Lighting as a Service Market - Global Industry Analysis, Size, Share, Trends, Analysis, Growth, and Forecast 2017 - 2025
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.
This study provides a particularized anatomy according to the L.E.A.P mechanism
The regional analysis offers market assays across:
The study, prepared through the L.E.A.P mechanism adds a dimension of infallibility and assures precise information on all the growth dynamics.
Latest Trends and Cardinal Growth Prospects
The study assists in burnishing the knowledge of the stakeholder in terms of the emerging trends. The study provides an expansive coverage on the latest developments and novel profit-yielding sources that augur well with the market. A dedicated and determined team of experts conduct an out-and-out research on diverse aspects to offer ultimate breakthroughs in the market.
Existing and Future Insights in Growth
The interfusion of ubiquitous primary and secondary research through modern tools invites perfection and accuracy in every aspect. Primary research is circumspectly conducted through exhaustive interactions and interviews of experts. These valuable opinions are then neatly inducted in the report to allow the stakeholder for reaping the benefits. A treasure of secondary data is extracted via famed paid sources, yearly estimates and statements, renowned journals, and government documents. These sources assist in creating a robust database comprising existing and subsequent growth dynamics.
Ascensions in Technology
Diverse technological advancements and cutting-edge innovations in the market have been covered in this study to assist the stakeholder in research and development activities. Recent upgrades have also been added in the study, thus helping the stakeholder to paint the strokes of growth on the canvas of the market.
The study presents a plethora of challenges and obstacles that can hinder the growth of the market to allow the stakeholder to prepare their strategies accordingly.
The world ushered in the new decade with the shadow of the COVID-19 pandemic. The outbreak has damaged the growth prospects of several businesses and has crippled the entire economy. The study is in tandem with the changing dynamics of the market due to the SARS-CoV-2 outbreak. The study focuses on the coronavirus pandemic and analyses every aspect that impacts the growth positively or negatively.
An aerial perspective of the regions covered in this study enables the stakeholder to design strategies accordingly. The 360-degree assessment of every aspect associated with growth offers information on a rainbow of growth opportunities available across the market.
The exhaustive study motivates the stakeholder to take the 'LEAP' of faith and achieve success!
This report is the key to questions such as:
What are the prominent factors that will help in reshaping the market growth?
Which trends have the potential to bring expansive growth for the market?
What are the necessary strategies to overcome the ill-effects of the COVID-19 pandemic?
Which regions will emerge as champion growth contributors for the market?
Which aspects will serve as game-changers for the market?
What are the latest innovations in the market?
Which factors will hinder the growth of the market?
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