“The lighting as a service market is projected to grow at a CAGR of 46.30% from 2016 to 2021”
The lighting as a service market is projected to reach USD 638.7 million by 2021, growing at a CAGR of 46.3% from 2016 to 2021. Lighting as a service (LaaS) is an enhanced form of lighting that is enabling the move from traditional lighting to smart lighting using sensors and Internet of Thing (IoT) technology to reduce energy cost and increase energy efficiency without any investment from the end-user. Increasing demand for energy efficient lighting and government policies and regulations for adoption of energy efficient lighting systems are expected to drive the lighting as a service market. Lack of awareness about the true value propositions of the lighting as service model is acting as a restraint for the growth of the lighting as a service market.
“Municipal end user segment is expected to grow at a highest CAGR”
The Municipal segment is expected to witness fastest demand during the forecast period. The municipal end users include lighting offered by local governments for streets, open public spaces, walkways, bridges, public parking areas, and highways. Plans to develop smart city infrastructure is driving municipalities to adopt advanced, intelligent lighting systems.
With regard to end-users, the commercial segment is estimated to constitute the largest segment of the lighting as a service market in 2016. 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.
“North America: The largest market for lighting as a service market”
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 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 CAGR during the forecast period owing to increasing demand from the commercial as well as industrial sectors.
Breakdown of Primaries:
In-depth interviews have been conducted with various key industry participants, subject matter experts, C-level executives of key market players, and industry consultants, among other experts, to obtain and verify critical qualitative and quantitative information as well as to assess future market prospects. The distribution of primary interviews is as follows:
- By Company Type: Tier 1- 40%, Tier 2- 10%, Tier 3- 50%
- By Designation: C-Level- 65%, D-Level- 25%, Others- 10%
- By Region: Europe- 36%, North America- 22%, Asia-Pacific- 16%, Latin America-18, and Middle East & Africa- 8%
Note: The tier of the companies has been defined on the basis of their total revenue; as of 2015: Tier 1 = > USD 10 billion, Tier 2 = USD 1 billion to USD 10 billion, and Tier 3 = < USD 1 billion.
The leading players in the lighting as a service market include Koninklijke Philips N.V. (Netherlands), General Electric Lighting (U.S.), Zumtobel Group AG (Austria), SIB Lighting (U.S.), Lunera Lighting (U.S.), Igor Inc. (U.S.) and Cree Inc. (U.S.).
Why buy this report?
- The report identifies and addresses key markets for lighting as a service, which is useful for service providers to review the growth in demand for the service.
- The report helps service providers to understand the pulse of the market and provides insights on drivers, restraints, and challenges.
- The report will help key players to better understand the competition’s strategies and will help in making strategic decisions.