Lighting-as-a-Service Market in Canada

Lighting-as-a-Service in Canada Trends and Forecast

The future of the lighting-as-a-service market in Canada looks promising with opportunities in the commercial, industrial, and municipal markets. The global lighting-as-a-service market is expected to reach an estimated $5437.2 million by 2031 with a CAGR of 35.6% from 2025 to 2031. The lighting-as-a-service market in Canada is also forecasted to witness strong growth over the forecast period. The major drivers for this market are the increasing global demand for lighting technologies that use less energy, substantial R&D efforts by major organizations in the field, and the rapid adoption of light-emitting diode (LED) technology for energy-efficient lighting.

• Lucintel forecasts that, within the installation category, indoor will remain a larger segment over the forecast period due to its widespread use for impactful displays in malls and retail centers, as well as the explosive expansion of the commercial sector in emerging countries.

Emerging Trends in the Lighting-as-a-Service Market in Canada

The lighting-as-a-service market in Canada is growing rapidly as businesses and municipalities seek energy-efficient, cost-effective, and sustainable lighting solutions. The adoption of smart technologies, government initiatives to promote sustainability, and the shift towards service-based models are key drivers of this change. In the context of Canada’s energy efficiency and green building practices, Lighting-as-a-Service has become a major enabler for carbon reduction strategies. Several emerging trends are transforming this market, offering businesses innovative lighting solutions that enhance operational performance and reduce environmental impact.

• IoT and Smart Controls in Lighting Systems: IoT-enabled lighting systems with advanced controls are being widely adopted in Canada. These systems allow for real-time data monitoring, remote management, and predictive maintenance, which improve operational efficiency. With a lighting infrastructure linked to a building management system, businesses will optimize their energy use by adjusting light levels based on real energy needs. Sensor-based technologies such as sensors and motion detectors further enable energy conservation through dimming.
• Sustainable Urban Lighting Solutions: Cities in Canada are rapidly embracing sustainable urban lighting solutions. This includes LED streetlights with integrated smart sensors and adaptive lighting. Much of this is achieved through incentives and partnerships for energy-efficient lighting options. Large-scale urban lighting upgrades can adopt smart lighting without high initial investments through Lighting-as-a-Service models.
• Human-centric lighting for Health and Well-being: Human-centric lighting (HCL) is a growing trend in Canada, with applications in the workplace, healthcare, and education. HCL systems apply dynamic light to follow the circadian rhythm, helping improve mood, productivity, and overall well-being. These systems can be implemented in offices and healthcare facilities using Lighting-as-a-Service models, enhancing the quality of lighting that significantly affects people’s physical and mental health.
• Adoption of Lighting-as-a-Service in Retail Environments: Canadian retailers are embracing Lighting-as-a-Service to create more experience-enhancing and sales-generating opportunities. With Lighting-as-a-Service, retailers can create engaging environments through adaptive lighting that aligns with branding, promotions, and seasonal events. Service-based lighting systems also allow retailers to save on operational costs by using energy-saving solutions.
• Expansion in Educational and Institutional Lighting Projects: Educational institutions in Canada are investing in Lighting-as-a-Service to modernize their lighting infrastructure. Focused on creating comfortable and sustainable learning environments, schools and universities are adopting advanced lighting solutions that optimize energy consumption and improve classroom lighting quality. These systems also provide flexibility in lighting configurations to suit various classroom settings.

The emerging trends in the lighting-as-a-service market in Canada are significantly reshaping multiple sectors, from urban infrastructure and healthcare to retail and education. The integration of IoT technology, sustainable urban lighting initiatives, and human-centric lighting are transforming the design, installation, and maintenance of lighting systems. These trends improve operational efficiency, reduce costs, and enhance sustainability. As these trends continue to evolve, Lighting-as-a-Service will play a pivotal role in driving Canada’s energy transition and contributing to its environmental goals.

