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US FSO VLC Li-Fi Market

ID: MRFR/SEM/15735-HCR
200 Pages
Garvit Vyas
October 2025

US FSO VLC Li-Fi Market Research Report By Component (LED, IR Emitters, Opto-couplers, Image Sensors) and By Application (ITS, Indoor Networking, In-flight Entertainment and Communication, Health Care and underwater Communication, Location-Based Services) - Forecast to 2035

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US FSO VLC Li-Fi Market Infographic
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US FSO VLC Li-Fi Market Summary

As per MRFR analysis, the US fso vlc-li-fi market size was estimated at 1850.0 $ Million in 2024. The US fso vlc-li-fi market is projected to grow from 2636.81 $ Million in 2025 to 91210.0 $ Million by 2035, exhibiting a compound annual growth rate (CAGR) of 42.53% during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The US FSO VLC-Li-Fi market is experiencing robust growth driven by technological advancements and urbanization.

  • The largest segment in the US FSO VLC-Li-Fi market is the telecommunications sector, while the fastest-growing segment is expected to be smart city applications.
  • There is a notable increase in the adoption of FSO VLC-Li-Fi technologies in urban areas, reflecting a shift towards modern communication solutions.
  • Energy efficiency remains a focal point, as businesses and municipalities seek sustainable communication technologies.
  • Key market drivers include the growing demand for high-speed connectivity and government initiatives supporting infrastructure development.

Market Size & Forecast

2024 Market Size 1850.0 (USD Million)
2035 Market Size 91210.0 (USD Million)
CAGR (2025 - 2035) 42.53%

Major Players

Oledcomm (FR), PureLiFi (GB), Signify (NL), FSONA Networks (CA), LiFi Labs (US), Velmenni (IN), Lightbee (DE), Acuity Brands (US)

US FSO VLC Li-Fi Market Trends

The fso vlc-li-fi market is currently experiencing a notable evolution, driven by advancements in optical wireless communication technologies. This market encompasses the use of light to transmit data, offering a potential alternative to traditional radio frequency systems. As organizations increasingly seek high-speed connectivity solutions, the demand for fso vlc-li-fi technologies appears to be on the rise. Factors such as the growing need for bandwidth-intensive applications and the proliferation of smart devices contribute to this trend. Furthermore, the emphasis on energy efficiency and sustainability in communication systems is likely to bolster the adoption of these technologies. In addition, regulatory support and initiatives aimed at enhancing wireless communication infrastructure may further stimulate growth in the fso vlc-li-fi market. The integration of these technologies into various sectors, including healthcare, education, and transportation, suggests a broadening scope of applications. As stakeholders recognize the advantages of optical wireless communication, including reduced latency and enhanced security, the market is poised for continued expansion. Overall, the fso vlc-li-fi market reflects a dynamic landscape, characterized by innovation and a shift towards more efficient communication methods.

Increased Adoption in Urban Areas

Urban environments are likely to witness a surge in the adoption of fso vlc-li-fi technologies. The dense population and high demand for reliable connectivity create an ideal setting for these solutions. As cities strive to enhance their digital infrastructure, the integration of optical wireless communication may become a priority.

Focus on Energy Efficiency

There appears to be a growing emphasis on energy-efficient communication solutions within the fso vlc-li-fi market. Organizations are increasingly seeking technologies that not only provide high-speed data transmission but also minimize energy consumption. This trend aligns with broader sustainability goals.

Expansion in Diverse Applications

The fso vlc-li-fi market is likely to expand into various sectors, including healthcare and education. The unique advantages of optical wireless communication, such as enhanced security and reduced interference, make it suitable for applications requiring reliable and secure data transmission.

US FSO VLC Li-Fi Market Drivers

Growing Demand for High-Speed Connectivity

The fso vlc-li-fi market is experiencing a surge in demand for high-speed connectivity solutions, particularly in urban environments. As the need for faster internet access escalates, businesses and consumers alike are seeking alternatives to traditional broadband. This trend is driven by the increasing reliance on cloud-based services and the proliferation of smart devices. In 2025, the market is projected to grow at a CAGR of approximately 25%, reflecting the urgency for enhanced data transmission capabilities. The fso vlc-li-fi market is poised to capitalize on this demand, offering innovative solutions that leverage light-based communication technologies to deliver superior speed and reliability.

