Lighting-as-a-Service Market in South Korea

Lighting-as-a-Service in South Korea Trends and Forecast

The future of the lighting-as-a-service market in South Korea 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 South Korea 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 South Korea

The lighting-as-a-service market in South Korea is slowly growing in response to technological advancements, demand for sustainable sources of energy, and government policies pushing energy efficiency. This new paradigm of LaaS is transforming the industrial landscape, from commercial and residential to public spaces, by providing energy-saving lighting through a pay-per-use model. These trends highlight South Korea’s commitment to sustainable growth through the control of its energy consumption and the beautification of its urban spaces with smart technologies.

• IoT and Smart Lighting: The emergence of IoT-based smart lighting solutions is transforming LaaS. The South Korean LaaS market is witnessing the integration of Internet of Things (IoT) technology. Smart sensors, connected systems, and data analytics can be integrated into lighting systems to optimize energy efficiency, maintenance schedules, and real-time adjustments based on occupancy. This trend increases operational efficiency and provides cost savings while contributing to the development of smart cities. Flexibility and scalability are being provided by remote control of lighting for businesses and municipalities, enabling broader LaaS adoption.
• Incentives Offered by the Government on Environment-Friendly Lighting Solutions: Backed by governments, incentives for LaaS adoption are accelerating. The South Korean government has implemented a series of incentives for the widespread adoption of energy-efficient lighting solutions such as LaaS. These incentives help businesses, municipalities, and residential developers reduce initial capital expenditures by offering subsidies or tax breaks for installing energy-saving systems. These policies are helping to overcome financial barriers, making LaaS more accessible across different sectors. Government support has positioned LaaS as an attractive alternative, ensuring faster market penetration while promoting sustainability and energy conservation in the country.
• Emphasis on Integration of Renewable Energy: LaaS is increasingly integrated with renewable energy sources, such as solar. The growth of LaaS in South Korea is also being propelled by the growing emphasis on renewable energy integration. Solar-powered lighting systems, integrated with LaaS, are being adopted in urban and rural areas. This reduces reliance on the grid and helps South Korea achieve its objective of carbon reduction and sustainable energy use. Renewable energy integration with LaaS systems has increased energy autonomy and cost savings, making LaaS an attractive option for businesses and municipalities aiming to become energy-independent.
• Urbanization and Smart City Development: Urbanization is driving the demand for energy-efficient lighting solutions in cities. South Korea’s rapid urbanization is a key driver of demand for LaaS, especially in the development of smart cities. As more urban areas seek to optimize energy use and enhance infrastructure, LaaS offers an efficient solution by providing scalable, customizable lighting that adapts to real-time needs. Smart street lighting systems, capable of adjusting based on traffic and weather conditions, are becoming central to urban planning, helping municipalities reduce energy waste, lower operational costs, and improve the quality of life for residents.
• Increased Focus on Public-Private Partnerships: Collaboration between the government and private sector is boosting LaaS growth. The collaboration between the South Korean government and private enterprises is accelerating the adoption of LaaS. Public-private partnerships (PPPs) are enabling municipalities to undertake large-scale LaaS projects, such as street lighting upgrades, without significant upfront costs. Public funding and private sector innovation are driving the implementation of energy-efficient, cost-effective lighting solutions. As a result, LaaS is being deployed more widely, facilitating sustainable urban development and contributing to South Korea’s energy conservation goals.

The emerging trends and changes in South Korea’s LaaS markets include the embedding of IoT applications, government schemes, the adoption of renewable energy systems, urbanization, and the development of public-private partnership platforms. The evolving nature of these changes has implications for improving not only the effectiveness of energy-efficient solutions but also reshaping urban profiles and supporting greater sustainability.

Recent Developments in the Lighting-as-a-Service Market in South Korea

Several important developments are taking place in South Korea’s Lighting-as-a-Service (LaaS) market, which will shape its future growth. With the country’s push towards sustainability, energy efficiency, and smart cities, LaaS is becoming a more viable solution. The recent developments reflect key shifts in technology adoption, government policy, and industry collaboration that accelerate the integration of advanced lighting systems in both public and private sectors.

