The lighting as a service market is expected to grow at a CAGR of approximately 50.4% during the forecast period of 2020-2025. The primary driver for the market includes the increasing demand for efficient lighting systems. The growing convergence of the Internet of Things (IoT) in the lighting system has a lower consumption of energy across various parts of the world. However, the service’s subscription program typically imposes a higher overall cost than the owner pays for the self-installation system, which can likely pose a challenge.
- Lighting-as-a-Service (LaaS), also known as Light-as-a-Service, is a service-based business model in which light service is charged on a subscription basis rather than via a one-time payment. It is managed by third parties more precisely by specialized service providers and may include light design, financing, installation, maintenance, and other services. The LaaS model has become more common in commercial and citywide installations of LED lights, specifically in retrofitting buildings and outdoor facilities, with the prior aim of reducing installation costs. Light vendors have used the LaaS strategy in selling value-added services, such as Internet-connected lighting and energy management. - For instance, global LED use has increased substantially in recent years, rising from a market share of 5% in 2013 to nearly half of global lighting sales in 2019, with integrated LED luminaires making up an increasing share. Several developed markets, including the United States and Europe, are responsible for the rapid expansion of the luminaire market segment. At the same time, China has built a substantive domestic and global manufacturing base. - Moreover, lighting accounts for nearly 10% of electricity usage in households and 18-40% of commercial premises. There is a growing need for energy saving across the globe, creating scope for the market. It is expected that the transition to energy-efficient lighting would reduce the global electricity demand for lighting by 30-40% in 2030. Using 50+% less energy consumption, LED lights to produce brighter, clearer light without the flicker that often irritates the optic nerve leading to employee complaints about headaches and fatigue. Additionally, LED lights contain NO hazardous materials, don’t flicker or strobe, and are completely recyclable. - Countries across the world are widely adopting LED lighting. For instance, New York planned to replace 250,000 streetlights with LEDs, which was to be followed by the replacement of decorative lights in the urban areas. Barcelona (Spain) deployed more than 3,000 smart streetlights based on LED technology, gathering information about pollution, humidity, noise, and the overall environment. Moreover, the US Department of Energy (DOE) anticipates that, by 2020, more than 75% of the outdoor luminaire shipments will be light-emitting diodes (LEDs). - Additionally, with the continuing spread of COVID-19, technology vendors across the smart building sector are launching new propositions to help firms improve their buildings’ infection control. In March 2020, lighting services firm Eco Energy Group (Eco E) launched a new suite of lighting products to help firms improve infection control in buildings. It launched the ’Smart UVC Solution’ ultraviolet (UV) light, which can kill bacteria and viruses on surfaces. The ’Smart UVA Solution’ can also disinfect surfaces through safe lighting rays. Eco E will deliver these solutions through a lighting-as-a-service business model that requires no capital expenditure.
Key Market Trends Commercial Segment to Dominate the Market
- The commercial segment includes the space used for commercial activities like office, stores, institutions, hospitals, etc., primarily those spaces that are not residential, industrial, or manufacturing. Compared to other types of Lighting, commercial Lighting tends to have a higher initial cost, longer lifespan, better durability, higher maintenance and service costs, and better energy-saving options. Commercial activity is one of the key tangible barometers to track the health of the economy of a region or a country. - With increasing electricity consumption, various commercial spaces adopt Lighting as a Service (LaaS) model, in which the owner pays for the light rather than the equipment that delivers it. The owner buys Lighting on a subscription basis over an agreement that offers LED technology lighting with maintenance service. - The energy savings and cost reductions offered by Lighting as a service (LaaS) constitute an attractive offer for commercial end-users because of the growing corporate focus on sustainability and energy efficiency. Overall cost reductions accelerate the widespread adoption of LaaS by numerous commercial organizations. For instance, using LED retrofits in various commercial application cases in the US showed a potential result. For instance, in Building Exterior Lighting, the result reflected a 63% reduction in energy cost. - However, COVID-19 has affected the construction of new commercial buildings. For instance, According to the Bank Pekao SA, Of all types of buildings, only commercial buildings, e.g., office buildings, have seen their production fall by 20% year-on-year in Poland. Additionally, with the implementation of work-from-home policies across the globe, it is expected that these instances would hamper the market growth in the shorter run.
North America to Dominate the Market
- North America includes 23 countries, with a cumulative GDP of around USD 24.98 trillion in 2019. The major country with significant development in electricity consumption in the region is the United States, which is adopting various plans to increase the efficiency of the lighting system in the country. - During 2019, the Trump administration announced its plans to use much more energy-efficient light bulbs to reduce the energy consumption rate and to help in controlling carbon emission that primarily gets generated in the United States from natural gas-powered plants for electricity generation. As per the plan, all light bulbs sold in the United States must be either LED or fluorescent to meet energy standards. - Among various projects in the region, Bristol-Myers Squibb in Lawrenceville is one of the prominent efficient lighting projects that include lighting renovation work for office space of 275 thousand square feet. The project used a distributed relay control system and vacancy sensors to harvest daylight in all areas and reduce the space’s energy consumption. - Apart from the United States, Canada is another prominent country in the region, concentrating on electricity conservation and is implementing various lighting standards and service projects. Thus, with the growing implementation of the service with various standards in the region, it is expected the market in the near future. - With a strong footprint across North America and diverse capabilities, including comprehensive multi-site installations, real-time energy monitoring and analytics, and networked light management systems, it is possible to penetrate the multi-billion lighting market. For instance, Canadian cities are continually promoting smart LED lights to increase energy efficiency, thus encouraging market growth.
