Visible Light Communication Market Size was valued at USD 0.25 billion in 2022. The Visible Light Communication market industry is projected to grow from USD 0.34 Billion in 2023 to USD 2.32 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 37.5% during the forecast period (2023 - 2030). Increasing adoption of LED lighting systems, growing demand for high-speed communication networks, and rising popularity of IoT devices and smart home automation systems are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Growing demand for high-speed communication networks is driving the market growth
One driver of the Visible Light Communication market is the growing demand for high-speed communication networks which is driving market CAGR. As more devices become connected to the internet, the need for faster and more efficient data transmission has increased, leading to the development of new communication technologies such as VLC. The global data traffic is expected to increase from 30.6 exabytes per month in 2016 to 136.5 exabytes per month by 2021, at a CAGR of 34.2%, as per source. This surge in data traffic is driving the demand for high-speed communication networks, which in turn is fueling the growth of the VLC market.
Additionally, the increasing popularity of video streaming services, online gaming, and cloud-based applications is further driving the demand for high-speed communication networks. According to a report by Cisco, global IP video traffic is expected to increase from 3.7 exabytes per month in 2017 to 22 exabytes per month by 2022, at a CAGR of 42%. VLC technology offers several advantages over traditional wireless communication technologies such as Wi-Fi, including higher data transfer rates, greater bandwidth, and improved security. With the increasing demand for high-speed data transmission, VLC is emerging as a promising alternative, driving the growth of the Visible Light Communication market revenue.
The Visible Light Communication Market segmentation, based on Component includes Image Sensor and Visible Light Diode. Image Sensor holds the largest market share. Image sensors are used to detect and convert light signals into digital signals, which can be processed and transmitted. They are critical components in VLC systems, as they help to receive and process the light signals transmitted by visible light diodes.
Figure 1: Visible Light Communication Market, by Component, 2022 & 2030 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Visible Light Communication Market segmentation, based on Application, includes Location Based Service, Indoor Applications, and Outdoor Applications. The indoor applications segment is expected to hold the largest market share during the forecast period, owing to the increasing adoption of VLC technology in indoor environments such as office buildings, retail stores, and hospitals. VLC technology offers several advantages over traditional wireless communication technologies, including better reliability and security, making it ideal for indoor applications. Additionally, indoor applications such as indoor positioning and navigation, asset tracking, and wireless communication are driving the growth of the indoor applications segment.
Regarding the highest CAGR, the location-based services segment is expected to grow at the highest CAGR during the forecast period, driven by the increasing demand for location-based services in various applications.
The Visible Light Communication Market data, based on Vertical, includes Transportation, Automotive, Defense, and Healthcare. The healthcare segment is expected to hold the largest market share during the forecast period, owing to the increasing adoption of VLC technology in healthcare applications such as patient monitoring, indoor navigation, and asset tracking. VLC technology offers several advantages over traditional wireless communication technologies in healthcare, including lower interference and better signal reliability, making it ideal for healthcare applications. Additionally, the increasing demand for remote patient monitoring and telemedicine is driving the growth of the healthcare segment. The transportation segment is also expected to witness significant growth, driven by the increasing demand for real-time data communication and accurate location tracking in various transportation applications such as airports, train stations, and seaports. VLC technology can be used for accurate indoor positioning and navigation, which is becoming increasingly important for various transportation applications.
Regarding the highest CAGR, the automotive segment is expected to grow at the highest CAGR during the forecast period, driven by the increasing adoption of VLC technology in advanced driver assistance systems (ADAS) and in-vehicle communication systems.
By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American Visible Light Communication market area will dominate this market, owing to the increasing adoption of VLC technology in various applications such as indoor positioning, retail, and healthcare. Additionally, the presence of key players in the VLC market, such as Acuity Brands, General Electric, and Qualcomm, is driving the growth of the market in North America.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: VISIBLE LIGHT COMMUNICATION MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Visible Light Communication market accounts for the second-largest market share due to increasing demand for VLC technology in various applications such as automotive and transportation. Additionally, the increasing adoption of smart lighting systems in Europe is driving the growth of the VLC market in the region. Further, the German Visible Light Communication market held the largest market share, and the UK Visible Light Communication market was the fastest growing market in the European region
The Asia-Pacific Visible Light Communication Market is expected to grow at the fastest CAGR from 2023 to 2030. This is due to the increasing demand for high-speed and secure communication technologies in countries such as China, Japan, and South Korea. Additionally, the increasing adoption of VLC technology in various applications such as indoor navigation, retail, and automotive is driving the growth of the VLC market in the Asia-Pacific region. Moreover, China’s Visible Light Communication market held the largest market share, and the Indian Visible Light Communication market was the fastest growing market in the Asia-Pacific region.