Recent Developments in the Lighting-as-a-Service Market in Canada

Technological advancements, emerging customer requirements, and government encouragement in providing sustainable energy sources drive growth within the Canadian lighting-as-a-service market. The model also benefits the bottom line for companies and cities: energy efficiency combined with the concept of services instead of lighting. Advancements in smart technology, alongside concerns for greater sustainability, continue revolutionizing this marketplace. This trend is supported by several key developments where Lighting-as-a-Service is adopted across applications to make lighting systems more adaptive, cost-effective, and energy-efficient.

• Government Support for Energy-Efficient Lighting: The government in Canada is promoting energy-efficient lighting technologies through tax incentives, subsidies, and public-private partnerships. Many provinces have launched initiatives to switch from conventional streetlights to LEDs, resulting in savings on overall energy consumption. Municipalities are embracing Lighting-as-a-Service to take advantage of lower capital investment costs and operational expenses.
• Smart City Lighting Solutions: Smart city lighting solutions are being adopted through service-based models by Canadian cities, transforming the public lighting system. Cities have been upgrading the street lighting infrastructure to include smart controls, such as adaptive lighting and motion sensors, to improve safety and reduce energy consumption and costs.
• Increasing Demand for Lighting-as-a-Service for Commercial Real Estate: Commercial real estate in Canada is increasingly embracing Lighting-as-a-Service solutions to improve building energy performance and attract tenants. Service models enable building owners to modernize their lighting systems without high upfront costs while ensuring efficient lighting management. Tenants benefit from lower energy expenses and an improved work environment.
• Healthcare Sector Adoption of Adaptive Lighting Systems: Healthcare facilities in Canada are investing in Lighting-as-a-Service to optimize patient care and improve operational efficiency. Adaptive lighting systems are being integrated into hospitals to mimic natural light cycles and improve patient outcomes. Service models allow for cost-effective upgrades and ongoing maintenance.
• Lighting-as-a-Service in the Retail Sector: Retailers in Canada are increasingly adopting Lighting-as-a-Service to enhance customer experiences and reduce operational costs. Service models provide flexible and adaptive lighting solutions that help retailers optimize in-store ambiance and drive consumer engagement. This also supports energy-efficient practices, reducing overall lighting costs.

The most recent developments in the lighting-as-a-service market in Canada are strengthening the trend toward energy-efficient and service-based lighting systems. Opportunities are arising from government initiatives, increasing smart cities, commercial real estate, healthcare, and retail, among others. These opportunities save a significant amount of money through cost reductions and contribute to overall sustainability goals. The growth of Lighting-as-a-Service in Canada enhances energy efficiency, elevates the user experience, and contributes positively to environmental objectives for the nation.

Strategic Growth Opportunities for Lighting-as-a-Service Market in Canada

The lighting-as-a-service market in Canada is booming due to its business, municipal, and institutional applications seeking effective and sustainable cost-cutting, energy-efficient lighting. It provides the advantage of paying for lighting systems by usage instead of incurring capital expenses at the front end. Several key growth opportunities have emerged across applications based on smart, energy-efficient, and adaptive lighting systems, leading to a significant increase in demand. These growth opportunities allow the industry to reach its sustainability goals and provide economic and operational benefits.

