Visible Light Communication in China Trends and Forecast
The future of the visible light communication market in China looks promising with opportunities in the consumer electronic, defense and security, transportation, public infrastructure, and life sciences markets. The global visible light communication market is expected to reach an estimated $28.9 billion by 2031, with a CAGR of 39.7% from 2025 to 2031. The visible light communication market in China is also forecasted to witness strong growth over the forecast period. The major drivers for this market are the rising adoption of LED lighting systems, the increasing need for high-speed communication networks, and the growing demand for building smart city infrastructure.
• Lucintel forecasts that, within the transmission type category, Bi-directional is expected to witness the highest growth over the forecast period.
• Within the application category, consumer electronics is expected to witness the highest growth.
Emerging Trends in the Visible Light Communication Market in China
Chinese visible light communication (VLC) market is growing strongly with the support of improved smart technologies, higher demand for energy-efficient communication systems, and Chinese ambitious vision for digitalization and sustainability. With the capability to provide high-speed, secure, and energy-efficient communication, VLC is quickly emerging as a popular solution in numerous sectors, including smart cities, healthcare, and industrial automation. The following outlines the key trends emerging in the Chinese VLC market, providing insights into the direction and impact of this transformative technology.
• Integration with 5G Networks: Chinese continued 5G deployment is creating new opportunities for VLC technology to augment and supplement wireless communication. Combining VLC with 5G networks provides ultra-high-speed, interference-free communication in high-data-traffic environments, including smart cities and industrial applications. VLC, combined with 5Gs high bandwidth, can offer increased security and reduced latency. It is becoming a key driver for applications in IoT, smart transportation, and healthcare.
• Smart Cities Development: As China presses ahead with its smart city projects, VLC is increasingly taking center stage in contributing energy-efficient communication solutions. VLC technology is being applied in public areas such as street lighting, traffic control systems, and public transport to achieve high-speed data transmission. VLC’s ability to work on existing LED infrastructure aligns with the nation’s sustainability agenda and urban modernization plans, making it a cornerstone in Chinese smart city development.
• Development of Li-Fi Technology: Li-Fi, the latest development of VLC technology, is gaining traction in China as a new-generation solution to replace Wi-Fi in populous or interference-prone areas. Li-Fi offers access to high-speed internet through visible light, with benefits such as enhanced security and rapid data transfer. In high-density areas such as offices, airports, and shopping malls, Li-Fi is emerging as an efficient alternative to traditional Wi-Fi, addressing growing demands for secure and faster internet connectivity.
• Healthcare Adoption for Secure Communication: In Chinese rapidly digitalizing healthcare industry, VLC is seen as the solution to the urgent need for secure, fast communication within medical environments. Due to its resistance to electromagnetic interference (EMI), VLC offers a stable and secure alternative to conventional wireless communication systems. VLC is being applied in telemedicine, patient monitoring systems, and electronic health records (EHR) to improve work efficiency and protect patients, driving the overall digitization of healthcare.
• Energy Efficiency and Sustainability Objectives: VLC supports Chinese ambitious sustainability goals by offering a more energy-efficient solution compared to conventional wireless communication systems. By utilizing existing LED lighting infrastructure, VLC reduces the need for additional energy-intensive equipment, leading to cost savings and a smaller carbon footprint. This is particularly relevant to industries and municipalities aiming to achieve energy efficiency objectives and lower carbon emissions, in line with Chinese environmental policies.
The emerging trends in Chinese visible light communication market are transforming industries as diverse as smart cities, healthcare, telecommunications, and manufacturing. With secure, high-speed, and energy-efficient communication technologies, VLC has the potential to become the backbone of China’s digital future. These trends highlight VLC’s ability to address the increasing demand for connectivity, sustainability, and automation, driving China toward its ambitious technological innovation and environmental goals.
Recent Developments in the Visible Light Communication Market in China
China is quickly adopting visible light communication (VLC) technology as part of its wider push for smart cities, energy efficiency, and digitalization. As the world’s largest producer of LED lighting, China has a strong foundation to utilize VLC for high-speed, secure, and energy-efficient communication solutions. Recent advances in the VLC industry are paving the way for a more connected and sustainable future across various industries, including telecommunications, healthcare, and industrial automation.