• National Smart City Initiatives: South Korea is developing mega smart city projects that include LaaS. South Korea’s national smart city initiatives have enhanced the demand for LaaS. The government is developing cities that are smart, energy-efficient, and sustainable. Smart lighting systems are included in these projects, which will reduce energy wastage, increase public safety, and enhance the quality of life for residents. LaaS is being installed in these cities to provide flexibility, energy efficiency, and optimal utilization of lighting based on real-time data. More smart cities are emerging across the country, further boosting LaaS adoption.
• Public Sector Energy-Efficient Light Upgrades: Governments are also upgrading to LaaS solutions. An important milestone in the LaaS market is the surge in the adoption of energy-efficient lighting solutions by public sector buildings. The South Korean government is upgrading facilities with LED-based LaaS systems to ensure energy consumption cuts. These cuts are expected to significantly reduce energy costs for the government, helping it achieve sustainability goals. Public sector organizations are embracing LaaS not only for enhancing energy management but also as models for the private sector. This is a contributing factor to market growth.
• Renewable Energy-Powered LaaS Projects Expansion: Solar-powered LaaS installations are growing in the country. Renewable energy-powered LaaS installations, especially solar-powered systems, are becoming popular in South Korea. The government’s focus on renewable energy and increasing demand for energy-efficient lighting has increased solar-powered LaaS projects. Such installations are more sustainable and economical compared to traditional grid-connected lighting systems. By utilizing solar energy, these systems help reduce reliance on non-renewable power sources and lower energy bills, positioning LaaS as an environmentally friendly and economically viable lighting solution.
• Increased Private Sector Adoption: More businesses are adopting LaaS to reduce costs and improve sustainability. In addition to government-driven initiatives, the private sector in South Korea is increasingly adopting LaaS to enhance energy efficiency and reduce operational costs. Businesses, especially in retail and commercial sectors, are adopting LaaS due to its flexible, pay-per-use model, eliminating upfront costs while achieving long-term savings. Companies are under pressure to meet sustainability targets and cut overheads. As a result, the adoption of LaaS is spreading across markets as more businesses turn to this service.
• Advanced Smart Lighting Solutions Development: Advanced technology integration into LaaS offerings.
The most significant development in South Korea is the integration of advanced technology into LaaS solutions. Companies are now offering advanced smart lighting systems that use AI, sensors, and data analytics to optimize energy use, improve maintenance schedules, and enhance user experience. These smart-systems can adjust according to time of day, occupancy, and weather conditions. The increasing technological evolution has introduced LaaS to a host of new sectors, creating greater potential markets.

National smart city projects, public sector upgrades to renewable energy-based systems, increased private sector adoption, and developments in smart lighting technology have changed South Korea’s LaaS landscape. These developments are driving energy efficiency, sustainability, and cost savings while positioning LaaS as a key solution for the country’s future energy and infrastructure needs. As these trends continue to evolve, LaaS will play a pivotal role in South Korea’s journey toward a sustainable and smart future.

Strategic Growth Opportunities for Lighting-as-a-Service Market in South Korea

The South Korean market for Lighting-as-a-Service (LaaS) is transforming rapidly, fueled by the driving forces of technology, government, and sustainability. Opportunities exist across various applications: commercial lighting solutions and urban infrastructure. With a growing demand for energy-efficient, cost-effective, and environmentally friendly lighting solutions, LaaS is increasingly driving momentum, altering market dynamics, and creating new business avenues.

