Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Market Size (2025) | USD 1.25 Billion |
| Market Size (2030) | USD 7.73 Billion |
| Growth Rate (2025 - 2030) | 43.96% CAGR |
| Fastest Growing Market | Middle East and Africa |
| Largest Market | Asia Pacific |
| Market Concentration | Low |
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*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Light Fidelity (Li-Fi) Market Analysis by Mordor Intelligence
The Li-Fi market size stands at USD 1.25 billion in 2025 and is forecast to reach USD 7.73 billion by 2030, reflecting a 43.96% CAGR. Growth is propelled by the accelerating LED-lighting retrofit cycle, urgent demand for high-bandwidth wireless links in RF-restricted zones, and the stabilizing effect of the IEEE 802.11bb interoperability standard. Commercial deployments are scaling rapidly as enterprises recognize Li-Fi’s dual-use value, illumination and data, while governments position optical wireless as a strategic enabler of smart-city and defense initiatives. Vendor consolidation, component cost compression, and rising chipset integration are further strengthening the Li-Fi market’s commercial maturity.
Key demand shifts are visible in Asia-Pacific’s smart-city infrastructure projects, Middle East mega-developments, and transportation corridors where line-of-sight optical links reduce RF congestion. Enterprise security mandates and electromagnetic-compatibility directives in healthcare and semiconductor manufacturing are shortening sales cycles. However, the high cost delta versus Wi-Fi, the technology’s strict line-of-sight requirement, and fragmented optical-spectrum regulations still temper adoption rates in cost-sensitive geographies.
Key Report Takeaways
- By application, Indoor Networking and Enterprise led with 41.7% revenue share in 2024; Vehicle and Transportation is projected to expand at a 45.19% CAGR through 2030.
- By component, LEDs accounted for a 48.2% share of the Li-Fi market size in 2024, while Micro-controllers and Modulators are advancing at a 45.39% CAGR to 2030.
- By form factor, Li-Fi Lamps and Luminaires held 37.5% of the Li-Fi market share in 2024; Integrated Fixtures register the fastest CAGR at 46.79% to 2030.
- By end-user, Enterprises captured 44.9% share of the Li-Fi market size in 2024; Transportation and Logistics posts the highest 46.4% CAGR through 2030.
- By geography, Asia-Pacific commanded 35.8% of global revenue in 2024; the Middle East and Africa are forecast to grow at a 47.18% CAGR to 2030.
Global Light Fidelity (Li-Fi) Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| LED-lighting retrofit wave | +8.20% | Global, with concentration in North America and Europe | Medium term (2-4 years) |
| Secure RF-free links for defense and healthcare | +7.50% | North America, Europe, APAC defense corridors | Short term (≤ 2 years) |
| IEEE 802.11bb interoperability standard | +9.10% | Global standardization impact | Long term (≥ 4 years) |
| In-flight cabin connectivity adoption | +4.80% | Global aviation hubs, concentrated in North America and Europe | Medium term (2-4 years) |
| VCSEL-based ≥10 Gbps industrial links | +6.30% | APAC manufacturing centers, spill-over to Europe and North America | Long term (≥ 4 years) |
| RF-restricted clean-room mandates | +5.40% | Global semiconductor and pharmaceutical manufacturing regions | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
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LED-lighting retrofit wave
Rapid LED-lighting upgrades allow facility owners to embed Li-Fi transmitters directly into existing luminaires. Signify’s Trulifi showcased retrofit kits that deliver 250 Mbps over standard Philips fixtures, demonstrating cost-effective migration paths.[1]Signify Press Team, “Signify Launches Trulifi: The World’s Most Reliable High-Speed Commercial LiFi Systems,” Signify, signify.com Commercial landlords increasingly specify Li-Fi-ready LED systems to future-proof assets, while micro-LED arrays such as ams OSRAM’s 25,600-pixel EVIYOS enable fine-grained beam steering for higher spatial reuse. This convergence of lighting and data infrastructure aligns energy-efficiency mandates with rising connectivity requirements.
