- Summary
- Table Of Content
- Methodology
FSO and VLC/Li-Fi Market Size:
FSO and VLC/Li-Fi Market size is estimated to reach over USD 11,440.61 Million by 2031 from a value of USD 2,247.12 Million in 2023 and is projected to grow by USD 2,814.03 Million in 2024, growing at a CAGR of 22.6% from 2024 to 2031.
FSO and VLC/Li-Fi Market Scope & Overview:
Free space optics (FSO) is a wireless communication technology for the transmission of data over short distances. It uses laser beams to transmit data. It is ideal for short-distance communication, generally within 2km. Visible Light Communication (VLC) and Light Fidelity (Li-Fi) is a form of free space technology that uses visible light to transmit data. Light-emitting diodes are used to transmit data over short distances. Visible light communication is comparatively faster and more secure than Wi-Fi. Visible light communication is used for various applications such as security systems, gaming, and streaming media. The difference between Li-Fi and VLC is that VLC has unidirectional, point-to-point light communication at low data rates. Li-Fi technology enables fully networked, bidirectional, and high-speed wireless communication. The amount of electricity to operate is less compared to Wi-Fi, making it an energy-efficient solution. Visible light communication and light fidelity are used for various applications such as IT and telecommunication, aerospace, healthcare, and others.
FSO and VLC/Li-Fi Market Dynamics - (DRO) :
Key Drivers:
Increasing demand for high-speed data transmission is fueling the FSO and VLC/Li-Fi industry.
FSO and VLC/Li-Fi provide a solution to rising trends of higher data rates and a reliable internet connection, driven by streaming, cloud services, and others. It enables various applications such as ultra-high-speed data transmissions, high-speed downloads, uninterrupted streaming, and others. Additionally, the higher bandwidth offered by these technologies is ideal for real-time applications such as AR (Augmented Reality), VR (Virtual Reality), and industrial automation. These technologies are adopted in various areas including smart cities, healthcare, and defense, where reliable high-speed communications are needed in turn driving the FSO and VLC/Li-Fi market demand.
- In April 2023, Viasat Unveiled the Mercury Free Space Optical Communications (FSOC) terminal which delivered data rates up to 40Gbps with a range of 70 km for terrestrial applications.
Therefore, the rising advancements in high-speed data transmissions are driving the FSO and VLC/Li-Fi market demand.
Key Restraints :
High installation costs are restraining the market growth.
The initial high setup cost of free space optics, visible light communication, and light fidelity technologies present a significant challenge to their adoption and growth. These technologies offer long-term benefits like energy efficiency and high-speed data transmission, however, their deployment requires specialized equipment such as optical transmitters, receivers, and compatible light systems. The equipment is more expensive than traditional wireless infrastructure. The integration of FSO and VLC/Li-Fi with existing networks and ensuring smooth operation further increases the upfront investment. These high capital expenditures can hinder the decisions of the companies.
- For instance, according to the CTBTO organization, the installation and purchase cost of free space optics communication is estimated to reach around USD 10000 to USD 20000.
Thus, the analysis states that initial high setup costs are making it difficult to adopt FSO systems, in turn hindering the FSO and VLC/Li-Fi market size.
Future Opportunities :
Rise of advancements in healthcare technologies propels potential FSO and VLC/Li-Fi market opportunities.
In healthcare, free space optics, visible light communication, and light fidelity offer various opportunities for secure high-speed, and interference-free communication. Free space optics (FSO) are widely deployed in healthcare applications where wireless communication through radio waves is not allowed because of potential health risks. These technologies support applications such as remote monitoring by enabling real-time data transmission of medical data. Healthcare facilities increasingly adopting IoT (Internet of Things) devices, these technologies can efficiently manage data traffic, reducing interference and improving overall communication reliability.
- According to the India Brand Equity Foundation (IBEF), rising venture capital and private equity investments in the healthcare sector in 2024 mark a 220% increase from the previous year.
