Lighting-as-a-Service Market in United States

Lighting-as-a-Service in United States Trends and Forecast

The future of the lighting-as-a-service market in United States 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 United States 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 United States

The United States has seen the quick growth of the Lighting-as-a-Service (LaaS) market, mainly because industries and municipalities are realizing the potential for energy-saving, sustainability, and good management of lighting. Due to the increased demand for more energy-efficient adaptive solutions, LaaS is emerging as the preferred choice for businesses looking to improve operational efficiency, meet regulatory standards, and reduce environmental impacts. More trends are emerging with advancing technology that is pushing consumers toward more intelligent, environmentally friendly solutions and changing the lighting scenario in the United States.

• Energy-Efficient Retrofit Programs: Energy-efficient retrofit programs are becoming mainstream in the United States as organizations and municipalities look to retire old lighting infrastructure without causing too much disruption. These programs utilize LaaS to upgrade outdated infrastructure with smart, energy-efficient lighting solutions that yield immediate cost savings. Using retrofit technologies, organizations can decrease energy consumption, reduce maintenance costs, and extend the life of their lighting systems. This trend is making LaaS an attractive alternative for those looking to modernize their lighting without a complete overhaul of their facilities.
• Smart City Lighting Initiatives: The adoption of LaaS solutions is being driven forward by smart city initiatives in the United States. Municipalities are investing in smart streetlights and public lighting systems that can be monitored, controlled, and adjusted remotely. Such smart systems may optimize energy usage, improve public safety with better illumination, and even provide features such as environmental sensors or Wi-Fi hotspots. LaaS providers are capitalizing on this trend by offering scalable, data-driven solutions for improving urban infrastructure while supporting cities’ sustainability goals and reducing energy costs.
• Green Building Certification Support: A direct growth factor is based on the increasing demand for lighting solutions that support green building certifications, such as LEED, as sustainability becomes increasingly important for developers and property managers. LaaS offers a flexible, energy-efficient solution that can help buildings earn and maintain these certifications. With the ability to reduce energy consumption, lower carbon footprints, and optimize lighting based on occupancy, LaaS is a valuable tool for real estate developers and property managers aiming to meet sustainability targets and improve the environmental performance of their buildings.
• Increased Focus on IoT-Enabled Lighting Systems: The integration of IoT technology in lighting systems is changing the face of the LaaS market in the United States. With real-time monitoring, control, and optimization, IoT-enabled lighting solutions are allowing lighting systems to connect with other smart devices and integrate with building management systems. These IoT-enabled solutions provide increased flexibility and operational efficiency. Increased IoT focus in LaaS solutions is driving innovation in lighting control, energy management, and predictive maintenance, thus making systems more intelligent and responsive to user needs.
• Subscription-Based Business Models: Subscription-based business models are gaining popularity in the United States as more businesses seek flexible, cost-effective options for their lighting needs. LaaS providers are embracing pay-per-use models, which allow customers to pay for the lighting services they use rather than buying and maintaining expensive equipment. This shift makes it easier for businesses to implement energy-efficient lighting systems without large upfront investments. Subscription models also offer added flexibility as customers can scale their lighting systems according to their needs.

Emerging trends are changing the lighting-as-a-service market in the United States, emphasizing energy efficiency, smart technologies, and sustainability. As businesses, municipalities, and real estate developers continue to look for cost reductions and environmental goals, LaaS is turning out to be an essential solution for a wide range of applications. These trends include everything from retrofitting existing infrastructure, and smart city initiatives, to green building certifications—thus pushing for the need for smarter, adaptable lighting solutions that will reshape the industry in due course.

Recent Developments in the Lighting-as-a-Service Market in United States

In the United States, the lighting-as-a-service market has experienced several important developments that have impacted its growth and direction. Such developments are more indicative of a growing need for energy-efficient solutions, smart technologies, and flexible business models. As various sectors embrace such innovations, LaaS providers adjust their offerings to meet the changes in needs, giving an idea of the future of lighting solutions in the United States.