Secure RF-free links for defense and healthcare
Defense agencies and hospitals deploy Li-Fi to eliminate radio emissions that risk interception or interfere with life-critical devices. In January 2025, Intelligent Waves and Signify partnered to supply Li-Fi kits to the U.S. Department of Defense for field operations, reinforcing Li-Fi’s role in secure communications.[2]John Parello, “Breaking Up with Radio Waves: Why LiFi Is a Great Solution for Wireless Networks,” Cisco Outshift, cisco.com Hospitals leverage Li-Fi’s immunity to electromagnetic interference for surgical robots and patient monitors, mitigating RF-induced malfunctions. Infrared implementations minimize visible signatures, increasing suitability for classified or sterilized environments.
IEEE 802.11bb interoperability standard
IEEE 802.11bb removes a major adoption hurdle by aligning Li-Fi PHY modes with Wi-Fi MAC layers, enabling unified authentication, roaming, and network management. Fraunhofer HHI helped harmonize OFDM and MIMO schemes to mirror RF architectures, reducing vendor lock-in and encouraging chipset makers to embed optical transceivers.[3]Fraunhofer HHI Editorial, “Light Communication – What Is LiFi?,” Fraunhofer HHI, hhi.fraunhofer.de Once ratified, the standard will trigger mass-production economies, accelerate client-device integration, and simplify hybrid Li-Fi/Wi-Fi deployments.
In-flight cabin connectivity adoption
Aircraft cabins present metal enclosures where RF links underperform and regulatory limits on emissions are strict. Li-Fi provides high-bandwidth seat-centric links that coexist with satellite backhaul. Oledcomm’s January 2024 Li-Fi payload aboard a SpaceX mission validated optical wireless under extreme temperature and vibration, bolstering aerospace confidence.[4]Oledcomm Team, “LiFi Technology in Space: Launched by SpaceX,” Oledcomm, oledcomm.net FAA and EASA certification frameworks are progressing, opening a premium revenue stream for airlines seeking differentiated passenger services.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| High device cost vs Wi-Fi | -6.80% | Global, particularly price-sensitive emerging markets | Short term (≤ 2 years) |
| LOS blockage and short range | -4.20% | Global deployment scenarios with mobility requirements | Medium term (2-4 years) |
| Fragmented optical-spectrum rules | -3.10% | Regional variations in Europe, Asia-Pacific, and North America | Long term (≥ 4 years) |
| Hybrid Li-Fi/Wi-Fi security gaps | -2.90% | Enterprise and government deployments globally | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
High device cost vs Wi-Fi
Specialized photodetectors, optical filters, and ASICs elevate Li-Fi access-point pricing 300-500% above enterprise Wi-Fi. Hybrid networks further inflate capital outlay, dampening uptake in cost-sensitive markets. Component commoditization is expected after 2028, spurred by IEEE 802.11bb silicon, which should narrow the gap, but near-term adoption relies on mission-critical niches where Li-Fi’s advantages justify premiums.
LOS blockage and short range
Li-Fi relies on unobstructed optical paths, limiting range to roughly 10 m and creating dead zones blocked by furniture or people. Dense access-point layouts and handover algorithms raise installation complexity. Research into reconfigurable intelligent surfaces and wavelength-division multiplexing shows promise for partial NLOS relief, yet these add cost and engineering overhead, delaying broad consumer adoption.
Segment Analysis
By Application: Enterprise Networks Drive Early Adoption
Indoor Networking and Enterprise accounted for 41.7% of the Li-Fi market share in 2024, underscoring corporate demand for secure, high-density wireless. The segment benefits from managed IT budgets and the ability to integrate Li-Fi with Power-over-Ethernet LED upgrades. Over the forecast horizon, enterprise rollouts will spotlight hybrid Li-Fi/Wi-Fi architectures that balance mobility with deterministic optical links for bandwidth-intensive endpoints.
