Lighting-as-a-Service in India Trends and Forecast
The future of the lighting-as-a-service market in India 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 India 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 India
The lighting-as-a-service market in India is rapidly transforming with the rising demand for energy-efficient and sustainable solutions. A strong focus on smart cities, renewable energy adoption, and regulatory initiatives is transforming the market. The shift towards digitalized infrastructure, increased awareness about environmental sustainability, and the growing importance of energy savings are contributing to this growth. These trends are transforming the lighting industry landscape, creating new business models and widespread adoption of advanced lighting solutions.
• Integration with Smart City Initiatives; India’s push towards smart cities is encouraging the adoption of intelligent lighting systems. Lighting-as-a-service providers are using IoT technology to create street lighting solutions that are responsive to environmental conditions and usage. Smart city initiatives are transforming urban landscapes in India. The adoption of smart lighting technologies enhances energy efficiency, reduces operational costs, and improves safety. These solutions also enable cities to gather valuable data, facilitating more efficient resource management and better urban planning.
• Renewable Energy Adoption for Sustainable Lighting; Renewable energy sources, such as solar power, are increasingly being integrated into Lighting-as-a-Service models in India. This is reducing dependence on the grid and providing environmentally friendly solutions to both rural and urban areas. The shift towards solar-powered lighting solutions is significant in India, as it supports the country’s renewable energy goals and reduces electricity costs for businesses and municipalities. This trend is accelerating the adoption of sustainable lighting infrastructure, especially in areas with limited access to reliable electricity.
• Government Incentives and Regulations for Energy Efficiency; Policies in place and incentives by the government that boost energy efficiency are driving the lighting-as-a-service market. These policies include subsidies, tax rebates, and tough guidelines on energy efficiency to reduce India’s carbon footprint. As India strives to achieve its sustainability goals, government incentives are playing a crucial role in the adoption of energy-efficient lighting solutions. These policies are reducing initial investment barriers and making advanced lighting solutions more affordable for businesses and municipalities.
• Rural Electrification Focus; There is constant effort at improvement for Rural Electrification. Lighting-as-a-Service solutions help provide reliable and affordable lighting in rural areas through Rural Electrification. These systems offer a sustainable alternative to traditional grid-based solutions that bridge the divide between rural and urban areas. In rural India, Lighting-as-a-Service models are expanding in places where access to electricity can be unreliable. They are enhancing the quality of life in rural communities, supporting social development, and furthering rural electrification initiatives in India by providing off-grid, solar-powered lighting systems.
• Intelligent Commercial Lighting Solutions; Smart lighting solutions have been increasingly integrated by businesses in India’s fast-growing commercial industry to lower energy consumption and maximize operational efficiency. These systems provide flexible controls with dimmability for automatic dimming, real-time monitoring capabilities, and customized lighting experiences. In the commercial sector in India, energy-efficient lighting solutions are in demand for a revolutionized market. Commercial smart lighting systems help decrease the operational costs of companies while enabling control over energy use. These aspects further push businesses toward green and affordable light sources.
The emerging trends in India’s lighting-as-a-service market, such as smart city integration, renewable energy adoption, government incentives, rural electrification, and smart commercial lighting solutions, are significantly changing the industry. These trends are promoting the large-scale adoption of sustainable, energy-efficient lighting technologies, which contribute to the country’s sustainability goals and improve infrastructure. As these trends continue to develop, they will create new business opportunities and drive the next phase of growth in the lighting-as-a-service market in India.
Recent Developments in the Lighting-as-a-Service Market in India
The lighting-as-a-service market in India has been experiencing unprecedented growth, spurred by changes in technology and regulation. The developments comprise innovations in the smart lighting approach, solar-powered systems, and energy-efficiency initiatives provided by the government. The innovation in lighting helps transform the illumination sector to embrace energy-efficient solutions with greater ease of access and more affordable prices. Growth is significant in both urban and rural markets.
• Energy Efficiency in Governmental Initiatives: The government in India has adopted proactive approaches in promoting energy-efficient lighting technologies such as UJALA, among others, to ensure huge expansion in street lighting with LED illumination. Such programs have compelled municipalities and commercial operations to subscribe to lighting as a service. Government-led initiatives are one of the major growth drivers for the lighting-as-a-service market. These programs are reducing the barriers to the adoption of energy-efficient lighting solutions by providing subsidies and incentives, which are leading to the rapid expansion of the market, especially in urban areas.
