Lighting as a Service Market Size, Share, Opportunities, and Trends Report Segmented by Component, Installation, End-User, and Region – Forecasts from 2025 to 2030

Lighting as a Service Market Size:

The Lighting as a Service (LaaS) Market is projected to grow at a CAGR of 33.68% to reach US$3.522 billion in 2030 from US$0.825 billion in 2025.

Lighting as a Service Market Overview:

LED lights are increasingly dominating the market due to their declining costs and energy-saving capabilities. A large share of the lighting industry’s revenue comes from replacing worn-out bulbs, giving lighting companies a chance to shift from one-time bulb sales to steady income through Lighting as a Service (LaaS) contracts. LaaS also supports upgrades to existing lighting systems, helping customers stay current with fast-evolving lighting technologies. Additionally, government efforts to encourage energy-efficient lighting and the integration of the Internet of Things (IoT) with lighting solutions are fueling the LaaS market growth.

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Regionally, North America currently leads the LaaS market, with Europe not far behind. In North America, the market is propelled by commercial entities eager to cut costs with efficient lighting and support global energy reduction efforts, resulting in strong growth. Europe, however, is experiencing the fastest growth during the forecast period, driven by rising demand from its commercial and industrial sectors. Meanwhile, rapid development in commercial and residential infrastructure across the Asia Pacific is boosting LaaS demand in that region.

The Lighting as a Service market report provides a comprehensive analysis of the global industry, delivering strategic and executive-level insights backed by data-driven analysis and forecasts. Regularly updated, it equips decision-makers with practical knowledge about current market trends, emerging opportunities, and competitive dynamics. The report examines the demand for key LaaS components—such as luminaires and controls, software and communication systems, and services—and their adoption across various regions. It also evaluates the latest technological advancements in the LaaS market, alongside significant government policies, regulations, and macroeconomic factors, offering a complete view of the market landscape.

Lighting as a Service Market Trends:

The LaaS market is experiencing a transformative phase, driven by the global push for energy efficiency, sustainability, and smart technology integration. LaaS, a subscription-based model where third-party providers manage lighting solutions, including design, installation, maintenance, and upgrades, has emerged as a compelling alternative to traditional lighting ownership. This model allows businesses, municipalities, and institutions to reduce upfront costs, enhance energy savings, and adopt advanced lighting technologies without the burden of capital investment. As organizations prioritize sustainability and operational efficiency, LaaS is gaining traction across commercial, industrial, and public sectors.

• Integration of IoT and Smart Lighting Solutions: The integration of Internet of Things (IoT) technologies into LaaS offerings is a dominant trend, enabling intelligent, data-driven lighting systems that optimize energy use and enhance functionality.
• Focus on Sustainability and Carbon Neutrality: Sustainability is a cornerstone of the LaaS market, with organizations leveraging the model to meet stringent environmental regulations and carbon neutrality goals.
• Expansion of LaaS in Emerging Markets: The LaaS market is expanding rapidly in emerging economies, particularly in Asia-Pacific and the Middle East, driven by urbanization and infrastructure development.
• Adoption of Human-Centric Lighting: Human-centric lighting (HCL), which adjusts light intensity and color temperature to enhance well-being and productivity, is gaining prominence in LaaS offerings.

Lighting as a Service Market Growth Drivers:

• Demand for Energy Efficiency and Cost Savings: The global push for energy efficiency, driven by rising electricity costs and stringent environmental regulations, is a primary driver of the LaaS market.
• Rapid Urbanization and Smart City Initiatives: Rapid urbanization and the rise of smart city projects, particularly in Asia-Pacific and the Middle East, are driving demand for LaaS as a scalable solution for modernizing urban infrastructure.
• Adoption of IoT and Smart Lighting Technologies: The integration of IoT technologies into lighting systems is a significant driver, enabling LaaS providers to offer intelligent, data-driven solutions that enhance functionality and energy efficiency.

Lighting as a Service Market Segmentation Analysis by Component:

• Hardware: Includes luminaires and controls critical for energy-efficient lighting systems.
• Software: Encompasses IoT platforms and analytics for smart lighting management.
• Services: Covers design, installation, maintenance, and upgrades, ensuring system reliability and efficiency.

Lighting as a Service Market Segmentation Analysis by Installation:

• Indoor Installation: Dominates due to demand for energy-efficient and smart lighting in commercial and institutional settings.
• Outdoor Installation: Growing in urban areas for smart street lighting and public infrastructure.

Lighting as a Service Market Segmentation Analysis by End-User:

• Commercial: Leads due to demand for cost-effective, sustainable lighting in offices, retail, and hospitality.
• Industrial: Utilizes LaaS for energy-efficient lighting in manufacturing and warehousing.
• Others: Includes public sector applications like municipal and educational facilities.

