Market Data: Lighting as a Service
March 9, 2020
As LEDs continue to have strong market penetration and interest in connected lighting systems grows, lighting as a service (LaaS) has the potential to help increase adoption of these technologies. The as a service business model is seen across various industries and is gaining popularity as new technologies emerge. This business model enables commercial customers to outsource select areas of their business over a set time. The model also allows purchasers of an as a service solution to avoid an upfront capital investment and instead focus on core business areas. This approach ensures the outsourced business is being kept up to date with market developments by the service provider.
Navigant Research, a Guidehouse company, broadly defines LaaS as the third-party management of a lighting system. This can include additional maintenance, financial, technical, or operational services. A key focus of an as a service business model is shifting business spending from CAPEX to OPEX. LaaS offerings range from basic lighting upgrades to services that include advanced sensors, controls, and network communications to add value that supports an organization’s core mission.
This Navigant Research report examines the LaaS market for commercial buildings. The report provides a forecast for LaaS revenue, segmented by service type, building type, and region from 2020 through 2029. High level trends and market issues are discussed.
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