The global Li-Fi (Light Fidelity) market is expected to reach $115 billion by 2022, growing at a CAGR of 116.8% from 2016, says a new report from Allied Market Research. And while North America currently dominates the Li-Fi market – and will continue to lead throughout the forecast period – Asia-Pacific will be the fastest growing region in the next five to six years.
Li-Fi is a high speed, two-way wireless communication method which uses visible light from LEDs as the medium for transmitting the data by turning them on and off at very high frequency which human eyes cannot sense. While the Li-Fi technology market is currently at the introductory stage, it is slotted for a very high growth rate in next five to six years, with proponents touting it as a viable replacement for Wi-Fi technology. Among other advantages, Li-Fi is considerably faster than Wi-Fi, has almost 10,000 times broader bandwidth because it uses visible light, and it is safe to operate in electromagnetic sensitive areas such as hospitals and airplanes, the report says.
Li-Fi incorporates three major components: LED, photodetector, and microcontroller. Among these, LED dominated the market in 2015, contributing over 40% share of the overall component segment revenue. Also, this segment is anticipated to grow with the highest CAGR – 118.1% during the forecast period, owing to its low cost, increased adoption in different applications such as households, offices, vehicles, airplanes and retail stores among others. Furthermore, LEDs are preferred over all other lighting systems as they can easily be turned off and on with the use of a microcontroller.
Under the industry vertical segment, the retail industry contributed over 30% of the overall Li-Fi market in 2015. Li-Fi enables storekeepers to monitor the positioning of customers by tracking their location to improve the shopping experience and provide notifications on their cellphones. However, the healthcare sector is expected to register highest CAGR at 125.3% during the forecast period, because Li-Fi does not cause any electromagnetic interference and can safely be used with other medical apparatus such as CT scanner, MRI machine, X-ray machine, and ultrasound machines.
North America dominated the market in 2015, accounting for around 40% of the total market revenue and it is expected to maintain its dominance throughout the forecast period. This is accredited to the presence of various R&D facilities in the region and investment for Li-Fi technology implementation by major companies in the region.
However, Asia-Pacific is anticipated to be the fastest growing region with a CAGR of 121.7% during the forecast period, thanks to the large electronics market in China and Japan, as well as presence of several developing regions where governments promote the use of LED lights. In Asia-Pacific, China holds about 50% of the market at present and is expected to maintain its leading position throughout the forecast period.
The full report is here.