Lighting As A Service Market Size, Share, Growth, and Industry Analysis, By Type (Luminaries & Control Equipment, Software & Communication Systems, & Other), By Downstream Industry (Commercial, Industrial, Municipal, & Other) and Regional Forecast to 2032

Updated On: 04 November 2024

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LIGHTING AS A SERVICE MARKET REPORT OVERVIEW

The Lighting As A Service Market Size was Valued at US$ US$ 590.52 Million in 2023. The Market is likely to Surpass US$ 39801.17 Million by 2032 at a CAGR of 52.36% During the Forecast period [2024-2032].

Light as a Service (LaaS) is a service-based business model. It is a light service which is charged on a subscription basis rather than a conventional method. Light vendors have used the LaaS strategy in selling value-added services, such as internet-connected lighting and energy management. It is managed by third parties more precisely by specialized service providers. It includes light design, financing, installation, maintenance, and other services. The LaaS model has become more widespread in commercial and city-areas for the installations of LED lights, particularly in retrofitting buildings and outdoor facilities, with the prior aim of reducing installation costs.

Increasing number of implementations in various industries is increasing demand for the services and expanding the market. Developing technologies are offering copious options for market players to increase their market existence.

COVID-19 Impact: Market Growth Hindered by Pandemic due to Travel Bans

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

Sudden lockdown and restriction on staying at home has temporarily closed many sectors. With travel bans in place and logistics suspensions, the import of lighting supplies become challenging. Furthermore, the lighting production outlets also came to a halt because their workforce cannot continue their duties due to quarantine. However, COVID-19has continuously affected allied sectors that are related with the service market. Furthermore, the implementation of work-from-home policies limited the market growth.

LATEST TRENDS

"Increasing Demand for Car Digitization and Connectivity are Impelling Market Growth"

Current trend in the market that is propelling the market expansion is the growing preference for sustainable lighting solutions and the emergence of LED technology as an energy-efficient lighting option will influence the market. Various LaaS providers, including Renewable Partnerships are offering LED lighting solutions without associated investment costs to reduce carbon dioxide emissions. Advancements in technology such as the Internet of things (IoT) further support demand for the service particularly with increasing interest from the smart lighting industry.

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LIGHTING AS A SERVICE MARKET SEGMENTATION

By Type

Based on type the market can be categorized into luminaries & control equipment, software & communication systems, & other.

• Luminaries & Control Equipment: It refers to an intelligent networked system of devices related to lighting control and it may include relays, occupancy sensors, and others.

• Software & Communication Systems: It is used to provide remote access to systems and exchange files and messages in text, audio, and video formats between different computers or users.

• Other: There are other types of markets which can serve the various business requirements such as maintenance and other services.

By Downstream Industry

Based on downstream industry the market can be categorized into commercial, industrial, municipal, & other.

• Commercial: In a commercial setting, businesses can utilize LaaS to reduce upfront costs and increase energy efficiency.

• Industrial: Industrial sectors can benefit from the service by optimizing lighting systems to improve workplace safety and productivity.

• Municipal: Municipalities can utilize this service to enhance public lighting infrastructure.

• Other: There are other sectors such as healthcare, education, and hospitality that use the service which ensures cost-effective, sustainable, and reliable lighting solutions.

DRIVING FACTORS

"Rapid Industrialization and Urban Development Propel Market Growth"

One of the attributes for the Lighting As A Service Market growth is the rapid industrialization and urban development in economically wealthy countries. In emerging nations of the developing world, the demand for LaaS is increasing significantly. In the urban and municipal development arena, the demands for LED lighting are increasing due to its energy consumption efficiency. The growing interest in contracting a third-party subscription-based LaaS setup that reduces the overhead costs by a lot is enhancing demand for service. Since the contractual company takes care of the installation, maintenance, services, and other facilities of lighting, the monthly operational costs reduces to the end-users which encourages demand and supports market growth.

"Rising Demand for Energy-efficient Lighting Systems Encouraging Market Growth"

Another growing factor for increasing market growth is the rising demand for energy-efficient lighting systems, the absence of capital expenditure requirements, and the increasing convergence of the Internet of Things in lighting systems to lessen global energy consumption. The growth of smart cities across the globe is anticipated to be a major factor in expanding the market. In addition, the market is stimulated by the financial benefits provided by LaaS. The benefits are such as an immediate return on investment, no initial capital expense, and the implementation of favorable government policies and regulations encouraging the adoption of energy-efficient lighting systems.

