Lighting-as-a-Service Market in Malaysia

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

The future of the lighting-as-a-service market in Malaysia 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 Malaysia 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 Malaysia

The lighting-as-a-service market in Malaysia is growing significantly due to technological advancements, the push for energy efficiency, and increasing government support for sustainable solutions. As businesses and municipalities seek cost-effective, eco-friendly lighting alternatives, Lighting-as-a-Service is becoming an attractive solution. This model allows for energy-efficient lighting without high upfront costs, aligning with Malaysia’s sustainability goals. It has experienced growth in demand based on several critical trends that depict a future possibility for market growth in Malaysia.

• Integration with Smart City Initiatives: Developing smart cities will form an avenue through which the role of Lighting-as-a-Service can feature significantly in the city’s infrastructures. With smart cities developing in Malaysia, there is a greater need for energy-efficient and connected systems. Lighting-as-a-Service is an ideal fit for smart environments as it provides scalable, flexible, and connected solutions that fit within the larger smart infrastructure goals. These systems can integrate with IoT technologies to enable cities to optimize lighting based on real-time data, reducing energy consumption and improving urban experiences.
• Sustainability Focus of the Commercial Sector: The commercial sector in Malaysia is increasingly focused on sustainability, which drives the growing need for efficient lighting solutions through Lighting-as-a-Service. With increased consciousness of environmental concerns, businesses in Malaysia are increasingly adopting energy-efficient lighting solutions for sustainability purposes. Lighting-as-a-Service helps companies update their lighting systems with minimal large-scale upfront investments. High-quality LED lighting reduces energy consumption, lowers maintenance costs, and reduces a company’s carbon footprint.
• Government Support for Green Initiatives; Malaysian government policies and incentives promoting green technology adoption are driving growth in the lighting-as-a-service market. The Malaysian government also supports green initiatives, like energy-efficient technologies receiving tax incentives, and sustainable infrastructure projects, by driving demand for Lighting-as-a-Service. Public sector projects, such as government buildings, streets, and parks, also increasingly utilize Lighting-as-a-Service in alignment with the country’s commitment to reduce its energy consumption and carbon emissions and further fuel this market.
• Smart Retail Solutions; The retail sector in Malaysia is embracing smart lighting solutions, which improve customer experience and operational efficiency. Malaysian retailers are embracing smart lighting systems that will enhance the in-store experience and save on energy costs. Lighting-as-a-Service provides retailers with the flexibility to implement advanced lighting systems that can be easily controlled and adjusted to create an optimal shopping environment. This trend not only improves customer experience but also helps retailers manage their energy consumption and reduce operational costs.

The emerging trends in the lighting-as-a-service market in Malaysia reflect its focus on sustainability, the advent of technology, and cost savings. Smart city initiatives are integrated into it, the energy-efficient solution demand in the commercial sector is rising, government support for green technologies, cost reduction demand from the industrial sector, and smart retail solutions contribute to the expansion of the market. These trends are changing the face of lighting in Malaysia by providing scalable, cost-effective, and environmentally friendly solutions that align with the nation’s sustainability and smart infrastructure goals.

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

The lighting-as-a-service market in Malaysia is developing strongly because both the private and public sectors seeking more energy-efficient, cost-effective, and sustainable lighting solutions. Smart technology, government incentives, and market awareness are among the major advancements taking place in this field. This influences how businesses, municipalities, and industries perceive lighting and gives scope for new growth and innovation in the sector.

• Government-Driven Energy Efficiency Initiatives: Government policies are encouraging the adoption of Lighting-as-a-Service through energy efficiency programs. As part of its incentives and policies, the Malaysian government has provided incentives to businesses and sectors in the public sector to adapt to energy-efficient technology. Such initiatives have triggered the adoption of Lighting-as-a-Service in public infrastructure and government buildings. The government’s strategy of offering fiscal incentives and regulatory support makes the task easier for organizations to upgrade their lighting systems with less capital outlay, supporting the growth of the market.
• Adoption of IoT and Smart Lighting Solutions: The application of IoT is changing the lightscape in Malaysia, and is driving the adoption of Lighting-as-a-Service. The IoT integration in lighting systems is revolutionizing the lighting-as-a-service market in Malaysia. Businesses and municipalities can control and monitor lighting systems in real time using smart sensors and connectivity, which optimizes energy consumption and saves costs. This is pushing the demand for Lighting-as-a-Service, particularly in the development of smart cities, public spaces, and commercial buildings.
• Energy-Efficiency Solutions Are Growing in Malaysia’s Retail Industry: Lighting as a Service to Help Reduce Energy Use and Aesthetic Improvement of Stores in Malaysian Retail Industry. Retail businesses in Malaysia are increasingly adopting Lighting-as-a-Service to manage energy costs and improve store ambiance. By switching to LED lighting and smart lighting solutions, retailers can create more engaging environments for customers while also reducing electricity usage. These advancements not only help retailers save on operating costs but also support their efforts to meet sustainability goals.
• Extension of Lighting-as-a-Service in the Industrial Sector: The industrial sector in Malaysia turns to Lighting-as-a-Service to achieve energy savings and operational efficiency. The industrial sector in Malaysia is increasingly adopting Lighting-as-a-Service to reduce energy costs and improve operational efficiency. With high energy consumption being a major concern in industries, Lighting-as-a-Service provides a scalable, flexible solution that cuts down on energy use and maintenance costs. Industrial companies are turning to these services to improve sustainability efforts and achieve cost savings over the long term.

