Lighting As A Service Market Forecasts to 2032 – Global Analysis By Component (Luminaires and Controls, Software and Analytics, and Services), Installation Type, Contract Type, Enterprise Size, End User and By Geography
Description
According to Stratistics MRC, the Global Lighting as a Service Market is accounted for $3.50 billion in 2025 and is expected to reach $31.39 billion by 2032 growing at a CAGR of 36.8% during the forecast period. Lighting as a Service (LaaS) refers to a subscription-based model where customers pay for lighting usage instead of purchasing lighting equipment outright. The service typically covers design, installation, maintenance, and periodic upgrades of advanced, energy-efficient lighting systems. By eliminating high initial investment and transferring maintenance responsibilities to service providers, LaaS enables cost-effective, sustainable, and high-performance lighting solutions. This approach allows organizations to benefit from continuous efficiency improvements and technological upgrades without managing the lighting infrastructure themselves.
According to U.S. Environmental Protection Energy, there were 132 US municipalities with LaaS public-private partnerships in 2023.
Market Dynamics:
Driver:
Integration with smart buildings & IoT
Modern lighting systems now integrate intelligent sensors, automation, and cloud analytics to enhance energy savings and comfort. By connecting to building management systems, these platforms enable synchronized control and performance optimization. Real-time monitoring and predictive maintenance capabilities further reduce downtime and costs. With AI integration, adaptive lighting can automatically adjust to environmental or occupancy changes. The shift toward sustainable, data-centric buildings is accelerating the deployment of IoT-powered lighting solutions worldwide.
Restraint:
Cybersecurity concerns
The integration of cloud platforms, sensors, and connected devices creates multiple entry points for potential cyberattacks. Unauthorized access to lighting networks can disrupt operations, compromise data privacy, and affect building security. Manufacturers and service providers must implement robust encryption, authentication, and monitoring protocols to ensure system integrity. Compliance with international cybersecurity standards, such as ISO 27001 and NIST frameworks, adds complexity to deployment and maintenance. Concerns around data breaches and ransomware risks are prompting organizations to invest cautiously in fully connected lighting infrastructures.
Opportunity:
New data monetization and analytics
Smart lighting infrastructure collects rich datasets that can reveal insights into energy efficiency, space utilization, and environmental impact. Companies are monetizing this data through cloud-based analytics and value-added services. AI algorithms are helping predict maintenance needs and refine operational patterns. Data-sharing partnerships between lighting vendors and smart city developers are expanding new business models. Ultimately, lighting networks are transitioning from utility systems to intelligent data platforms that fuel broader digital strategies.
Threat:
Competition from traditional lighting distributors
Many end users prefer traditional one-time purchases over ongoing service agreements. Established brands leverage their distribution networks and customer trust to maintain market dominance. In response, they are adapting by offering partial service models to retain clients. The resulting price pressure makes it difficult for newer LaaS providers to differentiate themselves. To overcome this, companies are emphasizing digital innovation, environmental performance, and flexible financing models to attract modern infrastructure projects.
Covid-19 Impact:
The pandemic initially hindered LaaS growth by pausing installation projects and disrupting supply chains. Commercial spaces reduced capital expenditure, leading to slower adoption. Yet, the demand for smart, remotely managed lighting grew as buildings sought safer, touch-free environments. Cloud and IoT integration proved vital for maintaining operational efficiency during restrictions. As economies reopened, focus shifted toward resilient and energy-efficient lighting upgrades. This post-COVID emphasis on automation and sustainability is now fueling steady recovery and expansion in the LaaS market.
The services segment is expected to be the largest during the forecast period
The services segment is expected to account for the largest market share during the forecast period, due to the growing preference for pay-as-you-go models. Organizations are increasingly outsourcing lighting operations to specialized providers offering end-to-end solutions. Advanced technologies like AI-driven monitoring and predictive maintenance are improving service reliability. Energy efficiency consulting and sustainability tracking have become integral to service portfolios. Innovations such as digital twin modeling and smart contracts are reshaping performance management. As clients seek reduced operational costs and carbon footprints, service-centric business models are gaining prominence.
