As per MRFR analysis, the US Lighting as a Service Market Size was estimated at 590.4 (USD Million) in 2023. The US Lighting as a Service Market Industry is expected to grow from 722.4(USD Million) in 2024 to 1,871 (USD Million) by 2035. The US Lighting as a Service Market CAGR (growth rate) is expected to be around 9.037% during the forecast period (2025 - 2035).
The US Lighting as a Service market is experiencing significant growth driven by several key factors. Organizations in the US are increasingly seeking energy-efficient solutions due to rising energy costs and stringent regulations aimed at reducing carbon emissions. This trend aligns with the government's commitment to sustainability, encouraging investments in smart technologies and renewable resources. Businesses look to Lighting as a Service not just as a cost-saving measure but also as a way to enhance their corporate responsibility standards. Opportunities also exist in the integration of smart lighting systems equipped with IoT technology, which allows for real-time monitoring and optimal energy usage.
This shift is prompting companies to move away from traditional ownership models to service-based approaches that provide greater flexibility and lower upfront costs. Moreover, the ongoing evolution of lighting technologies, such as LED advancements, plays a crucial role in making Lighting as a Service increasingly attractive to both commercial and residential sectors. In recent times, the trend of retrofitting existing infrastructure with advanced lighting solutions is gaining traction, spurred by both financial incentives and environmental considerations.
The growing awareness of the importance of proper lighting for health and productivity is also influencing choices within the market.As cities continue to prioritize smart urban planning and sustainability initiatives, the adoption of Lighting as a Service is poised to become a cornerstone of more energy-efficient and environmentally friendly communities across the US. This proactive approach to lighting highlights an ongoing commitment not just to innovation but also to creating a sustainable future in urban and rural environments alike.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
In the United States, there is a growing emphasis on energy efficiency, driven by both environmental concerns and economic benefits. According to the U.S. Energy Information Administration, the average annual electricity consumption for a U.S. residential utility customer in 2020 was about 877 kilowatt hours per month, highlighting the need for efficient lighting solutions. With initiatives from organizations like the U.S. Department of Energy advocating for energy-efficient technologies, the US Lighting as a Service Market Industry is witnessing increased adoption.
Companies such as Philips Lighting (now Signify) and General Electric are actively involved in developing intelligent lighting solutions that enhance energy savings, thus catering to this demand and boosting market growth dramatically. The trend towards energy efficiency is expected to support the market significantly, as more commercial and residential users seek to reduce utility costs and carbon footprints.
Government regulations play a pivotal role in shaping the US Lighting as a Service Market Industry. Recent policy changes, such as those promoted by the U.S. Environmental Protection Agency and various state governments, encourage the adoption of sustainable lighting solutions through tax incentives and rebates. For example, several states have introduced programs that provide financial assistance to businesses upgrading to energy-efficient lighting systems.This has led to increased investments in Lighting as a Service offerings, as organizations look to benefit from these incentives. Such policies are expected to drive significant market growth, translating to a higher adoption rate of modern lighting solutions.
Rapid technological advancements in lighting solutions are a critical driver for the US Lighting as a Service Market Industry. The integration of smart technologies, such as Internet of Things (IoT) and light-emitting diodes (LEDs), has transformed the landscape, allowing for sophisticated control systems and energy management. According to a report from the U.S. Department of Energy, LED lighting has become increasingly popular due to its efficiency and longevity, taking hold of over 60% of the commercial market.Companies like Cree and Osram are leading the charge with innovations that not only reduce energy consumption but also improve user experience. As these technologies become more accessible and cost-effective, they are expected to propel the market expansion further.
The increasing awareness of environmental sustainability is driving demand for environmentally friendly lighting solutions in the US Lighting as a Service Market Industry. According to surveys conducted by the Pew Research Center, a growing percentage of Americans are concerned about climate change and are willing to adopt green technologies, with over 70% expressing support for renewable energy sources. This cultural shift towards sustainability directly influences purchasing decisions, as consumers and businesses alike prioritize products that align with environmentally friendly practices.Consequently, companies such as Acuity Brands are innovating their offerings to meet this demand and are actively promoting their eco-friendly lighting solutions, contributing to the growth trajectory of the market.