In recent years, Malaysia has seen an unprecedented shift toward sustainability, cost-effectiveness, and technological integration in the lighting-as-a-service market. Incentives by the government, IoT-enabled smart lighting, higher market awareness, energy-efficient solutions in retail applications, and industrial applications have fueled the market growth. Such trends are propelling the extensive implementation of Lighting-as-a-Service, creating a conducive atmosphere for innovation, minimizing energy usage, and fostering Malaysia’s pledge toward environmental sustainability.

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

The lighting-as-a-service market in Malaysia holds strategic growth opportunities across different industries. With energy efficiency, sustainability, and technology being at the forefront of business and government initiatives, there is a growing demand for flexible and cost-effective lighting solutions. Malaysia’s focus on sustainability and smart city development propels these growth opportunities. Energy savings, cost reductions, and enhanced operational efficiency are the fruits of these opportunities for businesses.

• Smart City Development and Infrastructure: With the increase in smart city development in Malaysia, the demand for smart lighting solutions is rising. Malaysia’s emphasis on smart cities provides a vast growth opportunity in Lighting-as-a-Service. As smart cities are connected with energy-efficient systems for lighting, the Lighting-as-a-Service provider can scale up with street lighting and public spaces under municipal infrastructure. IoT and real-time data also optimize energy and maintenance, ensuring cost-effective operational efficiency. All this is compatible with government expectations of reducing energy consumption and upgrading city efficiency, providing an attractive growth direction for service providers.
• Energy Efficient Commercial Solutions: Malaysia’s commercial sector embraces the adoption of energy-efficient lighting solutions as part of sustainability efforts. With businesses becoming more sustainable, Lighting-as-a-Service has a great growth opportunity in the commercial sector. Retailers, office buildings, and other commercial establishments can save on energy costs and require minimal maintenance. Businesses can reduce operational costs while meeting environmental regulations by transitioning to LED lighting and adopting smart, connected systems. This transition also helps businesses improve their green credentials, making them more attractive to eco-conscious customers.
• Government-Led Green Initiatives: Energy efficiency-promoting policies by the government spur the growth of the lighting-as-a-service market. The Malaysian government’s initiatives in greenness, such as tax incentives and regulations promoting energy efficiency, encourage the growth of the lighting-as-a-service market. Its adoption of energy-efficient lighting by the government in public buildings, parks, and infrastructure projects forms a huge market for service providers. Public sector projects that undertake Lighting-as-a-Service could significantly reduce the long-term cost of energy and maintenance, pushing other sectors toward further adoption.
• Industrial Demand for Cost Management: The services of Lighting offer cost savings in terms of energy usage combined with operational efficiencies. As industries increasingly opt for cost cutbacks and power savings, demand in the sector for Lighting-as-a-Service in Malaysia continues to grow. The cost incurred for energy input in manufacturing units, warehouses, and factories calls for a more energy-efficient method of LED lighting with a service model to achieve reduction. In addition to the above, these require low maintenance systems and cause minimal service interruptions. Long-term cost benefits through optimization with reduced overhead costs make this one of the primary growth opportunities.
• Sustainable Urban Developments: Sustainable real estate projects in Malaysia are increasing the demand for energy-efficient lighting solutions. This speaks volumes about the increased focus on sustainable real estate development. Lighting-as-a-service is now crucial for residential, commercial, and mixed-use properties looking to grow sustainably. Developers are starting to think about green certification, and meeting environmental targets, in their projects with energy-efficient lighting systems. Lighting-as-a-Service supports these demands, offering cost-effective, environmentally friendly lighting solutions with no significant upfront investment. This trend supports the adoption of smart and efficient lighting solutions across new urban developments in Malaysia.

Strategic growth opportunities in the lighting-as-a-service market in Malaysia are being driven by smart city initiatives, commercial sector pressure on energy efficiency, government incentives, industrial demand for cost-saving solutions, and sustainable urban developments. These opportunities are huge growth areas for the market as both the business and public sectors seek flexible and energy-efficient lighting solutions. With the rapid growth and advancements of these trends, Lighting-as-a-Service will shape Malaysia’s future landscape of lighting.