• Growth in Smart Lighting Infrastructure: Smart lighting infrastructure has become the focal point of attention in the United States. Municipalities and businesses are now investing in connected lighting systems. This allows them to monitor it from a distance, optimize energy usage, and connect it to other smart technologies. LaaS providers have also capitalized on this trend, offering scalable networked lighting solutions adaptable to streetlights, office buildings, and many other settings. Smart lighting adoption is leading to the growth of the market, enhancing energy management, and public safety, and supporting sustainability goals.
• Demand for Sustainable Energy Solutions: The demand for sustainable energy solutions has significantly impacted the LaaS market in the United States. With heightened awareness of climate change and stricter environmental regulations, organizations are turning to energy-efficient lighting to reduce their carbon footprints. LaaS provides a ready-to-implement energy-saving lighting system without having to invest in traditional lighting solutions. So, it is contributing to the achievement of environmental goals for both businesses and municipalities while continuing to help them save energy-related costs and reduce maintenance.
• Increasing Retail Sector Adoption: LaaS is increasingly being adopted among retail businesses in the United States to effect energy savings and reduce operating expenses. With the importance of sustainability and energy management increasing, retailers seek to optimize lighting systems. LaaS offers a flexible and cost-effective way to manage lighting in stores, malls, and other retail environments. This feature of lighting adjustment according to customer traffic and store hours saves retailers from wasting energy while providing customers with an improved shopping experience, making LaaS attractive in the retail sector.
• AI in Lighting Systems: The use of AI in lighting systems is now a trend for intelligent, data-driven lighting solutions. In the United States, LaaS providers are incorporating AI to improve energy management, predict maintenance needs, and optimize lighting based on environmental factors such as occupancy and natural light. AI-driven systems can adjust lighting in real time to create more comfortable and energy-efficient environments. This development is driving growth in the LaaS market as businesses and municipalities seek more advanced, automated lighting solutions that improve operational efficiency and sustainability.
• Increased Investment in Energy-Efficient Infrastructure: The United States has seen significant investments in energy-efficient infrastructure, such as within public sectors and commercial buildings. LaaS has been pivotal to this shift: it has empowered organizations to modernize their lighting systems with far more energy-efficient alternatives without large capital outlays upfront. The increasing momentum behind sustainability and energy saving means LaaS service providers are turning their attention toward delivering low-cost, scalable solutions that will adapt to the ever-changing needs of municipalities, commercial spaces, and industrial facilities.

These developments are fueling the growth of the lighting-as-a-service market in the United States. From smart infrastructure to AI integration and demand for sustainable energy solutions, the market is transforming rapidly. As businesses, municipalities, and other sectors continue embracing these innovations, LaaS will play a crucial role in shaping the future of lighting across the country.

Strategic Growth Opportunities for Lighting-as-a-Service Market in United States

Opportunities within the US LaaS market, in terms of strategic growth prospects across key applications, are strong. As companies and municipalities shift to more sustainable lighting solutions that provide energy efficiency, LaaS is the platform that best matches these changing demands. The market is being led by technological innovations, the requirement for smart solutions, and an emphasis on sustainability and energy efficiency through regulatory standards. The LaaS market in the United States is expected to expand further in multiple sectors with a strong focus on flexibility, cost-effectiveness, and sustainability.

• Commercial Buildings: Commercial buildings are one of the biggest growth opportunities for the LaaS market in the United States. Businesses are adopting LaaS solutions to lower energy consumption, reduce operating costs, and enhance overall lighting quality. LaaS allows commercial properties to upgrade their lighting systems with the latest technologies, such as LEDs and sensors, without capital expenditures. This model ensures that businesses pay only for the lighting they use, thereby maximizing energy efficiency. With the increasing strictness of energy regulations, LaaS will be an attractive solution for commercial property managers to achieve sustainability goals.
• Municipalities and Smart City Projects: Municipalities around the United States are increasingly implementing smart city projects, ranging from smart streetlights to traffic management systems, environmental sensors, and more. LaaS plays a major role in this through energy-efficient, connected lighting solutions that may be controlled or adjusted based on real-time data. These smart systems provide savings in costs and energy consumption, improving urban infrastructure. With the increase in interest toward sustainability and innovation within cities, LaaS becomes a leading facilitator of the modernization of lighting infrastructure while being environmentally efficient and cutting down carbon emission levels.
• Industrial and Manufacturing Facilities: The industrial sector is seen as another strong growth area for LaaS. It includes high-power-consuming facilities, such as large factory structures and warehouse establishments, which can save energy significantly with efficient lighting consumption. By using smart sensors, occupancy controls, and automated systems, LaaS helps industrial facilities reduce energy consumption and improve workforce safety. Additionally, LaaS reduces the need for ongoing maintenance, which is particularly beneficial in facilities that operate around the clock. As manufacturers seek to optimize operations and lower costs, LaaS presents an appealing option for improving lighting systems.
• Retail Sector: The retail sector in the United States is rapidly adopting LaaS to improve energy efficiency, optimize lighting control, and enhance the customer experience. With increasing emphasis on sustainability, retail stores are looking for innovative ways to meet energy reduction goals while creating attractive environments for shoppers. LaaS allows retailers to harness advanced lighting technologies, such as smart LEDs and motion sensors, to create bespoke lighting experiences with controlled energy use. This pay-per-use, flexible model helps avoid upfront costs and offers an energy-efficient solution, making it highly attractive for retailers looking to upgrade their lighting systems.
• Healthcare Facilities: Healthcare facilities, including hospitals and clinics, are an important growth application for LaaS providers in the United States. Healthcare facilities have high standards, including energy-efficient, high-quality illumination, to strictly comply with regulatory requirements. LaaS allows healthcare facilities to adopt modern lighting systems with minimal upfront capital expenditures. This is possible by adjusting lights with occupancy and time of day, improving comfort for patients, lowering energy bills, and meeting healthcare-specific lighting regulations. The increasing demand for flexible, energy-efficient solutions drives the healthcare sector to adapt to LaaS.

