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

The future of the lighting-as-a-service market in Indonesia 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 Indonesia 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.


Lighting-as-a-Service Market in Indonesia Trends and Forecast

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

The trend in the Indonesian market for Lighting-as-a-Service will shift as various enterprises and initiatives are taken from the government and energy-efficient illumination sources. Growing awareness about living smart and effectively with low-cost solutions, alongside increased urbanization towards sustainability, also triggers the lighting-as-a-service market growth with new waves reshaping the market. These factors are being utilized by Lighting-as-a-Service providers to innovate and serve diverse sectors, from urban to rural electrification projects.

• Government Energy Efficiency Initiatives: Indonesia’s government is increasingly supporting energy-efficient solutions through initiatives like the National Energy Conservation Program. These policies are promoting the adoption of Lighting-as-a-Service as a cost-effective and environmentally responsible solution for both public and private sectors. Government policies are the main factors driving the need for energy-saving lights throughout Indonesia. Policies that reward businesses and municipalities for reducing their energy consumption are accelerating the trend toward Lighting-as-a-Service. Incentives and regulatory frameworks have been crucial in removing adoption barriers, paving the way for massive market penetration within the energy-saving goals of the country.
• Smart City Projects: Indonesia is investing heavily in smart city projects as the country focuses more on modernizing urban infrastructure. This is creating opportunities for Lighting-as-a-Service providers to offer IoT-driven smart lighting solutions that are energy-efficient and adaptive to changing needs. Smart city projects are changing the urban landscape in Indonesia. With growing demand for integrated, intelligent lighting systems, Lighting-as-a-Service providers are offering IoT-powered solutions that enable real-time energy management, adaptive lighting, and enhanced public safety. This is reshaping the urban landscape, enhancing quality of life, and supporting sustainability goals in cities.
• Sustainability Focus in the Corporate Sector: Indonesia’s corporate sector is increasingly adopting sustainability goals, with businesses prioritizing energy efficiency in their operations. Lighting-as-a-service models offer companies a flexible, cost-effective means of meeting these goals while also reducing operational costs. The growing focus on sustainability within Indonesia’s corporate landscape is driving demand for energy-efficient lighting solutions. Lighting-as-a-Service allows corporations to install high-performance lighting systems while ensuring minimal capital outlay. Such solutions promote corporate sustainability, decrease operational costs, and help contribute to Indonesia’s overall environmental goals, positioning businesses as responsible corporate citizens.
• Rural Electrification and Solar Integration: In the rural areas of Indonesia, where electricity access is limited, Lighting-as-a-Service providers introduce solar-powered lighting solutions. Such systems are cost-effective and sustainable, helping to bridge the energy gap and providing reliable lighting for remote communities. Solar Lighting-as-a-Service is a product driven by the demand for rural electrification in Indonesia. Solar lighting solutions are a sustainable, off-grid alternative for communities in rural areas, enhancing access to lighting and improving the quality of life. This also supports Indonesia’s broader renewable energy goals by leveraging abundant solar resources and creating growth opportunities in underserved areas.
• Technological Advancements in LED and IoT: LED and IoT technology are evolving rapidly, transforming the lighting-as-a-service market in Indonesia. Smart sensors and automation features are incorporated into the system for enhanced energy efficiency, improved performance, and customized lighting. Technological innovations in LED lighting, combined with trends in IoT integration, are opening up new possibilities in the lighting-as-a-service market. Enhanced sensors, smart controls, and real-time data analysis make these solutions highly energy-efficient and operationally flexible. Enhanced trends in technology adoption are contributing significantly to Indonesia’s attainment of sustainability goals while ensuring cost benefits for both businesses and municipalities.

New trends include government-led energy efficiency schemes, smart city projects, sustainability in the corporate world, and solar-based electrification in the rural sector, along with LED technology advancements and the IoT. These trends in Indonesia are altering the lighting-as-a-service market, providing opportunities for innovation, sustainable solution demand, and access to efficient lighting in urban and rural settings. As these trends continue to evolve, the market will expand, offering further opportunities for providers and contributing to Indonesia’s energy and environmental goals.