Vehicle and Transportation, though smaller today, is projected to register a 45.19% CAGR. Automakers are embedding optical transceivers into headlights and taillights to support V2V links in tunnels and parking garages. Tunnel operators view Li-Fi as a cost-effective overlay atop LED road-lighting retrofits, while logistics hubs adopt optical links to coordinate autonomous forklifts where RF noise is high.
Note: Segment shares of all individual segments available upon report purchase
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By Component: LED Dominance Signals Infrastructure Integration
LEDs secured 48.2% of 2024 revenue and remain pivotal because every Li-Fi node doubles as a luminaire. Mature LED supply chains reduce bill-of-materials risk and accelerate field retrofits. Meanwhile, Micro-controllers and Modulators grow fastest, expanding at 45.39% as vendors migrate from discrete FPGAs to integrated ASICs that execute OFDM at multi-gigabit speeds, trimming power budgets for mobile devices.
Photodetector innovation directly boosts range and throughput. Avalanche photodiodes with low noise figures and silicon photomultipliers tuned for visible and infrared bands are entering mass production, spurred by demand from both Li-Fi and automotive LIDAR. Optical Filters and Lenses also climb in strategic importance, particularly in venues with high ambient-light noise such as retail and healthcare.
By Form Factor: Integrated Fixtures Accelerate Adoption
Li-Fi Lamps and Luminaires held 37.5% of the Li-Fi market share in 2024, underscoring the early preference for retrofitting existing lighting infrastructure instead of installing stand-alone optical access points. Integrated Fixtures are projected to record a 46.79% CAGR to 2030 as building owners shift toward purpose-built units that balance illumination quality with multi-gigabit data links. The appeal of these fixtures rises with every municipal lighting upgrade that specifies networked LED poles, creating a ready backbone for city-wide Li-Fi rollouts. Facility managers value the lower total cost of ownership that comes from combining energy-saving LEDs with wireless backhaul in a single device.
Growing micro-LED maturity enables compact beam-steering transmitters that fit within slim architectural fixtures, a capability exemplified by ams OSRAM’s 25,600-pixel EVIYOS arrays showcased at CES 2025. Integrated designs also simplify electromagnetic-compatibility certification because lighting and communications subsystems share the same enclosure and power regulation. As chipset makers bake optical PHY functions into ASICs, fixture vendors can add Li-Fi with minimal bill-of-materials impact, positioning integrated units as the dominant hardware format for office towers, hospitals, and smart-factory bays. These trends collectively reinforce the Li-Fi market size expansion forecast for integrated fixtures through the end of the decade.
Note: Segment shares of all individual segments available upon report purchase
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By End-User: Transportation Takes Off
Enterprises captured 44.9% share of the Li-Fi market size in 2024 thanks to well-funded IT teams that prioritize secure, deterministic bandwidth for conference rooms, trading floors, and design studios. Transportation and Logistics is on track for a 46.4% CAGR through 2030 as automakers, tunnel operators, and airport authorities embed optical links into headlights, taillights, and guidance signage to maintain connectivity where RF signals cannot propagate reliably. Early deployments in underground parking decks demonstrate latency gains for autonomous-valet services, while freight depots use Li-Fi beacons to orchestrate automated guided vehicles.
Rail operators fit platform lighting with optical access points so streaming video offload does not congest cellular spectrum in enclosed stations. Airlines are prototyping seat-centric Li-Fi nodes that ride existing cabin LEDs, enabling premium passengers to enjoy gigabit links without adding RF inside the fuselage, a concept validated by Oledcomm’s in-orbit tests in 2024. Maritime shipping firms experiment with Li-Fi to maintain short-range data exchange between stacked containers, eliminating cable maintenance on pitching decks. These diverse transportation scenarios underscore Li-Fi’s advantage wherever predictable line-of-sight paths and pre-existing lighting assets coexist, cementing the segment’s role as the long-term growth engine for the broader Li-Fi market.
