According to the Market Statsville Group (MSG), the global free space optics (FSO) and visible light communication (VLC) market size is expected to grow from USD 16.8 billion in 2022 to USD 3,193.4 billion by 2033, at a CAGR of 61.1% from 2023 to 2033.
The rise and expansion of the healthcare sector and advancing underwater technologies have increased free space optics (FSO) and visible light communication (VLC) market value. Rising demand for faster and more secure mediums to exchange data or information has propelled the demand for free-space optics (FSO) and visible light communication (VLC). The clean and green technologies and consuming minimal energy have grabbed many investors' eyeballs. Deterioration in the signals due to government interference will hammer down the market growth rate. Rising fitting charges or high installation costs will also demean the free space optics (FSO) and visible light communication (VLC) market growth rate.
FSO is a communication system where free space acts as a medium between transceivers, and they should be in LOS for the successful transmission of the optical signal. The medium can be air, outer space, or vacuum. This system can be used for communication purposes in hours and a lesser economy.
Visible light communication (VLC) is one of the key areas of wireless communication. It works the same way as optical fiber, but the transmission medium is free space. The invention of LED greatly improved the way visible light communication is performed. LED can transmit data, but the transmitter and the receiver must be in line of sight of each other. VLC uses LED as the transmitter, which sends data by blinking the light at high speed, which will be unnoticeable to the human eyes.
The impact of COVID-19 on the market's growth was not severe. The adoption of FSO and VLC in healthcare, defense, UAVs, last-mile access, and others has contributed to the market's growth amid the pandemic. Furthermore, the healthcare industry witnessed a sharp peak growth during COVID-19, also, various advanced technologies such as robots, sensors, and others were employed to reduce infection and cross contaminations. VLC has high adoption in healthcare as in hospitals, electromagnetic wave sensitive areas (such as MRI scanners) are likely to switch to VLC as it will not interfere with radio waves of the other machines. Hence, adopting VLC in healthcare will fuel market growth and significantly impact the market amid the pandemic. However, the market also witnessed a negative impact from various end-user industries such as aviation, transportation, and others.
Free-space optics (FSO) systems are applied for 'last mile' telecommunications and can function over several kilometers as far as a clear line of sight (LOS) between the source and the destination. Also, the optical receiver can accurately decode the transmitted information. Small and low-power-consumption subsystems of certain free-space systems can offer long-range and high-data-rate links, making them ideal for space communication. This feature has led to the use of laser communication in various satellite constellations that aim to provide global broadband coverage. The inter-satellite links between several hundred to a thousand satellites in these constellations utilize laser communication and effectively create a space-based optical mesh network. Telecommunication systems are observed by transmitting information from a source to a user. The purpose of a telecommunication system is, therefore, to transfer information. The adoption of FSO in the telecommunication sector will drive the market's growth over the global forecasting period.
Furthermore, rising government investment in the telecommunication sector will drive market growth. FSO telecommunication systems are where free space is a communication channel between transceivers that are line-of-sight for the successful transmission of optical signals. FSO telecommunication is considered one of the key technologies for very high-speed multi-Gb/s huge capacity in aerospace communications.
Free-space optical communication between satellites in a spread network can allow high data rates of communication between different places on Earth. Establishing optical communication between any two satellites needs that the line of sight of their optics be aligned during the entire communication time. Due to the huge distance between the satellites and the alignment accuracy required, the pointing from one satellite to another is complicated by cause of vibrations of the pointing system caused by two fundamental problematic mechanisms: tracking noise created by the electro-optic tracker and vibrations derived from problematic components. The vibration of the transmitter beam in the receiver plane causes a downfall in the received optical power. Vibrations of the receiver telescope relative to the received beam reduce the heterodyne mixing efficiency. These two components increase the bit-error rate of a consistent detection network. This will restrain the growth of the market over the forecasting period at the global level.
