Light Fidelity (Li – Fi) Technology Market – Factors Responsible for Driving and Inhibiting the Growth of the Market

BIS Research
December 20, 2018
3 min read

By BIS Research

With the advent of Light Fidelity or Li-Fi technology, human brain has given rise to a new phenomenon in the form of Li-Fi. It is a wireless communication technology, which is expected to enhance the overall experience of the user by its user-friendly interface. With the constantly evolving technologies such as, 5G wireless broadband, and Internet of Things (IoT), among others, Li-Fi technology is bound to expand to many more fields of applications such as healthcare, aviation, retail and education, among others and transform all the major industry verticals present in the world today.


The technology was first developed by Professor Harald Hass in the year 2011 and it works on Visible Light communication technique. Li-Fi technology uses light emitting diode (LED) bulbs for transmitting data where it acts as both emitter and photodiode for detecting the light. Unlike Wireless Fidelity (Wi-Fi), Li-Fi does not operate on radio waves which makes it even more useful for aviation and marine industries. The major driving force behind the popularity of Li-Fi is its reliability and fast response. Since the principle involves working with LED bulbs, the transition from CFL and bulbs into LED’s have added as a major driving force for Li-Fi technology in the electronics & semiconductor industry.


According to a recent market report published by BIS Research, titled ‘Global Market for Li-Fi Technology – Analysis and Forecast 2018 – 2023, the factors driving the growth of the global Li-Fi market include adoption of light emitting diode (LED), superior properties of Li-Fi, and increased demand for wireless networks. One of the major driving factors for the significant growth in the global Li-Fi market has been the adoption of the Light Emitting Diodes (LEDs) based lighting systems. The shift from incandescent to halogen incandescent and further to fluorescent tube lamp technology was a big step in the development of lighting industry. Later on, fluorescent tube lamps were replaced by Compact Fluorescent Lamps (CFLs) and further by Light Emitting Diodes (LEDs). This has improved the energy efficiency and is catering to the prevailing issue of the global energy crisis. Owing to these rapid technological developments and scientific innovations, companies have started to adopt solid-state lighting aggressively for minimization of the per unit costs, and at the same time, increasing their energy efficiency.


However, even with such enormous growth of demand, the global market for Li-Fi is facing immense challenges which include technical challenges, and lack of awareness regarding Li-Fi. One of the major factor acting as a restraint in the development of the Li-Fi technology is the fact that the Li-Fi signals can’t penetrate through walls. The Li-Fi technology uses visible light communication for the signal transmission and since light cannot penetrate through the walls, the communication is interrupted. Internet can only be used where there is light source available. The light can’t penetrate through the walls as it works only in the line of sight. Thus, it is required to ensure that there is no obstacle present in between the LED lamps and the receivers and the data is normally received by the receiver. If there is a presence of an obstacle between the lamp and the receiver, then a loss of data occurs.

Figure 1
Global Li-Fi Market, 2018-2028

Source: Secondary Research and BIS Research Analysis


The report published by BIS Research, states that the global market for Li-Fi generated sales revenue of $88.0 million in 2017 and by 2028 the revenue is expected to reach $35.82 billion, growing at a CAGR of 71.2%. This growth can be attributed to the increasing demand of advanced data transmission technology. Furthermore, the rising demand for higher bandwidth and advantages associated with Li-Fi technology and tremendous development in the Research & Development (R&D) for Li-Fi technology to overcome the technical challenges are expected to drive the global market for Li-Fi during the forecast period (2018-2028).


LEDs can easily turn on and off up to million times per second, enabling the diodes to transmit the data at a rapid rate. Li-Fi, an emerging technology effectively uses LEDs as data transmitters, wherein, the LEDs help in creating high speed optical wireless communication that leverages the visible and infrared light spectrums. This is achieved through the modulation of light at various frequencies that are imperceptible to the human eye in most lighting applications.

This content was developed in collaboration with BIS Research and views expressed herein do not necessarily reflect those of Aliaba Group or its affiliates.