Geography Analysis
Asia-Pacific commanded 35.8% of global revenue in 2024. Aggressive smart-city projects in China’s Greater Bay Area, Japan’s 2030 Society 5.0 roadmap, and South Korea’s 6G Lighthouse Initiative install Li-Fi streetlighting and manufacturing networks at scale. Local LED supply chains reduce unit costs, while national security directives mandate RF-free links in semiconductor fabs.
Middle East and Africa posts the fastest 47.18% CAGR through 2030. UAE, Saudi Arabia, and Qatar direct sovereign-wealth capital into optical-wireless-ready smart districts like NEOM’s The Line, where underground mobility corridors and data-centric public services align with Li-Fi’s strengths. African metros adopt Li-Fi to bypass RF spectrum congestion and limited last-mile fiber.
North America and Europe represent technology-mature regions where regulatory clarity and cybersecurity mandates underpin defense and healthcare demand. U.S. DoD pilots and NATO base trials advance procurement, while European Commission directives support optical wireless in green-building retrofits. Research institutes such as Fraunhofer HHI sustain an innovation loop with standards bodies, accelerating commercialization.
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Competitive Landscape
The competitive arena remains fragmented, with lighting majors, optical-component specialists, and venture-backed startups all vying for share. Signify leverages its global luminaires footprint and Trulifi product line to bundle lighting and connectivity. PureLiFi focuses on ASIC design and military-grade dongles, while Oledcomm targets aerospace and transportation niches.
Strategic maneuvers emphasize M&A and vertical integration. Viavi Solutions’ USD 150 million acquisition of inertial-navigation specialist Inertial Labs in December 2024 signals convergence between optical communications and sensing.[5]Photonics Media Editors, “Viavi Solutions Acquires Inertial Labs,” Photonics Media, photonics.com Lighting manufacturers scout photonics startups for beam-steering IP, mirroring broader trends in LiDAR and AR optics.
Partnership ecosystems deepen, illustrated by Intelligent Waves–Signify’s defense pact and RayNeo’s micro-LED collaboration with Applied Materials. Early adopters value turnkey offerings that blend lighting-design expertise with carrier-class network management, nudging the market toward consolidated platform vendors.
Light Fidelity (Li-Fi) Industry Leaders
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Signify N.V.
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pureLiFi Ltd
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Oledcomm SAS
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LVX System (LiFi Group)
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Panasonic Holdings Corp
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- August 2025: University of St Andrews and University of Cambridge achieved 4 Gbps Li-Fi over 2 m using OLED emitters, showcasing longer-distance potential and hinting at consumer-electronics integration. The research advances justify R&D investments in organic optical devices that support flexible form factors.
- May 2025: RayNeo launched X3 Pro spatial-computing glasses with miniaturized micro-LED engines, indicating readiness for Li-Fi transceiver embedding in wearables and opening a consumer channel beyond dongles.
- May 2025: Jabil announced a silicon-photonics plant in Gujarat, India, expanding global fabrication capacity for Li-Fi components and diversifying supply away from single-region concentration. This geographic hedge supports cost reduction and supply-chain resilience.
- January 2025: Intelligent Waves partnered with Signify to furnish Li-Fi kits for U.S. defense deployments, validating Li-Fi’s battlefield utility and accelerating ruggedized product roadmaps.
Global Light Fidelity (Li-Fi) Market Report Scope
Light fidelity (Li-Fi) is a wireless optical networking technology that transmits data through light-emitting diodes (LEDs). It is a new kind of wireless connection that uses light sources instead of microwaves to transmit data. The technology works by modulating the light emitted by LEDs to transmit data, which is then received by a sensor that interprets the modulations as data.
The Li-Fi market is segmented by end-user industry (industrial, healthcare, retail, corporate buildings, education, residential, aerospace and defense, automotive and transportation, other end-user industries [hospitality, disaster management, and others]), by geography (North America, Europe, Asia Pacific, Latin America, Middle East and Africa). The report offers market forecasts and size in value (USD) for all the above segments.
