According to a recent report from Navigant Research, global Lighting as a Service (LaaS) revenue is expected to grow from an estimated $662.6 million in 2017 to $2.6 billion by 2026, experiencing a compound annual growth rate of 16.6%.
“We are seeing a shift in the LaaS market from a traditional financing model to an increased number of turnkey services, which provide the customer with a full-scale offering from audit and design to installation to management and maintenance of the system,” says Krystal Maxwell, research analyst with Navigant Research. “The as a service business model, which shifts business spending from CAPEX to OPEX, allows companies to focus on their core business areas and ensures the outsourced business (LaaS) is being kept up to date with market developments by the service provider, especially through the growing number of turnkey services.”
According to the report, this shift in business spending is the beginning of a trend that is anticipated to become more common over the next 10 years. Additional market growth is expected to be driven by a maturing LED market, interest in the Internet of Things (IoT) applications, and increases to the bottom line.
The report, “Lighting as a Service,” examines the LaaS market for commercial buildings, with a focus on financing, maintenance, and turnkey services. The study addresses market issues, including key drivers and barriers, related to LaaS solutions. Global market forecasts for LaaS revenue, segmented by service type, building type, and region, extend through 2026. The report also examines the key services related to LaaS, as well as the competitive landscape. An Executive Summary of the report is available for free download on the Navigant Research website.