The municipal segment is expected to have the highest CAGR during the forecast period
Over the forecast period, the municipal segment is predicted to witness the highest growth rate, as cities invest in smart infrastructure. Upgrading public lighting to intelligent LED systems enhances energy efficiency and public safety. IoT-based management platforms allow remote control and maintenance optimization across urban networks. Government-led sustainability goals and smart city programs are accelerating adoption. Collaboration between municipalities and private providers is introducing flexible service contracts and financing solutions. This trend reflects the global movement toward cleaner, more digitally connected urban environments.
Region with largest share:
During the forecast period, the Asia Pacificregion is expected to hold the largest market share, Fueled by robust infrastructure growth and sustainability initiatives. Nations across the region are deploying smart lighting solutions within smart city frameworks. Increased investment in construction, commercial complexes, and public projects is fueling service demand. Local manufacturers are partnering with international firms to integrate cutting-edge IoT and automation technologies. Rising awareness of energy conservation and government incentives are encouraging widespread adoption.
Region with highest CAGR:
Over the forecast period, the North America region is anticipated to exhibit the highest CAGR, propelled by innovation and early digital adoption. Companies across the U.S. and Canada are rapidly shifting toward AI- and IoT-integrated lighting systems. Sustainability commitments and energy-saving regulations are prompting large-scale retrofits in commercial buildings. Government incentives for smart lighting installations are stimulating market participation. Leading firms are collaborating to enhance cloud-based analytics and automation capabilities. The region’s strong focus on data-driven efficiency and green building standards ensures a dynamic outlook for Lighting as a Service adoption.
Key players in the market
Some of the key players in Lighting as a Service Market include Signify, GE Current, Zumtobel Group, LEDVANCE GmbH, Acuity Brands, Stouch Lighting, Enlighted Inc., Sparkfund, Igor Inc., Every Watt Matters, Lutron Electronics, Lumenix, Ameresco, Orion Energy Systems, and UrbanVolt.
Key Developments:
In September 2025, Eureka announced the launch of its Jarry luminaire. Jarry is a classic ball and seamless tube design, available in dozens of configurations to create many moods and looks. Jarry luminaires range from 1’ to 8’ in length and are available as pendants, wall sconces, and ceiling-mounted options. Fixtures can be installed horizontally, vertically, or at an angle, with up to twelve silicone globes per unit. Vertical pendants are available with or without floor anchors.
In April 2024, GE Aerospace announced its official launch as an independent public company defining the future of flight, following the completion of the GE Vernova spin-off. GE Aerospace will trade on the New York Stock Exchange (NYSE) under the ticker “GE”. GE Aerospace and GE Vernova will ring the opening bell together at the NYSE.
Components Covered:
• Luminaires and Controls
• Software and Analytics
• Services
Installation Types Covered:
• Indoor
• Outdoor
Contract Types Covered:
• Retrofit Projects
• New Installations
Enterprise Sizes Covered:
• Small & Medium Enterprises (SMEs)
• Large Enterprises
End Users Covered:
• Commercial
• Residential
• Municipal
• Industrial
• Other End Users
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances
According to U.S. Environmental Protection Energy, there were 132 US municipalities with LaaS public-private partnerships in 2023.
Market Dynamics:
Driver:
Integration with smart buildings & IoT
Modern lighting systems now integrate intelligent sensors, automation, and cloud analytics to enhance energy savings and comfort. By connecting to building management systems, these platforms enable synchronized control and performance optimization. Real-time monitoring and predictive maintenance capabilities further reduce downtime and costs. With AI integration, adaptive lighting can automatically adjust to environmental or occupancy changes. The shift toward sustainable, data-centric buildings is accelerating the deployment of IoT-powered lighting solutions worldwide.
Restraint:
Cybersecurity concerns
The integration of cloud platforms, sensors, and connected devices creates multiple entry points for potential cyberattacks. Unauthorized access to lighting networks can disrupt operations, compromise data privacy, and affect building security. Manufacturers and service providers must implement robust encryption, authentication, and monitoring protocols to ensure system integrity. Compliance with international cybersecurity standards, such as ISO 27001 and NIST frameworks, adds complexity to deployment and maintenance. Concerns around data breaches and ransomware risks are prompting organizations to invest cautiously in fully connected lighting infrastructures.