Competitive Landscape The lighting as a service market is fragmented. The key players in the market include Every Watt Matters, Lumenix, Stouch Lighting, LEDVANCE GmbH, Signify Holdings, and ESB Light Manufacture of LED Luminaires among others. The players leverage the market growth by enhancing their product line driven by efficiency, ease of use, and technological advancements. Moreover, various government implementation is further leading to more adoption of LED lighting, which is catering to the market growth of lighting as a service
- August 2020 - LEDVANCE GmbH announced the LEDVANCE and Bosch Smart Home lighting solutions for the smart home. The integration of LEDVANCE Smart+ products into the Bosch Smart Home System makes the application even easier for customers it is a high-quality solution for a safe home without the need for an additional bridge. - July 2020 - Enlighted Inc offers its award-winning technology in a new Surface Sensor designed for quick and easy deployments at scale across enterprise portfolios. Enlighted’s latest sensor makes activity-based workspaces, conference rooms, and commercial buildings smarter, safer, more efficient, and improves the occupant experience. The sensor captures data including occupancy detection, temperature, ambient lighting levels and is also equipped with Bluetooth LE capabilities to communicate with other IoT devices and applications. - January 2020 - Signify NV extended its LED Toplighting compact range to simplify switch to LED grow lights in the greenhouse. The company introduced a high-efficiency version to reduce running costs or for a high output version for different crops. The solution offered can be connected with GrowWise Control System and consumes 50% less energy.
Reasons to Purchase this report: - The market estimate (ME) sheet in Excel format - 3 months of analyst support
Our reports have been used by over 10K customers, including:
116 pages •
By Global Industry Analysts
• Sep 2020
Global Smart Office Market to Reach $62.9 Billion by 2027 Amid the COVID-19 crisis, the global market for Smart Office estimated at US$28.1 Billion in the year 2020, is projected to reach a revised size of US$62.9 Billion by 2027, growing at a CAGR of 12.2% over the analysis period 2020-2027. Smart Lighting/Lighting Controls, one of...
The horticulture lighting market in APAC is expected to grow from US$ 663.7 million in 2019 to US$ 3,147.5 million by 2027; it is estimated to grow at a CAGR of 22.1% from 2020 to 2027. Surge in population and advancements in greenhouse and indoor farming techniques are expected to hurry up the expansion of the APAC horticulture lighting...
LED Services Market Research Report by Application (Business Lighting, Public Lighting, and Residential Lighting) - Global Forecast to 2025 - Cumulative Impact of COVID-19 The Global LED Services Market is expected to grow from USD 14,834.33 Million in 2019 to USD 25,426.17 Million by the end of 2025 at a Compound Annual...
The street and roadway lighting market was valued at USD 8.17 billion in 2019, and it is expected to reach a value of USD 11.04 billion by 2025, registering a CAGR of 5.35% during the forecast period (2020 - 2025). The increasing complexities of transportation infrastructure have increased the need for enhanced illumination on the streets...
Spain Power Market Outlook to 2030, Update 2020 - Market Trends, Regulations and Competitive Landscape Summary This report elaborates the power market structure of Spain and provides historical and forecast numbers for capacity, generation, and consumption up to 2030.Detailed analysis of the country’s...
375 pages •
By Global Industry Analysts
• Sep 2020
Global LED Work Lights Market to Reach $10.1 Billion by 2027 Amid the COVID-19 crisis, the global market for LED Work Lights estimated at US$8.8 Billion in the year 2020, is projected to reach a revised size of US$10.1 Billion by 2027, growing at aCAGR of 2% over the period 2020-2027. Battery Operated, one of the segments analyzed...
In-depth Analysis and Data-driven Insights on the Impact of COVID-19 Included in this Global Work Light Market Report The global work light market by revenue is expected to grow at a CAGR of over 6% during the period 2019–2025. The global work light market growth is driven by ongoing demand for replacement of conventional lighting...
247 pages •
By The Business Research Company
• Oct 2020
Relays Global Market Opportunities And Strategies To 2030: COVID-19 Impact and Recovery provides the strategists, marketers and senior management with the critical information they need to assess the global relays market. Description: Where is the largest and fastest growing market for the relays market? How does...
277 pages •
By The Business Research Company
• Oct 2020
Switchgear Global Market Opportunities And Strategies To 2030 provides the strategists, marketers and senior management with the critical information they need to assess the global switchgear market. Description: Where is the largest and fastest growing market for the switchgear market? How does the market relate...
237 pages •
By Global Industry Analysts
• Sep 2020
Global Solid-State and Other Energy-Efficient Lighting Market to Reach $205.5 Billion by 2027 Amid the COVID-19 crisis, the global market for Solid-State and Other Energy-Efficient Lighting estimated at US$144.5 Billion in the year 2020, is projected to reach a revised size of US$205.5 Billion by 2027, growing at a CAGR of 5.2% over...
You can change your Cookie Settings at any time but parts of our site will not function correctly without them.