Hence, the rising trend of investments in the healthcare sector is driving the FSO and VLC/Li-Fi market opportunities during the forecast period
FSO and VLC/Li-Fi Market Segmental Analysis :
By Component:
Based on the components, the market is segmented into LED, IR emitters, optocouplers, and image sensors.
Trends in the component:
- LEDs are used for data transmission in free space optics over short distances and their widespread availability simplifies integration.
- IR emitters have higher transmission rates, making them ideal for outdoor applications such as security systems, remote control systems, and others.
The LED accounted for the largest revenue share of 39.21% in the year 2023.
- In visual light communication and light fidelity, LEDs are used for data transmission and modulation for sending information over short distances.
- The widespread availability of LED allows easy integration with the existing infrastructure.
- For instance, PureLiFi launched LiFi-XC which uses LED light to transmit high speed and secure data wirelessly.
- Thus, the rising advancements in LED for enhanced data transmissions is driving the FSO and VLC/Li-Fi market share.
The IR emitters are anticipated to register the fastest CAGR during the forecast period.
- An IR (Infrared) emitter is an LED used as a source to emit light energy in the infrared spectrum.
- High-speed data transmission rates are achieved by using infrared light making it suitable for outdoor and long-distance communications.
- Infrared emitters are used in different applications such as security systems, communication, optical sensors, remote control systems (like TV remotes), night vision cameras, and others.
- In July 2024, Vishay Intertechnology Inc., launched an 890nm IR (Infrared) emitting diode in its optoelectronics portfolio allowing high speed and higher intensity.
- Therefore, the rising advancement associated with infrared emitters is anticipated to boost the FSO and VLC/Li-Fi market expansion during the forecast period.
By End-User:
Based on the end-user, the FSO and VLC/Li-Fi market is segmented into IT and telecommunication, aerospace, healthcare, and others.
Trends in the End-User:
- In healthcare systems, free space optics is used for monitoring data and data transmission services in radio frequency-controlled hospitals.
- In the telecommunication and IT sector, VLC provides high-speed data transmissions, a secure network, and enhanced bandwidth utilization.
The IT and telecommunication sector accounted for the largest revenue share in the year 2023
- In telecommunication, visible light communication (VLC) is used to transmit data at higher speeds over short distances.
- Additionally, it is used to provide enhanced security, high bandwidth, and potential energy harvesting capabilities in IT and telecommunication.
- According to the India Brand Equity Foundation (IBEF), the Department of IT and Telecommunications was allocated USD 13.98 billion in the union budget 2024-25.
- Thus, the analysis states that the rising trend of investments in the IT and telecommunication sector is set to drive FSO and VLC/Li-Fi market growth.
The healthcare sector is anticipated to register the fastest CAGR during the forecast period.
- Visual light communication-based medical products can be used to provide monitoring and data transmission-related services in radio frequency-controlled hospital areas.
- Optical modulation is the process through which LEDs are used in the transmitter component to transmit healthcare and medical information.
- According to the India Brand Equity Foundation (IBEF), India’s public expenses in healthcare saw a rise from 1.6% in FY21 to 2.1% in FY23.
- Hence, the rising investments in healthcare are anticipated to boost the FSO and VLC/Li-Fi market trends during the forecast period.
Regional Analysis:
The regions covered are North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.
Asia Pacific region was valued at USD 654.15 Million in 2023. Moreover, it is projected to grow by USD 821.79 Million in 2024 and reach over USD 3,457.35 Million by 2031. Out of this, China accounted for the maximum revenue share of 32.9%. The Asia Pacific region leads due to technological advancements, increasing consumer demand, and rising investments in the IT and telecommunication sector for 5G, IoT (Internet of Things) in turn driving the FSO and VLC/Li-Fi market growth.
- According to IBEF (India Brand Equity Foundation), FDI inflow reached USD 39.32 billion in March 2024. Therefore, rising investment in the telecom industry is propelling improvements in FSO and VLC/Li-Fi technologies for high-speed and secure data transmission.