• Commercial Sector Integration: The commercial sector provides significant opportunities for LaaS growth. The commercial sector in South Korea offers a high-growth opportunity for LaaS, as there is a growing demand for energy-efficient lighting solutions in office buildings, retail spaces, and other commercial facilities. LaaS gives businesses the flexibility to install, maintain, and upgrade lighting without any upfront capital expenditures while saving energy over time. As sustainability becomes a vital requirement for businesses, LaaS solutions allow them to meet their energy needs and reduce operational expenses. This trend will, in the future, propel the market, thereby strengthening the position of LaaS in the commercial real estate sector of South Korea.
• Smart City Infrastructure: LaaS, in South Korea, is playing a key role in South Korea’s smart city projects. Smart city development in South Korea provides an opportunity for LaaS, as lighting systems are a part of these urban projects. LaaS can make the best use of smart lighting with sensors, IoT devices, and data analytics to optimize energy usage, enhance safety, and improve urban management. The growing number of smart city initiatives in the country, including Sejong and Songdo, is embracing LaaS for infrastructure. Demand is therefore rising for energy-efficient, scalable lighting solutions that are responsive to urban dynamics. This offers a large market opportunity for LaaS providers to address the needs of smart cities.
• Public Sector Projects: Government initiatives are driving the adoption of LaaS in public infrastructure. Another significant growth opportunity for LaaS concerns energy-efficient solutions and sustainability through government initiatives. Public sector projects like street lighting, public transportation hubs, and government buildings have started adopting systems under LaaS. Such projects are supported by government incentives, which make the transition to more energy-efficient lighting less costly for municipalities. Public sector projects will drive demand with a focus on reducing energy consumption and operating costs to the benefit of government entities and local communities.
• Retail and Hospitality Industry Demand: In an energy efficiency drive, retail and hospitality sectors are embracing LaaS. The retail and hospitality industries are major consumers of lighting, with high energy costs due to the constant need for illumination in stores, hotels, and other commercial venues. LaaS offers these sectors a cost-effective solution by eliminating upfront investment and providing flexible payment structures. These industries are adopting LaaS to improve energy efficiency, reduce maintenance costs, and align with sustainability goals. As these sectors continue to recover and expand post-pandemic, LaaS is expected to become a key part of their energy management strategies, thus contributing to market growth in South Korea.
• Residential Sector Adoption: LaaS is becoming increasingly attractive to residential developments. The growing adoption of smart homes in South Korea offers a new avenue for LaaS growth in the residential sector. Homebuilders and developers are now introducing energy-efficient lighting systems in residential developments to satisfy the demand for sustainable living solutions. Developers can offer LaaS to residents, thus providing smart, energy-saving lighting solutions that are flexible and easy to maintain. This market is likely to grow as more consumers look to increase energy efficiency and sustainability in their homes, and LaaS will become a valuable offering for new residential projects.

Strategic growth opportunities in South Korea’s LaaS market, including the commercial sector, smart city infrastructure, public sector projects, retail and hospitality demand, and residential sector adoption, are driving significant growth in the industry. As these sectors increasingly turn to energy-efficient, flexible lighting solutions, the LaaS market is poised to expand further. These opportunities are reshaping South Korea’s lighting landscape, offering innovative, sustainable solutions for diverse applications.

Lighting-as-a-Service Market in South Korea Driver and Challenges

The Lighting-as-a-Service (LaaS) market in South Korea is driven by various factors and challenges, which stem from technological developments, regulatory shifts, and market demands. The drivers are the sustainability policies of the government, developments in smart lighting technologies, and an increasing concern for energy efficiency. However, challenges such as high upfront costs, technological limitations, and regulatory barriers may affect adoption rates. Understanding these factors is key for stakeholders who seek to capitalize on the LaaS market in South Korea.