• Government Support for Digitalization Initiatives: The Chinese government has actively supported the adoption of digital technologies, including VLC, through various national policies and plans. Under its "Made in China 2025" strategy and the "13th Five-Year Plan for Technological Innovation," the government has prioritized advanced communications technologies as key drivers of the country’s digital economy. This support has accelerated the development of VLC solutions in industries such as smart cities, healthcare, and industrial automation, further boosting VLC adoption.
• Partnership with Telecom Operators for Li-Fi: Several Chinese telecom operators have started to explore and collaborate on Li-Fi solutions, boosting the future of VLC technology. Telecom operators are conducting pilot tests to combine Li-Fi with 5G networks, which will help create more stable and faster communication systems, with universities and tech firms as partners. These partnerships are paving the way for commercializing Li-Fi in public areas, office buildings, and airports, offering users an alternative to traditional Wi-Fi networks.
• VLC Deployment in Smart Cities: China’s smart city initiatives are becoming one of the largest markets for VLC technology. The use of VLC in urban infrastructure like streetlights, traffic control systems, and public transportation networks is increasing. VLC, with its ability to use existing LED lighting infrastructure for data transmission, helps reduce costs and improve energy efficiency, which is a key aspect of China’s smart city goals. By making communication faster and more secure in cities, VLC is supporting the digitalization of Chinese urban centers.
• VLC Innovations for Industrial Automation: China’s manufacturing sector, which is transitioning toward automation and Industry 4.0, has started adopting VLC for secure and high-speed communication in factories. VLC is being integrated with IoT devices, sensors, and robots to ensure continuous communication in high-electromagnetic interference (EMI) environments. The application of VLC in industrial automation improves operational efficiency, safety, and data security, playing a critical role in the ongoing digital transformation of China’s manufacturing industry.
• Research and Development in VLC Technology: China’s investment in research and development for VLC technology has led to considerable progress in the field. Chinese research institutions and universities are conducting cutting-edge studies to enhance VLC’s speed, range, and security. These advancements are expected to expand the applications of VLC, making it a viable alternative to traditional wireless communication in more industries. As R&D continues to evolve, China is poised to become a global leader in VLC technology development.
Recent trends in the visible light communication industry in China are positioning the country as a leader in this cutting-edge technology. From government incentives and industrial partnerships to advancements in smart cities and healthcare, VLC is quickly emerging as a cornerstone of China’s digital and sustainability agendas. These developments cater not only to the growing demand for high-speed and secure communication but also support China’s aspirations for environmental sustainability and technological leadership. Continuous innovation in VLC will likely shape the future of communication technologies in China.
Strategic Growth Opportunities for Visible Light Communication Market in China
Chinese visible light communication (VLC) market is set to grow significantly with the emphasis in China on digitalization, smart cities, energy efficiency, and sustainability. VLC technology, based on using visible light to transmit data, provides high-speed, secure, and energy-efficient communication solutions. It is, therefore, a good match for various applications like smart cities, healthcare, and industrial automation. The following are five major growth opportunities in the Chinese VLC market, which will largely define the future of communication technologies in China.
• Smart City Infrastructure: The development of smart cities in China presents immense opportunities for VLC technology. As cities become increasingly connected, VLC can upgrade urban infrastructure through applications like street lighting, traffic management, and public transport. Using installed LED lighting for data transfer makes communication systems cost-effective without incurring significant new infrastructure expenses. VLC can also power IoT devices, enabling innovations like intelligent parking, smart energy management, and real-time traffic information. The increased focus on energy conservation and sustainability in urban planning places VLC as a foundational technology for China’s smart city plans.
• Healthcare and Telemedicine: In China’s rapidly digitalizing healthcare industry, VLC is emerging as an important enabler for secure and rapid communication. Due to its resilience to electromagnetic interference (EMI), VLC offers a stable replacement for conventional wireless communication, making it ideal for telemedicine, patient monitoring, and electronic health records (EHR). VLC’s capability to deliver high-speed, low-latency data transfer facilitates urgent healthcare applications where data reliability and security are crucial. As China moves forward with digital healthcare, VLC is enhancing patient care, data security, and system effectiveness.
• Industrial Automation: China’s shift toward Industry 4.0 is driving demand for next-generation communication technologies in manufacturing. VLC is becoming increasingly popular in industrial automation because it can function effectively in high-electromagnetic interference (EMI) environments like factories and assembly lines. When paired with IoT sensors, robots, and other equipment, VLC enables real-time data transmission, ensuring smooth communication in automated systems. This enhances operational efficiency, safety, and security. VLC is set to become an essential part of China’s manufacturing digital transformation, enabling smarter, more efficient production systems.
