July 21, 2024
Light Fidelity Market
Ict

Projected high speed connectivity to boost growth of Light Fidelity Market

The global Light Fidelity Market is estimated to be valued at US$ 576.52 Mn in 2023 and is expected to exhibit a CAGR of 36% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Light Fidelity or Li-Fi technology uses visible light communication for data transmission. It involves transmission of data through illumination using a LED light bulb that rapidly flickers on and off, a speed that is imperceptible to the human eye. The changes in light can be detected by a photo-detector and converted into electrical signals to transmit digital information. Compared to Wi-Fi, Li-Fi offers higher speed, better efficiency and more security. It provides last mile connectivity solution for homes, industries and public spaces and complements overall wireless connectivity needs.

Market key trends:

The key factor driving growth of the light fidelity market is high-speed connectivity needs in various industries. With increasing internet users and data traffic, there is a rising need for connectivity solutions offering higher speed and bandwidth. Li-Fi offers 100 times faster connectivity than Wi-Fi and can deliver speeds up to 224 gigabits per second. It is well suited for applications requiring large bandwidth such as audio/video streaming, online gaming and cloud computing. Growing focus on industrial internet of things and industrial automation is further augmenting the need for high-speed connectivity. Li-Fi technology enables connectivity of various smart machines and devices within industries.

Porter’s Analysis

Threat of new entrants: New entrants into the Light Fidelity market may face high initial costs of setting up infrastructure and R&D. Established players have significant brand value and economies of scale.
Bargaining power of buyers: Individual buyers have low bargaining power given the nascent stage of the market. However, large organizations can negotiate on pricing and contracts.
Bargaining power of suppliers: A few leading technology companies control the core Light Fidelity technology. This gives them strong bargaining power over manufacturers.
Threat of new substitutes: Alternatives like Wi-Fi, Bluetooth and Infrared communication are established. However, Light Fidelity provides higher speeds and more secure data transmission without interference, reducing substitutability.
Competitive rivalry: Major players globally are seeking to establish Light Fidelity as the next wireless communication standard, intensifying competition.

Key Takeaways

The Global Light Fidelity Market Size is expected to witness high growth, exhibiting CAGR of 36% over the forecast period, due to increasing mobile data usage and demand for energy-efficient networking solutions. The market size for 2023 is estimated to be US$ 576.52 Mn.

Regional analysis: Asia Pacific is expected to dominate the global market during the forecast period. Proliferation of IoT devices and smart infrastructure projects in countries like China, India and Japan is driving regional growth. North America and Europe hold significant shares and are expected to grow at strong rates underpinned by heavy investments in research.

Key players operating in the Light Fidelity (Li-Fi) market are Panasonic Corporation, Koninklijke Philips NV, Renesas Electronics Corporation, Siemens AG, Velmenni, Zero1 Pte Ltd., PureLi-Fi, Oledcomm, LightBee Corp., and IDRO Co. Ltd. Major players are focusing on deploying Li-Fi networks across various verticals and enhancing network speeds to capitalize on growth opportunities. Partnerships with telecom operators and technology providers are also shaping the competitive landscape.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it