Lighting as a Service Market Geographical Outlook:

The Lighting as a Service market report analyzes growth factors across the following regions:

• North America: Leads due to commercial demand for energy-efficient lighting and sustainability goals.
• Europe: Fastest-growing region, driven by commercial and industrial demand and stringent environmental regulations.
• Asia Pacific: Rapid growth fueled by urbanization and smart city initiatives in countries like China and India.

Lighting as a Service Market – Competitive Landscape:

• Signify N.V.: Leader in IoT-enabled LaaS solutions with its Interact platform for smart lighting.
• Zumtobel Group AG: Focuses on sustainable LaaS programs with recyclable LED luminaires.
• Acuity Brands, Inc.: Pioneers human-centric lighting solutions for healthcare and commercial sectors.

These companies drive innovation through advanced lighting technologies and strategic partnerships, enhancing market competitiveness.

Lighting as a Service Market Latest Developments:

• October 2024: Acuity Brands launched a LaaS solution under its Nightingale brand, focused on human-centric lighting for healthcare facilities.
• November 2024: Zumtobel Group’s lighting brands, Thorn and Zumtobel, collaborated with Sunderland Association Football Club (AFC) to execute a LaaS-based illumination upgrade for the Stadium of Light.

Lighting as a Service Market Scope:

The Lighting as a Service Market is analyzed into the following segments:

By Component

• Hardware
• Software
• Services

By Installation

• Indoor Installation
• Outdoor Installation

By End-User

• Commercial
• Industrial
• Others

By Region

• North America
  • USA
  • Canada
  • Mexico
• South America
  • Brazil
  • Argentina
  • Others
• Europe
  • United Kingdom
  • Germany
  • France
  • Spain
  • Others
• Middle East and Africa
  • Saudi Arabia
  • UAE
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Thailand
  • Indonesia
  • Others

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Page last updated on: September 4, 2025

1. EXECUTIVE SUMMARY

2. MARKET SNAPSHOT

2.1. Market Overview

2.2. Market Definition

2.3. Scope of the Study

2.4. Market Segmentation

3. BUSINESS LANDSCAPE

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities

3.4. Porter’s Five Forces Analysis

3.5. Industry Value Chain Analysis

3.6. Policies and Regulations

3.7. Strategic Recommendations

4. LIGHTING AS A SERVICE MARKET BY COMPONENT

4.1. Introduction

4.2. Hardware

4.3. Software

4.4. Services

5. LIGHTING AS A SERVICE MARKET BY INSTALLATION

5.1. Introduction

5.2. Indoor Installation

5.3. Outdoor Installation

6. LIGHTING AS A SERVICE MARKET BY END-USER

6.1. Introduction

6.2. Commercial

6.3. Industrial

6.4. Others

7. LIGHTING AS A SERVICE MARKET BY GEOGRAPHY

7.1. Introduction

7.2. North America

7.2.1. USA

7.2.2. Canada

7.2.3. Mexico

7.3. South America

7.3.1. Brazil

7.3.2. Argentina

7.3.3. Others

7.4. Europe

7.4.1. Germany

7.4.2. France

7.4.3. United Kingdom

7.4.4. Spain

7.4.5. Others

7.5. Middle East and Africa

7.5.1. Saudi Arabia

7.5.2. UAE

7.5.3. Others

7.6. Asia Pacific

7.6.1. China

7.6.2. Japan

7.6.3. India

7.6.4. South Korea

7.6.5. Thailand

7.6.6. Indonesia

7.6.7. Others

8. COMPETITIVE ENVIRONMENT AND ANALYSIS

8.1. Major Players and Strategy Analysis

8.2. Market Share Analysis

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Competitive Dashboard

9. COMPANY PROFILES

9.1. Signify N.V.

9.2. Zumtobel Group AG

9.3. Acuity Brands, Inc.

9.4. SRESKY

9.5. Osram GmbH

9.6. Cree Lighting

9.7. GE Lighting

9.8. Eaton Corporation plc

9.9. Hubbell Incorporated

9.10. Legrand S.A.

10. APPENDIX

10.1. Currency

10.2. Assumptions

10.3. Base and Forecast Years Timeline

10.4. Key benefits for the stakeholders

10.5. Research Methodology

10.6. Abbreviations

Signify N.V.

Zumtobel Group AG

Acuity Brands, Inc.

SRESKY

Osram GmbH

Cree Lighting

GE Lighting

Eaton Corporation plc

Hubbell Incorporated

Legrand S.A.

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