Visible Light Communication in Indonesia Trends and Forecast
The future of the visible light communication market in Indonesia 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 Indonesia 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 Indonesia
The Indonesian visible light communication (VLC) market is growing tremendously due to improved technology, government policies, and rising demand for secure, fast, and energy-efficient communication networks. With growing industries and urbanization, VLC offers new opportunities for upgrading connectivity and supporting sustainable development. The following five major trends are transforming the visible light communication market in Indonesia and driving innovations across urban planning, healthcare, and telecommunications sectors.
• Increased Adoption of Li-Fi for High-Speed Internet: Li-Fi, a visible light communication technology, is gaining momentum as a high-speed alternative to traditional Wi-Fi. In Indonesian growing urban centers, there is an increasing demand for faster, more secure internet. Li-Fis ability to provide higher data transfer rates with reduced interference from electronic devices makes it a valuable tool for improving connectivity, especially in crowded or high-density areas. With enhanced Li-Fi technology, the usage of this technology will greatly contribute to increasing the speed and stability of Indonesian internet services.
• Incorporation of VLC in Smart City Initiatives: Indonesian increasing emphasis on smart city growth is propelling the deployment of VLC technologies. VLC systems are being integrated into infrastructure like street lighting, traffic management, and public safety systems. LED lights are used by these systems to send data, reducing energy usage and improving communication efficiency. Jakarta, for instance, is likely to experience the benefits of VLC technologies in its smart city projects, enhancing data sharing, decreasing traffic congestion, and creating more sustainable urban areas.
• VLC in Healthcare for Safe Data Transfer: The Indonesian healthcare sector is increasingly using VLC technology for secure, interference-free data transmission. Medical institutions and hospitals are deploying VLC to allow real-time communication among medical equipment without the risk of electromagnetic interference, which is vital for ensuring patient safety. Secure data transmission provided by VLC in sensitive locations is especially needed in Indonesian healthcare system, which is evolving digitally to ensure improved patient treatment, remote care, and operational efficiency.
• VLC in Manufacturing and Industrial Automation: As Indonesian industrial base expands, there is growing interest in adopting VLC for industrial automation. VLC is applied in manufacturing facilities where electromagnetic interference (EMI) is a problem for conventional wireless communication technologies. VLC provides rapid, dependable communication for real-time monitoring, tracking of equipment, and automation in industries such as automotive, electronics, and heavy manufacturing. VLC’s interference-free communication helps to improve operations, increase production efficiency, and automate processes in Indonesia’s factories.
• Energy Efficiency and Environmental Sustainability: Environmental sustainability and energy efficiency are influencing the implementation of VLC in Indonesia. Since VLC utilizes existing LED lighting infrastructure, it eliminates the need for additional energy-consuming systems. As Indonesia pursues carbon emission reductions and promotes green technology, VLC aligns with these initiatives by offering a low-energy communication solution. The compatibility of VLC with efficient lighting systems makes it suitable for industries such as urban development, transportation, and manufacturing, contributing to Indonesian sustainability goals and improving communication systems.
The emerging trends in Indonesian visible light communication industry reflect the countries commitment to developing its digital infrastructure and achieving sustainability goals. Ranging from high-speed internet connectivity and the development of smart cities to healthcare integration and industrial automation, VLC is becoming a crucial technology across various sectors. With its energy-saving, high-speed, and secure characteristics, VLC is transforming industries and cities, contributing to a more connected and sustainable future for Indonesia.
Recent Developments in the Visible Light Communication Market in Indonesia
Recent developments in Indonesian visible light communication (VLC) market highlight the country’s growing adoption of advanced communication technologies. As Indonesia continues to digitize its economy and urbanize its infrastructure, VLC is becoming a key enabler of high-speed, energy-efficient, and secure communication. These developments reflect Indonesia’s efforts to enhance connectivity, improve public services, and support industrial growth. The following five developments are transforming the VLC landscape in Indonesia and driving its wider adoption across various sectors.