Increased Focus on Smart City Developments

The rise of smart city initiatives is significantly impacting the fso vlc-li-fi market. As urban areas evolve into smart cities, the demand for efficient and reliable communication systems is intensifying. Fso vlc-li-fi technologies offer unique advantages, such as high-speed data transfer and low latency, which are essential for smart city applications like traffic management and public safety. The fso vlc-li-fi market is expected to thrive as municipalities invest in these technologies to enhance urban living. With projections indicating that smart city investments could reach $1 trillion by 2025, the fso vlc-li-fi market is well-positioned to capture a substantial share of this burgeoning sector.

Rising Need for Secure Communication Solutions

In an era where data security is paramount, the fso vlc-li-fi market is gaining traction due to its inherent advantages in secure communication. Unlike traditional radio frequency systems, light-based communication is less susceptible to eavesdropping, making it an attractive option for sensitive data transmission. Industries such as finance and healthcare are increasingly adopting fso vlc-li-fi technologies to safeguard their communications. The fso vlc-li-fi market is likely to see a rise in demand as organizations prioritize security in their communication infrastructures. This trend is expected to contribute to a market growth rate of around 20% annually, as more entities recognize the benefits of utilizing light for secure data transfer.

Advancements in Optical Communication Technologies

Technological advancements in optical communication are significantly influencing the fso vlc-li-fi market. Innovations such as advanced modulation techniques and improved photodetector designs are enhancing the performance of light-based communication systems. These developments enable higher data rates and increased transmission distances, making fso vlc-li-fi solutions more appealing to various sectors, including telecommunications and healthcare. The fso vlc-li-fi market is likely to benefit from these advancements, as they facilitate the deployment of robust communication networks that can meet the growing demands of data-intensive applications. The market is expected to witness a notable increase in investment, with projections indicating a potential market value exceeding $1 billion by 2027.

Government Initiatives Supporting Infrastructure Development

Government initiatives aimed at enhancing communication infrastructure are playing a crucial role in the growth of the fso vlc-li-fi market. Policies promoting the adoption of advanced communication technologies are encouraging investments in optical networks. Federal and state programs are increasingly focusing on expanding broadband access, particularly in underserved areas, which aligns with the capabilities of fso vlc-li-fi solutions. The fso vlc-li-fi market stands to gain from these initiatives, as they create a conducive environment for the deployment of innovative communication systems. With projected funding in the billions for infrastructure improvements, the market is likely to experience accelerated growth in the coming years.

Market Segment Insights

By Components: LED (Largest) vs. IR emitters (Fastest-Growing)

In the US fso vlc-li-fi market, the components segment showcases a diverse distribution with LED technology leading the charge in market share. It serves as the backbone of the lighting and data transmission systems, thereby dominating the segment. Following closely are IR emitters, opto-couplers, and image sensors, which collectively contribute to the dynamic landscape of components. Each segment value plays a critical role in determining the overall efficiency and performance of VLC systems. Growth trends indicate a robust expansion, particularly for IR emitters, which are emerging as the fastest-growing component. The increasing demand for high-speed data transmission is propelling investments in advanced IR technologies. Additionally, innovations in LED and image sensor technology support enhanced performance, driving adoption across various applications. This evolving market is supported by the rising adoption of smart devices that utilize VLC systems for faster connectivity.

LED (Dominant) vs. IR emitters (Emerging)

The LED segment in the US fso vlc-li-fi market stands out as the dominant player, renowned for its efficiency and exceptional performance in both illumination and data transmission. Its predominant position is attributed to widespread adoption across various industries, emphasizing energy efficiency and sustainability. Meanwhile, IR emitters are gaining traction as an emerging component, recognized for their ability to facilitate high-speed communication in VLC systems. This surge in popularity is driven by the increasing need for fast and reliable data transfer in smart environments. The advancement of technology is enhancing the capabilities of both LEDs and IR emitters, making them indispensable in modern communication networks and reinforcing their individual market positions.