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

The developments in the lighting-as-a-service market in Indonesia are rapid due to increased adoption in public and private sectors for more sustainable and cost-effective lighting solutions. The core interest lies in further developments in energy-efficient technologies, the promotion of public-private partnerships, and renewable energy integration into lighting systems. These changes are, therefore, altering the way lighting services are delivered, influencing infrastructure, commercial sectors, and rural electrification initiatives.

• Expanding Smart City Projects: All major cities in Indonesia are introducing smart city initiatives that involve smart street lighting. These projects incorporate Lighting-as-a-Service models featuring IoT sensors and adaptive lighting. Advanced lighting solutions in cities are being driven by the roll-out of smart city projects. The Lighting-as-a-Service providers are implementing smart street lighting systems, which, through IoT technology, enhance energy efficiency and safety. This smart lighting shift is changing the face of urban infrastructure, positioning cities as more sustainable and technologically advanced.
• Increased Growth in Corporate Sustainability Programs: Energy efficiency has emerged as an essential component of Indonesian companies’ corporate sustainability programs. Lighting-as-a-Service offers businesses a viable opportunity to realize their sustainability targets without a large upfront investment required for the establishment of energy-efficient lighting systems. As an increasing number of businesses turn towards sustainability, Lighting-as-a-Service is an evident solution to fulfilling these ambitions. Companies are adopting energy-efficient lighting solutions as a means to reduce their carbon footprint, lower operating costs, and achieve corporate social responsibility targets. This trend is growing the market, especially in commercial real estate and industrial sectors.
• Rural Electrification Using Solar-Powered Lighting Solutions: Lighting-as-a-Service providers are integrating solar-powered lighting systems to provide cost-effective lighting solutions in off-grid areas across Indonesia. This development supports the country’s rural electrification goals and expands market reach in underserved regions. These solar-powered lighting systems have been integrated into rural areas to provide sustainable, low-cost solutions for communities without reliable grid access. Off-grid solutions improve the quality of life in remote regions by providing dependable lighting while supporting Indonesia’s renewable energy targets. This development is important in driving the adoption of Lighting-as-a-Service in underserved regions.
• Partnerships for Large Infrastructure Projects: Public-private partnerships (PPPs) are gaining popularity in Indonesia for large infrastructure projects, especially in the government sector. They allow municipalities to adopt energy-efficient lighting solutions without a huge upfront cost. Public-private partnerships are helping municipalities and government agencies in Indonesia to implement large-scale energy-efficient lighting projects. The Lighting-as-a-Service models enable these projects to be adopted at cost-effective prices by using advanced lighting technologies. Market growth is accelerating, and overall infrastructure in urban areas is improving through public-private sector collaboration.
• Advancement in LED and IoT Integration: Lighting-as-a-Service companies are integrating next-generation LED technology with Internet of Things (IoT) sensors and automation into more customizable and energy-efficient solutions. These advances improve performance, energy consumption, and maintenance efficiency. Technological advancements in LED lighting and IoT integration are driving the evolution of Lighting-as-a-Service in Indonesia. These solutions enable real-time monitoring, predictive maintenance, and energy optimization, offering businesses and municipalities greater control over their lighting systems. The integration of smart technologies is creating more flexible and energy-efficient lighting solutions that align with sustainability goals.

The recent developments in Indonesia’s lighting-as-a-service market—owing to smart city projects, corporate sustainability initiatives, rural electrification with solar lighting, public-private partnerships, and technological advancements integrating LEDs and IoT—are key factors for significant market growth. These developments enhance the adoption of energy-efficient, cost-effective, and sustainable lighting solutions in all sectors. As these trends continue to evolve, they will further shape the market, creating more opportunities for growth and contributing to the country’s energy and environmental objectives.

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

The Indonesian lighting-as-a-service market is expected to grow rapidly over the next few years, driven by the high demand for sustainable lighting solutions. Urbanization, smart city developments, and government initiatives will open up significant opportunities in the sector, especially through key applications—from residential to commercial. Energy efficiency and environmental sustainability are further driving the demand for lighting-as-a-service models that offer flexible, cost-effective, and environmentally responsible lighting solutions. These opportunities are reshaping how lighting services are delivered and impacting the market’s trajectory.