The visible light communication technology depends on light, and its major drawback is that the light cannot penetrate solid objects such as wooden doors, walls, and windows. Direct LOS is required for the proper functioning of the technology, and the coverage of VLC systems is also very low. Thus, it can be observed that the technology is confined to close spaces. This hampers the growth of the market across the globe.
The demand for faster, secure mediums for transferring data and information has increased recently. This is the main factor that drives the free space optics (FCO) and visible light communication (VLC) market. Furthermore, the introduction of two-way communication overlooks to increase the adoption of VLC software due to its control in numerous applications and allowing it to relate to mobile phones, tablets, and many more electronic products. Both technologies are greener and cleaner, consume minimum energy, and have no limitation for the bandwidth or radio frequency spectrum bandwidth. Some other components that favor the market growth are the assurance of safe and faster data transfer via visible light communication (VLC) and free licensing of free space optics (FCO), which is expected to activate the market demand. Visible light communication (VLC) is a communication technique that includes high bandwidth and does not affect electromagnetic sources. Here, the visible spectrum is regulated to transfer data. FSOs are hugely installed in healthcare applications where wireless communication via radio waves is prohibited due to potential health hazards.
An intriguing option for RF-based medical devices is visible light communication (VLC). As the name hints, it uses arrays of light-emitting diodes (LEDs) to emit visible light in the 400- to 800-terahertz range to transfer data from a device to a receiver for processing. The basic advantage that VLC brings to healthcare applications is eliminating the disturbance that RF-based medical devices suffer. Other benefits in VLC include lower cost than RF communications systems; better communication between clinical staff, equipment, patients, and monitoring stations; greater security of light signals compared with RF signals; and complete safety during extended exposure to patients.
The study categorizes the free space optics (FSO) and visible light communication (VLC) market based on type and application area at the regional and global levels.
Based on the type, the market is divided into free space optics, and visible light communication. The visible light communication segment accounted for the largest market share of around 92.6% in 2022 in the global free space optics (FSO) and visible light communication (VLC) market. The rise in internet-enabled devices and the need for seamless connectivity has resulted in the development of VLC technology, which offers faster and more reliable data transmission. VLC technology is widely used in various industries, including healthcare, retail, transportation, and hospitality, to enable high-speed communication and data transfer. VLC technology can be integrated with LED lights, allowing them to act as a communication medium. This integration drives the demand for VLC technology, as it offers a cost-effective solution for high-speed communication in various industries.
Moreover, the growing demand for smart city infrastructure is also driving the growth of the VLC market. Smart city infrastructure requires seamless connectivity and high-speed data transmission to support various applications, such as traffic management, public safety, and energy management. VLC technology offers a viable solution for high-speed communication in smart city infrastructure, thereby driving the demand for this technology.
Based on the regions, the global free space optics (FSO) and visible light communication (VLC) market has been segmented across Europe, North America, the Middle East & Africa, Asia-Pacific, and South America. North America accounted for the largest market share of around 36.3% in 2022. The increasing adoption of FSO and VLC technology in various end-use industries, including telecommunications, transportation, and government, is fueling the growth of this market in North America. FSO and VLC technology are being used for a range of applications, including high-speed internet connectivity, wireless backhaul, and secure data transmission. With the rapid growth of these industries in North America, the demand for FSO and VLC technology is only set to increase further. The presence of a large number of key players in the FSO and VLC market in North America is also contributing to the growth of this market. These players are investing heavily in the regional research and development activities to develop advanced FSO and VLC technology that meets the specific needs of various industries. They are also focused into entering into strategic alliances with other players in the market to expand their reach and strengthen their position in the market.
The free space optics (FSO) and visible light communication (VLC) market is a significant competitor and extremely cutthroat in the sector is using strategies including product launches, partnerships, acquisitions, agreements, and growth to enhance their market positions. Most sector businesses focus on increasing their operations worldwide and cultivating long-lasting partnerships.
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