Lighting as a Service Market: Current Analysis and Forecast (2021-2027)

LaaS (Light as a Service) is a two-year project co-funded by the UK-based agency name Innovate UK. Lighting as a service refers to a better version of lighting that enables the move from old-style lighting to smart lighting with the help of sensors and Internet of Things (IoT) technology, this reduces the cost and enhances the efficiency of energy without any investment from the end-user's side. Factors that are positively influencing the market size of LaaS such as shifting preference toward sustainable lighting solutions and the emergence of LED as energy-efficient lighting technology. In addition, the soaring construction of smart cities across the emerging economies is also fueling the market size of lighting as a service.

Moreover, various Lighting as a Service provider, such as Renewable Partnerships, have been offering LED lighting solutions with no associated investment costs to reduce carbon dioxide emissions coupled with rapid advances in technology including IoT will further augment the demand for Lighting as a Service market.

The global Lighting as a Service market is expected to register a CAGR of more than 45 % throughout 2021-2027. Factors that are attracting the market size of lighting as a service end-user as it embodies no direct prices to the user, optimizes energy consumption, continued value saving, no maintenance required coupled with add on functions and systems such as knowledge assortment, inter-device communication, and remote management are propelling the market size of lighting as a service (LaaS).

Moreover, the lighting as a service market is displaying significant growth globally due to the increasing demand for energy-efficient lighting systems and support from several governments for phasing out traditional lighting systems with energy-efficient ones. However, a lack of awareness about the value of a service-oriented model of lighting is expected to hinder Lighting as a service market growth.

Koninklijke Philips N.V., General Electric Company, Lunera, Lutron Electronics Co, RCG Lighthouse, Cree Inc., SIB Lighting, Future Energy Solutions, Eaton Corporation, and Digital Lumens. are some of the key players in the market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.

Insights Presented in the Report

"Amongst installation, the outdoor category accounted for the majority share in the market in 2020"

Based on the installation, the lighting as a service market is bifurcated into indoor and outdoor. The outdoor segment caters to extensive market share in the lighting as a service market. It is mainly attributed to the lighting offered by local governments for open public spaces, streets, bridges, public parking areas, walkways, and highways are also driving the market.

"Amongst components, software & communication systems are expected to witness highest CAGR during the forecast period"

Based on components, the lighting as a service market is segmented into luminaries & control equipment, software & communication systems, and maintenance & other services. The software & communication systems acquired a considerable market share in the lighting as a service market. It is mainly pertaining to the combination of IoT with LaaS to provide various facilities to the users such as controlling lighting and temperature at the workplace, tracking the usage pattern of lights, reducing them whenever not needed, and considerably decreasing the building's carbon footprints.

"Based on end-users, a commercial segment expected to witness extensive CAGR during the forecast period"

Based on end-user, the lighting as a service market is classified into a commercial, industrial, and municipal. The commercial segment caters to a considerable share of the lighting as a service market and is expected to witness high growth during the forecasted period. This is mainly because of significant structural impacts, namely, economic growth. Furthermore, commercial consumers will have access to their energy efficiency through lighting as a service that will, in turn, help them improve their energy consumption for multiple uses.

"North America to witness significant growth during the forecast period"

North America acquired an extensive market share in the lighting as a service market and is expected to grow at an extensive rate mainly owing to government support to replace traditional lighting systems with energy-efficient lighting systems. Moreover, the growing demand for energy-saving lighting solutions by massive warehouses and production units within the US has escalated the adoption of LaaS.

Moreover, in North America, the lighting as a service market is driven by the rise in the demand for commercial launches, as LaaS has a cost-saving potential and offer a reduction in energy consumption worldwide. For instance, according to the American Council for an Energy-Efficient Economy, these establishments account for about 19% of the energy consumed in the US. More than half the energy used by commercial buildings goes toward heating and lighting.

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Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.

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Deep dive regional level analysis of the industry.

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