• Smart Lighting Solutions in Urban Infrastructure: Canadian cities are investing in smart lighting systems to improve urban infrastructure. By using adaptive lighting systems with IoT-enabled controls, municipalities can reduce energy consumption and improve public safety. These solutions are integrated with sensors and monitoring systems, allowing cities to adjust lighting in response to environmental conditions or public activity, thus optimizing energy usage. Lighting-as-a-service models offer affordable, scalable solutions for municipalities to adopt advanced lighting without significant upfront investment.
• Commercial Real Estate and Energy Efficiency in Canada: The adoption of Lighting-as-a-Service is increasing in commercial real estate in Canada to achieve energy efficiency goals and reduce operational costs. Replacing traditional lighting with energy-efficient LEDs and smart controls can optimize lighting based on occupancy and daylight levels. Businesses can upgrade lighting without upfront capital expenditure through a subscription-based model covering installation, maintenance, and energy savings.
• Healthcare Facilities Adopting Human-Centric Lighting: Healthcare facilities in Canada are increasingly adopting human-centric lighting (HCL), which supports patient well-being by mimicking natural light patterns. Lighting-as-a-Service models help hospitals and care centers to implement HCL systems without heavy capital investment. These systems adjust lighting to align with the circadian rhythm, improving patient sleep patterns, mood, and recovery.
• School and College Sustainability Initiatives in Educational Institutions: Educational institutions such as schools and universities in Canada have undertaken the implementation of energy-efficient lighting solutions as part of Lighting-as-a-Service. Sustainable efforts and environmental concerns are increasingly important to educational establishments. Using LEDs, adaptive controls, and maintenance services could assist an institution in decreasing energy consumption and operational expenses while enhancing lighting for students and staff.
• Lighting-as-a-Service in the Retail Sector for Better Customer Experience: Canadian retailers are leveraging Lighting-as-a-Service to enhance the shopping experience through adaptive lighting environments. Retailers can adapt lighting according to the time of day, season, or event promotion. Adaptive lighting improves the ambiance, makes products more appealing, and affects customer behavior. The Lighting-as-a-Service models also save retailers on energy consumption, maintenance, and system upgrades.

Strategic growth opportunities in the lighting-as-a-service market in Canada are driven by the demand for energy efficiency, sustainability, and enhanced user experiences. From smart city lighting to energy-efficient solutions in healthcare and retail, the market is evolving to meet diverse needs across various sectors. These opportunities allow businesses, municipalities, and institutions to reap benefits from cost savings, sustainability, and enhanced performance. As these trends keep increasing, Lighting-as-a-Service is well-placed to revolutionize Canada’s lighting infrastructure.

Lighting-as-a-Service Market in Canada Driver and Challenges

Technological, economic, and regulatory factors are driving the lighting-as-a-service market in Canada. Technological advancements in energy-efficient lighting systems, such as LED technology, and the integration of smart controls drive the adoption of Lighting-as-a-Service. Economic factors, including rising energy costs and the desire for operational savings, further boost market demand. Regulatory factors, including government incentives for sustainable infrastructure, also play a significant role in shaping the market. However, challenges such as upfront investment in technology and regulatory compliance remain.

The factors responsible for driving the Lighting-as-a-Services market in Canada include:
• Technological advancements in lighting systems: The progress in LED technology and smart lighting solutions is one of the drivers in the lighting-as-a-service market in Canada. It brings energy savings and longer service life with reduced maintenance costs. Energy consumption is optimized further using smart IoT-enabled lighting systems that adjust according to user needs and the environment.
• Government Support and Sustainability Regulations: Tax incentives and grants from the Canadian government have formed some of the substantial support towards the expansion of the lighting-as-a-service market. The country’s sustainability commitment and reducing carbon emissions have set it on a path to embrace several policies that encourage adopting energy-efficient solutions.
• Increasing Energy Price and Operational Efficiency Requirements: High energy costs are one of the prime drivers in the lighting-as-a-service market. With energy costs taking up ever-growing chunks of the budget, there is a need for products to reduce consumption. Lighting-as-a-Service does this by reducing LED lighting’s capital cost upfront while improving operational efficiency with smarter lighting management.
• Increasing Demand for Smart Lighting Solutions: The growing demand for smart lighting systems that are connected, automated, and energy-efficient is another major driver. IoT-enabled lighting solutions allow businesses and municipalities to monitor energy use in real-time, adjust lighting to specific needs, and reduce waste.
• Consumer Preference for Sustainable Practices: Canadians are becoming more sensitive to their environmental impact. Companies and municipalities are watching the growing demand and embracing sustainable practices such as energy-efficient lighting systems. The models for lighting-as-a-service are more affordable when upgrading to a more sustainable lighting solution.