• Digital Infrastructure Support by the Government: The Indonesian government is increasingly backing the development and adoption of cutting-edge communication technologies such as VLC in its digital transformation agenda. Projects like the Smart Cities program and the Digital Economy roadmap provide financing and policy incentives to promote the use of technologies that improve infrastructure and connectivity. This support is creating a favorable environment for VLC adoption, especially in cities, healthcare, and industries with secure and high-speed communication needs.
• Deployment of Li-Fi in Educational Institutions: Indonesia is testing the application of Li-Fi technology in schools to enable quicker, safer internet connectivity. As remote learning needs and digital learning platforms rise, Li-Fi is being tested in schools and universities to provide a stable substitute for conventional Wi-Fi. The inclusion of Li-Fi in school environments helps mitigate bandwidth congestion and enables high-speed, interference-free internet to facilitate online learning, research, and education in Indonesian schools.
• VLC for Public Safety and Surveillance: Public surveillance and safety applications across Indonesia are slowly embracing VLC technology for communication purposes. VLC street lighting systems are being introduced in cities with the aim not only of providing light but also of transmitting data for surveillance and security monitoring. This shared use of a single application enhances city security, enables real-time data transmission, and provides a power-efficient backbone for public safety systems. Cities in Indonesia, including Jakarta, are pushing the adoption forward.
• Private Sector Investment in VLC Research: Indonesian private sector firms are increasing investments in VLC research and development to capitalize on the emerging need for high-speed, secure, and energy-efficient communication solutions. The technology is being used across industries such as telecommunications, automotive, and healthcare. The greater emphasis on R&D will lead to improved and more sophisticated VLC devices and applications, which will drive wider adoption of the technology across various sectors in Indonesia.
• VLC in Urban Transportation Systems: VLC is being integrated into Indonesian urban transportation infrastructure to enhance communication between vehicles, traffic lights, and other components of the transport network. Transportation systems can benefit from quicker and more efficient data exchange through VLC, leading to smoother traffic management, reduced congestion, and improved safety. The application of VLC in transport systems in cities such as Surabaya and Bali will help maximize urban mobility, enhance traffic management, and minimize the environmental impact of transportation.
Recent innovations in Indonesian VLC market signal the nations increasing focus on integrating cutting-edge communication technologies across different sectors. With government support, private investments, and applications in education, public safety, and transportation, VLC is emerging as a critical component for enhancing connectivity, security, and sustainable urban development. With these developments continuing, VLC is set to play a central role in Indonesia’s future digital and urban transformation.
Strategic Growth Opportunities for Visible Light Communication Market in Indonesia
The visible light communication (VLC) market in Indonesia is poised for significant growth due to rapid urbanization, technological advancements, and increasing demand for energy-efficient communication solutions. VLC, particularly through Li-Fi technology, offers an array of applications across industries such as telecommunications, healthcare, smart cities, and manufacturing. These applications provide opportunities for enhanced connectivity, security, and sustainability, aligning with Indonesian national goals of technological innovation and environmental responsibility. Below are five key growth opportunities in the VLC market across different sectors in Indonesia.
• Adoption of Li-Fi in Telecommunications: With the rising demand for faster and more reliable internet in Indonesian urban areas, Li-Fi offers a high-speed alternative to conventional Wi-Fi. Li-Fi provides significant benefits, such as increased data transfer rates and lower susceptibility to interference from electromagnetic signals. This makes it particularly valuable in densely populated environments, like office buildings, malls, and public spaces. As urbanization continues to accelerate, Li-Fis integration into Indonesian telecommunications infrastructure will boost internet connectivity and improve service reliability, contributing to a digitally connected society.
• VLC for Smart Cities: The development of smart cities in Indonesia presents a vast opportunity for VLC technologies, especially in areas like traffic management, public safety, and energy-efficient infrastructure. VLC, combined with LED street lighting, can facilitate data transmission for applications such as smart traffic systems and urban surveillance. Jakarta and other metropolitan areas can benefit from VLC to enhance the effectiveness of smart city infrastructure. These technologies will help reduce traffic congestion, improve public safety, and decrease energy consumption, supporting Indonesia’s vision of creating sustainable and efficient urban environments.
