×
Request Free Sample ×

Kindly complete the form below to receive a free sample of this Report

Leading companies partner with us for data-driven Insights

clients tt-cursor
Hero Background

US Lighting-as-a-Service Market

ID: MRFR/ICT/17136-HCR
100 Pages
Garvit Vyas
October 2025

US Lighting as a Service Market Research Report: By Lighting Technology (LED, Fluorescent, Incandescent, Smart Lighting, Fiber Optics), By Application (Indoor Lighting, Outdoor Lighting, Street Lighting, Architectural Lighting, Industrial Lighting), By End Use (Residential, Commercial, Industrial, Institutional) and By Service Type (Installation, Maintenance, Monitoring, Upgradation) - Forecast to 2035

Share:
Download PDF ×

We do not share your information with anyone. However, we may send you emails based on your report interest from time to time. You may contact us at any time to opt-out.

US Lighting-as-a-Service Market Infographic
Purchase Options

US Lighting-as-a-Service Market Summary

As per MRFR analysis, the US lighting as-a-service market size was estimated at 766.94 USD Million in 2024. The US lighting as-a-service market is projected to grow from 828.06 USD Million in 2025 to 1783.34 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 7.97% during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The US lighting as-a-service market is experiencing robust growth driven by technological advancements and sustainability initiatives.

  • The market is witnessing increased adoption of smart lighting solutions, particularly in commercial and industrial segments.
  • A strong focus on sustainability and energy efficiency is shaping consumer preferences and driving market demand.
  • Flexible financing models are becoming more prevalent, appealing to businesses seeking cost-effective lighting solutions.
  • Key market drivers include the growing demand for energy management solutions and regulatory support for energy efficiency initiatives.

Market Size & Forecast

2024 Market Size 766.94 (USD Million)
2035 Market Size 1783.34 (USD Million)

Major Players

Signify (NL), Osram (DE), Cree (US), GE Lighting (US), Philips Lighting (NL), Acuity Brands (US), Zumtobel Group (AT), Lutron Electronics (US), Schneider Electric (FR)

US Lighting-as-a-Service Market Trends

this market is experiencing notable growth, driven by increasing demand for energy-efficient solutions and sustainable practices. Organizations are increasingly recognizing the benefits of adopting this model, which allows them to access advanced lighting technologies without the burden of upfront capital expenditures. This shift is largely influenced by regulatory frameworks promoting energy efficiency and sustainability, as well as the rising costs of traditional energy sources. As a result, businesses are seeking innovative ways to reduce operational costs while enhancing their environmental footprint. Moreover, the trend towards smart lighting systems is reshaping the landscape of the lighting as-a-service market. These systems offer enhanced control, flexibility, and integration with other smart technologies, appealing to a wide range of sectors, including commercial, industrial, and municipal applications. The ongoing advancements in Internet of Things (IoT) technology further facilitate the adoption of smart lighting solutions, enabling real-time monitoring and management of lighting systems. This evolution not only improves energy efficiency but also enhances user experience, making it a compelling choice for organizations aiming to modernize their facilities and reduce energy consumption.

Increased Adoption of Smart Lighting Solutions

this market is witnessing a surge in the adoption of smart lighting technologies. These systems provide enhanced control and automation, allowing users to optimize energy usage and improve operational efficiency. The integration of IoT capabilities enables real-time data collection and analysis, which can lead to informed decision-making and further energy savings.

Focus on Sustainability and Energy Efficiency

There is a growing emphasis on sustainability within the lighting as-a-service market. Organizations are increasingly prioritizing energy-efficient solutions to meet regulatory requirements and corporate social responsibility goals. This trend is likely to drive demand for services that offer environmentally friendly lighting options, contributing to reduced carbon footprints.

Flexible Financing Models

this market is evolving with the introduction of flexible financing options. These models allow businesses to access advanced lighting technologies without significant upfront costs. By offering subscription-based services, providers enable organizations to manage their budgets more effectively while benefiting from the latest innovations in lighting.

US Lighting-as-a-Service Market Drivers

Increased Awareness of Environmental Impact

There is a growing awareness among businesses regarding their environmental impact, which is driving the adoption of lighting as-a-service solutions. Companies are increasingly prioritizing sustainability in their operations, recognizing that energy-efficient lighting can significantly reduce their carbon footprint. The lighting as-a-service market is well-positioned to capitalize on this trend, as it offers solutions that not only enhance energy efficiency but also contribute to corporate social responsibility goals. As organizations strive to meet sustainability targets, the demand for lighting as-a-service is expected to rise, reflecting a broader commitment to environmental stewardship.