The factors responsible for driving the Lighting-as-a-Services market in South Korea include:
• Government Sustainability Initiatives: Government policies are the main drivers for energy-efficient lighting. The sustainability efforts of the South Korean government are one of the major forces driving the LaaS market. The government in South Korea is encouraging various initiatives toward energy efficiency, carbon reduction, and green technology, which motivates businesses and municipalities to adopt energy-saving lighting solutions. The momentum of LaaS transitions through policies such as subsidies on energy-efficient equipment and legislation that encourages low energy consumption. Based on these policy supports, South Korean businesses can reduce expenses and meet sustainability goals, thus fueling the adoption of LaaS.
• Advancement in Smart Lighting Technologies: Technological advancements are improving LaaS offerings. The advancement of smart lighting technologies is another significant driver of LaaS adoption in South Korea. The integration of IoT, sensors, and AI into lighting systems enables real-time monitoring, data analytics, and automated adjustments. These innovations enhance the energy efficiency, lifespan, and overall performance of lighting systems, making LaaS an attractive solution for businesses and municipalities. As smart technologies advance, the potential for LaaS increases further, as the ability to manage lighting remotely and adapt to different environmental factors increases.
• Demand for Energy Efficiency: The increasing demand for energy-efficient solutions is driving the LaaS market. Increasing energy consumption and environmental concerns are raising the demand for energy-efficient solutions in industries. LaaS is a cost-effective way of achieving energy savings while maintaining high-quality lighting standards. LaaS will help businesses and municipalities achieve global sustainability goals by curbing energy consumption and reducing maintenance costs. Since energy efficiency appears to be a priority for the public and private sectors in South Korea, its adoption of LaaS is bound to increase significantly, making it a healthy solution in the battle against climate change.
• Economical Effectiveness of LaaS Model: The pay-per-use model makes LaaS a more attractive option for businesses. One of the biggest reasons the LaaS model is getting adopted is its cost-effectiveness. Companies and municipalities will not be burdened by high capital expenditure requirements but pay only for what they use, a cost-saving factor. Financial flexibility, while saving overhead, allows companies to remain up-to-date with modern and energy-efficient lighting solutions. This has resulted in the reduction of financial burdens and long-term savings on energy and maintenance. Thus, LaaS offers an economically feasible alternative to conventional lighting systems.
• Sustainability and Green Building Certifications: Growing demand for green buildings is stimulating LaaS adoption. The increasing demand for sustainable building certifications, such as LEED (Leadership in Energy and Environmental Design), is driving the demand for energy-efficient lighting systems in South Korea. Developers and building owners are increasingly seeking green building certifications to attract environmentally conscious tenants and reduce their carbon footprint. LaaS systems, which offer energy-saving and sustainable lighting solutions, align with these certification requirements, making them a preferred choice in the construction and real estate industries.

Challenges in the Lighting-as-a-Services market in South Korea are:
• High Initial Investment Costs: High upfront costs can limit LaaS adoption. Infrastructure upgrade costs are one of the biggest challenges the LaaS market faces in South Korea. Although LaaS eliminates the need for capital expenditure on lighting systems, installing smart technologies, sensors, and infrastructure is costly, especially for small businesses or municipalities with tight budgets. Overcoming these challenges requires making the move to LaaS accessible and affordable by engaging government incentives and financing options.
• Technological Integration Issues: Compatibility of new systems with existing infrastructure is a challenge. Another challenge in the LaaS market is the compatibility of new smart lighting systems with existing infrastructure. Integrating IoT, sensors, and data analytics into older lighting systems can be complex and costly. Businesses and municipalities may face difficulties in upgrading legacy systems to integrate with new technologies, slowing down the adoption of LaaS. To mitigate this challenge, LaaS providers must offer customized solutions that are compatible with existing infrastructure, reducing installation costs and technical barriers.
• Regulatory and Policy Barriers: Strict regulations can hinder LaaS implementation. Regulatory and policy barriers can slow the adoption of LaaS in South Korea. Stringent regulations around energy efficiency, safety standards, and environmental impact may require businesses to meet specific requirements before implementing LaaS solutions. While these regulations aim to ensure that lighting systems meet safety and efficiency standards, they can also create delays and added costs for LaaS adoption. To overcome such barriers, LaaS providers must be in tune with regulation changes and ensure all applicable standards are followed.

Major drivers for the LaaS market include government sustainability initiatives, technological advancements, energy efficiency demand, cost-effectiveness, and a focus on green certifications. However, challenges such as high initial investment costs, integration issues with technology, and regulatory barriers may hinder adoption. Therefore, addressing these challenges will be critical in ensuring the continued growth of LaaS in South Korea, allowing businesses and municipalities to capitalize on its energy-saving potential while meeting sustainability goals.

List of Lighting-as-a-Service Market in South Korea 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 South Korea by Segment

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

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

• Commercial
• Industrial
• Municipal
• Others

Features of the Lighting-as-a-Service Market in South Korea

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