• Healthcare Sector Integration: VLC is gaining traction in Indonesian healthcare sector, where secure, real-time communication among medical devices is essential. VLC can transmit data without interference from electromagnetic signals, offering a safe and efficient way for medical equipment to communicate. Hospitals and medical facilities in Indonesia can deploy VLC to enhance patient care by ensuring the secure transmission of sensitive data, enabling telemedicine, and supporting remote health monitoring. This integration will contribute to more efficient operations, better patient outcomes, and improved healthcare service delivery across the country.
• Industrial Automation and Manufacturing: The manufacturing and industrial sectors in Indonesia are increasingly embracing Industry 4.0, which relies on automation and advanced communication technologies like VLC. VLC provides a reliable solution for environments with high electromagnetic interference, such as factories and warehouses. Its use can enable real-time data exchange, improve the automation of production lines, and ensure smooth communication across machines and sensors. Industries such as automotive, electronics, and heavy machinery manufacturing in Indonesia stand to benefit from VLC’s low-latency, high-speed capabilities, leading to increased productivity, better monitoring, and enhanced security.
• Energy-Efficient Communication Solutions: Indonesia’s growing focus on sustainability and energy efficiency presents an opportunity for VLC to play a key role in the countries environmental goals. VLC can leverage existing LED infrastructure for both lighting and communication, significantly reducing the need for additional power-consuming systems. This makes VLC a highly efficient solution for smart homes, urban development projects, and transportation systems. By supporting green initiatives and offering a low-energy communication option, VLC aligns with Indonesia’s sustainability objectives and contributes to reducing carbon emissions in both urban and industrial sectors.
The growth opportunities in Indonesia’s visible light communication market are multifaceted, spanning telecommunications, smart cities, healthcare, manufacturing, and energy efficiency. Each of these applications offers significant potential to drive technological innovation, improve public services, and support sustainable development. As Indonesia continues to embrace digital transformation and sustainability, VLC will be at the forefront of shaping a more connected, efficient, and environmentally friendly future.
Visible Light Communication Market in Indonesia Driver and Challenges
The visible light communication (VLC) market in Indonesia is influenced by a variety of factors, including technological advancements, government policies, economic considerations, and regulatory frameworks. The demand for high-speed, energy-efficient, and secure communication solutions is driving market growth, while challenges such as infrastructure costs, lack of standardization, and regulatory hurdles remain significant. Understanding these drivers and challenges is essential for stakeholders seeking to navigate the evolving VLC market and capitalize on its potential in Indonesia.
The factors responsible for driving the visible light communication market in Indonesia include:
• Technological Advancements in Li-Fi: Li-Fi technology has made significant strides in Indonesia, offering faster data transfer rates and increased security compared to traditional Wi-Fi. The ongoing advancements in Li-Fi technology, including the development of more efficient and affordable devices, are a key driver of the VLC market. Li-Fi’s ability to provide secure, high-speed internet without electromagnetic interference makes it an attractive solution for densely populated urban areas and specialized environments like healthcare facilities. As technological improvements continue, Li-Fi is expected to become a mainstream communication solution in Indonesia.
• Government Support for Digital Infrastructure: The Indonesian government’s initiatives, such as the Digital Economy roadmap and Smart Cities program, are playing a crucial role in fostering the adoption of cutting-edge communication technologies like VLC. Government policies and subsidies support infrastructure development, which is essential for the integration of VLC systems into various sectors. By prioritizing digital transformation and providing financial incentives, the government is creating a favorable environment for VLC deployment, particularly in urban areas, healthcare, and industrial sectors. This support ensures that VLC technologies will continue to expand across the country.
• Demand for Secure and Efficient Communication Systems: As Indonesia’s economy grows and urbanizes, the demand for secure, high-speed, and energy-efficient communication systems is on the rise. VLC offers a compelling solution to address this need, providing faster data transfer and enhanced security through light-based communication. The growing number of internet users, smart devices, and connected infrastructure in Indonesia requires a reliable and interference-free communication system. VLC is positioned to meet these demands, especially in critical sectors like telecommunications, healthcare, and smart cities, where secure and high-performance communication is paramount.