Opportunity:
New data monetization and analytics
Smart lighting infrastructure collects rich datasets that can reveal insights into energy efficiency, space utilization, and environmental impact. Companies are monetizing this data through cloud-based analytics and value-added services. AI algorithms are helping predict maintenance needs and refine operational patterns. Data-sharing partnerships between lighting vendors and smart city developers are expanding new business models. Ultimately, lighting networks are transitioning from utility systems to intelligent data platforms that fuel broader digital strategies.
Threat:
Competition from traditional lighting distributors
Many end users prefer traditional one-time purchases over ongoing service agreements. Established brands leverage their distribution networks and customer trust to maintain market dominance. In response, they are adapting by offering partial service models to retain clients. The resulting price pressure makes it difficult for newer LaaS providers to differentiate themselves. To overcome this, companies are emphasizing digital innovation, environmental performance, and flexible financing models to attract modern infrastructure projects.
Covid-19 Impact:
The pandemic initially hindered LaaS growth by pausing installation projects and disrupting supply chains. Commercial spaces reduced capital expenditure, leading to slower adoption. Yet, the demand for smart, remotely managed lighting grew as buildings sought safer, touch-free environments. Cloud and IoT integration proved vital for maintaining operational efficiency during restrictions. As economies reopened, focus shifted toward resilient and energy-efficient lighting upgrades. This post-COVID emphasis on automation and sustainability is now fueling steady recovery and expansion in the LaaS market.
The services segment is expected to be the largest during the forecast period
The services segment is expected to account for the largest market share during the forecast period, due to the growing preference for pay-as-you-go models. Organizations are increasingly outsourcing lighting operations to specialized providers offering end-to-end solutions. Advanced technologies like AI-driven monitoring and predictive maintenance are improving service reliability. Energy efficiency consulting and sustainability tracking have become integral to service portfolios. Innovations such as digital twin modeling and smart contracts are reshaping performance management. As clients seek reduced operational costs and carbon footprints, service-centric business models are gaining prominence.
The municipal segment is expected to have the highest CAGR during the forecast period
Over the forecast period, the municipal segment is predicted to witness the highest growth rate, as cities invest in smart infrastructure. Upgrading public lighting to intelligent LED systems enhances energy efficiency and public safety. IoT-based management platforms allow remote control and maintenance optimization across urban networks. Government-led sustainability goals and smart city programs are accelerating adoption. Collaboration between municipalities and private providers is introducing flexible service contracts and financing solutions. This trend reflects the global movement toward cleaner, more digitally connected urban environments.
Region with largest share:
During the forecast period, the Asia Pacificregion is expected to hold the largest market share, Fueled by robust infrastructure growth and sustainability initiatives. Nations across the region are deploying smart lighting solutions within smart city frameworks. Increased investment in construction, commercial complexes, and public projects is fueling service demand. Local manufacturers are partnering with international firms to integrate cutting-edge IoT and automation technologies. Rising awareness of energy conservation and government incentives are encouraging widespread adoption.
Region with highest CAGR:
Over the forecast period, the North America region is anticipated to exhibit the highest CAGR, propelled by innovation and early digital adoption. Companies across the U.S. and Canada are rapidly shifting toward AI- and IoT-integrated lighting systems. Sustainability commitments and energy-saving regulations are prompting large-scale retrofits in commercial buildings. Government incentives for smart lighting installations are stimulating market participation. Leading firms are collaborating to enhance cloud-based analytics and automation capabilities. The region’s strong focus on data-driven efficiency and green building standards ensures a dynamic outlook for Lighting as a Service adoption.
Key players in the market
Some of the key players in Lighting as a Service Market include Signify, GE Current, Zumtobel Group, LEDVANCE GmbH, Acuity Brands, Stouch Lighting, Enlighted Inc., Sparkfund, Igor Inc., Every Watt Matters, Lutron Electronics, Lumenix, Ameresco, Orion Energy Systems, and UrbanVolt.
