sensitive data, such as healthcare and finance. Further, the German FSO and VLC / Li-Fi Market held the largest market share, and the UK FSO and VLC / Li-Fi Market was the fastest-growing market in the European region

The Asia-Pacific FSO and VLC / Li-Fi Market is expected to grow at the fastest CAGR from 2023 to 2032. APAC is a hub for manufacturing and industrial activities. The adoption of Industry 4.0 practices, which rely on real-time data exchange and automation, is driving the need for reliable and high-speed communication within manufacturing plants. FSO and VLC/Li-Fi can enable efficient data transfer in these environments. Moreover, China’s FSO and VLC / Li-Fi Market held the largest market share, and the Indian FSO and VLC / Li-Fi Market was the fastest-growing market in the Asia-Pacific region.

FSO and VLC / Li-Fi Market Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the FSO and VLC / Li-Fi Market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the FSO and VLC / Li-Fi industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global FSO and VLC / Li-Fi industry to benefit clients and increase the market sector. In recent years, the FSO and VLC / Li-Fi industry has offered some of the most significant advantages to the telecommunications and data transmission sectors. Major players in the FSO and VLC / Li-Fi Market, including LightPointe Communications, Inc., fSONA Systems Corp., Plaintree Systems Inc., Panasonic Corporation, General Electric, Oledcomm, Koninklijke Philips N.V., Wireless Excellence Limited, and Signify Holding., Lucibel, are attempting to increase market demand by investing in research and development operations.

Panasonic Corporation is a global company that specializes in the development, manufacturing, and sale of a wide range of electric and electronic products. Their diverse product portfolio includes items such as air-conditioners, televisions, digital cameras, audio equipment, home appliances, and more. Panasonic also offers various electronic components, machinery, PCs, batteries, and semiconductors. They provide solutions for consumers, logistics, automotive, aviation, entertainment, manufacturing, and housing sectors. With facilities and research centers across Japan, Asia, the Americas, and Europe, Panasonic is a major player in the global electronics industry, headquartered in Kadoma-shi, Osaka, Japan. In September 2020, Panasonic entered into a partnership with Octasic Inc., a Canadian company specializing in low-power programmable processors for wireless and multimedia applications. This collaboration aimed to develop shared extended Global Platform (SXGP) solutions, focusing on wireless network products based on 5G and Beyond 5G technologies, particularly for mission-critical applications.

General Electric is a diverse industrial conglomerate that provides a wide array of industrial, infrastructure, and financial products and services. Their offerings span across various sectors, including aircraft engines and systems, healthcare systems and diagnostics, power generation, and equipment for oil and gas production. Additionally, GE is involved in medical imaging, financial services, and a range of industrial products. They cater to industries such as water, oil and gas, power generation, aviation, healthcare, transportation, and more. With a global presence in North America, Europe, Asia, the Middle East, Africa, and other regions, GE operates manufacturing facilities worldwide. The company's headquarters are located in Boston, Massachusetts, USA.

Key Companies in the FSO and VLC / Li-Fi Market include

• LightPointe Communications, Inc.,


• fSONA Systems Corp.


• Plaintree Systems Inc.


• Panasonic Corporation


• General Electric


• Oledcomm


• Koninklijke Philips N.V.


• Wireless Excellence Limited


• Signify Holding.


• Lucibel

FSO and VLC / Li-Fi Industry Developments

September 2021: Lucibel introduced the third generation of their Li-Fi product, known as Lucipanel LiFi. With increasing interest from various stakeholders such as Li-Fi solution designers, smartphone and computer manufacturers, telecom operators, and end-users, the Li-Fi technology market is poised for rapid growth.

July 2022: PureLiFi secured a £10 million investment in collaboration with the Scottish government through the Scottish National Investment Bank. This strategic partnership aims to support PureLiFi's technology advancements and expand into new markets, including mobile phones, tablets, wearables, and various connected devices.

FSO and VLC / Li-Fi Market Segmentation

FSO and VLC / Li-Fi Component Outlook

• LED


• IR emitters


• Opto-couplers


• image sensors

FSO and VLC / Li-Fi Application Outlook

• ITS


• indoor networking


• in-flight entertainment and communication


• Health care and underwater communication


• location-based services.

FSO and VLC / Li-Fi Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America