FSO & VLC/Li-Fi market worth $18.2 billion by 2028

The FSO & VLC/Li-Fi market is projected to grow from USD 3.3 billion in 2023 to USD 18.2 billion by 2028, registering a CAGR of 40.3% during the forecast period according to a new report by MarketsandMarkets.

Mobile Backhaul FSO application to account for significant share of FSO & VLC/Li-Fi market in 2023
The mobile backhaul application is projected to account for an extensive share of the FSO & VLC/Li-Fi market in 2023. The mobile backhaul application is expected to continue to account for the largest size of the FSO market during the forecast period. The increasing number of mobile devices and high-speed services accelerate the growth of traffic in mobile backhaul networks. For upgraded cellular backhaul, the implementation of FSO technology proves to be a cost-efficient and high-bandwidth solution. Hence, the mobile backhaul application is likely to generate high demand for FSO systems during the forecast period.

Software VLC component to lead FSO & VLC/Li-Fi market during forecast period
The software component is expected to hold higher opportunities than other components between 2023 and 2028. The market for software holds the largest share in the VLC/Li-Fi market and is projected to record the highest growth rate during the forecast period. Due to the commercialization of bidirectional VLC in late 2022, the demand for software solutions is projected to rise and support the uplink and downlink for two-way communications in various applications. Companies in the VLC market are entering into partnerships and collaborations with software and app development companies to develop apps and software for VLC systems. Acuity Brands (US) partnered recently with Spatial DNA (Canada) to introduce the Atrius IoT Partner program and leverage location-based data provided by Atrius Platform Services and Atrius-Ready Sensory Networks to build mobile applications for indoor navigation and enterprise workflows.

Asia Pacific market to offer significant opportunities during forecast period
Asia Pacific is the leading FSO & VLC/Li-Fi market, with significant demand from China, India, and Japan. The region held the largest share of the FSO & VLC/Li-Fi industry in 2022. The market in the Asia Pacific region is expected to grow at the highest CAGR during the forecast period. Asia Pacific has the world’s largest customer base, and digital technologies adopted in this region have tremendous potential for transformation. The rise in the number of manufacturing facilities, the rapid development of telecommunication infrastructure, and the growing demand for CAD are favoring the growth of the FSO market in the region.

CT Bureau