Pixelated two-dimensional (2D) Optical Wireless Communication Systems (OWCS), with intensity-modulation and direct-detection (IM/DD), modulate the data to be transmitted, into image intensities at the transmitter. The image is passed through an optical channel, and is captured at the receiver, then demodulated into received data. In traditional one-dimensional (1D) IM/DD OWCS, the proposed schemes modulate the output signal either in the time-domain, such as in single-carrier modulation, or in the frequency-domain, such as in orthogonal frequency-division multiplexing (OFDM). In contrast to 1D systems, the previously proposed 2D pixelated OWCS, use frequency-domain modulation (FDM) only, overlooking spacedomain modulation (SDM). FDM benefits from the ability to control the output signal's spectrum, though suffers from high peak-to-average power ratio (PAPR), and high computational complexity at the transmitter. In this work we propose a new SDM-based, 2D pixelated OWCS, which maintains low PAPR and low computational-complexity at the transmitter side, while enabling efficient spectral-control of its output signal. After a definition of a general scheme for the proposed SDM, we present three signal examples, suitable for three typical channels. Analysis of the spectral content of those output signals is performed, demonstrating the spectral control ability, and their resulted lower PAPR. Simulation results of the proposed SDM methods, as well as a common reference FDM method, the spatial asymmetrically-clipped optical OFDM (SACO-OFDM), are presented. Although showing minor performance disadvantage for typical average power limited channels, the proposed SDM methods show significant performance advantage for peak limited channels, while maintaining, in all cases, flexibility in dimensions, to meet the target screen size, significantly lower PAPR, and lower transmitter side computational complexity..Index Terms -Pixelated MIMO; SACO OFDM; Imaging receiver; Pixelated optical wireless communication; Spatial-domain modulation; Space-domain modulation; Multidimensional signal processing; Two-dimensional optical wireless communications; 2D; Optical camera communications.Due to IFFT implementation, for practical FDM systems, it is common that the output signal's block size(without cyclic extension) has equal width and height, where each dimension is an integer-power of 2 (e.g. 64x64, 512x512), [1]- [3]. However, for the proposed SDM, such requirement is unnecessary, giving more flexibility to fit displays, which are usually rectangular and have non power of two dimensions.In this paper, we propose, analyze, and simulate a 2D spatial domain modulation (SDM) communication system, with spatial domain processing, rather than the common FDM systems with frequency domain processing. The proposed SDM has the ability to shape the spectrum of the optical output signal, while maintaining low PAPR, low computational complexity at the transmitter side, and flexibility in dimensions to meet the target screen size. Three examples which...