The provision of light as a service, charged on a subscription basis rather than a one-time payment is referred to as ‘Lighting as a Service (LaaS)’. The availability of LaaS has made LED lighting a possibility for any business. LaaS is a better version of the lighting that employs Internet of Things (IoT) and sensor technology to provide powered, controlled, and efficient lighting. In LaaS, lighting control systems optimize the usage of light, which translates to energy and cost savings and enhanced productivity. The installation of smart lighting systems in buildings can result in up to 50% savings in energy cost.
According to Stouch Lighting LED Lightning Solutions,
The demand for energy-efficient lighting systems is increasing, and LaaS helps in reducing carbon emission, which drives its adoption. Government rules, regulations, and policies supporting the adoption of energy-efficient lighting systems are accelerating the demand for LaaS. However, lack of awareness regarding the benefits of lighting as a service may hinder market growth.
The lighting as a Service (LaaS) market can be segmented on the basis of product type, end user, and region.
On the basis of product type, the market can be segmented into indoor and outdoor, while on the basis of end user, the market can be segmented into commercial, municipal, and industrial.
The Lighting as a Service market has been segmented geographically into North America, Europe, Asia Pacific, and Latin America and the Middle East & Africa (LAMEA).
North America holds the largest share in the lighting as a service market, owing to the presence of industry leaders in the region. One of the contributing factors to the increasing use of LaaS and LED technologies is the expanding offerings of systems that enable users to program and control lights through connectivity with sensors and networks. The transition to connected lighting is gaining pace, particularly in developed countries of the region, which is driving market growth. Government policies supporting energy savings are fueling the growth of the Lighting as a Service market.
Europe is witnessing the fastest growth in the lighting as a service market, backed by the widespread adoption of LaaS in European countries such as the U.K. and Germany.
Asia Pacific is experiencing healthy growth in the lighting as a service market, with governments of developing countries such as India and China endorsing energy-efficient lights. The existence of a large number of LED chip and package factories in China, South Korea, Japan, and Taiwan is also contributing to the growing demand in the region.
Latin America accounts for the least share in the lighting as a service market; however, increased efforts in reducing carbon footprint are driving the demand for LaaS.
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LaaS is solving numerous problems for today's businesses and offers an array of opportunities for businesses seeking creative ways to retrofit their businesses without a sizable capital outlay.
In 2017, Cree Launched C-Lite LED Lighting by Cree (C-Lite), a portfolio of LED lighting products that offers electrical distributors and contractors a broad range of stock and flow items with energy efficiency and excellent perforance.