Market Overview:
Lighting as a Service Market Size Was Valued at USD 2.66 Billion in 2023, and is Projected to Reach USD 55.85 Billion by 2032, Growing at a CAGR of 40.25% From 2024-2032.
The market for lighting-as-a-service analyzes the business model in which the consumer does not purchase lighting equipment. Rather, it enters into a layered contract that specifies a set charge for the lighting requirements. The lighting player supplies the lamps, luminaries, and controls and, in some situations, extra services such as data analysis and finance arrangements. Separate installation businesses install the lighting system and are paid by the lighting company to maintain the equipment during the course of the contract. This is due to the service's several benefits, including the reduction of overall lighting-related expenditures and the development of free cash flow, as well as the maintenance of lighting systems and hardware.
Top Key Players for Lighting As A Service Market:
Igor Inc. (U.S.), Itelecom (Chile), Koninklijke Philips N.V. (Netherlands), General Electric Lighting (U.S.), Zumtobel Group AG (Austria), SIB Lighting (U.S.), Lunera Lighting (U.S.), Cree Inc. (U.S.), Future Energy Solutions (U.S.), Rcg Lighthouse (Latvia), and Other Major Players
Market Dynamics and Factors for Lighting As A Service Market:
Drivers:
Rapid Industrialization And Urban Development In Economically Wealthy Economies
The Lighting as a Service (LaaS) market is experiencing significant growth, with one of the key drivers being rapid industrialization and urban development in economically wealthy economies. As economically wealthy economies undergo rapid industrialization and urbanization, there is a growing emphasis on energy efficiency, sustainability, and cost reduction. Traditional lighting systems, such as incandescent or fluorescent bulbs, are being replaced with more energy-efficient and environmentally friendly options like LED lighting. LED lighting consumes significantly less energy, has a longer lifespan, and offers improved lighting quality, making it an attractive choice for both commercial and municipal applications.
Opportunities:
The Development In The Existing Technology
The Lighting as a Service (LaaS) market is poised to benefit significantly from the ongoing developments in existing technology, which are expected to create glorious opportunities for market growth. The integration of cutting-edge technologies, such as the Internet of Things (IoT) and smart lighting systems, presents a transformative opportunity for the LaaS market. IoT-enabled lighting solutions allow for real-time monitoring, control, and optimization of lighting infrastructure. This not only enhances energy efficiency but also enables dynamic adjustments based on occupancy, natural lighting conditions, and user preferences. As businesses and municipalities seek to adopt intelligent and data-driven solutions, the LaaS market can offer comprehensive packages that encompass both advanced lighting hardware and sophisticated control systems.
Segmentation Analysis of the Lighting As A Service Market:
- By Type, In the evolving landscape of the Lighting as a Service (LaaS) market, the software component has emerged as the dominating segment. This dominance can be attributed to several factors that highlight the pivotal role of software in shaping the future of lighting solutions and services.
- By Type of Technology, In the realm of the Lighting as a Service (LaaS) market, the "Outdoor Installation" segment has emerged as the dominating force. This prominence is rooted in a confluence of factors that underscore the growing importance of outdoor lighting solutions in diverse applications.
Key Industry Development:
- In February 2020, US LED, the industry's top supplier of ultra-long-lasting LED lighting systems, recently introduced Light NowTM, a new Lighting as a Service (LaaS) offering. US LED will be able to give customers the option to install new LED lighting systems in their facilities with no upfront capital thanks to the launch of Lighting as a Service. This makes it possible for businesses to get new LED lighting as a monthly service agreement and avoid recording capital expenses.
- In August 2020, The smart home lighting solutions from LEDVANCE and Bosch were announced by LEDVANCE GmbH. Customers may now apply for the Bosch Smart House System even more easily thanks to the integration of LEDVANCE Smart+ products because this high-quality solution for a secure home eliminates the need for a separate bridge.
Regional Analysis of the Lighting As A Service Market:
North America is predicted to be the most market for lighting as a service (LaaS), followed by Western and Eastern Europe. The lighting as a service market in North America is being driven by an increase in demand for commercial launches, as LaaS can save money and reduce energy consumption globally.
Regional Outlook (Revenue in USD Million; Volume in Units, 2024-2032)
North America
- The U.S.
- Canada
- Mexico
Europe
- Germany
- UK
- France
- Italy
- Russia
- Spain
- Rest Of Europe
Asia Pacific
- China
- India
- Japan
- Singapore
- Australia
- New-Zealand
- Rest of APAC
Middle East & Africa
- Turkey
- Saudi Arabia
- Qatar
- UAE
- Israel
- South Africa
South America
- Brazil
- Argentina
- Rest of SA
