As per MRFR analysis, the China Lighting as a Service Market Size was estimated at 258.3 (USD Million) in 2023. The China Lighting as a Service Market Industry is expected to grow from 316.05(USD Million) in 2024 to 3323.03 (USD Million) by 2035. The China Lighting as a Service Market CAGR (growth rate) is expected to be around 23.848% during the forecast period (2025 - 2035).
Key China Lighting as a Service Market Trends Highlighted
The government's green energy initiatives and the push for urban sustainability are the primary factors driving the significant transformation of the China Lighting as a Service market. The demand for energy-efficient lighting solutions has increased as a result of the nation's dedication to reducing carbon emissions. Consequently, the illumination as a Service model has been strengthened as a result of the increasing demand for sustainable and cost-effective illumination alternatives among municipalities and businesses.Â
This trend is additionally reinforced by the development of smart lighting technology, which improves operational efficiency and decreases maintenance expenses. There are numerous opportunities for companies that are capable of providing customized solutions and innovating within this industry. The demand for intelligent lighting systems that can be integrated with smart city initiatives is increasing in China due to the accelerated urbanization. This provides service providers with the opportunity to capture value by providing comprehensive services that integrate energy management, security, and illumination.Â
Furthermore, the Lighting as a Service model is now being actively pursued by industries such as hospitality and retail, which are seeking flexible payment structures. This solution is particularly appealing to businesses that are seeking reduced capital expenditures and flexibility. There has been a recent trend of a transition to eco-friendly illumination options, such as LEDs, in conjunction with heightened awareness of energy savings among both consumers and organizations.
The increasing adoption of energy-efficient lighting solutions is indicative of a more extensive market transformation, in which sustainability is the primary consideration in the decision-making process. Furthermore, the integration of lighting systems with other smart technologies is additionally facilitated by the proliferation of IoT devices in China, which further enhances the market appeal of Lighting as a Service offerings.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
China Lighting as a Service Market Drivers
Government Initiatives Promoting Energy Efficiency
The Chinese government has been increasingly focused on energy conservation as part of its broader environmental policy, motivating the growth of the China Lighting as a Service Market Industry. According to the National Energy Administration of China, energy consumption per unit of GDP in China has decreased by 26% since 2012, highlighting a strong governmental push towards energy-efficient solutions.Â
Additionally, the government's '13th Five-Year Plan for Ecological and Environmental Protection' emphasizes the necessity of energy-efficient technologies in urban infrastructure.This regulatory support promotes the adoption of Lighting as a Service models, as they often incorporate energy-efficient LED technologies and smart lighting systems, leading to reduced energy costs and operational expenditures for businesses. Furthermore, organizations like the China Illuminating Engineering Society are actively collaborating with government bodies to facilitate paperless and efficient lighting schemes, increasing awareness and adoption within the market.
Rising Urbanization and Infrastructure Development
China is experiencing rapid urbanization, with the urban population expected to reach approximately 1 billion by 2030. This growth in urban centers highlights the pressing need for sustainable and efficient urban lighting solutions. Due to an array of infrastructural projects, including smart city initiatives, there is an increasing demand for advanced lighting solutions that fit the Lighting as a Service model.Â
This demand is supported by the Ministry of Housing and Urban-Rural Development's plans to invest more than 6 trillion yuan in urban infrastructure in the next decade.With major players like Signify and General Electric capitalizing on this trend, the market for smart lighting solutions within urban environments is set to expand significantly, propelling the growth of the China Lighting as a Service Market Industry.
Increased Adoption of Smart Lighting Technology
The growth of the Internet of Things (IoT) and advancements in smart sensors are driving the adoption of smart lighting solutions in China. The country’s adoption rate of IoT technologies is projected to rise substantially, with more than 20% of all devices expected to be connected by 2025. By integrating smart technology into lighting products, manufacturers can provide innovative Lighting as a Service solutions that enhance energy efficiency and operational efficiency.
Companies like Osram and Philips are developing advanced smart lighting systems that allow real-time monitoring and management of lighting infrastructures. The China Smart City Development Report by the Ministry of Industry and Information Technology has drawn parallels to smart technology in urban lighting systems, significantly boosting the potential of the China Lighting as a Service Market Industry.
Lighting as a Service Market Lighting Technology Insights
The Lighting Technology segment within the China Lighting as a Service Market has been experiencing substantial growth fueled by increasing urbanization and the demand for energy-efficient solutions. As cities in China expand, the adoption of advanced lighting technologies has become critical in promoting sustainability and reducing energy costs. Among these technologies, LED lighting stands out due to its significant energy savings and long lifespan, making it a preferred choice for commercial and residential applications alike, contributing to lower operational costs and enhancing lighting quality.