In order to thrive in a competitive and growing market, leading market players involved in Visible Light Communication are focusing on cost-effectiveness by investing in research and development to expand their product lines. They are also engaging in strategic market developments such as collaborations, higher investments, mergers and acquisitions, and launching new products to expand their global reach. The ability to offer cost-effective solutions is becoming increasingly important in this Visible Light Communication industry.
Major players in the Visible Light Communication market, including General Electric Company (U.S.), Toshiba Corporation (Japan), NEC Corporation (Japan), Samsung Electronics Co. Ltd. (South Korea), fSONA Networks (Canada) are attempting to increase market demand by investing in research and development operations.
General Electric (GE) is a multinational conglomerate company headquartered in Boston, Massachusetts, United States. The company operates through various segments, including aviation, power, renewable energy, healthcare, and digital. In the context of Visible Light Communication (VLC), General Electric has been actively involved in the development of VLC technology for various applications. GE Lighting, a subsidiary of General Electric, has developed a VLC-based indoor positioning system called “Indoor Positioning System (IPS)” that can be used for various applications, such as retail, healthcare, and hospitality. The system uses VLC technology to provide accurate indoor positioning and navigation, enabling retailers to track the movement of customers and analyze their behavior to optimize store layout and product placement.
Toshiba Corporation is a Japanese multinational conglomerate company with headquarters in Tokyo, Japan. The company has a diversified business portfolio that includes energy systems, infrastructure systems, building solutions, retail and printing solutions, storage and electronic devices, and industrial ICT solutions. In the context of Visible Light Communication (VLC), Toshiba has been actively involved in the development of VLC-based communication systems for various applications. In 2015, Toshiba announced the development of a VLC-based wireless communication technology called “TOSBAC” (Toshiba Optical Wireless Broadband Access Communication System) that can be used for high-speed and secure communication in indoor environments.
October 2021 PureLiFi has agreed to supply its secure optical wireless communication system Kitefin to the US Army in Europe and Africa for USD 4.2 million. For secure data transmission without radio frequencies, the system employs LiFi, an alternative to radio technologies such as WiFi.
July 2021 HomeGrid Forum has partnered with Signify to enhance the development and implementation of Light Fidelity (LiFi) technology. Signify, which specializes in visible light communication, offers a LiFi system that enables rapid, wireless, and secure connectivity through the use of light waves rather than radio signals.
July 2021 On Semiconductor has recently introduced two new LED driver ICs, namely NCL31000 and NCL31001, which aim to simplify the development of solid-state lighting (SSL) products while providing smart lighting feature sets for connectivity. These LED driver ICs are designed to support various IoT applications, including visible light communications (VLC) and indoor positioning. With these new ICs, On Semiconductor intends to expand the use of solid-state lighting by enabling the creation of innovative products that offer connectivity and smart features, thus enhancing user experience.
US
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| Report Attribute/Metric | Details |
| Market Size 2022 | USD 0.25 billion |
| Market Size 2023 | USD 0.34 billion |
| Market Size 2030 | USD 2.32 billion |
| Compound Annual Growth Rate (CAGR) | 37.5% (2023-2030) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2030 |
| Historical Data | 2019- 2021 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Component, Application, Vertical and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The U.S., Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | General Electric Company (U.S.), Toshiba Corporation (Japan), NEC Corporation (Japan), Samsung Electronics Co. Ltd. (South Korea), fSONA Networks (Canada), Nitto Denko Corporation (Japan), Panasonic Corporation (Japan), Casio Computer Co. Ltd.(Japan), Qualcomm Inc. (U.S.), Fujitsu Ltd. (Japan), and Others. |
| Key Market Opportunities | · Rising demand for Li-Fi technology in various industries |
| Key Market Dynamics | · Growing demand for high-speed communication networks · Increasing adoption of LED lighting systems |
Frequently Asked Questions (FAQ) :
The Visible Light Communication Market size was valued at USD 0.25 Billion in 2022.
The global market is projected to grow at a CAGR of 37.5% during the forecast period, 2023-2030.
North America had the largest share in the global market
The key players in the market are General Electric Company (U.S.), Toshiba Corporation (Japan), NEC Corporation (Japan), Samsung Electronics Co. Ltd. (South Korea), and fSONA Networks (Canada).
The Image Sensor category dominated the market in 2022.
The indoor application had the largest share in the global market.
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Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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