• Government Infrastructure Projects: The Indonesian government continues to adopt energy-efficient lighting solutions for public infrastructure projects, opening opportunities for Lighting-as-a-Service providers. The growing demand for smart street lighting and government support for sustainability initiatives are encouraging the adoption of energy-efficient lighting solutions. Government-backed projects, such as smart cities, are driving the adoption of Lighting-as-a-Service. Municipalities are adopting these solutions to reduce their energy expenditure and improve public lighting systems. As more public infrastructure projects incorporate energy-efficient lighting, the market for Lighting-as-a-Service grows, benefiting providers and contributing to national sustainability goals.
• Commercial Sector Demand: As Indonesian firms pursue sustainability and energy savings, the commercial sector is increasingly tapping into Lighting-as-a-Service to meet corporate responsibility goals. This trend helps businesses reduce upfront capital costs while executing efficient lighting systems that enhance workplace productivity. Growing demand for energy-efficient lighting in commercial offices, retail, and other commercial spaces is driving lighting-as-a-service market growth. Businesses with minimal capital outlay can install state-of-the-art LED-based lighting solutions, leading to faster adoption in the commercial segment of the lighting-as-a-service market in the near future.
• Retail Sector Growth: The retail sector in Indonesia is adopting Lighting-as-a-Service models to improve the aesthetic appeal of stores, save on energy costs, and enhance the customer experience. Retailers are investing in energy-efficient lighting to create a more attractive shopping environment while saving on maintenance costs and increasing operational efficiency. With the expansion of the retail sector, demand for customized lighting solutions to enhance customer engagement is growing. Lighting-as-a-Service providers are offering flexible, cost-effective solutions to retailers that reduce energy consumption and enhance the aesthetic appeal of stores. This trend is reshaping the retail sector, creating new opportunities for market growth.
• Urbanization and Smart City Projects: Rapid urbanization in Indonesia and smart city initiatives are driving the need for advanced, integrated lighting solutions. These projects require adaptive, energy-efficient systems that can be controlled remotely—an ideal application for Lighting-as-a-Service models. Smart cities and the growth of urban centers are revolutionizing the infrastructure in Indonesia. Energy-efficient, smart lighting systems with real-time monitoring and optimization are made possible through Lighting-as-a-Service, supporting municipalities in providing sustainable solutions. Thus, energy efficiency is a major driver for growth in the urban and municipal sectors.
• Rural Electrification with Solar Integration: Lighting-as-a-Service providers are integrating solar-powered solutions in rural Indonesia, where electricity availability is scarce. This allows affordable and sustainable lighting to reach remote communities and helps Indonesia achieve its renewable energy targets. These solar-powered Lighting-as-a-Service solutions are advancing rural electrification efforts with sustainable and cost-effective alternatives to traditional grid-connected lighting. This off-grid solution is helping providers bridge the energy gap in rural areas, improving the quality of life and furthering renewable energy adoption.

Government infrastructure projects are driving growth in Indonesia’s lighting-as-a-service market, supported by rising demand from the commercial sector and the growth of the retail sector, along with increasing urbanization and solar-based rural electrification. These growth opportunities are accelerating the adoption of energy-efficient, cost-effective lighting solutions across sectors. As these trends continue to develop, Lighting-as-a-Service providers will become an indispensable part of Indonesia’s progress toward more efficient infrastructure and sustainable development.

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

Technological, economic, and regulatory factors combine to drive the lighting-as-a-service market in Indonesia. Technological improvements in lighting and energy management systems, as well as increasing economic and environmental considerations, are key drivers of the market. The market is not without its challenges, however: regulatory barriers, high initial costs, and lack of awareness among consumers. Stakeholders interested in taking advantage of the market’s opportunities and navigating its complexities must be aware of these drivers and challenges.

