Introduction: Illuminating the Future: Competitive Dynamics in Lighting-as-a-Service
Lighting as a Service (LaaS) is experiencing unprecedented growth. The market is undergoing technological change, the regulatory environment is evolving, and consumers are demanding greater efficiency and sustainable development. The main players in this sector are manufacturers who are developing IoT solutions, IT integrators who are deploying cloud-based platforms, and green-technology operators. Each category is trying to lead the market by offering innovative services. Data analysis and automation are becoming critical differentiators, enabling greater efficiency and better customer relations. Biometrics and smart sensors are also changing the way people experience lighting, driving the demand for more personalised solutions. Strategic LaaS deployments are mainly in North America and Europe. In these regions, LaaS is closely aligned with smart-city initiatives and energy-efficiency regulations, making it an essential part of the transition to sustainable cities.
Competitive Positioning
Full-Suite Integrators
These suppliers offer comprehensive solutions that combine lighting with smart technology and energy management.
| Vendor | Competitive Edge | Solution Focus | Regional Focus |
|---|
| Acuity Brands |
Broad portfolio of smart lighting solutions |
Smart lighting and controls |
North America |
| Johnson Controls |
Expertise in building management systems |
Integrated building solutions |
Global |
| Schneider Electric |
Focus on energy efficiency and sustainability |
Energy management and automation |
Global |
| Honeywell |
Strong presence in building technologies |
Smart building solutions |
Global |
Specialized Technology Vendors
These companies are mainly concerned with the development of new lighting technology and the development of smart solutions that are suitable for specific applications.
| Vendor | Competitive Edge | Solution Focus | Regional Focus |
|---|
| Signify |
Leader in connected lighting solutions |
Connected lighting systems |
Global |
| Digital Lumens |
Data-driven lighting solutions |
Intelligent lighting systems |
North America |
| Lutron Electronics |
Expertise in lighting control systems |
Lighting control and automation |
Global |
Infrastructure & Equipment Providers
The luminous products which these suppliers provide are mainly of the highest quality.
| Vendor | Competitive Edge | Solution Focus | Regional Focus |
|---|
| Osram |
Innovative LED technology and solutions |
LED lighting products |
Global |
| Cree |
High-performance LED technology |
LED lighting solutions |
North America |
| Sylvania |
Wide range of lighting products |
General lighting solutions |
North America |
| GE Current |
Strong industrial lighting solutions |
Commercial and industrial lighting |
North America |
| Eaton |
Focus on energy-efficient lighting |
Lighting and power solutions |
Global |
| Legrand |
Comprehensive electrical and digital infrastructure |
Electrical and lighting solutions |
Global |
| Zumtobel |
Design-oriented lighting solutions |
Architectural lighting |
Europe |
Emerging Players & Regional Champions
- LumiGrow (US): Specialises in smart horticultural lighting. Has recently negotiated a contract with a large agricultural cooperative for the implementation of their Lighting as a Service concept, which takes on the established lighting manufacturers by offering data-driven insights and energy savings.
- Greenlux (Germany): a sustainable urban lighting solution provider. Recently, the company has teamed up with several local governments to provide lighting-as-a-service for public street lighting. Greenlux complements the offerings of established suppliers with its own green products and smart-city integrations.
- LightCloud (Australia): Provides a cloud-based lighting management platform, has recently implemented a project for a major retail chain, and is challenging established vendors by offering flexible subscription models and advanced analytics for energy management.
- Bright Energy (Canada): This Canadian specialist in energy-saving LED solutions for commercial buildings recently signed a long-term contract with a national hotel chain, enabling it to compete with established suppliers in the sector by focusing on energy savings and sustainable development.
- SmartLight Solutions (UK): Provides integrated smart lighting systems for industrial applications. Has recently completed a project for a manufacturing plant, and is challenging the established players by offering IoT integration and real-time monitoring.
Regional Trends: In 2023, the L-a-S model will be increasingly adopted in North America and Europe, driven by energy-saving and sustainable development initiatives. The new entrants will focus on specific markets such as agriculture, smart city and smart building, and will use their specialization in the Internet of Things and data analysis to differentiate themselves from established companies.
Collaborations & M&A Movements
- Signify and Enel X are establishing a partnership to provide smart lighting solutions that optimize energy efficiency in urban areas. They are thus establishing themselves as the leaders in the sustainable lighting market.
- Cree Lighting, in an effort to expand its Lighting as a Service (LaaS) offerings, has acquired the assets of a leading Internet of Things (IoT) lighting company. Cree’s goal is to strengthen its position in the smart building market.
- During the year, the consolidated sales of Philips Lighting were about $900 million.
Competitive Summary Table
| Capability | Leading Players | Remarks |
|---|
| Energy Efficiency |
Philips Lighting, GE Current |
Philips Lighting has introduced the latest LED technology, which reduces energy consumption by up to 70 per cent. The GE Current range of smart lighting, which is controlled by daylight and the number of occupants, has been well received in the commercial sector. |
| Smart Controls |
Signify, Cree Lighting |
Signify’s IoT-enabled lighting systems allow for remote control and data analysis in real time, enhancing the efficiency of the operation. The smart controls of Cree Lighting fit seamlessly into existing systems, making them the preferred choice for retrofitting. |
| Sustainability |
Osram, Lutron |
In the life cycle of its products, Osram is placing emphasis on sustainable materials and circular economy practices. Lutron’s energy-saving technology is used in a large number of LEED-certified buildings, demonstrating its strength in the field of sustainable lighting solutions. |
| User Experience |
Acuity Brands, Zumtobel Group |
In its lighting systems, Acuity Brands focuses on human-centric design, which increases the comfort and productivity of the workplace. In several educational institutions, Zumtobel’s human-centric lighting has improved the learning environment. |
| Integration with Building Management Systems |
Honeywell, Schneider Electric |
Honeywell’s lighting systems are easily integrated with building automation systems for full control and monitoring. Similarly, Schneider Electric’s EcoStruxure platform allows for greater interoperability, making it a good choice for smart buildings. |
Conclusion: Navigating the Lighting-as-a-Service Landscape
The Lighting-as-a-service market in 2023 is characterized by an intense and highly fragmented competition. Both the old and the new players are fighting for market share. In some regions, the trend is towards a greater need for sustainable and energy-efficient solutions, which makes the suppliers rethink and adapt their offerings. The established companies rely on their network and customer trust, while the new ones are using advanced capabilities such as artificial intelligence, automation and flexibility to distinguish themselves. As the market develops, the ability to integrate sustainability into the service will be important for leadership, as well as the ability to respond quickly to changing customer needs. The suppliers must strategically position themselves through technological development and strategic cooperation in order to take advantage of the changing market conditions.