• Deployment of Solar-Powered Street Lighting: India has increasingly turned to solar-powered street lighting as part of its renewable energy push. Many urban and rural areas are adopting solar lighting systems under the government’s rural electrification plans, offering off-grid lighting solutions that do not depend on the national power grid. The deployment of solar-powered street lighting is transforming infrastructure in India. It cuts down the dependence on grid electricity and contributes toward the government’s renewable energy target. This is fast-tracking sustainable lighting in rural and remote areas.
• Smart Lighting Adoption in the Private Sector; In the private sector, especially in commercial and industrial sectors, smart lighting systems are being adopted by private businesses through Lighting-as-a-Service models. These systems enable real-time monitoring, remote control, and optimization of energy usage, thereby reducing energy bills and increasing operational efficiency. Smart lighting is transforming the commercial infrastructure of India with its adoption by the private sector. Businesses will have better light control and energy utilization at their premises, thus saving money on operational costs and making it environmentally friendly. This trend increases the market demand for smart lighting-as-a-service solutions.
• Public-Private Partnerships for Smart City Lighting Solutions: Several public-private partnerships have emerged in line with India’s smart city initiatives. These include advanced lighting systems that create energy-efficient smart streetlights with sensors and automated control systems that adjust based on traffic and weather conditions. Public-private partnerships form the backbone of the development of smart city infrastructure. The hybrid expertise of such collaborations is establishing energy-efficient smart lighting systems for optimizing energy consumption and enhancing services to the people. This fast-tracks Lighting-as-a-Service solutions.
• Technological Advances in IoT-Based Lighting Systems: IoT technology in lighting systems is gaining pace in India. IoT-enabled streetlights and commercial lighting solutions help with advanced data collection, remote control, and automation, providing better energy management and operational efficiencies. Technological advancement in IoT-based lighting systems is changing the lighting infrastructure of India. IoT-based lighting systems enable accurate control and optimization that helps reduce waste energy and increase efficiency. Increased adoption of IoT in lighting solutions is expected to accelerate the growth of the lighting-as-a-service market in India.
Government initiatives, the development of solar street lights, private smart lighting, public-private partnership models, and advancements in technology have altered the way India’s lighting-as-a-service market has shaped its present and future. These developments have enhanced energy-efficient and sustainable lighting in cities and towns across India, ensuring further growth by introducing new opportunities for businesses to achieve sustainability for the country.
Strategic Growth Opportunities for Lighting-as-a-Service Market in India
The lighting-as-a-service market in India presents promising growth opportunities across various applications, driven by technological advancements and government support for energy-efficient solutions. The growing demand for smart infrastructure, combined with the emphasis on sustainability and energy efficiency, is creating a favorable environment for Lighting-as-a-Service providers. These opportunities span urban, commercial, residential, and rural sectors, each with its unique growth potential, enabling the market to expand in diverse areas.
• Smart City Initiatives: The Indian government’s endeavor to create smart cities is exerting demand for energy-efficient, highly technological lighting. Lighting-as-a-service providers are utilizing smart city projects to provide IoT-based solutions based on adaptive lighting, remote monitoring, and energy optimization. The development of smart cities is increasingly generating massive demand for Lighting-as-a-Service solutions across all cities, providing energy-efficient lighting systems. These solutions optimize energy utilization while enhancing public safety and reducing maintenance costs on the roads. As smart city initiatives gain momentum, Lighting-as-a-Service will play a core role in defining urban infrastructure.
• Commercial Sector Growth: With the growth of commercial spaces across India, there is a growing need for energy-efficient lighting solutions that reduce operational costs. Lighting-as-a-service models allow businesses to install energy-efficient lighting without upfront capital expenditure, leading to savings on electricity and maintenance. India’s growing commercial real estate sector is encouraging the use of smart and energy-efficient lighting solutions. Companies are increasingly seeking Lighting-as-a-Service for better lighting quality, increased productivity among employees, and reduced energy costs. This is a massive opportunity for service providers to grow their market.