Key Developments:
In September 2025, Eureka announced the launch of its Jarry luminaire. Jarry is a classic ball and seamless tube design, available in dozens of configurations to create many moods and looks. Jarry luminaires range from 1’ to 8’ in length and are available as pendants, wall sconces, and ceiling-mounted options. Fixtures can be installed horizontally, vertically, or at an angle, with up to twelve silicone globes per unit. Vertical pendants are available with or without floor anchors.
In April 2024, GE Aerospace announced its official launch as an independent public company defining the future of flight, following the completion of the GE Vernova spin-off. GE Aerospace will trade on the New York Stock Exchange (NYSE) under the ticker “GE”. GE Aerospace and GE Vernova will ring the opening bell together at the NYSE.
Components Covered:
• Luminaires and Controls
• Software and Analytics
• Services
Installation Types Covered:
• Indoor
• Outdoor
Contract Types Covered:
• Retrofit Projects
• New Installations
Enterprise Sizes Covered:
• Small & Medium Enterprises (SMEs)
• Large Enterprises
End Users Covered:
• Commercial
• Residential
• Municipal
• Industrial
• Other End Users
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances
Table of Contents
200 Pages
- 1 Executive Summary
- 2 Preface
- 2.1 Abstract
- 2.2 Stake Holders
- 2.3 Research Scope
- 2.4 Research Methodology
- 2.4.1 Data Mining
- 2.4.2 Data Analysis
- 2.4.3 Data Validation
- 2.4.4 Research Approach
- 2.5 Research Sources
- 2.5.1 Primary Research Sources
- 2.5.2 Secondary Research Sources
- 2.5.3 Assumptions
- 3 Market Trend Analysis
- 3.1 Introduction
- 3.2 Drivers
- 3.3 Restraints
- 3.4 Opportunities
- 3.5 Threats
- 3.6 End User Analysis
- 3.7 Emerging Markets
- 3.8 Impact of Covid-19
- 4 Porters Five Force Analysis
- 4.1 Bargaining power of suppliers
- 4.2 Bargaining power of buyers
- 4.3 Threat of substitutes
- 4.4 Threat of new entrants
- 4.5 Competitive rivalry
- 5 Global Lighting As A Service Market, By Component
- 5.1 Introduction
- 5.2 Luminaires and Controls
- 5.3 Software and Analytics
- 5.4 Services
- 5.4.1 Installation
- 5.4.2 Maintenance
- 5.4.3 Monitoring
- 6 Global Lighting As A Service Market, By Installation Type
- 6.1 Introduction
- 6.2 Indoor
- 6.2.1 Commercial Buildings
- 6.2.2 Residential Spaces
- 6.2.3 Industrial Facilities
- 6.3 Outdoor
- 6.3.1 Street Lighting
- 6.3.2 Public Infrastructure
- 6.3.3 Parking Lots
- 7 Global Lighting As A Service Market, By Contract Type
- 7.1 Introduction
- 7.2 Retrofit Projects
- 7.3 New Installations
- 8 Global Lighting As A Service Market, By Enterprise Size
- 8.1 Introduction
- 8.2 Small & Medium Enterprises (SMEs)
- 8.3 Large Enterprises
- 9 Global Lighting As A Service Market, By End User
- 9.1 Introduction
- 9.2 Commercial
- 9.3 Residential
- 9.4 Municipal
- 9.5 Industrial
- 9.6 Other End Users
- 10 Global Lighting As A Service Market, By Geography
- 10.1 Introduction
- 10.2 North America
- 10.2.1 US
- 10.2.2 Canada
- 10.2.3 Mexico
- 10.3 Europe
- 10.3.1 Germany
- 10.3.2 UK
- 10.3.3 Italy
- 10.3.4 France
- 10.3.5 Spain
- 10.3.6 Rest of Europe
- 10.4 Asia Pacific
- 10.4.1 Japan
- 10.4.2 China
- 10.4.3 India
- 10.4.4 Australia
- 10.4.5 New Zealand
- 10.4.6 South Korea
- 10.4.7 Rest of Asia Pacific
- 10.5 South America
- 10.5.1 Argentina
- 10.5.2 Brazil
- 10.5.3 Chile
- 10.5.4 Rest of South America
- 10.6 Middle East & Africa
- 10.6.1 Saudi Arabia
- 10.6.2 UAE
- 10.6.3 Qatar
- 10.6.4 South Africa
- 10.6.5 Rest of Middle East & Africa
- 11 Key Developments
- 11.1 Agreements, Partnerships, Collaborations and Joint Ventures
- 11.2 Acquisitions & Mergers
- 11.3 New Product Launch
- 11.4 Expansions
- 11.5 Other Key Strategies
- 12 Company Profiling
- 12.1 Signify
- 12.2 GE Current
- 12.3 Zumtobel Group
- 12.4 LEDVANCE GmbH
- 12.5 Acuity Brands
- 12.6 Stouch Lighting
- 12.7 Enlighted Inc.