The factors responsible for driving the Lighting-as-a-Services market in Indonesia include:
• LED and IoT Technological Advancements: Continuous improvement in LED and IoT technologies is revolutionizing the lighting-as-a-service market. With smart, adaptive lighting systems that can be operated from anywhere in the world and optimized, these technologies not only reduce energy consumption but also improve the user experience. The developments in LED and IoT technologies are key drivers of the lighting-as-a-service market. By implementing highly efficient, customizable lighting solutions in businesses and municipalities, real-time monitoring and predictive maintenance will improve energy management. These solutions offer greater flexibility and reduce overall operational costs, changing the market landscape.
• Government Sustainability Initiatives: The Indonesian government’s policies on energy efficiency and sustainability are major drivers of the lighting-as-a-service market. Incentives, regulations, and investments in energy-efficient infrastructure are encouraging businesses and municipalities to adopt these solutions. Government sustainability initiatives are creating an enabling environment for lighting-as-a-service market expansion. Financial incentives, along with policies that enforce the use of energy-saving solutions, help overcome several barriers to adoption. As a result, both public and private sectors are embracing energy-saving lighting systems to achieve growth.
• Corporate Sustainability Goals: As businesses pursue emission reductions and environmental sustainability, Lighting-as-a-Service models have become one of the most sought-after solutions. More companies are embracing these systems to achieve corporate sustainability goals while minimizing operational costs. A key driver of the market is the growing corporate focus on sustainability. With Indonesian businesses increasingly focused on meeting their environmental targets, Lighting-as-a-Service models offer flexible solutions to achieve energy-saving objectives. This trend is growing in commercial real estate, retail, and hospitality industries.
• Increasing Energy Cost: Rising energy costs create demand for efficient lighting solutions that consume less energy. Lighting-as-a-Service models enable businesses to reduce energy consumption and manage costs effectively, making these solutions a better alternative to traditional lighting systems. The increasing cost of energy is forcing businesses and municipalities to find ways to reduce consumption and costs. Lighting-as-a-Service offers a low-cost solution through energy-efficient systems that are custom-fit to meet specific needs. The ability to control energy use and lower operational expenses makes these models highly attractive in a rising-cost environment.
• Urbanization and Infrastructure Development: As Indonesia continues to urbanize, there is a growing need for smart, efficient lighting systems in urban and commercial areas. This trend is driving demand for Lighting-as-a-Service, especially in smart city and infrastructure development projects. Rapid urbanization in Indonesia is leading to a greater demand for modern, energy-efficient lighting solutions in expanding cities. With growing infrastructure projects, urban municipalities and businesses are adopting Lighting-as-a-Service models. These models allow for adaptive, scalable, and sustainable lighting systems that keep pace with Indonesia’s urbanization.

Challenges in the Lighting-as-a-Services market in Indonesia are:
• High Upfront Investment Costs: Although the long-term savings are significant, the high upfront cost remains a challenge for implementing Lighting-as-a-Service models. Businesses and municipalities may be reluctant to invest in these systems. The high upfront investment associated with Lighting-as-a-Service systems is a significant hurdle to adoption. Many organizations are hesitant to pay upfront costs, even though the long-term payback is strong. The market’s growth is constrained by capital expenditure and tight budgets, which act as barriers.
• Regulatory Hurdles: The regulatory frameworks regarding energy efficiency and lighting technologies can be overly complicated and region-specific. This presents a challenge for service providers and clients seeking to adopt Lighting-as-a-Service technology. Energy efficiency standards and compliance are regulatory barriers that can delay market adoption. Lighting-as-a-service providers face a patchwork of regulations across different regions in Indonesia, which can be complex and costly. Providers must plan carefully and coordinate with regulatory bodies to ensure smooth market entry.
• Awareness and Education: There is still a lack of awareness and understanding of Lighting-as-a-Service models in certain sectors. Educating potential customers about the benefits of these systems is crucial for market growth. The lack of awareness about the benefits of Lighting-as-a-Service may slow adoption. Many businesses and municipalities do not fully understand the cost savings, energy efficiency, and sustainability advantages of these systems. Education and awareness will be key to overcoming this hurdle and driving market growth.

The major drivers of growth in Indonesia’s lighting-as-a-service market include technological advancements, government sustainability initiatives, and rising energy costs. However, challenges such as high initial costs, regulatory barriers, and limited awareness may hinder market growth. Overcoming these challenges will be essential for stakeholders to capitalize on market potential and drive the continued adoption of sustainable lighting solutions across the country.

