United States Visible Light Communication Market By Component (Transmitters, Receivers, LEDs, Photodetectors), By Application (Indoor Networking, Outdoor Networking, Healthcare, Automotive), By Technology (Li-Fi, Visible Light Positioning Systems), By Region, Competition, Forecast and Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 1.33 BIllion
CAGR (2026-2031)	37.43%
Fastest Growing Segment	Visible Light Positioning Systems
Largest Market	Northeast
Market Size (2031)	USD 8.96 BIllion

Market Overview

The United States Visible Light Communication Market will grow from USD 1.33 BIllion in 2025 to USD 8.96 BIllion by 2031 at a 37.43% CAGR. Visible Light Communication is a wireless technology that utilizes the visible light spectrum between 400 and 800 terahertz to transmit data via the rapid intensity modulation of light emitting diodes. The United States market is primarily driven by the escalating demand for high bandwidth connectivity and the critical need to alleviate radio frequency spectrum congestion in data dense environments. Furthermore, the inherent security advantages of contained signal propagation and the energy efficiency of existing lighting infrastructure support its adoption. According to the Consumer Technology Association, in 2024, the United States consumer technology industry was projected to generate $512 billion in retail revenue, underscoring the massive scale of the connected device ecosystem that advanced solutions like visible light communication aim to enhance.

Despite these strong drivers, the market faces a significant impediment regarding the strict requirement for a direct line of sight between the transmitter and receiver. This physical limitation restricts the technology from penetrating opaque obstacles and makes it susceptible to interference from strong ambient light sources or physical obstructions. Consequently, this operational constraint creates deployment complexities in dynamic environments and may limit the technology to niche applications rather than allowing for the ubiquitous coverage provided by traditional radio frequency alternatives.

Key Market Drivers

The escalating demand for ultra-high-speed data transmission and the concurrent need to alleviate radio frequency spectrum congestion serve as primary catalysts for the United States Visible Light Communication market. As mobile device proliferation saturates traditional radio frequency bands, visible light communication utilizes the unregulated optical spectrum to provide high-bandwidth connectivity without the interference issues common to Wi-Fi. This technical shift is essential to accommodate the exponential growth in mobile traffic and ensure consistent service in data-dense urban environments. According to CTIA, September 2024, in the '2024 Annual Wireless Industry Survey', Americans consumed a record 100.1 trillion megabytes of wireless data in 2023, representing the largest single-year increase in the history of the domestic wireless industry. Such massive volume underscores the urgent necessity for the optical wireless solutions that this market provides to offload network congestion.

Enhanced data security and immunity to eavesdropping further propel market adoption, particularly within defense, government, and corporate sectors where information integrity is paramount. Unlike radio frequency signals that can penetrate walls and be intercepted remotely, visible light communication confines data transmission to the physical area illuminated by the source, creating a highly secure local network. The financial imperative for such secure technologies is substantial; according to IBM, July 2024, in the 'Cost of a Data Breach Report 2024', the average cost of a data breach in the United States reached an all-time high of $9.36 million. This security advantage facilitates the technology's integration into the broader wireless ecosystem alongside cellular standards. According to Ericsson, in 2024, North American 5G subscriptions reached 260 million by the end of 2023, establishing a vast advanced connectivity framework that visible light communication systems increasingly complement for secure, localized offloading.

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Key Market Challenges

The strict requirement for a direct line of sight poses a severe operational constraint that directly impedes the growth of the United States Visible Light Communication Market. Because the signal is easily blocked by walls, furniture, or even moving personnel, the technology fails to deliver the seamless, non-line-of-sight coverage that users expect from modern wireless networks. This fragility forces deployments into highly controlled, static configurations, effectively disqualifying the solution from general-purpose consumer or enterprise environments where user mobility and signal penetration through obstacles are non-negotiable prerequisites.

This physical limitation critically restricts the market's ability to capitalize on the soaring demand for ubiquitous wireless data. According to CTIA, in 2024, United States wireless networks supported the consumption of 132 trillion megabytes of data, a figure driven by users requiring constant connectivity regardless of physical orientation or room clutter. Since visible light communication cannot maintain reliable links under these dynamic conditions, it cannot capture a significant share of this expanding data traffic, limiting its commercial viability to specialized niche applications rather than mass adoption.

Key Market Trends

The adoption of Visible Light Communication in Vehicle-to-Everything (V2X) systems is accelerating as automakers utilize LED lighting for critical safety data transmission. This optical approach ensures immediate collision avoidance, serving as a reliable redundancy to radio-based networks in congested environments. Federal infrastructure initiatives are actively catalyzing this integration by mandating advanced connectivity standards. According to the U.S. Department of Transportation, August 2024, in the 'Saving Lives with Connectivity: A Plan to Accelerate V2X Deployment', the agency established a target to deploy vehicle-to-everything technology across 20% of the National Highway System by 2028. This mandate incentivizes the embedding of optical communication modules within traffic management hardware and autonomous vehicle suites to support national safety goals.