The US Lighting as a Service Market, particularly within the Lighting Technology segment, has experienced notable advancements and evolution, with multiple technologies shaping the future of this industry. Lighting Technology encompasses various types including LED, Fluorescent, Incandescent, Smart Lighting, and Fiber Optics, each of which plays a critical role in the market landscape. LED technology is recognized for its energy efficiency and longevity, which has contributed to its dominant position as industries and consumers increasingly prioritize sustainability and cost savings.
Fluorescent lighting, while traditionally popular, has seen some decline with the rise of LEDs that consume less power and offer longer lifespans. Incandescent bulbs, once a staple in American households, are being phased out in many scenarios due to new regulations promoting more energy-efficient alternatives, showcasing the ongoing shift in consumer preferences towards eco-friendly options. Smart Lighting emerges as a significant trend, reflecting an increasing integration of internet-of-things (IoT) technologies. It allows users greater control and customization in how they manage lighting in homes and commercial spaces, including energy-saving capabilities and enhanced convenience. This technology is rapidly being adopted in the US, driven by the demand for smart home devices and energy-efficient solutions.
Fiber Optics, although a niche within the segment, offers unique lighting solutions that are gaining traction in specialized applications such as architectural illumination and theatrical environments, providing highly flexible and aesthetically appealing options.The growth drivers for these technologies are deeply intertwined with the US government's initiatives aiming for energy efficiency and reducing carbon footprints. Various incentives and rebates for energy-saving installations further enhance the market appeal of innovative lighting technologies. However, the segment faces challenges including the initial costs associated with newer technologies, consumer awareness, and resistance to change from traditional lighting methods.
Nevertheless, the increasing push towards sustainability and smart solutions presents numerous opportunities for the Lighting Technology segment within the US Lighting as a Service Market, positioning it favorably for continued expansion and innovation as industries adapt to modern requirements. The evolving preferences for advanced lighting solutions augment the importance of this segment, paving the way for substantial advancements in both technology and market adoption as consumers and organizations increasingly prioritize efficiency and sustainability.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The US Lighting as a Service Market, particularly in the Application segment, is experiencing notable growth driven by the demand for energy-efficient solutions across various settings. Indoor Lighting dominates this segment with its widespread utilization in commercial and residential spaces, contributing significantly to market dynamics. Conversely, Outdoor Lighting is emerging as a vital part of urban development strategies, enhancing safety and security while promoting energy conservation. Street Lighting continues to play a critical role in public safety and accessibility, with many municipalities actively adopting smart lighting technologies to improve their infrastructure.
Architectural Lighting offers creative solutions that enhance aesthetics and functionality in both public and private buildings, underscoring its importance in design and architecture. Industrial Lighting is essential for optimizing work environments to ensure safety and productivity in manufacturing and warehousing activities. As municipalities and businesses turn towards sustainable solutions, the demand for advanced Lighting as a Service options across these applications is expected to grow consistently, responding to the need for innovation, cost efficiency, and environmental impact reduction.
The End Use segment of the US Lighting as a Service Market encompasses various applications, including residential, commercial, industrial, and institutional uses, each holding significant importance within the overall market landscape. The residential segment is pivotal, driven by a growing emphasis on energy efficiency and smart home innovations, which enhance consumer interest in sustainable lighting solutions. The commercial sector dominates, as businesses increasingly recognize the cost-saving benefits of leasing lighting solutions while maintaining operational efficiency.In the industrial realm, Lighting as a Service supports advancements in technology and eco-friendly practices, contributing to enhanced productivity and safety in manufacturing environments.
The institutional segment, including schools and hospitals, plays a crucial role by prioritizing long-term energy savings, improved lighting quality, and maintenance reductions. These segments reflect broader trends in sustainability, energy management, and technological integration, indicating strong growth potential and significant opportunities in the US Lighting as a Service Market.The increasing focus on smart lighting systems and the desire to reduce carbon footprints further drive demand, promoting a shift towards more innovative and economically viable lighting solutions across these end uses.
