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Lighting as a Service (LaaS) Market Size
Lighting as a Service (LaaS) Market is poised for substantial growth between 2024 and 2032, driven by the numerous advantages it offers, such as reducing overall lighting-related costs, generating free cash flow, and efficiently maintaining lighting systems and hardware. According to the International Energy Agency (IEA), energy consumption increased in 2022, and despite the declining carbon intensity of electricity, CO2 emissions from lighting experienced a slight rise in the same year.
The industry demand is expected to surge over the projected timeframe due to the high energy efficiency and low maintenance costs of LaaS in comparison to traditional lighting. Lighting as a Service, a method that facilitates lighting retrofit projects without upfront capital expenses, is gaining traction among various application sectors. This service involves charging customers for a lighting retrofit or upgrade, incorporating it into an ongoing purchase plan or agreement, and spreading the cost over an extended period.
Lighting as a Service (LaaS) Market Trends
The growing preference for sustainable lighting solutions and the emergence of LED technology as an energy-efficient lighting option will influence market growth through 2032. 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), will further drive demand for Lighting as a Service, particularly with increased interest from the smart lighting industry. For instance, in January 2024, Philips Hue, a frontrunner in intelligent lighting solutions, expanded its outdoor lighting collection by introducing the Dymera wall light, that provides both upward and downward illumination, bringing a captivating touch to any indoor or outdoor environment.
Lighting as a Service (LaaS) Market Analysis
The industrial end-user segment is projected to hold a substantial market share by 2032. The increasing accidents caused by inadequate lighting and awareness about insufficient safeguarding in industrial environments are boosting the demand for LaaS solutions. The segment growth is also credited to the widespread adoption of LED technology across industrial sites, leading to superior light quality, cost savings, and improved energy efficiency.
Asia Pacific Lighting as a Service (LaaS) Market is expected to witness significant revenue growth by 2032 driven by the rapid production of sustainable lighting systems by regional manufacturers. The increased spending on home alterations and robust demand for lighting fixtures and lamps, particularly in countries like Australia, will contribute to the widespread adoption of the LaaS servicesin the region. As per the lending data for renovations, there were more than 10,000 homes committed to renovations till May 2023, with average renovation cost reaching to USD 26,900.
Lighting as a Service (LaaS) Market Share
Some of the prominent companies in the global lighting as a service industry include:
- Koninklijke Philips N.V.
- Lutron Electronics Co
- UltraVolt
- Osram Licht Ag (ams)
- Igor, Inc.
- Lunera
- Itelecom
- General Electric Company
- SIB Lighting
- RCG Lighthouse
- Future Energy Solutions
- Cree Inc.
- Eaton Corporation
- Digital Lumens.
These companies are adopting various strategies such as innovative service launches, collaborations, and acquisitions to gain a competitive advantage.
Lighting as a Service (LaaS) Market News
- In April 2022, RCG LightHouse LLC completed a deal to attract one of its equity funds as a finance partner and shareholder. The deal aims to support the company to strengthen its global position by entering new markets in Poland and other European countries.