A new report from Navigant Consulting looks at the two concurrent upheavals underway in the lighting market – the shift to LED lighting technology and the expanding scope of those technologies’ application – and the shift by some companies to concentrate on providing lighting as a service instead of just selling lamps and luminaires.
“The lack of experience with new lighting and lighting controls products is one of the primary barriers to a more complete adoption of these beneficial technologies,” Navigant’s researchers said. “In this atmosphere, the lighting industry is primed for yet another 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 rise of lighting as a service (LaaS).”
Navigant Research predicts that the move to LaaS marks the beginning of a trend that will mature and grow rapidly over the next 10 years. According to the study, global LaaS revenue is expected to grow from $35.2 million in 2016 to $1.6 billion in 2025.
The report, titled “Third-Party Management of Lighting Systems in Commercial Buildings: Global Market Analysis and Forecasts” examines the global LaaS market for commercial buildings, including an analysis of the market issues, technological developments, and regional trends related to LaaS, with a focus on four service types: professional, maintenance, managed, and others (such as financing). Global forecasts for revenue and square footage under LaaS management, segmented by region, service type, and building type, extend through 2025. The report also profiles select industry players and highlights the innovative ways they use networked lighting systems and cloud-based software to offer LaaS.