Visible Light Communication Market Size & Share

Global Market Size, Forecast, and Trend Highlights Over 2023 - 2035

Visible Light Communication Market size is anticipated to reach over USD 5 Billion by the end of 2035, growing at a 38% CAGR during the forecast period, i.e., 2023 – 2035. In the year 2022, the industry size of visible light communication was about USD 1 Billion. This growth in the market is dominated by the growing consumption of the internet. Globally, about 6 billion people in 2022 were estimated to be internet users, compared to 5 billion in 2021. Owing to this, there has been growing innovation in technology, which has further led lighting technology to set its feet on visible lighting communication. Hence, with the guidance of visible light technology, the rising demand for the internet could be resolved since it provides high-speed internet.

Additionally, VLC signals are most suitable for security-related applications since they are incapable to flow through barriers. Additionally, they are also considered secure for use in petrochemical plants and mining environments owing to their VLC technology. Therefore, with the surge in demand for oil and the growing extraction of resources, the demand for visible light technology is poised to grow in the market.

Visible Light Communication Market: Growth Drivers and Challenges

Growth Drivers

Growth in the Adoption of Automotive From about 65 million vehicles sold in the world in 2021 to approximately 66 million vehicles sold globally in 2022. Therefore, owing to this, the use of visible light communication is also set to rise. Due to the presence of car lights and the infrastructure of traffic signals already in effect, it is extensively employed in vehicular communication. This could involve cooperative forward collision warning, emergency electronic brake lights, pre-crash sensing, lane change warning, left turn assistant, stop sign movement assistant, traffic signal violation warning, and curve speed warning.
Rise of its Application in the Healthcare Industry Visible light communication has been observed to be of great use in hospitals since hospitals consist of electromagnetic wave-sensitive areas (such as MRI scanners and operation theatres). Due to the fact that this spectrum does not interact with the RF spectrum, VLC is anticipated to be useful in these locations.
Advancement in Educational Institutions There has been a growing adoption of digitalization in educational institutions. Therefore, the need for high-speed data is also growing, which could be further satisfied with the installation of LED lights, further enabling visible light communication. Universities and colleges could save money on energy costs and provide high-speed internet access by installing LED lighting. In educational institutions, Li-Fi, one of the applications of visible light technology, is expected to totally replace Wi-Fi.

Challenges

Short Coverage Range Since it Operates on Light
Lack of Awareness Among People – Visible light communication technology is unknown to a large number of people. Especially in developing nations, owing to the lack of infrastructure progress, the adoption rate has been quite low. Also, the various rural parts of the world are unaware of the use of the internet. Hence, this factor is set to restrict the growth of the market.
High Cost of Installation

Visible Light Communication Segmentation

Application (Consumer Electronics, Defense & Security, Transportation, Public Infrastructure, Life Sciences)

Visible light communication market from the public infrastructure segment is expected to generate the highest revenue by the end of 2035. This since, the adoption of visible light communication is growing in public infrastructure. These public infrastructures such as retail, hospitals, office buildings, and other indoor infrastructure. Due to its low cost and utilization of the existing lighting infrastructure, VLC is possible to serve devices in indoor spaces. Additionally, it offers a high-speed transmission that uses a large amount of the visible light spectrum without a license, ensuring security since these signals are incapable to pass through walls.

Component (Photodetectors, Microcontrollers, LED, Software & Services)

The LED segment in the visible light communication market is poised to have noteworthy growth over the forecast period. The adoption of LED is growing in various applications such as automotive, and lighting applications in infrastructure. Moreover, their use is also growing on streets as well as in refrigerators. Hence, LED light is replacing the conventional lighting method further giving scope for the adoption of visible light communication.

Our in-depth analysis of the global market includes the following segments:

Component

LED
Photodetectors
Microcontrollers
Software & Services

Transmission Type

Uni-Directional
Bi-Directional

Application

Consumer Electronics
Defense & Security
Transportation
Public Infrastructure
Life Sciences

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Visible Light Communication Industry- Regional Synopsis

North American Market Forecast

The North America visible light communication market is set to have the largest growth by the end of 2035, backed by the growing adoption of LED lights. Between 2017 and 2035, it is expected that there would be a rise in the number of LED light installations in the United States, from about 2 billion units installed in 2017 to around 8 billion units in 2035. Additionally, the investment in R&D for the innovation of artificial intelligence, big data analytics, and sustainable energy is growing. Hence, this factor is also poised to have an influence on the visible light communication market in this region.

APAC Market Statistics

The visible light communication market in Asia Pacific is also estimated to grow over the forecast period. The growth of the market in this region can be attributed to rising smart city initiatives by the government. The Internet of Things (IoT) has a huge impact on the idea of smart cities. Further, combining Li-Fi and IoT could significantly improve smart cities. Hence, the adoption of visible light communication is anticipated to rise. Moreover, large-scale connectivity would be also made feasible by Li-Fi, which would also automate a number of smart city activities. In a large number of Asia Pacific nations LED lights have already been installed and are currently used to light up most public areas. Therefore, it is also anticipated to boost visible light communication market demand in this region.

Key Questions Answered in the Report

1) What are the major factors driving the growth of the visible light communication market?

Ans: The major factors driving the growth of the market are growth in adoption of automotive, rise of its application in the healthcare industry, and advancement in educational institution.

2) What would be the CAGR of the visible light communication market over the forecast period?

Ans: The market size of visible light communication is anticipated to attain a CAGR of ~38% over the forecast period, i.e., 2023 â€“ 2035.

3) Who are the major players dominating the visible light communication market?

Ans: The major players in the market are LVX System, Panasonic Holdings Corporation, Lucibel SA, Koninklijke Philips NV, and more.

4) How are the company profiles selected?

Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.

5) What are the segments in the visible light communication market?

Ans: The market is segmented by component, transmission type, application, and by region.

6) Which segment captures the largest market size in the application segment in the visible light communication market?

Ans: The public infrastructure segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

7) What are the challenges affecting the market growth?

Ans: Short coverage range since it operates on light, lack of awareness among people, and high cost of installation are estimated to be the growth hindering factors for the market expansion.

8) Which region will provide more business opportunities for the growth of the visible light communication market in the future?

Ans: The market in the North American region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.

Base Year	2022
Forecast Year	2023-2035
CAGR	~38%
Base Year Market Size (2022)	~ USD 1 Billion
Forecast Year Market Size (2035)	~ USD 5 Billion
Regional Scope	North America (U.S., and Canada) Latin America (Mexico, Argentina, Rest of Latin America) Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific) Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe) Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)