Fluorescent lighting remains a staple in various sectors due to its cost-effectiveness and efficient illumination for larger spaces. However, its adoption is gradually being overshadowed by the rise of more advanced technologies. Incandescent lighting, traditionally used for its warm glow, has seen a decline in usage due to regulatory pushes for higher energy efficiency standards, leading to a shift towards more sustainable options. Smart lighting technology is gaining traction, integrating advanced controls and IoT capabilities that allow users to customize their lighting environments, thereby improving convenience and energy management.
Furthermore, fiber optics have emerged as an innovative solution for special applications, offering unique advantages such as minimal power consumption and the capability to transmit light without electricity, making it significant in niche markets. Overall, the Lighting Technology segment is expected to be pivotal in shaping the future of lighting solutions in China's growing urban landscape, characterized by evolving consumer preferences and increasing investment in sustainable technologies. Through this transformation, the China Lighting as a Service Market demonstrates a strong alignment with the broader trends of energy efficiency and smart technology adoption.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Lighting as a Service Market Application Insights
The Application segment of the China Lighting as a Service Market encompasses various critical areas including Indoor Lighting, Outdoor Lighting, Street Lighting, Architectural Lighting, and Industrial Lighting. Indoor Lighting is increasingly vital in enhancing energy efficiency and occupant comfort, capturing significant attention from both consumers and enterprises. Outdoor Lighting, particularly for public spaces, plays a crucial role in safety and security, while Street Lighting represents an essential element for urban infrastructure, promoting sustainability in cities across China.
Architectural Lighting contributes to aesthetic appeal for commercial properties, thus influencing the overall ambiance and user experience. Industrial Lighting focuses on ensuring safe and productive working environments, catering to various manufacturing sectors. As smart technologies advance, these distinct applications are expected to adapt, providing innovative and scalable solutions that align with China’s urbanization strategies and sustainability goals. The integration of intelligent lighting systems presents opportunities for reducing operational costs while enhancing user experiences across all applications, signifying a transformative shift in the China Lighting as a Service Market.
Lighting as a Service Market End Use Insights
The China Lighting as a Service Market experiences significant differentiation across various end uses, including Residential, Commercial, Industrial, and Institutional sectors. The Residential segment remains crucial, as the growing urban population and increasing disposable income in China drive demand for energy-efficient lighting solutions. In the Commercial arena, businesses are increasingly adopting lighting as a service to enhance operational efficiency and reduce energy costs while benefiting from sustainable practices.Â
The Industrial segment leverages improved lighting to boost productivity and worker safety, which is essential for competitive manufacturing and logistics.Meanwhile, the Institutional segment, encompassing schools and healthcare facilities, focuses on creating conducive environments that support learning and patient well-being. The emphasis on energy conservation and sustainability is prevalent across all end uses, motivated by government policies promoting green technologies and energy efficiency standards. Overall, the diversification within the end use categories illustrates a robust demand for innovative lighting solutions tailored to various sectors in the growing Chinese market.
Lighting as a Service Market Service Type Insights
The China Lighting as a Service Market focuses on various service types that cater to the diverse needs of consumers and enterprises. Among these, Installation plays a vital role as it sets up the foundation for effective lighting solutions, ensuring optimal placement and energy efficiency. Maintenance services provide ongoing support to ensure that lighting systems function effectively over time, thus enhancing longevity and reducing operational costs. Monitoring systems are significant as they leverage smart technology to collect data on energy usage and performance, allowing for real-time adjustments that maximize efficiency and sustainability.
Upgradation services also hold importance as they allow clients to keep pace with advancements in lighting technology, ensuring that installations remain current and align with environmental goals. The significance of these services is reflected in the growing demand for energy efficiency and smart systems within urban environments in China, driven by government initiatives aimed at reducing carbon emissions. Overall, the service type segment is crucial to the landscape of the China Lighting as a Service Market, offering not just energy savings but also improved user experience and environmental impact.