Challenges in the Lighting-as-a-Services market in Canada are:
• Upfront Capital Cost and Financing Challenges: Even though there are advantages to Lighting-as-a-Service, some organizations struggle to obtain financing or address the perceived front-end capital required to transition to a new lighting system. These financial hurdles delay adoption for smaller businesses or municipal governments with tight budgets.
• Compliance and Standards with Regulations: Energy efficiency regulations and sustainability standards can be difficult for businesses to adapt to and achieve in their new lighting systems. Some extent of planning is required to ensure that systems are compliant with local and national regulations, which can add complexity to implementations.
• Regulatory compliance: is still one of the major hurdles in the adoption of Lighting-as-a-Service. Businesses must ensure that their lighting systems meet the environmental standards required, which requires extra time and resources to fully comply.

The key drivers for the lighting-as-a-service market in Canada are technological advancements, government incentives, increasing energy costs, and the demand for sustainability. These factors are changing the lighting industry by promoting energy-efficient, flexible solutions that support businesses and municipalities. However, challenges related to upfront costs, financing, and regulatory compliance still persist. Addressing these challenges while capitalizing on the drivers will be crucial in unlocking the full potential of the market and driving future growth in the Canadian lighting sector.

List of Lighting-as-a-Service Market in Canada Companies

Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies, lighting-as-a-service companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the lighting-as-a-service companies profiled in this report include:
• Company 1
• Company 2
• Company 3
• Company 4
• Company 5
• Company 6
• Company 7
• Company 8
• Company 9
• Company 10

Lighting-as-a-Service Market in Canada by Segment

The study includes a forecast for the lighting-as-a-service market in Canada by installation, component, and end use.

Lighting-as-a-Service Market in Canada by Installation [Analysis by Value from 2019 to 2031]:

• Indoor
• Outdoor

Lighting-As-A-Service Market by Component [Analysis by Value from 2019 to 2031]:

• Luminaries and Control Equipment
• Software and Communication Systems
• Maintenance Services

Lighting-as-a-Service Market in Canada by End Use [Analysis by Value from 2019 to 2031]:

• Commercial
• Industrial
• Municipal
• Others

Features of the Lighting-as-a-Service Market in Canada

Market Size Estimates: Lighting-as-a-service in Canada market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Lighting-as-a-service in Canada market size by installation, component, and end use in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different installation, component, and end use for the lighting-as-a-service in Canada.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the lighting-as-a-service in Canada.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.

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FAQ

Q1. What are the major drivers influencing the growth of the lighting-as-a-service market in Canada?
Answer: The major drivers for this market are increasing demand worldwide for lighting technologies that use less energy, substantial R&D efforts carried out by the major organizations in the field, and quick adoption of light-emitting diode (LED) technology for energy-efficient lighting.
Q2. What are the major segments for lighting-as-a-service market in Canada?
Answer: The future of the lighting-as-a-service market in Canada looks promising with opportunities in the commercial, industrial, and municipal markets.
Q3. Which lighting-as-a-service market segment in Canada will be the largest in future?
Answer: Lucintel forecasts that indoor will remain the larger segment over the forecast period because it is widely used for impactful displays in malls and retail centers, and commercial sector’s explosive expansion in emerging countries.
Q4. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.

This report answers following 10 key questions:

Q.1. What are some of the most promising, high-growth opportunities for the lighting-as-a-service market in Canada by installation (indoor and outdoor), component (luminaries and control equipment, software and communication systems, and maintenance services), and end use (commercial, industrial, municipal, and others)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.4. What are the business risks and competitive threats in this market?
Q.5. What are the emerging trends in this market and the reasons behind them?
Q.6. What are some of the changing demands of customers in the market?
Q.7. What are the new developments in the market? Which companies are leading these developments?
Q.8. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.9. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.10. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
For any questions related to Lighting-as-a-Service Market in Canada, Lighting-as-a-Service Market in Canada Size, Lighting-as-a-Service Market in Canada Growth, Lighting-as-a-Service Market in Canada Analysis, Lighting-as-a-Service Market in Canada Report, Lighting-as-a-Service Market in Canada Share, Lighting-as-a-Service Market in Canada Trends, Lighting-as-a-Service Market in Canada Forecast, Lighting-as-a-Service Companies, write Lucintel analyst at email: helpdesk@lucintel.com. We will be glad to get back to you soon.