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

Technological, economic, and regulatory drivers and challenges affect the lighting-as-a-service market in Malaysia. Businesses and governments will find opportunities to reduce energy consumption and improve efficiency while facing cost, technology integration, and regulatory compliance obstacles as the market continues to evolve. It is therefore crucial for stakeholders to understand these drivers and challenges to navigate the market successfully and make informed decisions that align with both business and sustainability goals.

The factors responsible for driving the Lighting-as-a-Services market in Malaysia include:
• Technological Advancements in Smart Lighting: Integration of smart technologies is one of the primary drivers for the market. Advancements in IoT, sensor technologies, and wireless connectivity lead to the expansion of the lighting-as-a-service market in Malaysia. This technological development brings enhanced energy efficiency to lighting systems as well as effective monitoring, including control through real-time data, integrated harmoniously into a smart city system. Consequently, demand from various business sectors, along with their municipal administrations, drives growth within the lighting-as-a-service market.
• Government Incentives for Energy Efficiency: Policies that encourage energy-efficient technologies are expanding the market. The Malaysian government provides several incentives to businesses and public sector organizations that embrace energy-efficient technologies, such as Lighting-as-a-Service. Such incentives include tax rebates, subsidies, and grants for upgrading to energy-efficient lighting systems. Government policies on reducing energy consumption and promoting sustainability have created a favorable environment for the growth of the lighting-as-a-service market. Such incentives make it easier for organizations to embrace modern, energy-saving lighting solutions without high initial capital costs.
• Increasing Green Awareness and Sustainable Objectives: Increasing green consciousness is driving industries to seek environmentally friendly lighting. With escalating environmental awareness among Malaysians, both businesses and individuals are gaining momentum in preferring sustainability. At the corporate level, there have been mounting calls for reducing their carbon footprint. Organizations have identified Lighting-as-a-Service for energy-efficient illumination without the enormous upfront costs as a great way toward achieving their desired sustainability objectives. This trend is driving the market as businesses seek to align with both consumer demand for eco-friendly products and government regulations aimed at reducing environmental impact.
• Demand for Operational Cost Savings: Companies are seeking ways to reduce energy consumption and lower operational expenses. In response to increasing operational costs, companies are shifting toward more efficient Lighting-as-a-Service models to cut their energy consumption costs. Being energy-efficient solutions that consume less electricity and reduce their maintenance costs, such solutions offer cost-cutting savings on the books for companies in the long run. Through these solutions, businesses may efficiently manage lighting systems while reducing associated energy waste and improving their bottom lines. With rising demands to save costs, Lighting-as-a-Service has gained popularity in organizations.
• Green Building Standards: Lighting-as-a-Service is being welcomed in new construction as green building certifications promote such. The increasing demand for green building certification, such as LEED—Leadership in Energy and Environmental Design—is raising the demand for energy-efficient lighting solutions. Currently, developing sustainable lighting solutions for new construction in Malaysia assists developers in pursuing certification under a green building index. Lighting-as-a-Service accommodates these demands by enabling buildings to incorporate such energy-efficient solutions without requiring massive upfront investments.

Challenges in the Lighting-as-a-Services market in Malaysia are:
• High Upfront Implementation Costs: Some businesses might be discouraged from the adoption of Lighting-as-a-Service due to the costs incurred during initial setup. Although Lighting-as-a-Service does save long-term costs, its implementation will present a considerable cost burden on many businesses, particularly smaller businesses. The costs to install new lighting systems and implement smart technologies often serve as an inhibitor for the transition, though ongoing savings will more than compensate for the upfront expense. This is particularly pertinent in tight-budget industries and sectors that have yet to address energy efficiency.
• Technology Integration and Compatibility Issues: Integration of Lighting-as-a-Service with existing infrastructure can be challenging. Lighting-as-a-Service integration into existing infrastructure can be complex, especially for businesses and municipalities with outdated lighting systems. Compatibility issues between new smart lighting technologies and legacy systems can delay implementation and increase costs. For some organizations, upgrading infrastructure to accommodate new lighting solutions presents a challenge, requiring significant investment in additional technologies and systems.
• Regulatory Compliance and Standards: An issue businesses may face when navigating energy-efficient lighting. Malaysia is facing a challenge in the evolution of the regulatory landscape around energy efficiency and sustainability. Companies offering Lighting-as-a-Service need to comply with local regulations and industry standards. This can be complex, as new rules and guidelines are added. Businesses must invest time and resources in understanding and adapting to these regulations, which increases the complexity and cost of implementing Lighting-as-a-Service solutions.

The major drivers in the lighting-as-a-service market in Malaysia are technological advancements, government incentives, rising environmental awareness, demand for cost savings, and growth in green building standards. However, high initial costs, technology integration, and regulatory compliance are some of the significant challenges that businesses face. In general, while the market offers many opportunities, businesses need to overcome these challenges to fully exploit the benefits of Lighting-as-a-Service and ensure long-term success and alignment with sustainability goals.

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

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

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

• Commercial
• Industrial
• Municipal
• Others

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

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