Simultaneously, the convergence of visible light communication with the Industrial Internet of Things is reshaping manufacturing by mitigating radio frequency interference from heavy machinery. Facilities are deploying optical wireless links to ensure low-latency connections for automated guided vehicles where traditional signals fail. This trend is underpinned by the rapid digitization of production environments. According to Rockwell Automation, April 2024, in the '9th Annual State of Smart Manufacturing Report', 95% of manufacturers are now using or evaluating smart manufacturing technologies, up from 84% in 2023. This automation surge creates a vital market for visible light solutions that guarantee secure, interference-free data transmission on the factory floor.

Segmental Insights

In the United States Visible Light Communication Market, the Visible Light Positioning Systems segment is recognized as the fastest growing category. This growth is largely fueled by the rising demand for precise indoor location services within extensive retail and industrial complexes. United States enterprises are utilizing established LED lighting infrastructure to implement these positioning capabilities, thereby enhancing inventory management and consumer navigation without requiring additional radio frequency hardware. Consequently, the ability to deliver accurate location data while mitigating signal interference issues drives the substantial expansion of this segment across the country.

Regional Insights

The Northeast United States maintains a dominant position in the United States Visible Light Communication market, driven by a robust ecosystem of research institutions and technology developers. This region benefits from significant investments in optical wireless communication by academic hubs, such as the Smart Lighting Engineering Research Center, which fosters innovation in data transmission. Additionally, the dense commercial sector facilitates the deployment of VLC solutions for indoor positioning and secure networking in corporate environments. Continued funding from federal programs supporting energy-efficient infrastructure further solidifies the Northeast as the primary contributor to industry expansion.

Recent Developments

• In June 2025, Signify announced that its Trulifi 6004 system had become the first Light Fidelity technology to achieve FIPS 140-3 validation from the National Institute of Standards and Technology. This rigorous certification verified that the system's cryptographic engine met the highest federal standards for protecting sensitive data within the United States. The validation highlighted the technology's suitability for high-security sectors, such as government and defense, where data confidentiality is paramount. By using light waves instead of radio signals, the system ensures that wireless transmissions are confined to the physical room, offering a verified secure alternative to traditional wireless networks.
• In March 2025, pureLiFi launched the LINXC Bridge system at the Mobile World Congress, introducing a solution developed with Solace Power to improve fixed wireless access deployment. This innovative system enables broadband providers to deliver high-quality connectivity by transmitting data and power wirelessly through windows using invisible light, thereby eliminating the need for invasive drilling or complex cabling. The technology was designed to address network capacity challenges for carriers in the United States and globally, specifically by facilitating easier installation of outdoor customer premises equipment. The system allows for self-installation by consumers, significantly reducing deployment costs and time for service providers.
• In April 2024, Vibrint partnered with pureLiFi to launch a secure wireless communications solution specifically designed for classified government and national security environments. The collaboration introduced "Vibrint LiFi," a system that harnesses light waves rather than radio frequencies to establish ultra-secure, interference-free networks for sensitive operations. Key components of the offering included a specialized LiFi-enabled laptop and deployable access points tailored to close vulnerability gaps associated with traditional communications. This development addressed critical security needs, providing United States defense agencies with a robust, military-grade alternative for maintaining mission readiness in deployed and central locations.
• In January 2024, PhotonFi announced the launch of a ready-now LiFi system and a new docking station at the Consumer Electronics Show in Las Vegas. The company introduced these products to provide enterprise and consumer markets with secure, high-speed wireless connectivity that utilizes the visible light spectrum instead of congested radio frequencies. By leveraging this technology, the solutions aim to deliver significant performance improvements, including higher data transmission speeds and reduced latency compared to traditional Wi-Fi. The announcement highlighted the company's strategy to future-proof networks against interference and security vulnerabilities for users in the United States and international markets.

Key Market Players

• Signify N.V.
• Universal Display Corporation
• pureLiFi Ltd
• LiFi Group
• General Electric Company
• Samsung Electronics Co., Ltd.
• Lightpointe Communications, Inc.,
• Acuity Brands, Inc.
• Luceco Plc
• Renesas Electronics Corporation

By Component	By Application	By Technology	By Region
Transmitters Receivers LEDs Photodetectors	Indoor Networking Outdoor Networking Healthcare Automotive	Li-Fi Visible Light Positioning Systems	Northeast Midwest South West

Report Scope:

In this report, the United States Visible Light Communication Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• United States Visible Light Communication Market, By Component:

• Transmitters
• Receivers
• LEDs
• Photodetectors

• United States Visible Light Communication Market, By Application:

• Indoor Networking
• Outdoor Networking
• Healthcare
• Automotive

• United States Visible Light Communication Market, By Technology:

• Li-Fi
• Visible Light Positioning Systems

• United States Visible Light Communication Market, By Region:

• Northeast
• Midwest
• South
• West