Lighting Services Industry Report by Regional Category Spend, Price Analysis, Key Demand, and Price Indicators, and Best Buying Practices

The global Lighting Services market reached a value of about USD 168 billion in 2021. The industry is projected to grow at a CAGR of around 5% in the forecast period of 2022-2027 to reach a value of about USD 225 billion by 2027.

The global Lighting Services industry report gives a comprehensive analysis of the industry, including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. The growing consumer shift towards sustainable lighting solutions is primarily driving the market. North America is the highest category spender by region that is driving the demand for the Lighting Services industry.

Industry Definition and Segmentation

The planned use of lights in a house, shopping complex, street, or other location to create practical or aesthetic effects is known as lighting. The market is filled with artificial light sources, such as lamps and light fixtures, among others. Lighting as a service (LaaS), or light as a service, is a subscription-based business model for light services rather than a one-time purchase. It is overseen by third parties, or more accurately, specialist service providers, and may encompass lighting design, finance, installation, and maintenance, among other things. The Lighting Services industry report comprises segments by type (General Lighting, Automotive Lighting, Backlighting), by product (Non-Green Traditional, Green Traditional), and region (North America, Europe, Asia Pacific, the Middle East, and Africa, and South America).

The North American Region is Driving the Growth of the Industry

North America is the largest region in the industry as the United States is the biggest country in the area with substantial growth in power consumption. It implements numerous programmes to improve the country's lighting system's efficiency. Furthermore, Canada is a significant player in the region, focusing on energy-saving and establishing various lighting regulations and service programmes. Because of this, the market is likely to progress further.

The market is being driven by the growing shift towards the product owing to its various properties. No upfront costs, reduced energy consumption, ongoing 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 are all driving the market forward. The various initiatives by the government for the adoption of energy-efficient lighting systems and financial incentives such as rapid return on investment without any upfront capital costs are further providing a thrust to the market.

Best Procurement Practices

The global Lighting Services industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed by major global Lighting Services regions, such as engagement models, contract terms, and buyer and supplier negotiation levers, among others.

Category Management Studies

Lighting-as-a-Service (LaaS, is a service-based business model in which light service is priced on a subscription rather than a one-time payment. It is managed by third parties, more specifically by specialized service providers. It includes lighting design, financing, installation, and maintenance services. The LaaS model has become more standard in commercial and citywide installations of LED lights, especially in retrofitting facilities and outdoor structures, with the primary aim of reducing installation expenses. Light suppliers utilised the LaaS approach in offering value-added services, such as Internet-connected lighting and energy management.

Various Developments in the Product, Further Driving the Lighting Services Market

The rising convergence of the Internet of Things (IoT) in the lighting system is propelled by the industry, which results in decreased energy usage. The service's energy savings and cost cuttings are other factors furthering the industry's expansion. Commercial companies might get a lot of money back by installing energy-efficient lighting solutions, thus augmenting the market expansion. Li-fi, Human Centric Lighting, Quantum Dots, and Cloud Computing are vital developments in the worldwide lighting sector. End-users may now pick from various solutions, such as FTLs, CFLs, LEDs, and other possibilities, depending on their needs further the industry's development. The industry's growth is likely to be driven by increased R&D initiatives to develop improved lighting technology.

The regional markets for the industry can be divided into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.

Key Industry Players Mentioned in the Lighting Services Industry Report

• Signify N.V.
• Osram Licht AG
• Acuity Brands Inc.
• Cree LED
• The Zumtobel Group

Market Landscape

The industry is fragmented; contracts & agreements were the most popular tactic among the market's leading participants. Partnerships and collaborations were next, followed by investments and expansions. The companies take advantage of the market's expansion by improving their product line, fueled by efficiency, the convenience of use, and technical improvements. Furthermore, several government initiatives are leading to increased use of LED lighting, supporting the growth of lighting as a service industry.

Key Initiatives by Companies

• LEDVANCE GmbH and Bosch Smart Home lighting solutions for the smart home were unveiled in August 2020. The integration of LEDVANCE Smart+ products in the Bosch Smart Home System simplifies the application for consumers, providing a high-quality solution for a secure home without needing a separate bridge.
• Signify NV expanded its LED Toplighting small line in January 2020 to make the transition to LED grow lights in greenhouses easier. The business introduced a high-efficiency version and a high-output version for various crops to cut operating expenses. The suggested resolution is compatible with the GrowWise Control System and uses 50% less energy.