Global Lighting as a Service (LaaS) Market Insights, Opportunity Analysis, Market Shares and Forecast, 2016 - 2022
Lighting as a Service (LAAS) is a service providing system in which light service is charged on a facility usage basis rather than one-time payment. This business form has turn out to be more widespread in industrial and citywide installations of LED lights, particularly in retrofitting buildings and outdoor installation, with the aim of decreasing installation costs. Light vendors have used a LAAS approach in selling value-added services, such as Internet-linked lighting and energy control. The global lighting as a service (LAAS) market is estimated to grow at a CAGR of 46.3% during 2016 to 2022, to reach a market size of US$ 934.4 Million by 2022. Growing demand for energy efficient lighting and government guidelines and regulations for implementation of energy efficient lighting systems are anticipated to drive the lighting as a service market. Lack of responsiveness about the true value propositions of the lighting as service system is acting as a restraint for the growth of the lighting as a service market.
Segmentation of the global lighting as a service (LAAS) market has been done on the basis of end users, installation, components and geography. On the basis of end users market is segmented into commercial, industrial and municipal market. The Municipal sector is projected to observe fastest demand in the future years. The municipal end users contain illumination offered by local governments for bridges, open public spaces, streets, walkways, municipal parking places and highways. On the basis of installation market is classified into indoor and outdoor installation. In terms of installation, the outdoor division is likely to constitute the fastest growing segment in the market. Development of commercial sector in emerging countries is the major driver behind the enlargement of the indoor segment in the lighting as a service market. On the basis of components market is segmented into luminaries & control equipment, software & communication systems and maintenance & other services.
Segmentation of the global lighting as a service (LAAS) market by geographically has been done on the basis of Asia Pacific, Europe, North America and RoW. North America is anticipated to control the global lighting as a service market in the future, owing to government support to put back traditional lighting system by power proficient lighting systems. The development of smart cities in the Asia Pacific regions is expected to drive the growth of the lighting as a service market in this region. Several benefits included in lighting as a service such as no straight costs, reduction in energy consumption, enduring cost savings, enhanced lighting experience, no safeguarding charge are forcing countries to use lighting as a service model.
Key players operating in lighting as a service market include, Acuity Brands Lighting, Inc, Cooper Industries, Inc., Cree, Inc., Future Energy Solutions, General Electric Lighting, IGOR Inc., Koninklijke Philips N.V, Lunera Lighting, SIB Lighting etc. Companies are working many strategies such as mergers & acquisition, partnership & collaboration launching of new product and technique to sustain and capture high market share in the market.
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