• Li-Fi Technology for High-Density Areas: Li-Fi, a future VLC technology solution, is gaining traction as a replacement for Wi-Fi in crowded spaces such as offices, airports, and shopping malls. Li-Fi offers high-speed, interference-free internet connectivity using visible light, with significant benefits over Wi-Fi, such as improved security and higher data transfer speeds. As digitalization and connectivity grow in China, Li-Fi is emerging as a core solution to meet the huge demand for fast internet in busy areas. This trend is helping to bridge infrastructure gaps and increase connectivity in high-density regions.
• Energy-Efficient Communication Systems: Energy efficiency is a top priority for China, which is pledging to reduce its carbon footprint and boost sustainability. VLC technology provides a solution by utilizing existing LED lighting systems to transmit data. This eliminates the need for additional, energy-hungry infrastructure, making VLC a more sustainable option than conventional wireless communication systems. As industries and municipalities work to meet energy efficiency goals and reduce carbon emissions, VLC is at the forefront of supporting China in achieving its sustainability objectives, especially in areas like smart cities and industrial automation.
The strategic growth prospects of China’s VLC market are broad and impactful. From VLC-enhanced smart city infrastructure to applications in healthcare and industrial automation, VLC is emerging as a key technology for the country’s push toward digitalization, energy efficiency, and sustainability. VLC applications present vast opportunities to transform various sectors, positioning China as the world’s next technological powerhouse. The growing adoption of VLC demonstrates its strategic value in the country’s communication and sustainability strategy.
Visible Light Communication Market in China Driver and Challenges
The Chinese visible light communication (VLC) market is influenced by a complex interplay of drivers and challenges, which include technological, economic, and regulatory factors. While demand for secure, high-speed, and energy-efficient communication solutions is propelling VLC adoption, several challenges hinder its large-scale implementation. Understanding these drivers and challenges is critical to unlocking VLC’s full potential in China, especially as the country emphasizes digitalization, environmental sustainability, and technological innovation.
The factors responsible for driving the visible light communication market in China include:
• LED and Optical Communication Technology Advances: The rapid pace of development in LED lighting and optical communication technology is a major driver of VLC adoption in China. LEDs, with their energy-saving and high-speed data transmission capabilities, are the core components of VLC systems. Additionally, advancements in optical communication technology are enhancing VLC system performance, enabling higher data transfer rates and more secure communications. These technological improvements are particularly valuable in applications such as smart cities, healthcare, and industrial automation, where secure, fast, and reliable communication is crucial.
• Government Support for Digitalization and Sustainability: The Chinese government is proactively supporting the development and implementation of advanced communication technologies like VLC as part of its broader digitalization and sustainability agendas. National programs such as “Made in China 2025” and “The 13th Five-Year Plan for Technological Innovation” focus on promoting energy-efficient and high-tech products. Government incentives, subsidies, and regulations favorable to digital transformation and green technologies are providing a supportive framework for VLC deployment in various sectors, including healthcare, smart cities, and manufacturing.
• Growing Need for High-Speed, Secure Communications: As China continues its digitalization efforts, the demand for high-speed, secure communication solutions is increasing across industries. VLC offers a secure, high-bandwidth alternative to conventional wireless communication technologies like Wi-Fi and Bluetooth. Its immunity to electromagnetic interference (EMI) makes VLC particularly suited for sensitive applications like healthcare and industrial automation. As the need for safe data transmission grows, VLC is poised to address these demands, becoming a vital part of China’s digital infrastructure.
• Sustainability and Energy Efficiency Targets: China’s commitment to reducing carbon emissions and increasing energy efficiency is a key driver of VLC adoption. VLC utilizes existing LED lighting infrastructure, eliminating the need for additional power-hungry communication systems. As a result, VLC is a more environmentally friendly alternative to conventional wireless technologies, which consume more energy. As China works towards its carbon neutrality goals, VLC is emerging as a critical tool for achieving sustainability in various industries, particularly in applications such as smart cities and industrial automation.
