Lighting As A Service Market Is Poised To Attain Valuation Of US$ 56.03 Billion By 2033 Astute Analytica

(MENAFN- GlobeNewsWire - Nasdaq) Fueled by IoT capabilities and sustainability mandates, the Lighting as a Service market is evolving from a financial tool into a strategic asset, turning building lighting into a source of operational intelligence and efficiency.

Chicago, Sept. 04, 2025 (GLOBE NEWSWIRE) -- The global lighting as a service market was valued at US$ 2.79 billion in 2024 and is expected to reach US$ 56.03 billion by 2033, growing at a CAGR of 34.80% during the forecast period 2025–2033.

Smart city initiatives represent a primary engine powering the Lighting as a Service market. Municipalities worldwide are aggressively upgrading their public lighting infrastructure. The global installed base of individually controlled smart street lights was projected to be 32.9 million units at the end of 2024. A remarkable growth trajectory forecasts this installed base to swell to 85 million units by 2029. In India's smart cities mission, a total of 8,013 projects had been approved as of June 2024. The total cost of these approved projects is valued at an impressive $19.66 billion. Progress is tangible, with 7,157 of these projects already completed as of June 2024. The value of the completed projects amounts to approximately $12.24 billion. Globally, more than 2,000 LED and smart streetlight projects are actively underway in 2024. Looking forward, cities are expected to invest a cumulative $64 billion in LED and smart streetlights by 2025.

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These strategic upgrades are projected to save a staggering 97,900 GWh of electricity annually. Such energy savings translate into a yearly electricity cost reduction of $12.9 billion. Adoption rates underscore this trend, with approximately 64% of North American cities having adopted smart lighting initiatives as of 2024. In the Asia-Pacific region, an even higher figure of around 69% of cities now prioritize connected street lighting infrastructure.

Key Findings in Lighting As a Service Market

Market Forecast (2033)	US$ 56.03 billion
CAGR	34.80%
Largest Region (2024)	North America (43%)
By Component	Services (46%)
By Application	Indoor (Dominant)
By End Use	Commercial (Dominant)
Top Drivers	Elimination of upfront capital investment for advanced lighting upgrades. Increasingly stringent global regulations mandating higher energy efficiency. Integration of lighting with IoT for smart building applications.
Top Trends	Growing demand for human-centric lighting supporting productivity and well-being. Adoption of circular economy principles for luminaire reuse and recycling. Use of Li-Fi (Light Fidelity) for secure, high-speed data communication.
Top Challenges	Concerns over data privacy and cybersecurity in connected lighting networks. Lack of standardization across different lighting control platforms and systems. Customer reluctance to engage in long-term service contract commitments.

Commercial Sector Vigorously Embraces IoT Integration Driving Unprecedented LaaS Model Adoption

The commercial sector stands out as the largest investor in the burgeoning lighting as a service market. Businesses are leveraging the model to transition from capital-intensive investments to predictable operational expenses. The indoor installation segment accounted for the dominant market share in 2024, representing about 62% of total revenue. The benefits are clear and quantifiable. A 2024 case study revealed a LaaS agreement for an industrial client is expected to save 170 tons of CO2 annually. Advanced control systems in commercial settings can reduce energy use by 50% through demand-driven lighting alone.

When fully integrated, these smart systems can slash energy consumption by as much as 85%. Innovation is a key driver, with approximately 57% of lighting manufacturers introducing AI-enabled smart lighting systems during 2023 and 2024. User-centric features are also gaining traction. Voice and app control integration is seeing a remarkable 27% annual growth in adoption within the commercial space for the 2024-2025 period.

A Sharp Focus on Wellbeing and Productivity Fuels Demand for Human-Centric Lighting

A significant demand driver within the Lighting as a Service market is the increasing emphasis on employee and occupant wellbeing. Human-Centric Lighting (HCL), which adjusts color temperature and intensity to mimic natural daylight, is gaining significant traction. The Human-Centric Lighting market was valued at $2.18 billion in 2024 alone. Projections show a swift increase, with the market forecast to reach $2.79 billion in 2025. The momentum continues, as the market is expected to achieve a value of $3.92 billion by 2025. A breakdown of the market reveals hardware, including luminaires and sensors, accounts for a substantial 71.7% of HCL revenue in 2024.

Commercial spaces were the largest application for HCL, making up 54.1% of the market in the same year. Furthermore, retrofit installations represented 60.4% of the HCL market size in 2024. The return on investment is compelling. Adopting HCL can improve productivity by 6% in office environments. In addition, HCL has been shown to increase creativity by an impressive 15% in commercial spaces.

Technological Innovation and Circular Economy Principles Fundamentally Reshape Lighting As A Service Market's Future

Underpinning the entire LaaS model is a current of continuous technological advancement. Modern LED luminaires boast operational lifespans that can exceed 50,000 hours, significantly reducing maintenance needs. Connectivity is also evolving. Proprietary RF networking platforms accounted for 57% of individually controlled streetlights in 2024, demonstrating the importance of reliable communication networks. Connected lighting systems can deliver profound energy savings of up to 80% over conventional systems. Innovation continues to streamline deployment.

