Lighting as a Service

Global Lighting as a Service Market to Reach US$31.6 Billion by 2030

The global market for Lighting as a Service estimated at US$4.2 Billion in the year 2024, is expected to reach US$31.6 Billion by 2030, growing at a CAGR of 39.8% over the analysis period 2024-2030. Software, one of the segments analyzed in the report, is expected to record a 39.2% CAGR and reach US$12.8 Billion by the end of the analysis period. Growth in the Luminaries & Controls segment is estimated at 43.1% CAGR over the analysis period.

The U.S. Market is Estimated at US$1.3 Billion While China is Forecast to Grow at 37.0% CAGR

The Lighting as a Service market in the U.S. is estimated at US$1.3 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$4.2 Billion by the year 2030 trailing a CAGR of 37.0% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 35.3% and 33.1% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 26.2% CAGR.

Global Lighting as a Service (LaaS) Market - Key Trends & Drivers Summarized

Why Is Lighting as a Service (LaaS) Gaining Traction in the Market?

Lighting as a Service (LaaS) is an innovative business model that offers lighting solutions through a subscription-based service rather than a traditional purchase. This model is gaining traction in the market due to its potential to reduce upfront costs, improve energy efficiency, and simplify maintenance for businesses and municipalities. Under LaaS agreements, service providers install, maintain, and upgrade lighting systems, while customers pay a recurring fee for the use of the lighting service. The appeal of LaaS lies in its ability to offer state-of-the-art lighting solutions without the need for significant capital investment, making it particularly attractive to companies looking to upgrade their lighting systems to more energy-efficient options. As sustainability becomes a higher priority for businesses and governments, LaaS is emerging as a viable and cost-effective solution for reducing energy consumption and carbon emissions.

How Are Technological Innovations Driving the Adoption of LaaS?

Technological innovations are at the heart of the growing adoption of LaaS, as advancements in LED lighting, smart lighting systems, and IoT (Internet of Things) integration are making these services more attractive to customers. The transition from traditional lighting to LED technology is a key driver, as LEDs offer significant energy savings, longer lifespans, and lower maintenance costs. The integration of smart lighting controls and sensors within LaaS solutions allows for automated lighting adjustments based on occupancy, daylight levels, and energy usage, further enhancing efficiency and cost savings. Additionally, the use of IoT platforms enables real-time monitoring and management of lighting systems, providing service providers with the data needed to optimize performance and proactively address maintenance issues. These technological advancements are making LaaS an increasingly attractive option for businesses and municipalities looking to modernize their lighting infrastructure.

What Market Trends Are Shaping the Demand for LaaS?

The demand for LaaS is being shaped by several key market trends, including the growing focus on energy efficiency, the push for sustainability, and the shift towards service-based business models. As energy costs continue to rise and environmental regulations become more stringent, businesses are seeking ways to reduce their energy consumption and carbon footprint, making LaaS an appealing solution. The trend towards outsourcing non-core business functions is also contributing to the growth of LaaS, as companies look to streamline operations and focus on their primary activities. Additionally, the increasing adoption of smart building technologies is driving demand for LaaS, as integrated lighting systems that can be controlled and optimized remotely are becoming more desirable. The rise of circular economy principles, where resources are used more efficiently and products are kept in use for longer, is further supporting the growth of LaaS, as it aligns with the goals of reducing waste and maximizing the lifespan of lighting systems.

What Is Driving the Growth in the Lighting as a Service Market?

The growth in the Lighting as a Service (LaaS) market is driven by several factors. The increasing focus on energy efficiency and the need to comply with environmental regulations are major drivers, as businesses and municipalities seek to reduce energy consumption and carbon emissions. Technological advancements in LED lighting, smart controls, and IoT integration are making LaaS solutions more attractive and cost-effective, further driving adoption. The shift towards service-based business models, where customers pay for the use of a service rather than owning the product, is also contributing to the growth of LaaS, as it offers a flexible and scalable solution for modernizing lighting infrastructure. Additionally, the trend towards sustainability and the circular economy is supporting the market, as LaaS aligns with the principles of reducing waste and maximizing resource efficiency. The expansion of LaaS into new markets, including emerging economies where energy efficiency is a growing concern, is creating new opportunities for service providers and driving market growth.

SCOPE OF STUDY:

The report analyzes the Lighting as a Service market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Component (Software, Luminaries & Controls, Services); Installation (Outdoor, Indoor); End-Use (Commercial, Industrial, Other End-Uses)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Select Competitors (Total 42 Featured) -

• Cree, Inc.
• Future Energy Solutions
• GE Lighting
• Igor Inc.
• Italtel SpA
• Koninklijke Philips NV
• Lunera Lighting, Inc.
• Rcg Lighthouse
• SIB Lighting
• Zumtobel Group AG

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.

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