• Environmental Sustainability and Energy Efficiency Goals: Indonesia’s commitment to environmental sustainability and reducing carbon emissions is driving the adoption of energy-efficient technologies like VLC. By using existing LED lighting infrastructure for both illumination and data transmission, VLC reduces the need for additional power-hungry systems. This energy-efficient approach aligns with Indonesia’s green initiatives, including smart city development and sustainable urban planning. VLC’s ability to provide a low-energy communication solution helps Indonesia achieve its sustainability objectives while improving communication systems across industries and urban environments.
• Industrial Growth and Automation: The growth of Indonesia’s industrial sector, particularly with the adoption of Industry 4.0 technologies, is a major driver for VLC in manufacturing and automation. VLC provides a reliable communication solution in environments with high electromagnetic interference, such as factories and warehouses. As industries like automotive, electronics, and heavy machinery manufacturing continue to modernize, VLC’s ability to support real-time data exchange and automation becomes increasingly valuable. This trend is expected to accelerate VLC adoption in industrial settings, contributing to greater operational efficiency and improved productivity.
Challenges in the visible light communication market in Indonesia are:
• High Initial Investment Costs: One of the primary challenges for VLC adoption in Indonesia is the high initial investment required for infrastructure deployment. Installing VLC systems, including Li-Fi transmitters, receivers, and compatible lighting, involves significant capital expenditure. While the long-term benefits of VLC, such as energy savings and increased efficiency, are clear, the upfront costs may deter businesses, especially in sectors with limited budgets. Government incentives and partnerships with private companies will be crucial in overcoming this challenge and encouraging wider adoption of VLC technologies.
• Lack of Standardization: The lack of standardized protocols for VLC technologies is another challenge hindering its widespread adoption. Without industry-wide standards, interoperability between different VLC devices and systems is limited. This creates barriers to large-scale deployment and integration with existing communication networks. The absence of global standards also increases the complexity and cost of implementing VLC solutions. As the market matures, developing common standards will be essential to ensure seamless integration, improve device compatibility, and facilitate VLC adoption across various sectors in Indonesia.
• Regulatory and Spectrum Management Issues: Regulatory challenges related to spectrum management and interference with other communication networks are a significant concern for VLC adoption in Indonesia. VLC requires access to specific light spectrums, and the allocation of these spectrums is still under regulatory review. Furthermore, existing regulations may not adequately address the unique requirements of VLC technologies. Stricter policies and clearer regulations will be needed to ensure the smooth deployment of VLC systems without disrupting existing communication networks. Addressing these issues is crucial for the long-term success of VLC in Indonesia.
The major drivers and challenges impacting the visible light communication market in Indonesia highlight both the potential and the barriers facing the industry. Technological advancements, government support, and growing demand for secure communication systems are propelling market growth, while high investment costs, lack of standardization, and regulatory challenges remain obstacles. Overcoming these barriers will be key to unlocking the full potential of VLC in Indonesia, and with continued support from both public and private sectors, VLC will play a significant role in the country’s digital and sustainable future.
List of Visible Light Communication Market in Indonesia 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 Indonesia by Segment
The study includes a forecast for the visible light communication market in Indonesia by component, transmission type, and application.
Visible Light Communication Market in Indonesia by Component [Analysis by Value from 2019 to 2031]:
• Light Emitting Diodes
• Photodetectors
• Microcontrollers
• Software and Services
Visible Light Communication Market in Indonesia by Transmission Type [Analysis by Value from 2019 to 2031]:
• Uni-directional
• Bi-directional
Visible Light Communication Market in Indonesia 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 Indonesia
Market Size Estimates: Visible light communication in Indonesia 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 Indonesia 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 Indonesia.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the visible light communication in Indonesia.
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 Indonesia?
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 Indonesia?
Answer: The future of the visible light communication market in Indonesia 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 Indonesia 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 Indonesia 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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