Lighting as a Service Market Scope and Overview
In 2023, The Lighting as a Service Market was valued at USD 1.23 billion and is expected to reach USD 12.26 billion by 2031.
Rising Demand for Sustainable Lighting Solutions Propels Lighting-as-a-Service Market Growth
Energy consumption in conventional lighting systems is quite high. Lighting-as-a-Service models offer a compelling solution, as service providers prioritize energy-efficient LED technologies and implement strategies to minimize energy consumption. Advancements in the Internet of Things (IoT) and Artificial Intelligence (AI) are paving the way for smart lighting solutions. Lighting-as-a-Service models offer seamless integration of these technologies, enabling features like intelligent dimming, occupancy sensors, and remote-control capabilities. and Lighting-as-a-Service solutions handle all maintenance and repairs associated with the lighting system. This frees up valuable resources for businesses and municipalities, allowing them to focus on core operations.
Some of the Major Key Players Studied in this Report are:
- Cree
- Eaton Corporation
- Future Energy Solutions
- Igor Inc
- Itelecom USA
- Koninklijke Philips N.V
- Lunera Lighting
- RCG Lighthouse
- SIB Lighting
- Zumtobel Group AG
- Others
Market Analysis
Technological advancements are creating a several opportunities for the Lighting-as-a-Service Market. The US Department of Energy (DOE) predicts a staggering 75% conversion of outdoor municipal lighting to energy-efficient LEDs by 2020, a trend poised to continue. Further improvements in LED technology promise even greater energy savings, benefiting both LaaS providers and end-users. The rise of smart buildings and homes, fueled by advancements in IoT and AI, is driving demand for intelligent lighting systems. These intelligent functions not only increase the comfort of the user, but also optimize the energy consumption. Lighting-as-a-Service Market providers are well-positioned to capitalize on this trend, offering comprehensive solutions that include installation, maintenance, and upgrades of these advanced lighting systems. Government regulations and campaigns promoting energy-saving practices further propel LaaS adoption, creating a dynamic and lucrative market for the foreseeable future.
Segmentation in the Lighting-as-a-Service Market
On the Basis of Components: The luminaries and control segment currently dominate the market due to the increasing adoption of LED fixtures and smart lighting control systems. The integration of smart lighting control systems is another major driver within the luminaries and control segment. These systems utilize sensors, wireless communication protocols, and software to provide features like occupancy detection, daylight harvesting, and dimming capabilities. For instance, a LaaS solution might incorporate motion sensors in a warehouse, automatically adjusting lighting levels based on occupancy to optimize energy use.
On the Basis of Installation: Indoor installations hold the majority share due to the widespread adoption of Lighting-as-a-Service in commercial buildings and offices. And on the other hand, the outdoor segment is expected to witness significant growth rate during the forecast period 2024-2031, as smart street lighting solutions gain traction.
On the Basis of Application: The commercial sector currently dominates the LaaS market, with businesses seeking to optimize energy costs and enhance their lighting infrastructure. However, the industrial sector is expected to experience rapid growth due to the rising focus on energy efficiency in manufacturing facilities.
Market Segmentation and Sub-Segmentation Included Are:
On The Basis of Components
- Luminaries and control
- Software
- Services
On The Basis of Installation
- Indoor installation
- Outdoor installation
On The Basis of Application
- Commercial
- Industrial
- Municipal
- Others
Regional Analysis
North America’s dominance in the Lighting-as-a-Service Market is bolstered by strong government initiatives and a thriving technology landscape. For instance, the US Department of Energy’s Lumen to Lumens program incentivizes states and municipalities to transition to energy-efficient LED streetlights, creating a fertile ground for LaaS adoption. Additionally, North America is a hotspot for innovation, with companies developing cutting-edge solutions like self-learning lighting systems that can adjust brightness and color temperature based on occupancy and ambient light. This focus on advanced technologies, coupled with supportive government policies, positions North America as a leader in the LaaS market.
Recent Developments
LumensCorp, announces a strategic partnership with a major smart home technology company to integrate advanced lighting control features into its service offerings.
Philips announces a strategic partnership with leading smart home automation company, IoTHome. This collaboration aims to integrate Philips’ advanced LED lighting fixtures with IoTHome’s intuitive smart home platform. LaaS customers can now leverage voice control, automated scheduling, and remote monitoring features for their lighting systems, enhancing convenience and energy efficiency.
Key Takeaways
- The Lighting-as-a-Service Market is experiencing significant growth driven by energy efficiency, smart technology integration, and reduced upfront costs.
- Advancements in LED technology and growing adoption of smart features present exciting opportunities for market expansion.
- Government initiatives and rising demand for energy-saving practices will further propel LaaS market growth.
- North America remains the dominant region, while Asia Pacific is expected to witness the fastest growth.
- The Lighting-as-a-Service Market offers a win-win solution for businesses and municipalities, promoting sustainability and cost optimization.
Table of Contents- Major Key Points
- Introduction
- Research Methodology
- Market Dynamics
- Drivers
- Restraints
- Opportunities
- Challenges
- Impact Analysis
- Impact of Ukraine- Russia war
- Impact of Ongoing Recession on Major Economies
- Value Chain Analysis
- Porter’s 5 Forces Model
- PEST Analysis
- Lighting as a Service Market Segmentation, by Components
- Luminaries and control
- Software
- Services
- Lighting as a Service Market Segmentation, by Installation
- Indoor installation
- Outdoor installation
- Lighting as a Service Market Segmentation, by Application
- Commercial
- Industrial
- Municipal
- Others
- Regional Analysis
- Introduction
- North America
- Europe
- Asia-Pacific
- The Middle East & Africa
- Latin America
- Company Profile
- Competitive Landscape
- Competitive Benchmarking
- Market Share Analysis
- Recent Developments
- USE Cases and Best Practices
- Conclusion
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