Lighting-as-a-Service Market Trends

Navigating the Lighting-as-a-Service Market Landscape

The following macro-economic factors will have a significant impact on the development of the lighting-as-a-service (LaaS) market in 2023. The development of smart lighting and the integration of lighting with the Internet of Things is reshaping the lighting solutions that consumers and businesses use. The increasing regulatory focus on energy-efficiency and sustainability is driving companies to adopt new lighting models that reduce their carbon footprint. The changing consumer behavior and the demand for flexible and cost-effective solutions are forcing the lighting industry to rethink the current business models. These factors are crucial for all players in the LaaS market, as they not only highlight the emerging opportunities but also highlight the strategic importance of adapting to the changing market.

Top Trends

1. Sustainability Focus
   During the transition to the new economy, the demand for lighting-as-a-service is growing, and the desire to reduce carbon footprints is driving the development of this new business model. San Diego, for example, has reduced its energy consumption by 60% by introducing energy-saving lighting. This not only increases the city’s social responsibility but also saves money. As the requirements for compliance with the sustainable development goals become increasingly strict, the LaaS industry will have to develop even further.
2. Smart Lighting Integration
   Signify is a company that is developing smart lighting. Smart lighting can reduce energy consumption by up to 80 percent through automation and remote control. This trend increases efficiency and gives insights into the use of data. Future developments could include even more advanced AI to predict maintenance and optimize energy use.
3. Increased Demand for Flexibility
   Business is more and more demanding lighting systems that can adapt to its changing needs. This is made possible by the scalability of the Light as a Service (LaaS) model. The systems can be adapted to the space available and the use. This flexibility can result in a 30 per cent reduction in operating costs. In the future, when companies put flexibility first, Light as a Service suppliers will have to offer tailor-made solutions to remain competitive.
4. Government Incentives
   Government initiatives are encouraging the use of LaaS with subsidies and tax reductions. For example, the U.S. Department of Energy has a program to support the conversion of light bulbs to energy-saving light bulbs, which will result in billions of dollars of savings. Incentives like this will make it more profitable for companies to move to LaaS, and this will help drive market growth. The government could increase the incentives to make LaaS more attractive to a wider range of industries.
5. Data-Driven Decision Making
   The use of data analysis in lighting systems is becoming an essential tool for improving performance. Companies like Digital Lumens are using data to extract actionable insights that can save up to 50% of energy. This new trend is enabling businesses to make informed decisions about their lighting needs. The trend is set to continue as data collection and analysis methods improve.
6. Enhanced User Experience
   The user experience is becoming a focus of LaaS offerings. The focus is on the creation of a lighting environment that is adapted to the needs of the individual. For example, Lutron has developed systems that enable users to control lighting via mobile applications, thus improving their satisfaction. The improved user experience leads to higher productivity and well-being in the workplace. In the future, intuitively designed interfaces and personal lighting profiles may be developed.
7. Collaboration with IoT
   The collaboration between the Internet of Things and the laaS market is reshaping the market. Schneider Electric, for example, is able to offer solutions that are able to monitor and control lighting in real time. This integration can lead to savings of up to 40%. It is to be expected that the Internet of Things will develop further, and that laaS will increasingly offer smart and responsive lighting systems.
8. Focus on Health and Well-being
   Lighting as a Service (LaaS) operators are increasingly integrating circadian lighting principles. A study by the Fraunhofer Institute has shown that a good lighting concept can improve mood and productivity by up to 20 percent. This is why companies like Philips are at the forefront of this development of health-oriented lighting solutions that are becoming indispensable in the workplace and in hospitals. In the future, we will see a greater use of biophilic principles in lighting.
9. Cost-Effectiveness of LaaS
   The benefits of LaaS are becoming more and more evident. According to the experiences of businesses, energy costs can be reduced by up to 30 per cent. Especially in large-scale implementations such as the GE CURRENT program, comprehensive lighting solutions are offered without any initial investment. It is expected that more and more companies will come to recognize the financial benefits of LaaS.
10. Regulatory Compliance
    Moreover, it is a question of the energy-saving regulations imposed on the industry, which is the main reason for the introduction of LàaS. For example, the European Energy Efficiency Directive requires significant reductions in energy consumption, which is why the companies are turning to LàaS solutions. It is not only a matter of avoiding penalties, but also of a good reputation for the company. Moreover, future regulations may force the market to turn to new lighting solutions that meet the changing requirements.

Conclusion: Navigating the Lighting-as-a-Service Landscape

In 2023, the LaaS market is characterized by a high degree of competition and a high degree of fragmentation. Both the incumbents and the newcomers compete for market share. There is a clear regional trend towards sustainable and energy-efficient solutions. The suppliers are therefore forced to adapt their offers accordingly. The incumbents rely on their existing customer base and brand loyalty. The newcomers distinguish themselves with the help of new technology, such as artificial intelligence and automation. Strategically, the suppliers are therefore forced to focus on developing their capabilities in the field of sustainability and flexibility. The decision-makers therefore have to invest in these fields strategically to remain competitive and to meet the changing demands of the market.