Lighting As A Service Market Size, Share, Opportunities, And Trends By Components (Luminaries And Control Equipment, Software And Communication System, Maintenance And Other Services), By End-User (Commercial, Municipal, Industrial, Residential), And By Geography - Forecasts From 2023 To 2028

The lighting as a service (LaaS) market is projected to witness a CAGR of 48.12% during the forecast period to reach a total market size of US$0.750 billion by 2022, increasing from US$0.071 billion in 2016. The ability of LaaS to provide a wide variety of solutions is driving the growth of the market. LED lights are penetrating the market deeply with their falling price and their capability of conserving energy. A significant portion of revenue to the lighting industry is based on the replacement of burned-out lamps, which presents the opportunity for the lighting companies to replace repeat sales of bulbs with recurring revenues from Laas contracts. Laas also provides the provision for upgrading existing lighting technology, allowing its customers to keep pace with the rapid changes in lighting technology. Moreover, government initiatives supporting the adoption of the energy-efficient lighting system and increasing convergence of the internet of things with lighting are expected to boost the demand for lighting as a service market.

By End-Users

Amongst end users, the Municipal segment is projected to grow at a robust pace on account of the development of smart cities requiring more advanced and sustainable infrastructure. The municipal end-users basically include lighting offered by local governments for streets, open public spaces, walkways, bridges, public parking areas, and highways. The commercial segment is projected to grow significantly during the forecast period. The energy savings and cost reductions promised by lighting as a service constitute an attractive offer for commercial end-users in view of the increasing corporate focus on sustainability and energy efficiency.

By Geography 

Geographically, North America is currently the largest market for lighting as a service, closely followed by Europe. The lighting as a service market in North America will be driven by demand from commercial establishments keen to leverage the cost-saving potential of efficient lighting systems and contribute to the global movement to reduce energy consumption. The market in the region is projected to grow at a high rate, with the U.S. estimated to register the fastest growth in the region. Europe is expected to grow at the highest rate during the forecast period owing to increasing demand from the commercial as well as industrial sectors. There is a surge in the development of commercial and residential infrastructure in the Asia Pacific region which will enhance the demand for LaaS in the region.

Competitive Landscape

The lighting as a service market is competitive owing to the presence of well-diversified international, regional, and local players. However, some big international players dominate the market share owing to their brand image and market reach. The high market growth and favorable government policies are further attracting more players to the market while enhancing competitive rivalry. The competitive landscape details strategies, products, and investments being done by key players in different technologies and companies to boost their market presence.

Some of the major players discussed in the report are Acuity Brands Lighting, Inc, Eaton, Cree, Inc., Koninklijke Philips N.V., Osram Licht Ag, Lutron electronics co, Inc., and SIB lighting among others.

Segmentation

Thirdly, the Lighting as a service market has been segmented by installation, component, end-user, and geography.  

• By Installation

• Indoor
• Outdoor

• By Components

• Luminaries and control equipment
• Software and communication system
• Maintenance and other services

• By End-User

• Commercial
• Municipal
• Industrial
• Residential

• By Geography

• North America
• South America
• Europe
• Middle East and Africa
• Asia Pacific