- 12.8 Sparkfund
- 12.9 Igor Inc.
- 12.10 Every Watt Matters
- 12.11 Lutron Electronics
- 12.12 Lumenix
- 12.13 Ameresco
- 12.14 Orion Energy Systems
- 12.15 UrbanVolt
- List of Tables
- Table 1 Global Lighting As A Service Market Outlook, By Region (2024-2032) ($MN)
- Table 2 Global Lighting As A Service Market Outlook, By Component (2024-2032) ($MN)
- Table 3 Global Lighting As A Service Market Outlook, By Luminaires and Controls (2024-2032) ($MN)
- Table 4 Global Lighting As A Service Market Outlook, By Software and Analytics (2024-2032) ($MN)
- Table 5 Global Lighting As A Service Market Outlook, By Services (2024-2032) ($MN)
- Table 6 Global Lighting As A Service Market Outlook, By Installation (2024-2032) ($MN)
- Table 7 Global Lighting As A Service Market Outlook, By Maintenance (2024-2032) ($MN)
- Table 8 Global Lighting As A Service Market Outlook, By Monitoring (2024-2032) ($MN)
- Table 9 Global Lighting As A Service Market Outlook, By Installation Type (2024-2032) ($MN)
- Table 10 Global Lighting As A Service Market Outlook, By Indoor (2024-2032) ($MN)
- Table 11 Global Lighting As A Service Market Outlook, By Commercial Buildings (2024-2032) ($MN)
- Table 12 Global Lighting As A Service Market Outlook, By Residential Spaces (2024-2032) ($MN)
- Table 13 Global Lighting As A Service Market Outlook, By Industrial Facilities (2024-2032) ($MN)
- Table 14 Global Lighting As A Service Market Outlook, By Outdoor (2024-2032) ($MN)
- Table 15 Global Lighting As A Service Market Outlook, By Street Lighting (2024-2032) ($MN)
- Table 16 Global Lighting As A Service Market Outlook, By Public Infrastructure (2024-2032) ($MN)
- Table 17 Global Lighting As A Service Market Outlook, By Parking Lots (2024-2032) ($MN)
- Table 18 Global Lighting As A Service Market Outlook, By Contract Type (2024-2032) ($MN)
- Table 19 Global Lighting As A Service Market Outlook, By Retrofit Projects (2024-2032) ($MN)
- Table 20 Global Lighting As A Service Market Outlook, By New Installations (2024-2032) ($MN)
- Table 21 Global Lighting As A Service Market Outlook, By Enterprise Size (2024-2032) ($MN)
- Table 22 Global Lighting As A Service Market Outlook, By Small & Medium Enterprises (SMEs) (2024-2032) ($MN)
- Table 23 Global Lighting As A Service Market Outlook, By Large Enterprises (2024-2032) ($MN)
- Table 24 Global Lighting As A Service Market Outlook, By End User (2024-2032) ($MN)
- Table 25 Global Lighting As A Service Market Outlook, By Commercial (2024-2032) ($MN)
- Table 26 Global Lighting As A Service Market Outlook, By Residential (2024-2032) ($MN)
- Table 27 Global Lighting As A Service Market Outlook, By Municipal (2024-2032) ($MN)
- Table 28 Global Lighting As A Service Market Outlook, By Industrial (2024-2032) ($MN)
- Table 29 Global Lighting As A Service Market Outlook, By Other End Users (2024-2032) ($MN)
- Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.
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