• Rural Electrification and Off-Grid Solutions; In rural India, where access to the electricity grid is limited, Lighting-as-a-Service solutions are increasingly being adopted for off-grid solar-powered lighting. These systems offer reliable and cost-effective lighting solutions for villages and underserved areas. Increasing demand for off-grid lighting solutions is driven by rural electrification initiatives. Solar-powered Lighting-as-a-Service systems will provide sustainable, low-cost solutions for rural electrification. With flexible payment models, service providers can tap into the underserved rural market, spur economic growth, and improve living standards.
• Government and Public Sector Projects: Large-scale projects being implemented by the Indian government include the UJALA scheme and LED street lighting projects. These projects have been boosting the adoption of Lighting-as-a-Service models in municipalities and public spaces. Government-backed initiatives for energy-efficient lighting are creating opportunities for service providers to partner with local governments. By offering flexible pricing models and reliable maintenance services, Lighting-as-a-Service providers can expand their reach in the public sector, contributing to national sustainability goals and reducing government energy expenditure.
• Retail and Hospitality Sector: In general, the Indian retail and hospitality sectors are fast adopting smart lighting solutions to upgrade customer experience and reduce energy costs. Lighting-as-a-Service enables such sectors to adopt quality lighting systems without large upfront capital investment, thus offering a greener and more energy-efficient environment. As the retail and hospitality sectors grow in India, the demand for energy-efficient and aesthetically pleasing lighting is rising. Lighting-as-a-Service provides companies an efficient way of adopting smart lighting solutions that align with sustainability objectives. The growing retail and hospitality markets offer service providers a huge opportunity to expand their client base.
The strategic growth opportunities in the Indian lighting-as-a-service market across smart cities, commercial spaces, rural electrification, government projects, and the retail and hospitality sectors are shaping the future of the industry. These applications will open avenues for service providers to address the different needs of markets, including energy efficiency, sustainability, and cost reduction. Further growth will continue to increase market reach as the adoption of these services continues, contributing to the country’s overall sustainability goals.
Lighting-as-a-Service Market in India Driver and Challenges
The Indian lighting-as-a-service market is driven by several technological, economic, and regulatory factors. The major drivers for this market include government initiatives for energy efficiency, smart infrastructure development, and the growing demand for sustainable and cost-effective solutions. However, several challenges, such as high initial costs, limited awareness among people, and regulatory complexities, can affect the growth of this market. Understanding these drivers and challenges is useful for stakeholders trying to exploit market opportunities and overcome potential barriers to success.
The factors responsible for driving the Lighting-as-a-Services market in India include:
• Government Incentives and Policies: The Indian government’s emphasis on sustainability and energy efficiency, complemented by efforts such as UJALA, is driving the adoption of energy-efficient lighting solutions. These policies remove certain barriers to entry, making it easier for companies and municipalities to adopt Lighting-as-a-Service models. Government policies and incentives play a significant role in the growth of the lighting-as-a-service market. With subsidies, tax breaks, and green energy initiatives, the adoption cost for municipalities and businesses is reduced. As energy efficiency becomes a top priority, government policies are fueling the transition from conventional lighting to smart lighting in India.
• Technological Advancements: With IoT and sensor technologies being rapidly adopted, the nature of lighting is changing. Smart lighting solutions that optimize energy use and adapt with remote monitoring opportunities create new growth prospects for the lighting-as-a-service market. Technological advancements are driving innovation in the lighting-as-a-service market. IoT-enabled lighting systems are not only energy-efficient but also offer real-time data analysis, allowing for greater control and flexibility. These technological improvements are pushing the market toward more intelligent and sustainable lighting solutions.
• Energy Efficiency Awareness: Demand for Lighting-as-a-Service is growing due to increased awareness of the benefits of energy-efficient lighting solutions. People, both consumers and businesses, are increasingly interested in savings on costs as well as environmental benefits, making energy-efficient lighting solutions very attractive. With a growing emphasis on energy efficiency, companies and consumers alike are seeking sustainable lighting options. Lighting-as-a-service enables companies to install efficient systems without bearing the high upfront cost. Thus, greater awareness in the market expands the demand for energy-efficient lighting solutions, especially in commercial and public sectors.