RESTRAINING FACTOR

"Unawareness and Lack of Infrastructure Impeding Market growth"

One of the major limiting factors in the market expansion is the unawareness and lack of infrastructure in emerging markets. There is a lack in the number of skilled and trained personnel to manage the modern lighting requirements in the markets. The uneven distribution of the latest technology is impacting on the market profit in several market regions of the world. Although the end-users save money on upfront investments and net monthly expenditure with LaaS, the service charges are not affordable to a large section of the SME market. A lack of trained personnel counterintuitive to the existing market especially the provided services is not adequate from the contractor to the end-user, its user experience becomes tricky for the rest of the contract period which hampers the market progress.

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LIGHTING AS A SERVICE MARKET REGIONAL INSIGHTS

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

"North America Dominates the Market due to Increasing Government Initiatives"

The North America region is dominating the Lighting As A Service Market share due to increasing government efforts to replace traditional lighting systems with energy-efficient lighting systems. One of the contributing factors for rising use of LaaS and LED technologies is due to the systems; offering that enable users to program and control lights via connectivity with sensors and networks. The transition to connected lighting is gaining pace, particularly in developed countries of the region which is propelling the market growth. Government policies supporting energy savings fuel the growth of the market. Also, it is anticipated that the development of smart cities in the U.S. and Canada is the major contributor to the growth of the market. Consequently, increasing demand for lighting systems that boost the system’s efficiency and reduce costs is one factor supporting the market expansion. The Asia Pacific region is anticipated to experience significant growth due to the governments of developing countries such as India and China endorsing energy-efficient lights. Many LED chip and package factories in China, South Korea, Japan, and Taiwan are contributing to the budding demand in the region. in addition, the rising expenditure on home renovations and the robust demand for lighting fixtures and lamps in countries to increase the adoption of the LaaS business model in the region and hence boosting the market growth.

KEY INDUSTRY PLAYERS

"Key Players Transforming the Asset Appraisal Service Landscape through Launching New and Business Strategies"

Many prominent industry players are operating in this market focused on innovative service launches and using advanced technologies for improving the service efficiency to be in the market. There are many companies in the market that use some techniques such as merger, acquisitions, partnership and using new advanced technologies for producing and developing new products and stay ahead in the market.

LIST OF MARKET PLAYERS PROFILED

• Lunera Lighting (U.S.)
• Philips (Netherlands)
• Zumtobel (Austria)
• Igor (U.S.)
• SIB Lighting (U.S.)
• Cree (U.S.)
• General Electric Lighting (U.S.)

INDUSTRIAL DEVELOPMENT

January 2024: Philips Hue, a frontrunner in intelligent light solutions, expanded its outdoor lighting collection by introducing the Dymera wall light. This outdoor lighting provides both upward and downward illumination which is bringing a fascinating experience to any indoor or outdoor environment.

REPORT COVERAGE

This report is based on historical analysis and forecast calculation that aims to help readers get a comprehensive understanding of the global asset appraisal service market from multiple angles, which also provides sufficient support to readers’ strategy and decision-making. Also, this study comprises a comprehensive analysis of SWOT and provides insights for future developments within the market. It examines varied factors that contribute to the growth of the market by discovering the dynamic categories and potential areas of innovation whose applications may influence its trajectory in the upcoming years. This analysis encompasses both recent trends and historical turning points into consideration, providing a holistic understanding of the market’s competitors and identifying capable areas for growth.

This research report examines the segmentation of the market by using both quantitative and qualitative methods to provide a thorough analysis that also evaluates the influence of strategic and financial perspectives on the market. Additionally, the report's regional assessments consider the dominant supply and demand forces that impact market growth. The competitive landscape is detailed meticulously, including shares of significant market competitors. The report incorporates unconventional research techniques, methodologies and key strategies tailored for the anticipated frame of time. Overall, it offers valuable and comprehensive insights into the market dynamics professionally and understandably.