A new smart lighting solution released in March 2025 by a Siemens division reduces deployment time by up to 30% using advanced laser-based commissioning. In parallel, sustainability is becoming a core design principle in the lighting as a service market. By 2025, designs that are modular and easy to recycle or upgrade will be a key industry trend. LaaS providers inherently support a circular economy by handling the end-of-life management of equipment. The use of recyclable or biodegradable components in lighting is an expected innovation focus for 2025.

Government Incentives and Evolving Rebate Programs Act as Powerful Market Expansion Catalysts

Regulatory tailwinds and financial incentives are playing a crucial role in accelerating adoption. The support from governments and utilities is a key factor in the expansion of the Lighting as a Service market. In 2025, commercial LED lighting rebate amounts are anticipated to increase by a significant 10-20% over 2024 levels. Legislative action is also forcing change. As of 2025, several states, including California and Colorado, have bans on fluorescent tubes taking effect, which directly drives demand for modern LED solutions.

The federal Energy-Efficient Commercial Buildings Tax Deduction continues to be a key incentive for both 2024 and 2025. The value of integrated systems is being recognized. Networked lighting controls paired with LEDs can achieve up to 47% additional energy savings, making them a primary focus for 2025 rebate programs. Utilities are responding to these trends. In North Carolina, Duke Energy plans to broaden its 2025 rebate offerings to include a wider array of specialty smart lighting products.

Explosive Investment and New Financial Models Signal Immense Confidence in Market Growth

The financial outlook for the Lighting as a Service market is exceptionally bright, underscored by substantial investment and robust growth forecasts. Multiple market valuations confirm a strong upward trajectory, though figures vary. One valuation placed the 2024 market at $501.2 million, with a projection to reach $712.1 million in 2025. A separate analysis sized the 2024 market at a higher $1.21 billion. That same research projects the market will soar to an incredible $19.11 billion by 2033. A third valuation offers an even more aggressive short-term outlook, estimating the market at $2.3 billion in 2025.

Looking further ahead, that report forecasts the lighting as a service market will climb to a staggering $40.8 billion by 2035. The service component is becoming increasingly central to the overall value. It is projected that the services component of LaaS will account for 47.6% of the market revenue share in 2025, highlighting the shift away from pure hardware sales.

Industrial Sector Demand and Key Regional Trends Define the Global Expansion Trajectory

The industrial segment is a critical pillar of the Lighting as a Service market. It is projected to experience strong and sustained growth through 2034. The LaaS model is highly appealing to manufacturing and logistics operations due to the critical need for efficient, reliable lighting without a large capital outlay. Rapid expansions in manufacturing capacity in China and India are contributing significantly to greater demand for efficient lighting solutions throughout 2024 and 2025. Geographically, market dynamics show distinct regional leadership.

North America was the largest lighting as a service market in 2024. Meanwhile, Europe was the leading adopter of smart street lighting in 2024, accounting for about 35% of the global installed base. The Asia-Pacific region is forecast to be the fastest-growing market for human-centric lighting from 2025 to 2030. China's influence is notable, as the country is home to almost half of the installed base of smart street lights outside of Europe and North America as of 2024. The LaaS market in India is also projected to see a high growth rate, propelled by its ambitious smart city initiatives.

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Key Players Dominate the Smart Streetlight Segment Establishing Clear Market Leadership

A closer look at the competitive landscape reveals a concentrated field of leaders in the lighting as a service market, particularly within the smart street lighting controls segment. As of the end of 2024, Signify stood as the leading vendor with an impressive installed base of nearly 5.8 million lighting controls. The US-based company Itron is another top-three vendor, cementing its strong position in the smart street lighting space. Chinese vendor Fonda Technology also ranks in the top three, with a majority of its controllers deployed in its large domestic market.

Together, these top three vendors accounted for almost a third of the global installed base of smart streetlights at the end of 2024. The scale of deployment is growing across the board. A handful of leading vendors have now surpassed the significant milestone of 1 million deployed lighting control units each. Their success provides a clear blueprint for navigating the competitive and rapidly expanding Lighting as a Service market.

Lighting as a Service Market Major Players:

• Acuity Brands
• Cree
• Digital Lumens
• Eaton
• GE Current
• Honeywell
• Johnson Controls
• Legrand
• Lutron Electronics
• Osram
• Philips
• Schneider Electric
• Signify
• Sylvania
• Zumtobel
• Other Prominent Players

Key Market Segmentation:

By Component

• Software & Communication Systems
• Services
• Luminaries and Controls

By End Use

• Municipal
• Commercial
• Industrial

By Application

• Outdoor
• Indoor

By Region

• North America
• Europe
• Asia Pacific
• Middle East & Africa (MEA)
• South America

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