North America is estimated to reach over USD 4,164.38 Million by 2031 from a value of USD 815.68 Million in 2023 and is projected to grow by USD 1,021.71 Million in 2024. As per the analysis, FSO and VLC/Li-Fi market trends in North America are growing because of increased demand in various applications such as the IT and telecom industry, healthcare systems, aerospace, and others. Additionally, the FSO and VLC/Li-Fi have various advantages, including high bandwidth, real-time data exchange, and easy availability of components, which are projected to drive the overall industry growth in North America during the forecast period.
- In May 2023, Raytheon Technologies an American company unveiled NexGen Optix, a FSO communication system that enabled secure and high data transmission.
Additionally, according to the FSO and VLC/Li-Fi market analysis, Europe is anticipated to witness substantial development and demand. The region is backed by well-developed IT and telecommunication infrastructure and trending investments in IT, healthcare, telecommunication, and others across the region.
Moreover, the Middle East & Africa is poised for moderate development. According to the analysis, the determinants affecting the growth include the growing healthcare sector, cost considerations and initiatives to bridge the digital infrastructure gap in Saudi Arabia and UAE are the major factors driving the FSO and VLC/Li-Fi market size.
Further, according to the FSO and VLC/Li-Fi market analysis, the Latin American region is experiencing growth in the telecommunication sector backed by high-speed internet access. Countries such as Brazil, Argentina, and others are representing the rising trend of the FSO and VLC/Li-Fi market expansion in the region.
Top Key Players & Market Share Insights:
The FSO and VLC/Li-Fi market is highly competitive with major players providing wireless communications solutions to the national and international markets. Key players are adopting several strategies in research and development (R&D), product innovation, and end-user launches to hold a strong position in the global FSO and VLC/Li-Fi market share. Key players in the FSO and VLC/Li-Fi industry include-
- Lightbee (Spain)
- Caci International Inc. (US)
- Mostcom (Canada)
- NextLiFi (Australia)
- Lumefficient (US)
- EC System (Poland)
- Acuity Brands, Inc. (US)
- Airlinx Communications, Inc. (US)
- Global LiFi Tech (Canada)
- PureLiFi (UK)
FSO and VLC/Li-Fi Market Report Insights :
| Report Attributes | Report Details |
| Study Timeline | 2018-2031 |
| Market Size in 2031 | USD 11,440.61 Million |
| CAGR (2024-2031) | 22.6% |
| By Component |
|
| By End-Use |
|
| By Region |
|
| Key Players |
|
| North America | U.S. Canada Mexico |
| Europe | U.K. Germany France Spain Italy Russia Benelux Rest of Europe |
| APAC | China South Korea Japan India Australia ASEAN Rest of Asia-Pacific |
| Middle East and Africa | GCC Turkey South Africa Rest of MEA |
| LATAM | Brazil Argentina Chile Rest of LATAM |
| Report Coverage |
|
Key Questions Answered in the Report
How big is the FSO and VLC/Li-Fi market? +
The FSO and VLC/Li-Fi Market size is estimated to reach over USD 11,440.61 Million by 2031 from a value of USD 2,247.12 Million in 2023 and is projected to grow by USD 2,814.03 Million in 2024, growing at a CAGR of 22.6% from 2024 to 2031.
Which is the fastest-growing region in the FSO and VLC/Li-Fi market? +
Asia-Pacific is the region experiencing the most rapid growth in the FSO and VLC/Li-Fi market.
What specific segmentation details are covered in the FSO and VLC/Li-Fi report? +
The FSO and VLC/Li-Fi report include specific segmentation details for component, type, end user, and region.
Who are the major players in the FSO and VLC/Li-Fi market? +
The key participants in the FSO and VLC/Li-Fi market are Lightbee (Spain), Caci International Inc. (US), EC System (Poland), Acuity Brands, Inc. (US), Airlinx Communications, Inc. (US), Global LiFi Tech (Canada), PureLiFi (UK), Mostcom (Canada), NextLiFi (Australia), and Lumefficient (US).