Growing Demand for Energy Management Solutions

The lighting as-a-service market is experiencing a notable surge in demand for energy management solutions. Organizations are increasingly recognizing the importance of optimizing energy consumption to reduce operational costs and enhance sustainability. This trend is particularly pronounced in commercial sectors, where energy expenses can account for a significant portion of overall costs. According to recent data, energy-efficient lighting solutions can lead to reductions in energy usage by up to 50%. As businesses seek to implement comprehensive energy management strategies, the lighting as-a-service market is positioned to benefit from this growing focus on efficiency and cost savings.

Technological Advancements in Lighting Systems

Technological advancements are playing a pivotal role in shaping the lighting as-a-service market. Innovations such as LED technology, IoT integration, and smart controls are transforming traditional lighting systems into sophisticated solutions that offer enhanced functionality and efficiency. The integration of IoT allows for real-time monitoring and control, enabling businesses to optimize their lighting usage based on occupancy and natural light availability. This shift towards smart lighting solutions is expected to drive market growth, as organizations increasingly seek to leverage technology to improve operational efficiency and reduce energy costs.

Shift Towards Subscription-Based Business Models

The shift towards subscription-based business models is significantly influencing the lighting as-a-service market. Organizations are increasingly favoring models that allow them to pay for lighting solutions as a service rather than making substantial upfront investments. This approach not only alleviates financial burdens but also provides flexibility in managing lighting needs. As businesses seek to adapt to changing operational requirements, the subscription model offers a viable solution that aligns with their financial strategies. This trend is likely to continue, as more companies recognize the benefits of predictable costs and reduced capital expenditures.

Regulatory Support for Energy Efficiency Initiatives

Regulatory frameworks in the US are increasingly supporting energy efficiency initiatives, which is positively impacting the lighting as-a-service market. Government policies and incentives aimed at promoting energy-efficient technologies are encouraging businesses to adopt modern lighting solutions. For instance, various state and federal programs offer financial incentives for organizations that implement energy-efficient lighting systems. This regulatory support not only facilitates the adoption of lighting as-a-service models but also aligns with broader sustainability goals, making it an attractive option for businesses looking to comply with environmental regulations.

Market Segment Insights

By Technology: LED (Largest) vs. Smart Lighting (Fastest-Growing)

In the US lighting as-a-service market, the adoption of LED technology has reached a dominant position, commanding a significant share due to its energy efficiency and long lifespan. Following LED, smart lighting has gained traction, capturing considerable interest among consumers and businesses alike, driven by the increasing demand for automated solutions and smart home integration. Fluorescent and incandescent technologies, while still present, are progressively losing market share as newer alternatives become more appealing. The growth trends in this segment are predominantly influenced by the rising awareness of energy conservation and sustainability. Additionally, advancements in smart technologies are propelling smart lighting to become the fastest-growing segment, with consumers gravitating towards systems that offer remote control and integration with smart home devices. The market is also buoyed by incentives for adopting energy-efficient solutions, encouraging widespread transitions to LED and smart lighting solutions.

Technology: LED (Dominant) vs. Smart Lighting (Emerging)

LED technology stands out as the dominant force in the US lighting as-a-service market, thanks to its unmatched efficiency and durability compared to traditional sources. Its widespread implementation is supported by various government initiatives promoting energy-efficient solutions. On the other hand, smart lighting represents an emerging segment, rapidly gaining traction among tech-savvy consumers seeking convenience and automation. This segment leverages IoT capabilities to enhance user experiences through features such as remote access and customization. As the demand for integrated solutions continues to grow, smart lighting is expected to capture a larger market share, indicating a dynamic shift in consumer preferences towards smarter, more efficient lighting options.

By Application: Indoor Lighting (Largest) vs. Outdoor Lighting (Fastest-Growing)

The US lighting as-a-service market showcases a diverse distribution among its application segments. Indoor lighting leads with a substantial share, catering to various commercial and residential environments. In contrast, outdoor lighting demonstrates rapid growth due to increasing adoption in smart city initiatives and public safety measures. The growth trends in this segment are driven by technological advancements and the push for energy efficiency. Outdoor lighting, particularly in street and architectural applications, is emerging rapidly as urban areas seek to enhance safety and aesthetics. Moreover, the shift towards sustainable solutions and the growing demand for connected lighting systems are influencing market dynamics, favoring outdoor lighting solutions significantly.