By Application
| Indoor Networking and Enterprise |
| Healthcare and Medical Devices |
| Vehicle and Transportation |
| Underwater and Maritime |
| Aerospace and Defense |
| Smart Home and Consumer Electronics |
| Industrial Automation and Warehouse |
By Component
| LEDs |
| Photodetectors |
| Micro-controllers and Modulators |
| Optical Filters and Lenses |
| Software and Services |
By Form Factor
| Li-Fi Lamps / Luminaires |
| Li-Fi Dongles and Access Keys |
| Li-Fi Modules / Chipsets |
| Integrated Li-Fi Fixtures |
By End-User
| Enterprises |
| Government and Defense |
| Residential |
| Transportation and Logistics |
| Industrial Manufacturing |
By Geography
| North America | United States | |
| Canada | ||
| Mexico | ||
| South America | Brazil | |
| Argentina | ||
| Rest of South America | ||
| Europe | Germany | |
| United Kingdom | ||
| France | ||
| Italy | ||
| Spain | ||
| Russia | ||
| Rest of Europe | ||
| Asia-Pacific | China | |
| Japan | ||
| India | ||
| South Korea | ||
| South-East Asia | ||
| Rest of Asia-Pacific | ||
| Middle East and Africa | Middle East | Saudi Arabia |
| United Arab Emirates | ||
| Turkey | ||
| Rest of Middle East | ||
| Africa | South Africa | |
| Nigeria | ||
| Rest of Africa | ||
| By Application | Indoor Networking and Enterprise | ||
| Healthcare and Medical Devices | |||
| Vehicle and Transportation | |||
| Underwater and Maritime | |||
| Aerospace and Defense | |||
| Smart Home and Consumer Electronics | |||
| Industrial Automation and Warehouse | |||
| By Component | LEDs | ||
| Photodetectors | |||
| Micro-controllers and Modulators | |||
| Optical Filters and Lenses | |||
| Software and Services | |||
| By Form Factor | Li-Fi Lamps / Luminaires | ||
| Li-Fi Dongles and Access Keys | |||
| Li-Fi Modules / Chipsets | |||
| Integrated Li-Fi Fixtures | |||
| By End-User | Enterprises | ||
| Government and Defense | |||
| Residential | |||
| Transportation and Logistics | |||
| Industrial Manufacturing | |||
| By Geography | North America | United States | |
| Canada | |||
| Mexico | |||
| South America | Brazil | ||
| Argentina | |||
| Rest of South America | |||
| Europe | Germany | ||
| United Kingdom | |||
| France | |||
| Italy | |||
| Spain | |||
| Russia | |||
| Rest of Europe | |||
| Asia-Pacific | China | ||
| Japan | |||
| India | |||
| South Korea | |||
| South-East Asia | |||
| Rest of Asia-Pacific | |||
| Middle East and Africa | Middle East | Saudi Arabia | |
| United Arab Emirates | |||
| Turkey | |||
| Rest of Middle East | |||
| Africa | South Africa | ||
| Nigeria | |||
| Rest of Africa | |||
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Key Questions Answered in the Report
How fast is the Li-Fi market expected to grow to 2030?
The global Li-Fi market size is projected to expand from USD 1.25 billion in 2025 to USD 7.73 billion by 2030, a 43.96% CAGR.
Which application currently generates the most Li-Fi revenue?
Indoor Networking and Enterprise leads, accounting for 41.7% of global sales in 2024.
What limits Li-Fi adoption compared with Wi-Fi?
Higher hardware costs and line-of-sight requirements are the primary restraints, reducing near-term uptake in price-sensitive regions.
Which region offers the highest growth upside?
Middle East and Africa shows the fastest trajectory with a 47.18% CAGR through 2030, driven by mega-project investments.
Which component category grows the quickest?
Micro-controllers and Modulators, supported by ASIC integration, are forecast to grow at a 45.39% CAGR to 2030.
How secure is Li-Fi against interception?
Optical signals cannot pass through opaque walls, giving Li-Fi inherent physical-layer security valued by defense and healthcare operators.
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