These strategic growth opportunities represent the expanding role of Lighting-as-a-Service across different sectors within the United States. Energy-efficient, flexible, and cost-effective lighting solutions provided by LaaS are transforming how commercial buildings, municipalities, industrial facilities, retailers, and healthcare providers address their lighting needs. Sustainability, energy efficiency, and technological advancement will drive this market further; thus, these opportunities will shape the future of the LaaS industry across multiple applications.

Lighting-as-a-Service Market in United States Driver and Challenges

The United States LaaS market is being driven by significant factors and faces challenges across technological, economic, and regulatory issues. These elements are playing a role in shaping the rate of adoption of LaaS solutions across vertical markets. The driving factors and their associated challenges must be addressed with finesse to maximize the full potential of this market, while companies need to stay abreast of these changing factors to navigate this fast-moving LaaS market.

The factors responsible for driving the Lighting-as-a-Services market in the United States include:
• Cost Saving and Operational Efficiency: Cost savings and operational efficiency are the factors driving the growth of the LaaS market in the United States. Many organizations are seeking ways to reduce energy consumption, lower maintenance costs, and improve the overall performance of their lighting systems. LaaS provides a flexible, pay-per-use model that allows businesses to easily upgrade lighting without huge investments. Organizations can optimize energy usage through smart controls, reduce maintenance requirements, and shift from reactive to proactive management with LaaS. These benefits make LaaS extremely attractive to organizations looking to improve bottom-line efficiencies and operational performance.
• Pressures of Regulation for Energy Efficiency: The pressure of energy consumption regulations and sustainability requirements represent a significant stimulant for LaaS market growth in the United States. As energy consumption standards tighten, businesses and municipalities are demanding solutions that allow them to meet these standards while reducing their adverse environmental impact. Meeting these regulations is effectively achieved through LaaS, providing energy-efficient lighting solutions that reduce carbon emissions and sustain processes.
• Increasing Demand for Sustainability: The demand for sustainable solutions in the United States is on the rise in nearly all sectors. LaaS is in an excellent position to take advantage of this trend as awareness of climate change and related environmental issues continues to grow in the country. Businesses and municipalities are becoming more focused on sustainable operations. LaaS offers cost-effective implementation of energy-efficient lighting systems, a perfect fit for sustainability efforts. The ability to reduce energy consumption and carbon footprints while improving lighting performance makes LaaS appealing for organizations looking to build sustainability and enhance their public image.
• Shift Towards Smart and Connected Solutions: The shift toward smart and connected solutions is driving the adoption of LaaS in the United States. As more businesses and municipalities adopt smart city initiatives and digital transformation strategies, the demand for intelligent lighting systems is increasing. LaaS providers are integrating IoT-enabled systems that allow real-time monitoring, control, and optimization of lighting. Organizations can improve energy efficiency, enhance user experience, and create smarter, more responsive environments by connecting lighting systems to building management platforms. This trend is broadening the possible applications of LaaS in commercial, industrial, and municipal sectors.

Challenges in the Lighting-as-a-Services market in the United States are:
• High Initial Investment Costs: High initial investment costs associated with upgrading energy-efficient lighting systems are the most significant challenge for the LaaS market in the United States. While LaaS tends to reduce upfront costs by offering flexible pay-per-use models, some organizations face high costs in installing and upgrading infrastructure in certain industries. The financial constraints of upgrading lighting systems in some sectors may prevent complete adaptation to LaaS. This can be addressed if LaaS providers offer scalable or affordable solutions with better financial incentives for adoption.
• Regulatory and Compliance Challenges: There are also regulatory and compliance challenges that hinder the growth of the LaaS market in the United States. States and municipalities have different energy efficiency and sustainability standards, making it difficult for businesses to navigate the complex regulatory landscape. LaaS providers must ensure their solutions comply with local, state, and federal regulations, often requiring frequent product and service updates. This can complicate market entry and delay LaaS adoption, especially for smaller firms without the necessary resources to meet compliance demands.
• Lack of Awareness about LaaS Solutions: Another challenge affecting the market is the lack of awareness and understanding of LaaS solutions among potential consumers. Many businesses and municipalities remain unaware of the benefits or are reluctant to adopt new technologies if they perceive integration or operational disruption risks. LaaS providers must educate and engage customers, as a greater understanding of the long-term savings of energy-efficient lighting systems is crucial. Increasing awareness and demonstrating cost savings will be key to driving adoption.

Drivers and challenges are shaping the future of LaaS in the United States. In summary, there are numerous growth opportunities driven by technological advancements, cost savings, and regulatory pressures. Providers must overcome several entry barriers, including high initial costs, compliance issues, and lack of awareness among consumers, to fully unlock growth opportunities in this market.

List of Lighting-as-a-Service Market in United States 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 United States by Segment

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

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

• Commercial
• Industrial
• Municipal
• Others

Features of the Lighting-as-a-Service Market in United States

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