Jan 6, 2017: The global Li-Fi market is expected to exhibit growth at a robust pace between 2016 and 2023. Massive bandwidth owing to the growing RF spectrum crunch, together with a high degree of security and energy efficiency are expected to bolster the global Li-Fi market.
Li-Fi vs VLC
While the features offered by Li-Fi and visible light communications (VLC) are quite similar, unlike the latter, Li-Fi does not require line-of-sight between receiver and transmitter. The technology offers data transfer at high speed due to the presence of lesser interferences and availability of large bandwidth over the network. For instance, Li-Fi is capable of delivering the same, if not greater, data transfer speed as compared to a Wi-Fi access point.
Furthermore, internet video traffic is expected to grow considerably in the coming years, with video projected to contribute to a majority of consumer internet traffic. This increasing data production and usage will eventually spur demand for wireless optical networks and RF-based networks. These are prime factors that will aid the expansion of the Li-Fi market worldwide.
Increasing demand for applications in medical centers, hospitals, and schools will give considerable impetus to the global Li-Fi market. Since the technology involves visible light wavelengths and not radio waves, it is less likely to have negative effect on human health. Experts often compare Li-Fi to Free Space Optics (FSO) as it also utilizes light to transfer data.
The market is also significantly gaining from the rising adoption of LED worldwide due to benefits such as a longer life span, higher efficiency, and lower maintenance it offers. Several countries such as Japan, China, and the U.S. have already adopted initiatives for promoting energy conservation using LED lighting technology. For instance, the Chinese government is offering lucrative incentives, resources, and financial subsidies to promote the adoption of LED lighting across industries. Furthermore, it has also taken several steps to support and advance the capabilities of domestic LED manufacturers.
On the flip side, the lack of awareness about the benefits offered by the technology is negatively impacting Li-Fi market growth. Misconceptions such as Li-Fi being line-of-sight in nature are also expected to restrain market growth to an extent.
Asia Pacific is expected to emerge as a lucrative market for Li-Fi. The growth of the market in this region is fuelled by the increasing demand for better internet connectivity. The US is expected to present attractive opportunities for enterprises in the Li-Fi market over the forecast period. The Li-Fi market in the US is also expected to grow at a phenomenal rate. The high demand for wireless communication aids the rapid expansion of the Li-Fi market in the US.
Some of the leading enterprises operating in the Li-Fi market include Philips, LVX, PureLifi, GE, Oledcomm and others. The majority of these market players are focusing on strategic collaborations, mergers, and acquisitions to gain a competitive edge. For instance, GE recently collaborated with Qualcomm to merge big data and lighting to transform the retail experience. In 2015, LVX partnered with NASA to introduce products for space missions and design new applications for VLC.
Source: Transparency Market Research