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. The lighting industry is in the midst of two simultaneous upheavals. LED lighting is fast captivating over from present technologies, and lighting management systems are significantly growing the capabilities of the technology that operates the lights. In this environment, the lighting industry is in position for yet one more change—a shift in how all the solutions involved in a modern lighting system are provided to building end users. The stage is set for the climb of lighting as a service (LAAS).
Lighting as a service (LAAS) as the third-party administration of a lighting arrangement that may include additional maintenance, technical, financial, or other services. These contributions can begin with the installation of a lighting system, continue through management and maintenance, and even include the disposal or recycling of equipment at the end of its life. Various companies are starting to provide combinations of these services as they experiment with how best to meet their customers’ needs. Lighting as a service (LAAS) is a superior form of lighting that is enabling the move from established lighting to smart lighting using sensing and Internet of Thing techniques to decrease power cost and boost energy effectiveness without any investment from the end-user. Rising demand for energy proficient lighting and government policies and regulations for implementation of energy efficient lighting systems are projected to drive the lighting as a service market. Lack of knowledge 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.
The global lighting as a service (LAAS) market has been segmented 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. Schemes to build up smart city infrastructure are driving municipalities to implement higher, intelligent lighting systems. The energy savings and cost reductions facilities by lighting as a service (LAAS) represent an attractive propose for commercial end users in view of the growing commercial focus on sustainability and energy efficiency. On the basis of installation market is segmented into indoor and outdoor installation. In terms of installation, the outdoor division is likely to constitute the fastest growing segment in the market. The indoor division held the highest market share in 2015 and is projected to lead the market in the future years. Booming 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.
Geographically, the global lighting as a service market has been segmented into four broad regions that are North America, Europe, Asia Pacific and RoW. North America is at present the major market for lighting as a service, and in second position Europe region. The lighting as a service market in North America will be driven by demand from business establishments eager to leverage the cost saving prospective of proficient lighting systems and support to the universal agenda to reduce energy consumption. The market in region is anticipated to rise at a high rate, with the US likely to register the fastest growth in the region. Europe is projected to grow at the highest CAGR in the future years due to rising demand from the commercial as well as industrial sectors. There is high development of commercial and infrastructure in Asia Pacific region; this will enhance the demand of LAAS in the region.
Some of the top players in the 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. Contracts & agreements was the approach most generally adopted by the top players in the market. In a strategic move on July 2015, Cree, Inc. a market leader in silicon-carbide power and RF products announced the acquisition of APEI, a globally present company in power modules and electronics applications. Mixing two highly paired innovators, the acquisition enables Cree’s Power and RF business to enlarge its control position and help to go faster the market for high-performance, best-in-class SiC power modules.
