The global lighting as a service market is projected to grow at a CAGR of 46.3% from 2016 to 2021, to reach a market size of USD 638.7 Million by 2021. This growth is attributed to increasing demand for energy efficient lighting systems, zero capital cost requirement and growing convergence of Internet of Things (IoT) in lighting systems to reduce energy consumption across the globe.
The report segments the lighting as a service based on end-user industry into commercial, municipal, and industrial. The commercial segment dominated the end-user segment in 2015 and is expected to maintain its leading position throughout the forecast period. The municipal segment is projected to lead the market in terms of growth rate during the forecast period.
In terms of installation, the outdoor segment is estimated to constitute the fastest growing segment in the market. The indoor segment held the largest market share in 2015 and is expected to dominate the market during the forecast period. Growing commercial sector in developing countries is the main driver behind the growth of the indoor segment in the lighting as a service.
In this report, the lighting as a service has been analyzed with respect to five regions, namely, North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. North America is expected to dominate the global market during the forecast period, owing to government support to replace traditional lighting system by energy efficient lighting systems.
The development of smart cities across the globe is expected to drive the growth of the lighting as a service. Key benefits of using lighting as a service to end users include no upfront costs, reduced energy consumption, continuing cost savings, improved lighting experience, no maintenance liability, and the ability to procure add-on functions, and systems such as data collection, inter-device communication and remote management. Low quality LED products flooding the market have resulted in poor performance of the service. This poses a huge challenge for the market.
Some of the leading players in the lighting as a service market include Koninklijke Philips N.V. (Netherlands), General Electric Lighting (U.S.), Zumtobel Group AG (Austria), SIB Lighting (U.S.), Lunera Lighting (U.S.), Igor Inc. (U.S.), Itelecom (Chile), and Cree Inc. (U.S.). Contracts & agreements was the strategy most commonly adopted by the top players in the market, constituting more than one-third of the total share of developments from 2013 to 2016. It was followed by partnerships & collaborations, and investments & expansions.
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