- What is LaaS?
- What barriers are limiting growth of LaaS?
- What is the market size of LaaS?
- How is LaaS expected to grow?
- What should vendors do to help increase adoption of LaaS?
Given the success of the as a service business model in a variety of industries, lighting as a service (LaaS), broadly defined as the third-party management of lighting systems, could fundamentally change the way that owners and operators of commercial buildings procure new and upgraded lighting. Using LaaS, clients can benefit from upgraded lighting without upfront capital investment, avoid committing to the current state of lighting technology, and outsource maintenance of increasingly complex lighting hardware.
Despite this potential, adoption of LaaS has been slow and the early, optimistic expectations for market transformation have not materialized. While LaaS shares several characteristics with other as a service offerings, some important differences make market penetration challenging. For instance, as a hardware-intensive undertaking, upgrades are not easy or inexpensive throughout the life of a service agreement. Furthermore, LaaS is not available to customers that seek new or upgraded lighting through many common industry channels.
This Guidehouse Insights report examines the LaaS market for commercial buildings. It provides a forecast for LaaS revenue, segmented by construction type (new construction and retrofits), building type (office, retail, education, healthcare, hotels & restaurants, institutional/assembly, warehouse, and transport), and global region (North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa) from 2022 through 2031. The report explores market trends, drivers, and barriers, and includes recommended strategies for increasing the adoption of LaaS.
1. Executive Summary
1.1 Key Market Trends
1.2 Market Drivers
1.3 Market Barriers
1.4 Forecast Highlights
2. Market Issues
2.1 Defining Lighting as a Service
2.2 Market Drivers
2.2.1 Technological Advances in Lighting
2.2.2 The Trend Toward Outsourcing Building Maintenance
2.2.3 The Ability to Upgrade Lighting with Exclusively OPEX Funds
2.2.4 Sustainability Targets
2.2.5 Increased Adoption of Broader Energy as a Service Offerings
2.3 Market Barriers
2.3.1 Limited Value Proposition
2.3.2 Fragmented Value Chain
2.3.3 Alternative Options for Upgrading Lighting
2.3.4 Reputational Issues
2.3.5 Intelligent Building Systems Are Less Dependent on Lighting Than Expected
3. Market Forecasts
3.1 Forecast Methodology
3.2 Market Changes
3.3 Forecast by Construction Type
3.4 Market Forecast Regionally by Building Type
3.4.1 North America
3.4.3 Asia Pacific
3.4.4 Latin America
3.4.5 Middle East & Africa
4. Conclusions and Recommendations
5. Building Types
5.5 Hotels and Restaurants
6. Acronym and Abbreviation List
7. Table of Contents
8. Table of Charts and Figures
9. Scope of Study, Sources and Methodology, Notes