By Application: Indoor Networking (Largest) vs. In-Flight Entertainment and Communication (Fastest-Growing)

The market share distribution for the application segment in the US fso vlc-li-fi market reveals that indoor networking holds the largest share, driven by increasing demand for high-speed networking solutions in commercial and residential settings. Other segments, such as in-flight entertainment and communication, are also notable, capturing attention due to advancements in technology and growing passenger expectations for connectivity during flights. Growth trends in the application segment show a robust increase in demand for in-flight entertainment and communication, positioning it as the fastest-growing segment. This is largely fueled by airlines seeking to enhance customer experience through advanced communication systems. Additionally, the rising adoption of location-based services and health care applications contribute to sustained growth within the indoor networking segment, emphasizing the versatility and adaptability of light-based communication technologies.

Indoor Networking (Dominant) vs. In-Flight Entertainment and Communication (Emerging)

Indoor networking is a dominant force within the US fso vlc-li-fi market, characterized by its ability to deliver high-speed, reliable connectivity for both commercial and residential environments. The increasing proliferation of smart devices and IoT technologies further enhances its market position. In contrast, in-flight entertainment and communication represents an emerging segment, gaining traction as airlines invest in technology to provide seamless connectivity and enhanced entertainment options. This shift addresses consumer demands for better in-flight experiences, indicating a promising trajectory for growth as technological capabilities evolve.

Get more detailed insights about US FSO VLC Li-Fi Market

Key Players and Competitive Insights

The fso vlc-li-fi market is currently characterized by a dynamic competitive landscape, driven by rapid technological advancements and increasing demand for high-speed wireless communication solutions. Key players such as Oledcomm (FR), PureLiFi (GB), and Acuity Brands (US) are at the forefront, each adopting distinct strategies to enhance their market positioning. Oledcomm (FR) focuses on innovation in Li-Fi technology, emphasizing the development of energy-efficient solutions that cater to both commercial and residential sectors. Meanwhile, PureLiFi (GB) is leveraging strategic partnerships to expand its reach, particularly in the educational and healthcare sectors, where high-speed data transmission is critical. Acuity Brands (US) is concentrating on integrating Li-Fi technology into its existing lighting solutions, thereby creating a seamless user experience that combines illumination with data connectivity. Collectively, these strategies contribute to a competitive environment that is increasingly oriented towards technological integration and customer-centric solutions.

In terms of business tactics, companies are increasingly localizing manufacturing and optimizing supply chains to enhance operational efficiency. The market structure appears moderately fragmented, with several players vying for market share while also collaborating on technological advancements. This fragmentation allows for a diverse range of solutions, catering to various customer needs, while the collective influence of key players drives innovation and market growth.

In October 2025, Oledcomm (FR) announced a partnership with a leading telecommunications provider to develop a new Li-Fi network infrastructure aimed at urban environments. This strategic move is significant as it positions Oledcomm to capitalize on the growing demand for smart city solutions, potentially enhancing urban connectivity and reducing reliance on traditional Wi-Fi networks. The collaboration is expected to facilitate the deployment of Li-Fi technology in public spaces, thereby increasing accessibility and user engagement.

In September 2025, PureLiFi (GB) launched a new product line specifically designed for educational institutions, which integrates Li-Fi technology into classroom environments. This initiative is crucial as it addresses the increasing need for reliable and high-speed internet access in educational settings, particularly as digital learning continues to evolve. By targeting this niche market, PureLiFi is likely to strengthen its foothold in the education sector, fostering long-term relationships with institutions.

In August 2025, Acuity Brands (US) unveiled a new range of smart lighting solutions that incorporate Li-Fi capabilities, aimed at enhancing the user experience in commercial spaces. This development is indicative of Acuity's strategy to merge lighting and data transmission, thereby creating multifunctional products that meet the demands of modern businesses. The integration of Li-Fi into their offerings may provide Acuity with a competitive edge, as it aligns with the growing trend of smart building technologies.

As of November 2025, the competitive trends in the fso vlc-li-fi market are increasingly defined by digitalization, sustainability, and the integration of artificial intelligence. Strategic alliances among key players are shaping the landscape, fostering innovation and enhancing product offerings. Looking ahead, it is anticipated that competitive differentiation will evolve, shifting from price-based competition to a focus on innovation, technology, and supply chain reliability. This transition underscores the importance of developing unique solutions that not only meet customer needs but also contribute to sustainable practices in the industry.

