Free Space Optics (FSO) and Visible Light Communication (VLC) Market – Global Industry Volume and Region Analysis – 2025

Global Free Space Optics and Visible Light Communication Market: Overview

Free space optical (SFO) communication is a technology that uses light traveling in free space such as outer space, air, and vacuum to communicate. This technology is highly useful in cases were physical optical fiber cable connection is impractical owing to high costs or other factors. On the other hand, visible light communication (VLC) is a subset of optical wireless communications technology, which uses visible light in the range of 400 to 800 THz to send signals between one to two kilometers. Together, SFO and VLC are primed to revolutionize nearly all sectors that require communication and consequently, the demand in the global free space optics and visible light communication is projected to rise at a significant growth rate during the forecast period of 2017 to 2025.

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Global Free Space Optics and Visible Light Communication Market: Key Trends

Globally, with rapid urbanization and ubiquity of smartphones, the demand for secure and faster mediums of data transfer has escalated rapidly in the past decade. This factor is the primary driver of the market for free space optics and visible light communication. Moreover, the advent of two-way communication is expected to increase the adoption of VLC software as it aids in controlling several applications at a time and allows them to be connected with mobile phones, tablets, and other electronic products. Free space optics and visible light communication are greener and cleaner technology, consumer significantly less energy, and there is no bandwidth limitation or RF spectrum bandwidth crunch. These are some of the other factors favoring the global market for the same.

Additionally, free licensing of free space optics and assurance of faster and secured data transfer via visible light communication is expected to fuel the demand in this market. Conversely, high installation costs and degradation of signal due to environmental interference are two factors hindering the market from achieving its full potential.

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Global Free Space Optics and Visible Light Communication Market: Market Potential

Growing application of free space optics and visible light communication in the healthcare industry as well as for the detection and communication in hazardous environment is opening new opportunities for the players in this market. FSO is particularly useful in the healthcare industry wherein radio waves of wireless communication poses potential health hazards, whereas faster and secured data transfer via VLC makes it highly useful for environments that are prone to hazards and quick and accurate response is paramount. Unavailability of any alternative communication method in such volatile environments makes visible light communication the only viable option.

Global Free Space Optics and Visible Light Communication Market: Regional Outlook

With heavy investments to build a robust telecom infrastructure, the developed economies of the U.S. and Canada make North America the most lucrative regional market for FSO and VLC. Encouraged by government funding with which the deployment of VLC systems in the commercial and public places is expected to maintain North America as the most profitable region in this market during the forecast period. On the other hand, Asia Pacific is projected to expand at the most prominent growth rate, owing to vast population base and rapid urbanization in the emerging economies such as India, South Korea, China, and Japan. Increasing number of manufacturing outlets and the growth of the computer-aided design (CAD) industry are some of the factor propelling the market in APAC.

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Global Free Space Optics and Visible Light Communication Market: Competitive Analysis

Trimble Hungary Kft, fSONA Networks Corp., LightPointe Communications, Inc., Plaintree Systems Inc., and Wireless Excellence Ltd. are some of the leading companies in the global free space optics market whereas Koninklijke Philips N.V., General Electric Co., Panasonic Corp., Oledcomm, LVX System, and IBSENtelecom are the major vendors in the visible light communication market.

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