The lighting-as-a-service market in North America will be driven by demand from commercial establishments keen to leverage the cost saving potential
The lighting-as-a-service market (LaaS) is predicted to reach $638.7m by 2021, growing at a compound annual growth rate (CAGR) of 46.3 per cent, finds new research from technology company ReportLinker.
LaaS is an enhanced form of lighting that is enabling the move from traditional lighting to smart lighting using sensors and Internet of Things (IoT) technology to reduce energy cost and increase energy efficiency without any investment from end-users.
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.
But according to Lighting as a Service Market by End-user, Installation, Component and Region Global – Global forecast to 2021, lack of awareness about the true value propositions of the LaaS model is acting as a restraint for the growth of the LaaS market.
North America is 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 US 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.
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 regards 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.
Leading players in the lighting-as-a-service market identified in the report include: Koninklijke Philips, (Netherlands); General Electric Lighting (US); Zumtobel Group (Austria); SIB Lighting (US); Lunera Lighting (US); Igor Inc. (US); and Cree Inc. (US).
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