Global investment in deployment of Li-Fi (Light Fidelity) broadband wireless technology is poised to soar this year and the nascent market is expected to grow at a 48% CAGR from 2016-2020, according to new market research from Technavio.
Service providers are keen to develop alternatives to radio frequency wireless transmission and digital signal processing amidst the ongoing boom in wireless data traffic and increasing scarcity of RF frequency spectrum. Li-Fi has emerged as a viable alternative because of its high capacity and its ability to transport data at very high rates, Technavio highlights in its ¨Global Li-Fi Market 2016-2020¨ report.
“The market is driven by the advantages offered by the Li-Fi technology that include power efficiency, last mile connectivity, and ultra-fast data transfer. In addition, unlicensed use, high data density, and data rates offered by the technology also has a positive impact on the market,” commented M2M and connected devices research analyst Abhishek Sharma.
Indoor networking accounted for 76 percent of the Li-Fi market in 2015, according to Technavio’s report. LBS (location-based services) followed at 13.5 percent and Li-Fi used for in-flight communications and entertainment came next, accounting for 1.5 percent.
Indoor networking should continue to account for the lion’s share of the Li-Fi market going forward, Abhishek said. “The adoption of this technology, along with indoor position apps, will improve the targeted advertising of retailers and enhance their sales.
¨Moreover, low data rates and existing infrastructure will reduce costs considerably. Also, interest shown by major lighting manufacturers like GE and Philips will further boost this market.”
The value of LBS has been increasing along with increasing mobile device usage and wireless network capacity. Li-Fi should provide benefits in this market segment as well, Technavio says.
GPS-based LBS doesn’t work indoors, so network operators have been installing Wi-Fi access points as a means of providing LBS. Li-Fi can serve as an alternative, particularly given widespread use of LED lighting, according to the market research provider.
LEDs are 10-times more numerous indoors than Wi-Fi Aps, which means that Li-Fi networking could provide location data that’s more accurate and precise. Furthermore, Li-Fi sales and deployments should increase along with expected growth of in-building LED installations during the forecast period.
Technavio also includes a list of leading Li-Fi vendors in its report. GE, LVX System, Oledcomm, Philips and pureLiFi are the top five.