by Li-Fi technology utilizes visible light communication for high-speed wireless connectivity and has emerged as a complement to Wi-Fi networks. Li-Fi works on the principle of light emitting diodes (LEDs) which can be flashed on and off at very high speeds and transmit data through variations in light intensity. Li-Fi offers numerous advantages including higher speeds, inherent security, no radio frequency interference, broader range, and availability anywhere with a light source. The growing interest in Internet of Things, ubiquitous connectivity and increased need for bandwidth have further propelled the Li-Fi market growth.
Li-Fi is finding applicability in diverse industry verticals for communicating robust amounts of data through illumination. Key use cases include outdoor lighting, indoor wireless hotspots, connected vehicles, smart homes/offices, hazardous environment operations, underwater communications and localization. The global Li-Fi Market is estimated to be valued at US$ 664.16 Bn in 2024 and is expected to exhibit a CAGR of 11% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends spurring the Li-Fi market expansion is the rapid adoption of LED lighting systems. The intrinsic compatibility of Li-Fi technology with solid-state LED lighting has accelerated its commercialization prospects. LED lights with embedded Li-Fi capabilities reduce installation complexity and enable high-speed broadband access alongside illumination. Moreover, rising digitalization and growing need for continuous connectivity is propelling the development of novel Li-Fi applications across industrial and commercial verticals. Leading players are collaborating with infrastructure developers, lighting companies and technology providers to integrate Li-Fi into diverse solutions driving the industry transformation.
Porter’s Analysis
Threat of new entrants: The light fidelity market requires high research and development investment as well as technical expertise to develop LiFi technology and components. This poses high entry barriers for new players.
Bargaining power of buyers: The bargaining power of buyers is moderate as Light Fidelity technology is still evolving and there are limited options available for buyers. However, buyers can bargain for better prices and services as the market consolidates.
Bargaining power of suppliers: A few companies dominate the supply of key LiFi components such as light emitting diodes and photo detectors. This gives them significant bargaining power over customers.
Threat of new substitutes: Technologies such as WiFi, Bluetooth and 5G can be substitutes for indoor Light Fidelity applications. However, LiFi has an edge over radio frequency based substitutes for applications requiring high bandwidth and security.
Competitive rivalry: The Light Fidelity market hosts numerous technology companies offering varied LiFi solutions. Fierce competition exists among players to differentiate based on technology, coverage and price.
Key Takeaways
The Global Light Fidelity Market Demand is expected to witness high growth over the forecast period of 2024 to 2031.
Regional analysis: The Asia Pacific region dominates the global LiFi market currently and is expected to maintain its lead through 2031. China, India, South Korea and Japan are major contributors to the growth of APAC Light Fidelity market owing to increasing demand for broadband and focus on deploying smart infrastructure. Europe and North America are also early adopters of LiFi technology and significant markets.
Key players: Key players operating in the Light Fidelity market are DuPont de Nemours, Inc., Lenzing AG, Kelheim Fibres GmbH, Asahi Kasei Corporation, Grasim Industries Limited, Sateri Holdings Limited, Tangshan Sanyou Group Co., Ltd., Birla Cellulose, Indo Bharat Rayon, China Bambro Textile Co., Ltd. These companies have strong technical expertise and financial resources to develop innovative LiFi solutions and rapidly expand into global markets.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
