The rising demand for energy efficient lighting from public and private sectors has fuelled competition in the lighting as a service market. The market has attracted new and existing players towards delivering solutions catering to the need of the consumers. The global market is distinctly segmented due to the presence of numerous small and large companies. The high level of competition in the market is attributed to an increased number of product launches and partnerships.
Smaller vendors are either being acquired by the top market players or they are merging with the established companies. Innovation in this field is a continuous phenomenon with vendors continuously working to create new and improved business models. Lighting as a service business model is used globally in various applications and has permeated through several existing and new markets. However, this business model is still in a phase where it is evolving and emerging to have an impact on a large scale.
One of the market leaders in the LED lighting market, Acuity Brands teamed with LocusLabs, an indoor mapping software specialist which has provided wayfinding programs to major airports, in October 2017. LocusLabs is enabling its “location as a service” technology to work with Acuity's Atrius, Acuity's catch-all brand of an ever-widening set of smart lighting and lighting-based Internet of Things (IoT) services.1 Another prominent market player, Valoya, rolled out its “Lighting as a Service” program in the US and Canada in March 2017. In this service, the consumers will get LED grow lights free of charge, with maintenance and replacement of faulty products provided by the operator.2
Philips Lighting, one of the major players in the market, along with Ericsson introduced a new smart pole, Philips lightpole site slim, in February 2017. Philips lightpole site, targeted initially at European cities, combines Philips’ energy efficient LED lighting with Ericsson’s leading small cell technology with 4G/LTE connectivity for high-speed broadband connectivity.3 Several other key players are entering into the collaborations, deals and strategic partnerships with each other as well as other players of the ecosystem to sustain in this growing market.
Acknowledging the potential that the lighting as a service market holds, BIS Research has compiled a market intelligence report titled ‘Global Lighting as a Service Market, Analysis and Forecast (2017-2025)’. According to the analyst, “the global lighting as a service market is expected to reach $4.74 billion by 2025. In terms of Geography, North America had the largest market share in 2016. The growth of the North American lighting as a service market is primarily attributed to the factors such as the presence of the market leaders in the lighting industry and government’s policy to reduce energy consumption in the region by replacing old lighting with the more efficient LED lighting.”
Reference:
1 LEDs Magazine
2 Cannabis Business Times
3 LED Inside