China Lighting as a Service Market Key Players and Competitive Insights
The competitive insights of the China Lighting as a Service Market demonstrate a rapidly evolving landscape marked by significant advancements in technology and shifting consumer preferences. As urbanization accelerates in China, businesses and municipalities are increasingly seeking energy-efficient and cost-effective lighting solutions. This shift has paved the way for companies that offer Lighting as a Service (LaaS) to capture a substantial share of the market by providing flexible, subscription-based models that eliminate the upfront costs associated with traditional lighting solutions.Â
Numerous players have entered the market, fostering competition that drives innovation and enhances service delivery, making LaaS an appealing option for businesses aiming to improve their sustainability while reducing operational costs.Eaton, a global authority in power management, is making substantial progress in the energy-efficient lighting and infrastructure sectors of China. Eaton has implemented Industry 4.0 automation, IoT, and digital energy management in its smart factory in Changzhou to modernize its operations in China. Since 2018, this facility has implemented energy-optimization systems that utilize solar and battery power, reduced greenhouse gas emissions by 50%, and increased factory efficiency by approximately 26%.Â
Eaton supplied capacitors for the Qinghai-Henan UHV transmission project in China's ultra-high-voltage power infrastructure, which facilitated the transmission of renewable energy at a large scale and contributed to the annual reduction of 29.6 million tons of COâ‚‚ emissions. By integrating local manufacturing innovation with expertise in grid, lighting, and energy optimization solutions throughout China, these developments establish Eaton as a market leader.
Osram has made significant inroads in the China Lighting as a Service Market by offering a comprehensive portfolio of smart lighting solutions and technologies tailored to both commercial and industrial applications. The company is well-regarded for its energy-efficient LED lighting products and advanced control systems, making it a strong contender in the LaaS space.Â
Osram’s strengths are enhanced by its continuous investment in innovation, which has led to the introduction of smart and connected lighting solutions that cater to the growing demand for intelligent building systems. The company has bolstered its market presence through strategic mergers and acquisitions, enhancing its product offerings and competitive edge in the region. By integrating its existing capabilities with those of acquired entities, Osram has expanded its reach and improved its service delivery, solidifying its position as a key player in China's evolving lighting landscape.
Key Companies in the China Lighting as a Service Market Include:
China Lighting as a Service Market Industry Developments
The China Lighting as a Service Market is experiencing significant developments, marked by increased investments and technological advancements. In March 2025, the government announced multi-year objectives with the objective of expediting the digital transformation of its light industries, which include illumination, over the next five years. This initiative aims to integrate digital controls and sensors into manufacturing operations and modernize operations, as the sector experienced a higher rate of growth than the national average in 2024.
This strategic focus aligns with government initiatives promoting greener and smarter cities, aligning with China's goal to reduce carbon emissions. Moreover, major players like Eaton and Lutron have been collaborating with local partners, aiming at fostering energy-saving technologies to support the country's commitment to cleaner environments, directly impacting the market's growth trajectory. The steady rise in eco-friendly initiatives and advancing technology sets a promising outlook for the China Lighting as a Service Market.
China Lighting as a Service Market Segmentation Insights
Lighting as a Service Market Lighting Technology Outlook
Lighting as a Service Market Application Outlook
Lighting as a Service Market End Use Outlook
Lighting as a Service Market Service Type Outlook
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 258.3(USD Million) |
| MARKET SIZE 2024 | 316.05(USD Million) |
| MARKET SIZE 2035 | 3323.0(USD Million) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 23.848% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Million |
| KEY COMPANIES PROFILED | Kyocera, Osram, Legrand, Opple, Cree, Panasonic, Lutron, GE Lighting, FSL, Eaton, Philips Lighting, Signify, Everlight Electronics, Acuity Brands, NVC Lighting |
| SEGMENTS COVERED | Lighting Technology, Application, End Use, Service Type |
| KEY MARKET OPPORTUNITIES | Growing demand for energy efficiency, Government sustainability initiatives, Rapid urbanization and infrastructure development, Increasing commercial sector investments, Adoption of smart lighting technologies |
| KEY MARKET DYNAMICS | Growing energy efficiency demand, Government incentives for sustainability, Rise in smart lighting adoption, Increased focus on cost savings, Expansion of urban infrastructure projects |
| COUNTRIES COVERED | China |
Frequently Asked Questions (FAQ) :
The expected market size of the China Lighting as a Service Market in 2024 is valued at 316.05 million USD.
By 2035, the projected market value of the China Lighting as a Service Market is expected to be 3,323.0 million USD.
The expected CAGR for the China Lighting as a Service Market from 2025 to 2035 is 23.848%.
The LED lighting technology segment is expected to dominate, with a projected value of 1,320.0 million USD by 2035.
The market value for fluorescent lighting in the China Lighting as a Service Market is projected to reach 700.0 million USD by 2035.
Key players in the market include Kyocera, Osram, Legrand, Opple, Cree, Panasonic, Lutron, GE Lighting, and Philips Lighting.
The market size for smart lighting in 2035 is expected to reach 600.0 million USD.
The projected market size for incandescent lighting in the China Lighting as a Service Market in 2035 is 300.0 million USD.
The fiber optics segment is expected to grow significantly, reaching a value of 403.0 million USD by 2035.
The market is witnessing challenges due to competition but presents opportunities for innovation and technological advancements.
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Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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