Visible Light Communication (VLC) is revolutionizing wireless communication by harnessing the visible spectrum for high-speed, energy-efficient, and secure data transfer. In 2025, this emerging technology is gaining prominence across sectors such as healthcare, automotive, smart cities, and industrial automation. Advances in LED lighting, integration with IoT devices, and incorporation of AI for network optimization are significantly enhancing VLC’s capabilities. VLC’s inherent advantages, including immunity to radio frequency interference and enhanced data security, make it a strong contender to complement or replace traditional wireless technologies in specific applications.
According to Straits Research, the global visible light communication size was valued at USD 52.83 billion in 2024 and is projected to reach USD 88.46 billion in 2025 and soar to USD 5,467.8 billion by 2033, growing at a CAGR of 67.45% during the forecast period (2025-2033).
Recent innovations focus on boosting data transmission rates beyond 1 Mb/s, expanding VLC’s range, and enhancing its reliability in complex environments. High-speed VLC systems now support applications such as in-vehicle communication, advanced driver-assistance systems (ADAS), and secure hospital communications. AI integration enables network self-optimization and predictive maintenance, mitigating traditional limitations such as ambient light interference.
Li-Fi technology, a specific VLC form, is increasingly adopted to offer faster, interference-free internet access in indoor environments, corporate campuses, and public spaces. The convergence of VLC with existing LED lighting infrastructure reduces installation costs and leverages energy efficiency benefits.
Strong growth is seen in specialized fields like underwater communication, where VLC complements acoustic systems enabling resilient data links for marine exploration and defense applications. Meanwhile, smart city projects employ VLC for traffic management, public safety, and IoT device networking to create energy-efficient, scalable urban connectivity.
Key trends shaping VLC include:
IoT and Smart Device Expansion: VLC’s ability to provide secure, localized, and high-speed wireless links fits well with the exploding connected device landscape.
Energy Efficiency Initiatives: Leveraging LED lighting for dual-function illumination and data transmission supports global sustainability goals and cost savings.
Data Security Concerns: VLC’s limited physical range enhances communication security, appealing to sectors handling sensitive data such as healthcare and finance.
Smart City and Automotive Demand: Governments worldwide push VLC adoption for traffic control, infrastructure monitoring, and in-vehicle communication systems.
AI-Powered Optimization: Machine learning enables adaptive modulation and interference mitigation, overcoming environmental challenges and enhancing scalability.
PureLiFi, GE, Philips: Innovators focusing on Li-Fi technology, commercial VLC implementations, and integration with smart lighting and IoT for enterprise and healthcare applications.
Philips (Netherlands), Oledcomm (France), LVX System (France): Active in expanding deployment of VLC-based smart lighting and in-building communication systems, supporting smart city initiatives.
Japan’s Panasonic and South Korea’s emerging startups emphasize VLC for retail, automotive, and industrial automation sectors, complementing 5G infrastructure growth.
Growing government-backed LED and IoT ecosystem development, with several domestic firms developing VLC modules and solutions for factory automation and public spaces.
Early-stage adoption in smart city projects and industrial monitoring, supported by pilot deployments and growing research initiatives.
In 2024, PureLiFi announced a commercial rollout of a secure VLC system for hospital environments, enabling wireless communication with zero radio interference, critical for sensitive medical equipment.
GE showcased advanced VLC modules with integrated AI-powered interference mitigation at a 2025 smart city expo.
Philips expanded its VLC-enabled smart lighting solutions across major European cities, focusing on seamless indoor communication and smart building applications.
Strategic partnerships formed between tech giants and telecom providers to integrate VLC alongside 5G networks for hybrid connectivity solutions, enhancing both bandwidth and security.
Research breakthroughs in underwater VLC systems demonstrated robust data transmission over greater distances, enabling new marine environmental monitoring capabilities.
Visible Light Communication is poised to become a crucial component in wireless communication ecosystems, complementing radio frequency solutions and accelerating digital transformation. Continuous advancements in LED technology, AI-driven system management, and wider IoT adoption will expand VLC’s commercial viability and application scope. Regional investments, government support, and strategic collaborations will fuel rapid deployment and innovation through 2033 and beyond.
Visible Light Communication is advancing rapidly with AI and IoT support, offering secure, energy-efficient wireless connectivity. Leading firms in the U.S., Europe, and Asia drive innovation and deployment across healthcare, automotive, and smart city sectors. The exponential growth trajectory solidifies VLC as a transformative technology in the future wireless landscape.