Lighting as a Service Market - Global Industry Analysis, Size, Share, Trends, Analysis, Growth, and Forecast 2017 - 2025

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Lighting as a Service Market - Global Industry Analysis, Size, Share, Trends, Analysis, Growth, and Forecast 2017 - 2025

Status : March, 2020 | Energy & Mining | PPT format

Report Digest


Global Lighting-as-a-Service Market: Snapshot

The rise of circular economy is driving business model innovation across all industries, with a key spin-off being the emergence of ‘something-as-a-service’ business model. The lighting-as-a-service (LaaS) is fast emerging as an innovative service delivery model in the lighting industry. The transition to LaaS is mainly motivated by numerous short- and long-term gains, increased cost savings, enhanced energy efficiency, and better control of resources. In addition, a large number of LaaS providers and end users can harness the capabilities of a wide array of digital analytics, with the IoT at the forefront. The lighting-as-a-service model is fast gaining traction across businesses who want to unleash the value proposition of the LED technology. Several end-use organizations, particularly government facilities, restaurants, and hospitals, seek to garner substantial cost and energy savings brought about by using LED lights. The LaaS model helps them get over expensive retrofits and avoid large upfront capital investment since they usually pay monthly subscription fees to the provider throughout the contract.

Driven by reduction in maintenance cost and a better control of lighting, restaurants and hospitals are increasingly shifting from traditional fluorescent lighting to LED lighting for all spaces. The LaaS model helps them ease installation of fixtures, negotiate monthly rates, and increase energy savings over time. Typically, LaaS providers audit the energy usage from lighting and demand a percentage of the energy cost savings for the upfront investment they make in retrofitting. Once the contract matures, buildings can own the LED lights, which further leads to sustainable benefit enjoyed by the end users. During the contract, all technological upgrades are managed by the LaaS provider, and any significant advancement may warrant for new contract; however, the end users do not need to invest any capital upfront, thereby enabling them to enjoy efficient lighting continuously.

Lighting as a Service Market: Overview 

The global lighting as a service market is displaying significant growth 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. 

Lighting as a service (LaaS) refers to a service delivery model wherein light service is provided based on a subscription model rather than a one-time installation model. The basis of the idea is that manufactures install, maintain, and operate customer’s lighting systems and does not have any upfront investment for the customer. 

The global lighting as a service market can be analyzed by end-user, installation, component, and region. By end-user, the market can be segmented into commercial, industrial, and municipal. 

The report extensively relies on primary and secondary research sources and makes use of industry-centric databases and tools. The analysis of the report will prove to be a useful instrument for stakeholders of the global lighting as a service market. 

Lighting as a Service Market: Trends and Opportunities 

Worldwide, the development of smart cities is one of the major factors driving the global lighting as a services market. Some of the benefits of deploying lighting as a service include no upfront costs, lower energy conservation, no maintenance liability, improved lighting experience, and savings on energy bills. Lighting as a service also enables the ability to obtain add-on functions and systems such as remote management, data collection, and inter-device communication. 

The increasing use of IoT for the design and functioning of street lighting is also anticipated to propel the demand for lighting as a service solutions across the globe. 

The commercial end-user segment is expected to present lucrative growth opportunities to this market. Lighting as a service offers energy savings and reduction in energy bills, which is attractive for commercial end users in view of increasing focus on energy conservation and sustainability. 

The indoor installation segment is expected to lead in the near future retaining its dominant position as held in the recent past. The fast development of the commercial sector in developing countries is favoring the growth of the indoor segment in this market. However, the outdoor segment is expected to register fastest CAGR during the forecast period. The increasing convergence of Internet of Things (IoT) for effective street lighting solutions is the major factor behind the growth of the outdoor installation segment in this market. Outdoor installation includes street lighting, parking garages, park and recreational areas among others. 

However, the abundance of low quality LED products in the market that have performance issues is posing a huge challenge to the lighting as a service market.   

Lighting as a Service Market: Regional Overview 

The lighting as a service market can be analyzed with respect to the five broad regions of North America, Asia Pacific, Europe, Latin America, and the Middle East and Africa. Amongst these, North America is the leading regional market due to the governmental support for replacing traditional lighting systems with energy efficient lighting systems. The region is closely followed by Europe. 

Lighting as a Service Market: Competitive Landscape 

Some of the key companies in the global lighting as a service market include Koninklijke Philips N.V., Zumtobel Group AG, Lunera Lighting, Itelecom, General Electric Lighting, SIB Lighting, Igor Inc., and Cree Inc. The top players are focused on contracts and agreements, partnerships and collaborations, and investments and expansions in order to gain a competitive advantage and translate into business growth.

The study presents a granular assessment and quantitative evaluation of:

  • Key growth factors and prominent trends
  • Size and share of key segments in overall market
  • Key challenges and winning imperatives
  • Factors shaping competitive landscape
  • Insights into how contours of market will change in coming years
  • Technological advances
  • New avenues and imminent investment pockets
  • Regulatory landscape shaping current and future strategies of companies

The region-wise assessment includes market dynamics in:

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • The Middle East and Africa

The study is prepared with the help of an extensive primary and secondary research. Primary research includes but not limited to interactions, interviews, surveys, and events. Opinions of policy makers and industry experts are carefully integrated into the insights to complement primary research. Volumes of secondary data gleaned through renowned paid sources, annual statements, reputed journals, and government documents offer insights into current dynamics and key evolution trajectories the market is likely to assume. The research employs various industry-wide analytics methods and well-established methodologies to ascertain the attractiveness of key segments. Further, it evaluates the lucrativeness of key regions and factors underlying their maturity. The insights notably include a detailed analysis of forces behind vendor differentiation and offers insight into investment-decision making by prominent players.

The report strives to enlighten businesses and industry stakeholders on multiple facets of the growth dynamic of the market, the key of which include answers to:

  • Which key factors will shape the competitive landscape?
  • Which trends will stimulate research and development activities in different geographies?
  • Which are the lucrative growth areas and what is the size of potential they are likely contribute to the overall market?
  • Which disruptions in market growth are likely to come with the new business models?
  • Which are some of the recent overhauls in policies that may change the course of the market significantly?
  • Which are the geographies that will form sizable sources of new streams to new and established players alike?
  • How are top players likely to realign their strategy to counter the forces of competition?
  • Which key strategies emerging players are likely to focus on to consolidate their position?
  • Which changes in end-user preferences might affect the status quo held by the leading players?
  • Which are some of the game-changing innovations influencing the projected share and revenue of the market and its segments?

Note: Utmost care has invariably been taken to present data and arrive at statistics at all the TMR Research reports. Meanwhile, some recent developments and new industry trends may take time to be included in the reports.

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