• Industrial Automation and Smart Manufacturing Advancements: China’s move toward Industry 4.0 and intelligent manufacturing is generating significant demand for robust, high-speed communication networks. VLC is particularly suitable for industrial automation environments, where electromagnetic interference (EMI) could disrupt traditional wireless communication. VLC provides a stable, interference-free connection for IoT devices, sensors, and machines in automated factories. As China’s manufacturing sector continues to evolve, VLC is becoming an integral part of developing efficient and secure industrial systems.
Challenges in the visible light communication market in China are:
• Infrastructure Limitations: Infrastructure requirements are one of the biggest challenges to VLC adoption in China. Although VLC can leverage existing LED lighting systems, some areas, particularly rural or underdeveloped regions, lack the necessary infrastructure. Retrofitting existing buildings or installing new LED systems can be prohibitively expensive for some municipalities or industries. This infrastructure limitation could slow the adoption of VLC, particularly in areas outside major urban centers.
• Regulatory and Standardization Issues: The lack of uniform regulations for VLC technology presents a challenge to its widespread adoption in China. Without clear regulatory guidelines, ensuring interoperability, security, and compatibility across different VLC systems and sectors becomes difficult. Standardized procedures for VLC are needed to facilitate deployment, ensure security, and foster industry-wide adoption. The absence of standards could delay the implementation of VLC in critical sectors such as healthcare and smart cities, where interoperability and data security are essential.
• Market Awareness and Education: Despite VLC’s significant benefits, awareness of this technology remains relatively low in China, especially outside early adopter sectors like telecommunications and manufacturing. Many potential users are unaware of VLC’s advantages in terms of security, energy efficiency, and speed. To drive wider adoption, China must invest in awareness campaigns and educational programs that inform businesses and consumers about the potential applications and benefits of VLC technology.
The key drivers of VLC adoption in China include technological innovation, government support, increasing demand for secure communication, sustainability objectives, and industrial automation growth. However, challenges such as infrastructure limitations, regulatory hurdles, and market awareness need to be addressed for VLC to reach its full potential. While these drivers push the market forward, overcoming the challenges will ensure that VLC becomes a cornerstone technology in China’s digital and sustainable future.
List of Visible Light Communication Market in China Companies
Companies in the market compete based on the product quality they offer. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leveraging integration opportunities across the value chain. Through these strategies, visible light communication companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the visible light communication companies profiled in this report include:
• Company 1
• Company 2
• Company 3
• Company 4
• Company 5
• Company 6
• Company 7
• Company 8
• Company 9
• Company 10
Visible Light Communication Market in China by Segment
The study includes a forecast for the visible light communication market in China by component, transmission type, and application.
Visible Light Communication Market in China by Component [Analysis by Value from 2019 to 2031]:
• Light Emitting Diodes
• Photodetectors
• Microcontrollers
• Software and Services
Visible Light Communication Market in China by Transmission Type [Analysis by Value from 2019 to 2031]:
• Uni-directional
• Bi-directional
Visible Light Communication Market in China by Application [Analysis by Value from 2019 to 2031]:
• Consumer Electronics
• Defense and Security
• Transportation
• Public Infrastructure
• Life Sciences
• Others
Features of the Visible Light Communication Market in China
Market Size Estimates: Visible light communication in China market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Visible light communication in China market size by component, transmission type, and application in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different components, transmission types, and applications for the visible light communication in China.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the visible light communication in China.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q.1 What are the major drivers influencing the growth of the visible light communication market in China?
Answer: The major drivers for this market are the rising adoption of LED lighting systems, the increasing need for high-speed communication networks, and the growing demand for building smart city infrastructure.
Q2. What are the major segments for visible light communication market in China?
Answer: The future of the visible light communication market in China looks promising with opportunities in the consumer electronic, defense and security, transportation, public infrastructure, and life sciences markets.
Q3. Which visible light communication market segment in China will be the largest in future?
Answer: Lucintel forecast that bi-directional is expected to witness the highest growth over the forecast period.
Q4. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 10 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the visible light communication market in China by component (light emitting diodes, photodetectors, microcontrollers, and software & services), transmission type (uni-directional, and bi-directional), and application (consumer electronics, defense and security, transportation, public infrastructure, life sciences, and others)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.4. What are the business risks and competitive threats in this market?
Q.5. What are the emerging trends in this market and the reasons behind them?
Q.6. What are some of the changing demands of customers in the market?
Q.7. What are the new developments in the market? Which companies are leading these developments?
Q.8. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.9. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.10. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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