List of Lighting-as-a-Service Market in Indonesia 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 Indonesia by Segment

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

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


• Commercial
• Industrial
• Municipal
• Others

Lucintel Analytics Dashboard

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

Market Size Estimates: Lighting-as-a-service in Indonesia market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Lighting-as-a-service in Indonesia market size by installation, component, and end use in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different installation, component, and end use for the lighting-as-a-service in Indonesia.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the lighting-as-a-service in Indonesia.
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 Indonesia?
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 Indonesia?
Answer: The future of the lighting-as-a-service market in Indonesia looks promising with opportunities in the commercial, industrial, and municipal markets.
Q3. Which lighting-as-a-service market segment in Indonesia 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 Indonesia 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 Indonesia, Lighting-as-a-Service Market in Indonesia Size, Lighting-as-a-Service Market in Indonesia Growth, Lighting-as-a-Service Market in Indonesia Analysis, Lighting-as-a-Service Market in Indonesia Report, Lighting-as-a-Service Market in Indonesia Share, Lighting-as-a-Service Market in Indonesia Trends, Lighting-as-a-Service Market in Indonesia Forecast, Lighting-as-a-Service Companies, write Lucintel analyst at email: helpdesk@lucintel.com. We will be glad to get back to you soon.

                                                            Table of Contents

            1. Executive Summary

            2. Lighting-as-a-Service Market in Indonesia: Market Dynamics
                        2.1: Introduction, Background, and Classifications
                        2.2: Supply Chain
                        2.3: Industry Drivers and Challenges

            3. Market Trends and Forecast Analysis from 2019 to 2031
                        3.1. Macroeconomic Trends (2019-2024) and Forecast (2025-2031)
                        3.2. Lighting-as-a-Service Market in Indonesia Trends (2019-2024) and Forecast (2025-2031)
                        3.3: Lighting-as-a-Service Market in Indonesia by Installation
                                    3.3.1: Indoor
                                    3.3.2: Outdoor
                        3.4: Lighting-as-a-Service Market in Indonesia by Component
                                    3.4.1: Luminaries and Control Equipment
                                    3.4.2: Software and Communication Systems
                                    3.4.3: Maintenance Services
                        3.5: Lighting-as-a-Service Market in Indonesia by End Use
                                    3.5.1: Commercial
                                    3.5.2: Industrial
                                    3.5.3: Municipal
                                    3.5.4: Others

            4. Competitor Analysis
                        4.1: Product Portfolio Analysis
                        4.2: Operational Integration
                        4.3: Porter’s Five Forces Analysis

            5. Growth Opportunities and Strategic Analysis
                        5.1: Growth Opportunity Analysis
                                    5.1.1: Growth Opportunities for the Lighting-as-a-Service Market in Indonesia by Installation
                                    5.1.2: Growth Opportunities for the Lighting-as-a-Service Market in Indonesia by Component
                                    5.1.3: Growth Opportunities for the Lighting-as-a-Service Market in Indonesia by End Use
                        5.2: Emerging Trends in the Lighting-as-a-Service Market
                        5.3: Strategic Analysis
                                    5.3.1: New Product Development
                                    5.3.2: Capacity Expansion of the Lighting-as-a-Service Market in Indonesia
                                    5.3.3: Mergers, Acquisitions, and Joint Ventures in the Lighting-as-a-Service Market in Indonesia
                                    5.3.4: Certification and Licensing

            6. Company Profiles of Leading Players
                        6.1: Company 1
                        6.2: Company 2
                        6.3: Company 3
                        6.4: Company 4
                        6.5: Company 5
                        6.6: Company 6
                        6.7: Company 7
                        6.8: Company 8
                        6.9: Company 9
                        6.10: Company 10
.

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Lucintel has been in the business of market research and management consulting since 2000 and has published over 1000 market intelligence reports in various markets / applications and served over 1,000 clients worldwide. This study is a culmination of four months of full-time effort performed by Lucintel's analyst team. The analysts used the following sources for the creation and completion of this valuable report:
  • In-depth interviews of the major players in this market
  • Detailed secondary research from competitors’ financial statements and published data 
  • Extensive searches of published works, market, and database information pertaining to industry news, company press releases, and customer intentions
  • A compilation of the experiences, judgments, and insights of Lucintel’s professionals, who have analyzed and tracked this market over the years.
Extensive research and interviews are conducted across the supply chain of this market to estimate market share, market size, trends, drivers, challenges, and forecasts. Below is a brief summary of the primary interviews that were conducted by job function for this report.
 
Thus, Lucintel compiles vast amounts of data from numerous sources, validates the integrity of that data, and performs a comprehensive analysis. Lucintel then organizes the data, its findings, and insights into a concise report designed to support the strategic decision-making process. The figure below is a graphical representation of Lucintel’s research process. 
 

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