DUBLIN--(BUSINESS WIRE)--The "Lighting as a Service Market - Growth, Trends, Forecasts (2020 - 2025)" report has been added to ResearchAndMarkets.com's offering.
The lighting as a service market is expected to grow at a CAGR of approximately 50.4% during the forecast period of 2020-2025.
The primary driver for the market includes the increasing demand for efficient lighting systems. The growing convergence of the Internet of Things (IoT) in the lighting system has a lower consumption of energy across various parts of the world. However, the service's subscription program typically imposes a higher overall cost than the owner pays for the self-installation system, which can likely pose a challenge.
Additionally, with the continuing spread of COVID-19, technology vendors across the smart building sector are launching new propositions to help firms improve their buildings' infection control. In March 2020, lighting services firm Eco Energy Group (Eco E) launched a new suite of lighting products to help firms improve infection control in buildings.
It launched the 'Smart UVC Solution' ultraviolet (UV) light, which can kill bacteria and viruses on surfaces. The 'Smart UVA Solution' can also disinfect surfaces through safe lighting rays. Eco E will deliver these solutions through a lighting-as-a-service business model that requires no capital expenditure.
Key Market Trends
Commercial Segment to Dominate the Market
- The commercial segment includes the space used for commercial activities like office, stores, institutions, hospitals, etc., primarily those spaces that are not residential, industrial, or manufacturing. Compared to other types of Lighting, commercial Lighting tends to have a higher initial cost, longer lifespan, better durability, higher maintenance and service costs, and better energy-saving options. Commercial activity is one of the key tangible barometers to track the health of the economy of a region or a country.
- With increasing electricity consumption, various commercial spaces adopt Lighting as a Service (LaaS) model, in which the owner pays for the light rather than the equipment that delivers it. The owner buys Lighting on a subscription basis over an agreement that offers LED technology lighting with maintenance service.
- The energy savings and cost reductions offered by Lighting as a service (LaaS) constitute an attractive offer for commercial end-users because of the growing corporate focus on sustainability and energy efficiency. Overall cost reductions accelerate the widespread adoption of LaaS by numerous commercial organizations. For instance, using LED retrofits in various commercial application cases in the US showed a potential result. For instance, in Building Exterior Lighting, the result reflected a 63% reduction in energy cost.
- However, COVID-19 has affected the construction of new commercial buildings. For instance, According to the Bank Pekao SA, Of all types of buildings, only commercial buildings, e.g., office buildings, have seen their production fall by 20% year-on-year in Poland. Additionally, with the implementation of work-from-home policies across the globe, it is expected that these instances would hamper the market growth in the shorter run.
North America to Dominate the Market
- North America includes 23 countries, with a cumulative GDP of around USD 24.98 trillion in 2019. The major country with significant development in electricity consumption in the region is the United States, which is adopting various plans to increase the efficiency of the lighting system in the country.
- During 2019, the Trump administration announced its plans to use much more energy-efficient light bulbs to reduce the energy consumption rate and to help in controlling carbon emission that primarily gets generated in the United States from natural gas-powered plants for electricity generation. As per the plan, all light bulbs sold in the United States must be either LED or fluorescent to meet energy standards.
- Among various projects in the region, Bristol-Myers Squibb in Lawrenceville is one of the prominent efficient lighting projects that include lighting renovation work for office space of 275 thousand square feet. The project used a distributed relay control system and vacancy sensors to harvest daylight in all areas and reduce the space's energy consumption.
- Apart from the United States, Canada is another prominent country in the region, concentrating on electricity conservation and is implementing various lighting standards and service projects. Thus, with the growing implementation of the service with various standards in the region, it is expected the market in the near future.
- With a strong footprint across North America and diverse capabilities, including comprehensive multi-site installations, real-time energy monitoring and analytics, and networked light management systems, it is possible to penetrate the multi-billion lighting market. For instance, Canadian cities are continually promoting smart LED lights to increase energy efficiency, thus encouraging market growth.
Competitive Landscape
The lighting as a service market is fragmented. The key players in the market include Every Watt Matters, Lumenix, Stouch Lighting, LEDVANCE GmbH, Signify Holdings, and ESB Light Manufacture of LED Luminaires among others. The players leverage the market growth by enhancing their product line driven by efficiency, ease of use, and technological advancements. Moreover, various government implementation is further leading to more adoption of LED lighting, which is catering to the market growth of lighting as a service
- August 2020 - LEDVANCE GmbH announced the LEDVANCE and Bosch Smart Home lighting solutions for the smart home. The integration of LEDVANCE Smart+ products into the Bosch Smart Home System makes the application even easier for customers it is a high-quality solution for a safe home without the need for an additional bridge.
- July 2020 - Enlighted Inc offers its award-winning technology in a new Surface Sensor designed for quick and easy deployments at scale across enterprise portfolios. Enlighted's latest sensor makes activity-based workspaces, conference rooms, and commercial buildings smarter, safer, more efficient, and improves the occupant experience. The sensor captures data including occupancy detection, temperature, ambient lighting levels and is also equipped with Bluetooth LE capabilities to communicate with other IoT devices and applications.
- January 2020 - Signify NV extended its LED Toplighting compact range to simplify switch to LED grow lights in the greenhouse. The company introduced a high-efficiency version to reduce running costs or for a high output version for different crops. The solution offered can be connected with GrowWise Control System and consumes 50% less energy.
Companies Mentioned
- Every Watt Matters
- Lumenix
- Stouch Lighting
- LEDVANCE GmbH
- Signify Holdings
- Electricity Supply Board (ESB) Group
- Enlighted, Inc
- General Electric Company
- LumenServe Inc
- Lighthouse
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