Commercial, Energy Efficiency, Industrial, Finance - March 31, 2016
Study: Lighting as a service revenue will reach $1.6B globally in 2025
The market for lighting as a service in commercial buildings is expected to grow tremendously over the next decade, with revenue likely to hit $1.6B by 2025, up from the $35.2 million expected in 2016, according to a new study from Navigant Research.
As LED lighting proliferates, and lighting controls systems expand the abilities of the technology that operates the lights, a related market is emerging, according to Navigant. At the same time,, or LaaS, shifting the way the solutions involved in a modern lighting system are provided to building end users.
"Navigant Research defines LaaS as the third-party management of a lighting system that may include additional technical, maintenance, financial, or other services,” Benjamin Freas, principal research analyst with Navigant Research, said in a news release about the report. "These offerings can begin with the installation of a lighting system, continue through maintenance and management, and include the recycling or disposal of equipment at the end of its life."
For example, JP Morgan Chase recently announced its partnership with General Electric's new energy services business, Current , which will put LED lighting in most of the bank's roughly 5,000 branches throughout the U.S. Once completed, the project could reduce the branches’ lighting-related energy use by more than 50%.
The report — the third from Navigant related to commercial and/or industrial energy efficiency and renewable energy services in recent weeks — analyzes the global market for lighting as a service, or LaaS, in commercial buildings, with forecasts for revenue and square footage under LaaS management, segmented by region, service type, and building type, through 2025. The report also profiles select industry players and highlights the innovative ways they use networked lighting systems and cloud-based software to offer LaaS.