According to a new market intelligence report by BIS Research, titled "Global Lighting as a Service Market, Analysis & Forecast, 2017–2025,” the global lighting as a service market is expected to reach $4.74 billion by 2025. The market is growing due to the increasing demand of energy efficient lighting systems. Growing implementation of Internet of Things (IoT) with lighting services is also expected to increase the adoption of this service across the globe.
The LED lights market has undergone significant transformation in the last couple of years. The Energy Independence and Security Act (EISA) passed in 2007 led to a major change in the lighting industry as it replaced the outdated inefficient lighting technology. LED lighting has become necessary to meet the new standards of EISA's energy standards. The adoption of these lighting systems led to reduced energy costs and significant improvements in performance. However, the high up front cost required in the installation of LED based lighting system led to the development of new financial structures such as Lighting as a Service (LAAS). These new financial structures have helped both the public and private sector companies capitalize on the continuous innovations that are taking place in the LED industry.
One of the major issues that lighting as a service business models aim at solving is that of energy management. Some of the advantages of energy management include cost reduction, energy price fluctuations, supply shortage and carbon emissions reduction. Companies are now integrating Internet of Things (IoT) solutions with luminaries to save more energy. With internet connected LED lights, the service providers will be able to constantly monitor the lights. These sensors can also help collect data about various building operations. Rooms equipped with sensors can adapt lighting levels according to the usage pattern of the room, dimming them in vacant areas and increasing the brightness levels in the occupied areas. The sensors also send room usage data to the cloud to help facility managers decide how to optimize space. For example, they could convert unused conference rooms into desk areas.
BIS Research Report
The experts say that in terms of geography, North America had the largest market share in 2016. The growth of the North American lighting as a service market is primarily attributed to the factors such as presence of the market leaders in the lighting industry and government's policy to reduce energy consumption in the region by replacing old lighting with the more efficient LED lighting. However, the European region is expected to witness the fastest growth due to widespread adoption of this business model in the various European countries. In terms of application, the commercial segment would dominate the market throughout the forecast period and would also register the highest growth during the forecast period.”
The report provides a detailed analysis of the recent trends influencing the market, along with a comprehensive study of the future trends and developments. It also includes a competitive analysis of the leading players in the industry, including corporate overview and SWOT analysis. The overall market has been segmented by application namely commercial, industrial and outdoor and by geography, namely North America, Europe and Rest of the World (RoW).
Some of the key players in the lighting as a service market include Philips Lighting, General Electric Lighting, Acuity Brands Lighting, Sparkfund, Enlighted and Zumtobel Group. This report is a compilation of research on more than 100 players in the lighting as a service market ecosystem and draws upon the insights from in-depth interviews with the key opinion leaders, market participants, and vendors.
Key questions answered in the report
- What are the major market drivers, challenges, and opportunities in the global lighting as a service market?
- How will the lighting as a service market evolve and what is its scope in the future?
- What was the market share of the leading segments and sub-segments of the global lighting as a service market in 2016 and what will be the share in 2025?
- How will each segment of the global lighting as a service market grow during the forecast period and what will be the revenue generated by each of the segments by the end of 2025?
- How will the industry evolve during the forecast period between 2017 and 2025?
- What will be the growth rate of different segments during the forecast period? Which is the leading segment by application?
- How the market has been segmented on the basis of application?
- Which geographical location will dominate the lighting as a service market?
- What are the new strategies adopted by the existing market players to make a mark in the industry?
- Who are the key players in the lighting as a service market?
- What major opportunities do the lighting as a service companies foresee?
- What strategies are adopted by the lighting as a service providers to sustain or grow in the market?
- What are the major projects undertaken or completed by the lighting as a service providers?