• Increasing Demand for Smart Infrastructure: The increasing trend of urbanization in India, coupled with smart city initiatives, is creating an ever-increasing demand for smart lighting systems. Lighting-as-a-service providers are integrating IoT and automation technologies to meet the demand for adaptive and energy-efficient lighting solutions. The growing emphasis on smart infrastructure is transforming urban environments. The demand for smart, responsive lighting systems in smart cities is driving the adoption of Lighting-as-a-Service models. These systems not only optimize energy usage but also provide real-time data that can enhance urban planning and resource management.
• Funding and Pricing Issues: Investments in energy-efficient lighting infrastructure are expensive in terms of initial investments. However, through this model, financing services such as Lighting-as-a-Service can provide payment terms that make the solution more affordable for businesses or even municipalities. While financing is a challenge, the flexibility of payment models, like pay-per-use or subscription-based services, has made Lighting-as-a-Service solutions more accessible. These reduce the burden of upfront costs and allow businesses to adopt energy-efficient lighting without much capital expenditure.
Challenges in the Lighting-as-a-Services market in India are:
• High Initial Investment: Despite savings in the long run, Lighting-as-a-Service solutions discourage customers due to the high initial investment required to implement the concept. Installation and infrastructure costs for advanced lighting may be difficult for smaller-scale businesses. One of the most significant barriers for Lighting-as-a-Service is high initial capital investment. While savings in the long run are considerable, entry may be unaffordable for many businesses, particularly small ones. Service providers must make efforts to reduce entry costs to overcome this barrier.
• Regulatory and Bureaucratic Hurdles: India has a highly complex regulatory environment, which also includes issues related to local permits, approvals, and compliance with national standards, causing delays in Lighting-as-a-Service projects. This bureaucratic hurdle is slowing down market growth. Regulatory hurdles, including obtaining the necessary permits and meeting compliance standards, cause delays in the adoption of Lighting-as-a-Service. Such bureaucratic obstacles can increase the time and cost involved in implementing energy-efficient lighting systems, deterring some businesses or municipalities from making the change.
• Lack of Awareness: The technology and advantages of Lighting-as-a-Service are not widely known, particularly in rural regions. Education and outreach efforts should be increased to drive adoption through a wider customer base. Lack of awareness about Lighting-as-a-Service solutions can act as a barrier to market growth. Many businesses and municipalities are not fully aware of the savings in long-term costs and energy efficiency. Hence, outreach programs, demonstrations, and case studies may increase market penetration and drive demand for such services.
The major drivers such as government incentives, technological advancements, energy efficiency awareness, demand for smart infrastructure, and financing options are the primary growth enablers of the lighting-as-a-service market in India. However, high initial costs, regulatory issues, and a lack of awareness hinder the industry’s progress. Education, policy support, and innovative business models will address these challenges, further accelerating the adoption of Lighting-as-a-Service solutions, and driving further growth in India’s lighting market.
List of Lighting-as-a-Service Market in India 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 India by Segment
The study includes a forecast for the lighting-as-a-service market in India by installation, component, and end use.
Lighting-as-a-Service Market in India 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 India by End Use [Analysis by Value from 2019 to 2031]:
• Commercial
• Industrial
• Municipal
• Others
Features of the Lighting-as-a-Service Market in India
Market Size Estimates: Lighting-as-a-service in India 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 India 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 India.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the lighting-as-a-service in India.
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 India?
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 India?
Answer: The future of the lighting-as-a-service market in India looks promising with opportunities in the commercial, industrial, and municipal markets.
Q3. Which lighting-as-a-service market segment in India 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 India 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 India, Lighting-as-a-Service Market in India Size, Lighting-as-a-Service Market in India Growth, Lighting-as-a-Service Market in India Analysis, Lighting-as-a-Service Market in India Report, Lighting-as-a-Service Market in India Share, Lighting-as-a-Service Market in India Trends, Lighting-as-a-Service Market in India Forecast, Lighting-as-a-Service Companies, write Lucintel analyst at email: helpdesk@lucintel.com. We will be glad to get back to you soon.