PUBLISHER: Grand View Research | PRODUCT CODE: 1814165
PUBLISHER: Grand View Research | PRODUCT CODE: 1814165
The global lighting as a service market size was estimated at USD 2.56 billion in 2024 and is projected to reach USD 35.13 billion by 2033. growing at a CAGR of 34.8% from 2025 to 2033. The growing demand for energy-efficient lighting solutions, paired with cost-effective financing models, drives demand in the lighting as a service (LaaS) market.
The growing popularity of sustainability-linked financing and corporate ESG goals is also boosting LaaS adoption. Many organizations are now under pressure from investors and stakeholders to improve their sustainability performance. Lighting accounts for a significant portion of electricity usage in commercial and industrial buildings, and shifting to energy-efficient systems through LaaS is an immediate and measurable way to reduce carbon footprints. Moreover, as service providers track and report performance metrics such as energy savings and emission reductions, LaaS becomes a valuable tool for companies to demonstrate ESG compliance and environmental responsibility in their annual disclosures and sustainability reports.
The increasing complexity and specialization of lighting technologies also contribute to expanding the market. With the proliferation of adaptive lighting, daylight harvesting, color tuning, motion sensing, and AI-driven lighting controls, businesses find it challenging to keep pace with technological advancements and manage these systems in-house. LaaS provides access to the latest lighting technologies and expert design, installation, monitoring, and continuous optimization services. This full-service approach ensures that systems remain cutting-edge and functional without requiring internal expertise or ongoing capital reinvestments, thus appealing to a broad range of organizations from small offices to large manufacturing plants.
The LaaS model is gaining momentum in the educational and healthcare sectors, where institutions often face budget constraints and aging infrastructure. Schools, universities, hospitals, and clinics require reliable, high-quality lighting for safety, concentration, and healing environments. LaaS providers offer tailored solutions that include modern LED retrofits, automated lighting controls, and long-term maintenance, allowing these institutions to focus their limited resources on core services while benefiting from improved lighting quality and lower operational costs. Reducing maintenance burden and power consumption also enhances the operational efficiency of such facilities.
Moreover, the increasing digitization of building management and the shift toward smart infrastructure reinforce the appeal of LaaS. As commercial buildings become more connected and reliant on data for operational decisions, lighting systems integrated with IoT sensors and analytics platforms are becoming standard. LaaS facilitates access to this advanced technology and ensures that systems remain updated and optimized throughout the contract period. This continuous performance assurance, backed by service level agreements (SLAs), provides clients with peace of mind and predictable energy savings, key elements driving wider adoption across sectors and geographies.
Furthermore, the proliferation of smart cities and connected infrastructure projects significantly accelerates market demand. As municipalities aim to modernize public infrastructure while adhering to strict sustainability mandates, LaaS offers a scalable and cost-effective model to deploy intelligent street lighting systems. These systems provide energy-efficient illumination and integrate seamlessly with other urban technologies, such as traffic monitoring, environmental sensors, and emergency response systems. By leveraging LaaS, cities can implement advanced lighting controls like adaptive brightness, motion sensing, and remote diagnostics, which improve safety, reduce light pollution, and lower overall energy consumption. The subscription model ensures that these public-sector clients avoid large upfront investments, which is crucial given the budget constraints often faced by local governments.
Global Lighting As A Service Market Report Segmentation
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented the global lighting as a service market report based on component, application, end use, and region: