Commercial, Demand Management, Energy Efficiency - November 22, 2016
Amid lighting upheaval, Navigant sees market growth
As LED lighting and lighting control systems continue to replace older such technologies at commercial buildings across the globe, a new report from Navigant Research suggests the transition will lead to a rise in the lighting as a service market over the next decade.
In a Nov. 22 news release announcing the report, Navigant said the lighting industry is in the midst of upheaval as new technologies continue to take over incumbent ones and lighting control systems expand the abilities and sophistication of the technology that operates the lights. As such, the firm forecasts global revenue for lighting as a service to total nearly $5.8 billion between 2016 and 2025.
"LaaS is defined broadly 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 the release. "As the installed base of lighting is gradually replaced by longer lasting LEDs, many companies are turning to offering lighting control systems and services to maintain revenue."
Advanced lighting controls systems can save significant amounts of energy when operated in an optimized way, according to the report. Turning over the management of these systems to an expert third party ensures savings and informs space-use decisions and facilities management by guaranteeing that evolving building codes and energy standards are met and that increasingly more complex systems are correctly operated.
The Navigant Research study provides an analysis of the market issues, technological developments, and regional trends related to LaaS, with a focus on four service types: professional, maintenance, managed, and others (such as financing). Global forecasts for revenue and square footage under LaaS management, segmented by region, service type, and building type, extend through 2025.
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