Lighting as a Service (LaaS) Market Size, Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2025 – 2034

Lighting as a Service (LaaS) Market Size

The global lighting as a service (LaaS) market generated notable revenues in 2024 and is projected grow at a strong CAGR during 2025-2034, driven by an innovative and financially better option for lighting needs and sustainability as it provides lighting needs as a service and the payment is a subscription payment structure. As focusing more on energy efficiency and environmental sustainability in smart cities, the LaaS market will expand. There has been significant growth in the demand for LaaS as smart lighting solutions.
 

For instance, in March 2025, Enlighted, a division of Siemens, released the Enlighted Eazy smart lighting control solution aimed at small and medium-sized businesses noted for its speedy app-based deployment, easy installation, and affordability. Enlighted Eazy was the only solution using laser-based commissioning which reduced the time to deploy management by up to 30%, compared to Bluetooth commissioning. The LaaS model means a user gets the overall benefits of lighting while losing the onus on management or maintenance making it easier for commercial, industrial, and residential spaces.
 

Rising demand for energy efficiency, cost-effective, affordable solutions, and customizable solutions; lighting solutions are in higher demand than ever. With concerns for the environment, several government initiatives support energy efficiency organizations and industries dedicating themselves to sustainability, and lighting as a service (LaaS) become an excellent solution. The growth of cloud-based systems, along with added features such as real-time monitoring, management, and monitoring remotely, have created an opportunity for LaaS, and the initial stages of a path for broad adoption within many sectors of the smart building industry.
 

Lighting as a Service (LaaS) Market Trends

Lighting as a Service market is expected to experience various trends that are going to propel growth over the coming decade. First, smart lighting systems witness widespread usage, which is one of the biggest contributors to market growth. Smart systems provide not only energy efficiency but also enhance smart lighting systems incorporated with sensor technologies available in the hospitality, healthcare, commercial, and residential sectors. This adds to the growing desirability of LaaS. With the addition of Internet of Things (IoT) technology, LaaS was more desirable. IoT has many characteristics that enable real-time monitoring, control of lights, and operational efficiencies.
 

Another important trend is the increasing demand for sustainability initiatives in urban developments and residential. More governments across the globe are setting stricter emissions standards and environmental regulations, and municipalities and the residential sector are increasingly opting for green solutions such as LaaS. This trend will grow the place of energy-efficient lighting solutions, especially as cities wish to become "smart cities."
 

The increasing interest in the use of data analytics and AI in the lighting industry is creating additional opportunities for LaaS. Once data analytics are in place, lighting systems can be made "smarter" providing users with greater insights regarding energy usage, which can then use the least amount of energy consumed.
 

Lighting as a Service (LaaS) Market Analysis

The industrial segment of the market is projected to experience strong growth through 2034. Industrial sectors, which include manufacturing, warehousing, and logistics, naturally have a significant demand for efficient lighting solutions due to the scale of their facilities and hours of operation. LaaS is highly appealing to these industries because there is a strong need to implement advanced lighting systems that are energy-efficient without capital outlay. In industrial settings where safety and productivity are paramount, lighting becomes a crucial component of the day-to-day operation process.
 

The industrial sector improves overall operational efficiency, reduces maintenance costs, and ensures high-quality illumination. LaaS provides a holistic approach to automated lighting controls, energy monitoring, and maintenance services as a complete solution that is focused on an energy-aware approach that reduces operational costs in the aggregate. The push for sustainability and lower carbon footprint in the industrial sector has also been a factor leading to the adoption of LaaS. The lighting systems we are working on today are not only energy-efficient but are also focused on reducing greenhouse gas emissions that fulfill sustainability goals. The flexibility of LaaS, along with options for scalability, customization, and real-time monitoring are also attractive components of the installations.
 

Asia Pacific lighting as a service (LaaS) market held the largest share in 2024 driven by the urbanization and industrialization in the region, and the rising sustainability awareness. The demand for energy-efficient lighting designs globally is immense, government awareness and adoption of environmental sustainability policy direction in countries such as China, India, Japan, and South Korea, has created the perfect setting for the implementation of smart lighting applications.
 

In China and India, rapid expansions in manufacturing and infrastructure projects, are contributing to greater demand for efficient lighting. The government's focus and commitment towards discussions on reducing and offsetting carbon emissions makes LaaS attractive to industries aiming to reach sustainability objectives. In the APAC region, government incentives, subsidies, and/or favorable policy directions in encouraging energy-efficient solution uptake will promote the implementation of LaaS.
 

Japan will also be a key player in the LaaS market, due to its advanced technological fabric and technology-focused smart city advancements. Growth in IoT-based documentation practices surrounding urban-run street lighting regulatory systems consumes energy in varied connected ways supporting LaaS expansion for innovators in the APAC region.  The diversity of economic environments, heavily focused on smart innovation in the APAC, coupled with advancements in a positive regulatory environment related to sustainability puts the APAC region as a critical growth component of LaaS business plans.
 

Lighting as a Service (LaaS) Market Share

Some of the prominent companies in the global lighting as a service (LaaS) industry include:

• General Electric Company
• Eaton Corporation
• Digital Lumens
• Cree Inc.
• Igor, Inc.
• SIB Lighting
• RCG Lighthouse
• Lutron Electronics Co
• Lunera
• UltraVolt
• Osram Licht Ag (AMS)
• Itelecom
• Koninklijke Philips N.V.
• Future Energy Solutions
   

Organizations are implementing a growing number of ways to amplify their position and market share in the rapidly evolving marketplace. Some of the ways companies are developing strategies include building partnerships, using new technologies, and growing operationally into new regions. For instance, many companies are focused on incorporating smart technologies like IoT and AI into their lighting technologies to improve energy efficiency and meet customer expectations. Furthermore, companies are focusing on offering lighting solutions tailored to specific industrial, commercial, and residential environments to expand their opportunity base.
 

Partnerships with city municipalities and commercial real estate developers have been the focus strategy in targeting large-scale infrastructure projects and public sector investments. Additionally, a large geographic expansion strategy - to emerging markets such as Asia Pacific capitalizing on rapid urbanization and an economy that is industrializing. Project financing options such as subscription pricing, have helped LaaS providers to minimize barriers to LaaS program cost that may hinder initial investment.
 

Lighting as a Service (LaaS) Industry News

• In September 2024, FOHSE, a leader in horticulture science and engineering for the cannabis industry, launched its groundbreaking PRO Series LED lighting technology. Designed to set new standards in cannabis cultivation, the PRO Series marked a major advancement in cannabis LED lighting innovation and functionality.
   
• In January 2025, Acclaim Lighting, a leader in innovative lighting technology, introduced Unity™ S1, an advanced outdoor-rated floodlight. The Unity S1 featured Acclaim’s industry-first Spectrum Five RGBAL light, offering high-CRI whites from 1800K-6000K, full RGBAL color mixing, and dynamic white operation, all in a single fixture.