Key Companies in the US FSO VLC Li-Fi Market market include

Industry Developments

The US Free Space Optics (FSO) Visible Light Communication (VLC) and Li-Fi market has seen significant advancements recently. Notable companies such as Signify, PureLiFi, and Oledcomm are pushing the envelope in developing innovative light-based communication technologies for various applications, including smart lighting and high-speed data transfer. In August 2023, Oledcomm announced a collaboration with General Motors to integrate Li-Fi technology in vehicle-to-infrastructure communication systems, enhancing data transfer capabilities while improving safety. Additionally, Sierra Wireless has been increasing its market presence with the rollout of new FSO products tailored for urban environments.

The market valuation for companies like Velmenni and Photonics Group has seen substantial growth, with projections indicating increased adoption in sectors such as smart cities and aviation. In terms of mergers and acquisitions, Lightbee merged with LiFi Labs in September 2023 to consolidate their Li-Fi technologies, reflecting a trend of consolidation within the sector. The robust growth trajectory of the US FSO VLC Li-Fi Market continues to be fueled by advancements in broadband requirements across industries and an increasing focus on wireless communication solutions.

Future Outlook

US FSO VLC Li-Fi Market Future Outlook

The fso vlc-li-fi market is projected to grow at a 42.53% CAGR from 2024 to 2035, driven by advancements in wireless communication and increasing demand for high-speed data transmission.

New opportunities lie in:

  • Development of integrated smart lighting solutions for urban environments.
  • Expansion of Li-Fi technology in healthcare for real-time patient monitoring.
  • Partnerships with telecommunications firms to enhance broadband connectivity.

By 2035, the market is expected to achieve substantial growth, positioning itself as a leader in innovative communication solutions.

Market Segmentation

US FSO VLC Li-Fi Market Components Outlook

  • LED
  • IR emitters
  • Opto-couplers
  • image sensors

US FSO VLC Li-Fi Market Application Outlook

  • ITS
  • indoor networking
  • in-flight entertainment and communication
  • Health care and underwater communication
  • location-based services

Report Scope

MARKET SIZE 2024 1850.0(USD Million)
MARKET SIZE 2025 2636.81(USD Million)
MARKET SIZE 2035 91210.0(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR) 42.53% (2024 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
Market Forecast Period 2025 - 2035
Historical Data 2019 - 2024
Market Forecast Units USD Million
Key Companies Profiled Oledcomm (FR), PureLiFi (GB), Signify (NL), FSONA Networks (CA), LiFi Labs (US), Velmenni (IN), Lightbee (DE), Acuity Brands (US)
Segments Covered Components, Application
Key Market Opportunities Integration of fso vlc-li-fi technology in smart city infrastructure enhances connectivity and data transmission.
Key Market Dynamics Technological advancements and regulatory support drive growth in the free-space optical, visible light, and light fidelity market.
Countries Covered US

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FAQs

What is the expected market size of the US FSO VLC Li-Fi Market in 2024?

In 2024, the US FSO VLC Li-Fi Market is expected to be valued at 1.85 billion USD.

What is the projected growth rate of the US FSO VLC Li-Fi Market from 2025 to 2035?

The market is anticipated to grow at a CAGR of 41.618% from 2025 to 2035.

What will be the market size of the US FSO VLC Li-Fi Market by 2035?

By 2035, the market is expected to reach a value of 85.01 billion USD.

Which component has the largest market size in 2024 within the US FSO VLC Li-Fi Market?

LED components are projected to have the largest market size, valued at 0.6 billion USD in 2024.

What will be the market value of Image Sensors in the US FSO VLC Li-Fi Market by 2035?

Image Sensors in this market are expected to be valued at 25.01 billion USD by 2035.

Who are the key players in the US FSO VLC Li-Fi Market?

Major players in the market include Signify, PureLiFi, Sierra Wireless, and Oledcomm.

What are the anticipated market values for IR Emitters in 2024 and 2035?

The market for IR Emitters is expected to be valued at 0.4 billion USD in 2024 and increase to 18.0 billion USD by 2035.

What emerging trends are impacting the US FSO VLC Li-Fi Market?

Key trends include increasing demand for high-speed internet and growing applications in smart cities.

How does the growth of the US FSO VLC Li-Fi Market compare across different components?

The growth rates vary, with LED components set to lead the market in terms of value growth from 2025 to 2035.

What is the expected market size for Opto-couplers in 2035?

Opto-couplers are expected to reach a market size of 15.0 billion USD by 2035.

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