FSO and Li-Fi, VLC Market Size, Share, Trends

The term ‘last mile’ signifies the last phase of the telecommunications network that delivers communications connectivity to customers. For example, a subscriber line reaches individual homes through utility poles. The last mile has been a speed bottleneck in communication networks; its bandwidth limits the bandwidth of the data that is delivered to the customer. This is because retail telecommunication networks have the topology of ‘trees’, with relatively few high capacity ‘trunk’ communication channels spread out to feed other final mile connections. The data transfer rate is reduced due to these limited final mile connections. The presence of long cables and other mediums causes a huge interference in the transmission and reception of data. Unlike other RF technologies, FSO uses light to transmit data without cables or power lines. A high-bandwidth, cost-effective solution involves connecting high-bandwidth networks from the fiber optic backbone to all businesses with high-bandwidth networks. Thus, using FSO wireless communication in mesh architecture can quickly provide high bandwidth to customers.

The high installation cost of the FSO technology-based devices is a hindrance to the wide adoption of FSO systems. The hardware for a communication system costs approximately USD 3,000 to USD 15,000, while installation costs are approximately USD 500 to USD 1,000; this high initial expenditure could negatively impact a customer’s decision to adopt the FSO technology. Although the cost incurred to install FSO technology is significantly lower than the cost of deploying fiber-optic lines, installing FSO in a smaller area incurs a higher cost than in larger buildings. Hence, installing FSO in larger spaces is expected to be more cost-effective than installing in smaller spaces.

After the deployment of 3G systems, researchers observed that customers were demanding more bandwidth. To fulfil these needs, fourth-generation (4G) and further systems were introduced to ensure the availability of heterogeneous access techniques. Now, the race is not connecting every human with the Internet but focusing on wireless network connection. The requirement for connecting TV, lighting systems, fans, ACs, refrigerators, microwave ovens, and so on with the network drives the need to develop short-range license-free wireless communication networks that enable the transmission of heterogeneous information anywhere, any time. VLC is a promising technology not only for increasing the capacity of indoor wireless communication but also for ensuring security. White LEDs are rapidly penetrating the market and can be used for both, lighting and communication. VLC provides a cost-effective technique for duplex communication for home users and satisfies a small LAN's requirements. The technology is ubiquitous and can be utilized in multiple applications such as smart stores, streetlights, hospitals, aerospace, underwater, and hazardous environments. In late 2017, two-way communication through the VLC/Li-Fi technology was commercialized for hospitals, offices, and several other indoor applications.

Awareness of the still-developing VLC technology is vital in building the market. There is very low awareness of the technology and its anticipated benefits. Till 2013, there were a limited number of companies active in the field of VLC; however, due to the growing interest in this field, the number of players is increasing gradually. However, the VLC technology has not yet been promoted enough. Two-way communication between manufacturers and technology providers is required. However, as the technology is new, players are reluctant to reveal what they are working on, thus creating an information gap between manufacturers and consumers. Technological awareness is expected to grow once the technology is fully commercialized and enters the mainstream in the near future.