Indoor Lighting (Dominant) vs. Street Lighting (Emerging)

Indoor lighting continues to dominate the US lighting as-a-service market, characterized by its extensive use in commercial, retail, and residential spaces. The demand for energy-efficient and smart lighting solutions is transforming indoor environments, fostering innovations in design and functionality. Meanwhile, street lighting is emerging as a pivotal segment, driven by the need for improved public safety and energy savings. Modern street lighting solutions integrate smart technologies, enabling municipalities to monitor and control lighting remotely. This evolution signifies a shift towards intelligent infrastructure, marking street lighting as a key player in the overall market growth.

By End Use: Commercial (Largest) vs. Residential (Fastest-Growing)

In the US lighting as-a-service market, the commercial segment holds a significant share, driven by the growing demand for energy-efficient solutions in office spaces and retail establishments. The commercial sector's dominance is attributed to businesses seeking innovative lighting solutions that offer flexibility and sustainability while enhancing aesthetics and operational efficiency. On the other hand, the residential segment is emerging as the fastest-growing area, fueled by increased consumer awareness regarding energy savings and smart home technology integration. As homeowners prioritize advancements in lighting systems that cater to convenience and energy efficiency, this segment is expected to witness rapid expansion, making it a key area of focus for service providers in the near future.

Commercial (Dominant) vs. Residential (Emerging)

The commercial segment in the US lighting as-a-service market stands out for its robust adoption rates and broad applications across various industries, including retail, hospitality, and corporate offices. As businesses increasingly recognize the value of modern lighting solutions, factors such as reduced operational costs and enhanced customer experiences drive its growth. Conversely, the residential segment is characterized by rapid adoption of smart lighting technologies, appealing to homeowners who prioritize environmental sustainability and quality of life improvements. Increased integration of lighting systems with home automation continues to stimulate interest among consumers, marking it as an emerging segment that is reshaping traditional lighting paradigms.

By Service Type: Installation (Largest) vs. Maintenance (Fastest-Growing)

In the US lighting as-a-service market, the service type segment showcases a diverse distribution, with Installation leading the charge as the largest contributor to revenue. Maintenance follows, capturing a significant share and showing increasing importance as clients seek reliable upkeep for installed systems. Monitoring and Upgradation, while valuable, occupy smaller niches within the segment, reflecting varying demand across different customer bases. The growth trends indicate a robust uptick in Maintenance services, propelled by a shift in customer preferences towards long-term service agreements. Additionally, technological advancements in smart monitoring solutions are driving adoption rates, enhancing the value proposition for operators. Installation remains essential, yet Maintenance's rapid evolution suggests a dynamic shift within the landscape, making it a focus for future investments.

Installation (Dominant) vs. Maintenance (Emerging)

Installation services play a dominant role in the market, representing the initial touchpoint in the customer lifecycle. This segment is characterized by a high demand for skilled labor and expertise, critical for setting up lighting systems that comply with regulatory standards and energy efficiency expectations. On the other hand, Maintenance services are emerging rapidly, reflecting a trend where customers prioritize ongoing support and optimization of their systems. This segment emphasizes proactive problem-solving and regular updates to ensure peak performance. Both segments display unique characteristics, with Installation being foundational and Maintenance becoming increasingly essential as technology evolves, creating opportunities for service providers to differentiate through enhanced customer care.

Get more detailed insights about US Lighting-as-a-Service Market

Key Players and Competitive Insights

The lighting as-a-service market is currently characterized by a dynamic competitive landscape, driven by increasing demand for energy-efficient solutions and the growing trend towards smart building technologies. Major players such as Signify (NL), GE Lighting (US), and Acuity Brands (US) are strategically positioning themselves through innovation and partnerships. Signify (NL) has focused on enhancing its digital offerings, while GE Lighting (US) emphasizes its commitment to sustainability and energy efficiency. Acuity Brands (US) is leveraging its expertise in smart lighting solutions to capture a larger market share. Collectively, these strategies contribute to a competitive environment that is increasingly focused on technological advancement and customer-centric solutions.

Key business tactics within the market include localizing manufacturing and optimizing supply chains to enhance responsiveness to customer needs. The competitive structure appears moderately fragmented, with several key players exerting influence over market dynamics. This fragmentation allows for a variety of service offerings, catering to diverse customer requirements while fostering innovation through competition.

In October 2025, Signify (NL) announced a partnership with a leading technology firm to integrate AI-driven analytics into its lighting solutions. This strategic move is likely to enhance the company's ability to offer tailored lighting solutions that optimize energy consumption and improve user experience. By leveraging AI, Signify (NL) positions itself at the forefront of the digital transformation trend within the industry.

