The lighting as a service (LaaS) market is projected to witness a CAGR of 48.12% during the forecast period to reach a total market size of US$0.750 billion by 2022, increasing from US$0.090 billion in 2017. The ability of LaaS to provide a wide variety of solution is driving the growth of the market. The LED lights are penetrating the market deeply with its falling price and its capability of conserving energy.
A significant portion of revenue to the lighting industry is based on the replacement of burned-out lamps, which presents the opportunity for the lighting companies to replace repeat sales of bulbs with recurring revenues from Laas contracts. Laas also provides the provision for upgrading existing lighting technology, allowing its customers to keep pace with the rapid changes in the lighting technology. Moreover, government initiatives supporting adoption of energy efficient lighting system and increasing convergence of internet of things with lighting is expected to boost the demand for lighting as a service market.
Amongst end users, the Municipal segment is projected to grow at a robust pace on account of the development of smart cities requiring more advanced and sustainable infrastructure. The municipal end users basically include lighting offered by local governments for streets, open public spaces, walkways, bridges, public parking areas, and highways. The commercial segment is projected to grow significantly during the forecast period. The energy savings and cost reductions promised by lighting as a service constitute an attractive offer for commercial end users in view of the increasing corporate focus on sustainability and energy efficiency.
Geographically, North America is currently the largest market for lighting as a service, closely followed by Europe. The lighting as a service market in North America will be driven by demand from commercial establishments keen to leverage the cost saving potential of efficient lighting systems and contribute to the global movement to reduce energy consumption. The market in the region is projected to grow at a high rate, with the U.S. estimated to register the fastest growth in the region. Europe is expected to grow at the highest rate during the forecast period owing to increasing demand from the commercial as well as industrial sectors. There is a surge in development of commercial and residential infrastructure in Asia Pacific region which will enhance the demand of LaaS in the region.
The lighting as a service market is competitive owing to the presence of well diversified international, regional, and local players. However, some big international players dominate the market share owing to their brand image and market reach. The high market growth and favorable government policies are further attracting more players in the market while enhancing the competitive rivalry. The competitive landscape details strategies, products, and investments being done by key players in different technologies and companies to boost their market presence.
Some of the major players discussed in the report are Acuity Brands Lighting, Inc, Eaton, Cree, Inc., Koninklijke Philips N.V, Osram Licht Ag, Lutron electronics co, Inc., SIB lighting among others.
Thirdly, The Lighting as a service market has been segmented by installation, component, end-user, and geography.
- Luminaries and control equipment
- Software and communication system
- Maintenance and other services
- North America
- Middle East and Africa
- Asia Pacific
- South America
1.1. Market Definition
1.2. Scope of the Study
1.5. Base, and Forecast Years Timeline
2. Research Methodology
2.1. Research Design
2.2. Secondary Sources
3. Key Findings Of The Study
4. Market Dynamics
4.3. Opportunities and Market Trends
4.4. Market Segmentation
4.5. Porter’s Five Forces Analysis
4.5.1. Bargaining Power of Suppliers
4.5.2. Bargaining Power of Buyers
4.5.3. Threat of New Entrants
4.5.4. Threat of Substitutes
4.5.5. Competitive Rivalry in the Industry
4.6. Industry Value Chain Analysis
4.7. Industry Regulations
4.8. Scenario Analysis
5. Global Lighting as a Service Market Forecast By Installation (US$ billion)
6. Global Lighting as a Service Market Forecast By Component (US$ billion)
6.2. Luminaries and control equipment
6.3. Software’s and communication system
6.4. Maintenance and other services
7. Global Lighting as a Service Market Forecast By End-User (US$ billion)
8. Global Lighting as a Service Market Forecast By Geography (US$ billion)
8.2. North America
8.4. Middle East and Africa
8.5. Asia Pacific
8.6. South America
9. Competitive intelligence
9.1. Market Share Analysis
9.2. Strategies of Key Players
9.3. Recent Investments And Deals
10. Company profiles
10.1. Acuity Brands Lighting, Inc
10.1.3. Product and Services
10.1.4. Key Developments
10.2.3. Products and Services
10.2.4. Key Developments
10.3. Cree, Inc.
10.3.3. Products and Services
10.3.4. Key Developments
10.4. Koninklijke Philips N.V
10.4.3. Products and Services
10.4.4. Key Developments
10.5. Osram Licht AG
10.5.3. Products and Services
10.5.4. Key Developments
10.6.3. Products and Services
10.6.4. Key Developments
10.7. Lutron Electronics Co., Inc
10.7.3. Products and Services
10.7.4. Key Developments
10.8. SIB Lighting
10.8.3. Product and Services
10.8.4. Key Developments
10.9. Facility Solutions Group
10.9.3. Product and Services
10.9.4. Key Developments
10.10. General Electric Company
10.10.3. Product and Services
10.10.4. Key Developments
The research study is based on the publisher's proprietary research model. The process involves sourcing of information from various industry experts, key professionals, decision-makers and various other stakeholders along with the validation of the responses received from the vast in-house database and premium paid databases. Publicly available sources were also taken into consideration for the final market estimates and forecast for the segments and sub-segments.
The first phase of the research process is the identification of key industry leaders, experts, decision-makers and C-level executives and then conducting interviews and surveys to gain vital insights about the market. Simultaneously, extensive secondary research is done, and key secondary data is collected as part of this process. This secondary data is collected from various databases, industry journals, whitepapers, company annual reports, research publications, and other paid data sources and relevant literature. Company profiles which include strategies, new product developments, recent investments, major products and services, financials and business plans are sourced from the annual reports, SEC filings, industry associations to preserve the quality of the information being displayed. The findings from both the primary and the secondary research process combined go under further processing for market breakdown and forecasting.
The last phase is providing intelligence in the form of presentation, charts, graphics and other different formats helping the clients in a faster and efficient understanding of the market. Under this phase complete market engineering is involved which includes analyzing the collected data from different sources and existing proprietary datasets while using various data triangulation methods for market breakdown and forecasting. The publisher has developed their market forecasting methodology that, in addition to the main market values, also takes into account other macroeconomic factors (global or local) that might have some bearing on the market under study. Taking all the necessary data, a robust forecast is developed using an algorithm that involves both static (multivariate) as well as dynamic (time-series) regression analysis. Special care is taken to make sure their algorithm passes the necessary statistical tests, and the mean prediction for future years obtained is reliable with a very high confidence level. Following data validation, the analysts begin to write the report presenting insights with the help of charts, graphs, and tables.