Lighting as a service

Since no upfront investment has to be done, the subscription to LaaS offers comes with less engagement of personal resources. This subsequently has a positive impact on the reduction of risks and costs for the end user.[20] Furthermore, modern lighting technology solutions, such as intelligent LED light systems or daylight and shading technology, used by LaaS vendors result in a lower energy consumption, thus lower energy costs as well as the reduction of carbon emissions and a healthier lighting in general.[21] The light supplier as an expert in the light industry remains accountable for monitoring and maintaining the lighting systems (including replacements), upholding new legal requirements and also deals with recycling issues.[22]

The subscription to LaaS offerings doesn't involve the acquisition of the lighting product itself and makes the provider retain the ownership. Throughout the duration of the contract the client is bound to its provider which, depending upon the contract arrangement and funding model, can be set up to long durations.[23]

The global lighting as a service market is growing rapidly,[24] welcoming more and more lighting companies, IT integrators and facility management service providers trying to capture the new market by the means of refining their business models to "as a service" offerings,[25] but also through mergers, collaborations and partnerships.[26] In the face of the current global situation, smart building technology vendors are currently launching lighting propositions to improve the infection control of buildings in order to kill bacteria and viruses from surfaces with safe lighting rays such as ultraviolet light.[27]

In terms of geographical distribution, the LaaS market is categorized into seven main regions: North and Latin America, Eastern Europe, Western Europe, Asia-Pacific, Japan and the Middle East and Africa. North America constitutes the largest market for LaaS, closely followed by Western and Eastern Europe, which is expected to witness the fastest growth rate in 2018-2025.[28] This change is attributed to the widespread adoption of LaaS in Germany and the UK.[29] Global key players are Cooper Industries Inc. (USA), SIB Lighting (USA), Cree Inc. (USA), Digital Lumens Inc. (USA), Lutron Electronics Company Inc. (USA), General Electric Lighting (USA), Itelecom USA (USA), Future Energy Solutions (USA & UK), Igor Inc. (UK), Legrand (France), Koninklijke Philips N.V. (Netherlands), Eaton Corporation (Ireland), Urban Volt (Ireland), Zumtobel Group (Austria), Osram Ag (Germany), Deutsche Lichtmiete (Germany) and RCG Lighthouse (Latvia).[30][31][32][33] The leading position of North America in the LaaS market is mostly due to the significant development regarding electricity consumption in the United States. The government implementations of certain energy standards help reduce its carbon emission as well as the energy consumption rate, mostly through usage of energy efficient light bulbs. These have to be either LED or fluorescent. The adoption of LED lighting on the other hand is catering to the market growth of LaaS models. The most prominent lighting renovation project is the Bristol-Myers Squibb in Lawrenceville. The prior aim of the project is to harvest daylight through control systems and thus reduce the energy consumption for office spaces.[34] In the meantime LaaS companies in Europe come up with different lighting solutions such as for example the launch of emergency lighting for big open-plan areas by Eaton.[35] Furthermore, cooperations between light vendors and LaaS providers such as the alliance between Zumtobel and Deutsche Lichtmiete lead to improved full-service business models, allowing to broaden the application segments. [36]