The lighting as a service market is expected to grow at a CAGR of approximately 50.4%

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.

Lighting-as-a-Service (LaaS), also known as Light-as-a-Service, is a service-based business model in which light service is charged on a subscription basis rather than via a one-time payment. It is managed by third parties more precisely by specialized service providers and may include light design, financing, installation, maintenance, and other services. The LaaS model has become more common in commercial and citywide installations of LED lights, specifically in retrofitting buildings and outdoor facilities, with the prior aim of reducing installation costs. Light vendors have used the LaaS strategy in selling value-added services, such as Internet-connected lighting and energy management.

For instance, global LED use has increased substantially in recent years, rising from a market share of 5% in 2013 to nearly half of global lighting sales in 2019, with integrated LED luminaires making up an increasing share. Several developed markets, including the United States and Europe, are responsible for the rapid expansion of the luminaire market segment. At the same time, China has built a substantive domestic and global manufacturing base.