Third-party lighting as a service can ensure savings, inform FM/space-use decisions, finds Navigant

by Brianna Crandall — December 23, 2016 — A recent report from Navigant Research analyzes the global market for lighting as a service (LaaS) in commercial buildings, with forecasts for revenue and square footage under LaaS management, segmented by region, service type, and building type, through 2025.

According to the report, the lighting industry is in the midst of upheaval. Light-emitting diode (LED) lighting is rapidly taking over from incumbent technologies, and lighting controls systems are greatly expanding the abilities and sophistication of the technology that operates the lights; these changes set the stage for the rise of LaaS. Global revenue for lighting as a service is expected to total nearly $5.8 billion from 2016 to 2025.

Benjamin Freas, principal research analyst with Navigant Research, explains:

LaaS is defined broadly as the third-party management of a lighting system that may include additional technical, maintenance, financial, or other services. As the installed base of lighting is gradually replaced by longer-lasting LEDs, many companies are turning to offering lighting control systems and services to maintain revenue.

Advanced lighting controls systems can save significant amounts of energy when operated in an optimized way, according to the report. Turning over the management of these systems to an expert third party ensures savings and informs space-use decisions and facilities management by guaranteeing that evolving building codes and energy standards are met and that increasingly more complex systems are correctly operated.

The report, Lighting as a Service, examines the global LaaS market for commercial buildings. The study provides an analysis of the market issues, technological developments, and regional trends related to LaaS, with a focus on four service types: professional, maintenance, managed, and others (such as financing). Global forecasts for revenue and square footage under LaaS management, segmented by region, service type, and building type, extend through 2025.

The report also profiles select industry players and highlights the innovative ways they use networked lighting systems and cloud-based software to offer LaaS. An Executive Summary of the report is available for free download on the Navigant Research Web site.