Global Revenue for Lighting as a Service: US$2.6 Billion by 2026
January 23, 2018
A new report from Navigant Research examining the global market for lighting as a service (LaaS) in commercial buildings forecasts a compound annual growth rate of 16.6% from 2017 to 2026, expanding from an estimated US$662.6 million to US$2.6 billion.
LaaS involves third-party management of a lighting system, including additional maintenance, financial, technical, or operational services. As more lighting products and controls come to market, LaaS is expected to experience a boost from customers who need help choosing and maintaining up-to-date technologies that can provide cost savings to their businesses.
“We are seeing a shift in the LaaS market from a traditional financing model to an increased number of turnkey services, which provide the customer with a full-scale offering from audit and design to installation to management and maintenance of the system,” says Krystal Maxwell, research analyst with Navigant Research. It allows companies to focus on their core business areas and ensures the outsourced business (LaaS) is being kept up to date with market developments by the service provider, especially through the growing number of turnkey services, Maxwell explains.
This shift in business spending is seen as beginning of a trend that is anticipated to become more common over the next 10 years. Additional market growth is expected to be driven by a maturing LED market, interest in the Internet of Things (IoT) applications, and increases to the bottom line.