In September 2025, GE Lighting (US) launched a new initiative aimed at retrofitting existing commercial buildings with energy-efficient lighting systems. This initiative not only underscores GE's commitment to sustainability but also reflects a growing trend towards retrofitting as a viable solution for reducing energy costs. The strategic importance of this move lies in its potential to significantly lower operational costs for businesses while enhancing their environmental credentials.

In August 2025, Acuity Brands (US) expanded its product line to include advanced smart lighting systems that integrate seamlessly with building management systems. This expansion is indicative of the increasing demand for interconnected solutions that enhance operational efficiency. By broadening its product offerings, Acuity Brands (US) is likely to strengthen its competitive position in a market that increasingly values integrated technology solutions.

As of November 2025, current competitive trends are heavily influenced by digitalization, sustainability, and the integration of AI technologies. Strategic alliances are becoming more prevalent, as companies seek to enhance their technological capabilities and market reach. The competitive differentiation is expected to evolve from traditional price-based competition towards a focus on innovation, technology integration, and supply chain reliability. This shift suggests that companies that prioritize these aspects will likely emerge as leaders in the lighting as-a-service market.

Key Companies in the US Lighting-as-a-Service Market market include

Industry Developments

Recent developments in the US Lighting as a Service Market have shown significant growth, particularly as sustainability initiatives gain traction. Companies like Signify, Royal Philips, Eaton, and Acuity Brands are actively expanding their service portfolios to meet increasing consumer demand for energy-efficient solutions. In January 2023, Schneider Electric announced its acquisition of certain assets from General Electric's lighting division, enhancing its capabilities in the Lighting as a Service segment and increasing operational efficiency. Additionally, in March 2022, Cree launched new innovative lighting technologies that cater to smart buildings, embracing Internet of Things (IoT) applications.

This trend towards integrating advanced technology within lighting systems underscores the evolving landscape where companies aim to provide flexible financing models to their customers. The market's valuation has also seen upward momentum, influenced by favorable government policies promoting energy-efficient practices and investments in infrastructure, with the US government aiming to achieve net-zero emissions by 2050. Overall, the US Lighting as a Service Market reflects a dynamic industry responding to technological advancements and economic pressures while aligning with broader environmental goals.

Future Outlook

US Lighting-as-a-Service Market Future Outlook

The lighting as-a-service market is projected to grow at a 7.97% CAGR from 2024 to 2035, driven by technological advancements, sustainability initiatives, and cost-saving measures.

New opportunities lie in:

  • Integration of IoT for smart lighting solutions
  • Development of subscription-based maintenance services
  • Expansion into underserved rural markets with tailored offerings

By 2035, the market is expected to achieve substantial growth, driven by innovation and strategic partnerships.

Market Segmentation

US Lighting-as-a-Service Market End Use Outlook

  • Residential
  • Commercial
  • Industrial
  • Institutional

US Lighting-as-a-Service Market Technology Outlook

  • LED
  • Fluorescent
  • Incandescent
  • Smart Lighting
  • Fiber Optics

US Lighting-as-a-Service Market Application Outlook

  • Indoor Lighting
  • Outdoor Lighting
  • Street Lighting
  • Architectural Lighting
  • Industrial Lighting

US Lighting-as-a-Service Market Service Type Outlook

  • Installation
  • Maintenance
  • Monitoring
  • Upgradation

Report Scope

MARKET SIZE 2024 766.94(USD Million)
MARKET SIZE 2025 828.06(USD Million)
MARKET SIZE 2035 1783.34(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR) 7.97% (2024 - 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 Signify (NL), Osram (DE), Cree (US), GE Lighting (US), Philips Lighting (NL), Acuity Brands (US), Zumtobel Group (AT), Lutron Electronics (US), Schneider Electric (FR)
Segments Covered Technology, Application, End Use, Service Type
Key Market Opportunities Integration of smart technologies enhances efficiency and sustainability in the lighting as-a-service market.
Key Market Dynamics Growing demand for energy-efficient solutions drives innovation and competition in the lighting as-a-service market.
Countries Covered US

Leave a Comment

Download Free Sample

Kindly complete the form below to receive a free sample of this Report

Compare Licence

×
Features License Type
Single User Multiuser License Enterprise User
Price $4,950 $5,950 $7,250
Maximum User Access Limit 1 User Upto 10 Users Unrestricted Access Throughout the Organization
Free Customization
Direct Access to Analyst
Deliverable Format
Platform Access
Discount on Next Purchase 10% 15% 15%
Printable Versions