Lighting as a Service Market Size

Lighting as a Service Market to surpass USD 31.9 billion by 2031 from USD 0.6 billion in 2021 at a CAGR of 47.5% in the coming years, i.e., 2021-2031.

Lighting as a service (LaaS) is a subscription-based business model for light services rather than a one-time payment. It is overseen by third parties, specifically specialist service providers, and may include services such as lighting design, financing, installation, and maintenance. Customers can outsource lighting portions of their business for a set period using this strategy. Throughout the term of the subscription contract, it retains ownership of the equipment. As a result, it is an environmentally responsible business method that allows for a longer product lifecycle with many lifecycles.

Market Highlights

Global Lighting as a Service Market is expected to grow with a CAGR of 47.5% by 2031

Global Lighting as a Service Market to surpass USD 31.9 billion by 2031 from USD 0.6 billion in 2021 at a CAGR of 47.5% in the coming years, i.e., 2021-2031. The growing need for energy-efficient lighting systems is the key driver for the Lighting as a Service Market. The growing incorporation of the Internet of Things (IoT) in the lighting system has resulted in lower energy usage in various parts of the world, making it very popular.

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Global Lighting as a Service Market: Segments

Outdoor segment leads the market with the highest CAGR during 2021-31

By installation, the Lighting as a Service is divided into Indoor Installation and Outdoor Installation. The outdoor category is predicted to be the market's fastest expanding section. In 2015, the indoor category had the biggest market share, and it is likely to continue to do so throughout the projection period. The expansion of the indoor sector in the lighting as a service market is primarily driven by the growing commercial sector in developing countries.

Commercial segment is expected to grow considerably during 2021-31

Based on Application, the Lighting as a service is categorized into Commercial, Industrial, Municipal, and Others. In past years, the commercial sector dominated the end-user segment, and this trend is likely to continue during the forecast period. During the projection period, the municipal segment is expected to outperform the market concerning growth rate.

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Market Dynamics

Drivers

The extensive demand for Energy Efficient Lighting Systems

Increased demand for energy-efficient lighting systems, low capital expenditure requirements, and the growing integration of Internet of Things (IoT) in lighting systems are all helping to cut global energy usage. One of the key drivers of the Lighting as a Service Market is this. Furthermore, financial incentives such as immediate ROI without any upfront capital costs, as well as government policies and laws encouraging the adoption of energy-efficient lighting systems, are pushing the lighting as a service business.

Speedy technological advances

Given the growing interest in the business model from the intelligent lighting industry, rapid improvements in technology, such as the Internet of Things, will bolster demand for Light as a Service. In the near future, this will have an impact on market growth.

Restraint

The high cost associated with Service Subscription is restraining the market growth

The service's subscription program often has a greater overall cost than the self-installation option, which might be difficult to justify. In addition, the market's growth is being stifled by a lack of expertise in the latest technological lighting and lighting control solutions.

Global Lighting as a Service Market:

Key Players

Philips NV

Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis

General Electric Lighting
Itelecom
Valoya Oy
RCG Lighthouse
Metrus Energy Inc
Zumtobel Group Ag
LEDVANCE GmbH
Lunera Lighting
Enlighted Inc.
Other Prominent Players

Global Lighting as a Service Market: Regions

Global Lighting as a Service Market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. The major market for lighting as a service (LaaS) is in North America, followed by Western and Eastern Europe. The desire for commercial launches is driving the growth of the lighting as a service market in North America, as LaaS offers the ability to save money and reduce energy consumption globally. Eastern and Western Europe are the second and third leading regions, respectively, due to rising needs from the commercial and industrial sectors.

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Impact of COVID-19 on Lighting as a Service Market

There was a substantial shortage of human manpower in numerous industries as a result of the epidemic. The lockout also caused the end-user markets to collapse, reducing demand in the end-user market. In addition, service industry disruptions and the months-long closure of commercial complexes have diminished the necessity for third-party LaaS services for businesses. Almost every company seeks to decrease overhead costs in order to stay afloat in the face of the pandemic. Although the market is quickly resuming and rebounding when the lockdowns are lifted, current market trends indicate that the market will soar to new heights in the next years.

Global Lighting as a Service Market is further segmented by region into:

North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – the United States and Canada
Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Brazil, and Rest of Latin America
Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Turkey, and Rest of Europe
Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, and Rest of Asia Pacific
Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Saudi Arabia, South Africa, and Rest of Middle East and Africa

Global Lighting as a Service Market report also contains analysis on:

Lighting as a Service Market Segments:

By Components
- Luminaries and Control
- Software
- Services
By Installation
- Indoor Installation
- Outdoor Installation
By Application
- Commercial
- Industrial
- Municipal
- Others
Lighting as a Service Market Dynamics
Lighting as a Service Market Size
Supply & Demand
Current Trends/Issues/Challenges
Competition & Companies Involved in the Market
Value Chain of the Market
Market Drivers and Restraints

Lighting as a Service Market Report Scope and Segmentation

Report Attribute	Details
Market size value in 2021	USD 0.6 billion
Revenue forecast in 2031	USD 31.9 billion
Growth Rate	CAGR of 47.5% from 2021 to 2031
Base year for estimation	2020
Quantitative units	Revenue in USD million and CAGR from 2021 to 2031
Report coverage	Revenue forecast, company ranking, competitive landscape, growth factors, and trends
Segments covered	Component, Installation, Application, and Region
Regional scope	North America, Europe, Asia Pacific, Latin America, Middle East & Africa (MEA)
Key companies profiled	Philips NV, General Electric Lighting, Itelecom, Valoya Oy, RCG Lighthouse, Metrus Energy Inc, Zumtobel Group Ag, LEDVANCE GmbH, Lunera Lighting, and Enlighted Inc.