The US Lighting as a Service Market, focused on the Service Type segment, encompasses critical services such as Installation, Maintenance, Monitoring, and Upgradation. The Installation service is crucial as it ensures not only the proper setup of lighting systems but also compliance with local regulations and energy efficiency standards, greatly impacting overall market growth. Maintenance services play a significant role in ensuring longevity and performance, minimizing downtime and operational costs for businesses. Monitoring services are increasingly relevant in the contemporary market, providing real-time data analytics that help optimize energy consumption and enhance customer satisfaction.
Upgradation services, which focus on keeping lighting systems current with the latest technologies, are vital in a market that is rapidly evolving towards energy-efficient solutions. As businesses and consumers alike seek sustainable and cost-effective options, these services contribute to a dynamic market landscape that responds to the growing demand for reliable and innovative lighting solutions in urban environments across the US. Factors such as rising energy costs and stringent government regulations around energy efficiency continue to drive demand and innovation in these service areas, indicating a robust future for the US Lighting as a Service Market.
The US Lighting as a Service market is characterized by an increasing shift toward energy-efficient, flexible, and adaptive lighting solutions that are transforming how businesses and consumers utilize lighting in their environments. This market is becoming highly competitive as various providers and technology innovators enter the space, offering distinct services that range from lighting retrofits to intelligent lighting systems integrated with IoT capabilities. Companies within this sector are racing to establish a strong foothold, focusing on enhancing customer value through innovative pricing models, energy savings, and sustainable practices.
As demand grows for more customized and integrated lighting solutions across commercial, industrial, and residential segments, understanding the competitive landscape is crucial for stakeholders looking to capitalize on emerging opportunities in the market.Signify has established a significant presence in the US Lighting as a Service market by leveraging its extensive portfolio of smart lighting products and technologies. The company is recognized for its commitment to innovation, driving advancements in connected lighting systems that cater to various customer needs. Signify’s strengths lie in its strong brand reputation, technological expertise, and dedication to sustainability.
The company emphasizes providing adaptable lighting solutions that not only optimize energy consumption but also enhance the overall user experience. With a focus on partnership and collaboration, Signify consistently seeks to expand its market reach by engaging with businesses looking to modernize their lighting infrastructure and adopt energy-efficient practices.Royal Philips plays a vital role in the US Lighting as a Service market, where it is known for its diverse range of lighting solutions that support both public and private sector clients. The company focuses on offering innovative key products and services, such as LED lighting systems and smart lighting controls that integrate seamlessly into existing infrastructures.
Royal Philips stands out due to its comprehensive approach that combines advanced technology with sustainable design principles, thus setting it apart in a competitive landscape. The company has a strong market presence, backed by a history of successful mergers and acquisitions that have enabled it to broaden its product offerings and enhance its technological capabilities. Royal Philips continuously seeks to establish itself as a leader in energy-efficient solutions, pushing the boundaries of what is possible in the lighting sector while addressing evolving consumer preferences and regulatory standards across the US.
Recent developments in the US Lighting as a Service Market have shown significant growth, particularly as sustainability initiatives gain traction. Companies like Signify, Royal Philips, Eaton, and Acuity Brands are actively expanding their service portfolios to meet increasing consumer demand for energy-efficient solutions. In January 2023, Schneider Electric announced its acquisition of certain assets from General Electric's lighting division, enhancing its capabilities in the Lighting as a Service segment and increasing operational efficiency. Additionally, in March 2022, Cree launched new innovative lighting technologies that cater to smart buildings, embracing Internet of Things (IoT) applications. This trend towards integrating advanced technology within lighting systems underscores the evolving landscape where companies aim to provide flexible financing models to their customers. The market's valuation has also seen upward momentum, influenced by favorable government policies promoting energy-efficient practices and investments in infrastructure, with the US government aiming to achieve net-zero emissions by 2050. Overall, the US Lighting as a Service Market reflects a dynamic industry responding to technological advancements and economic pressures while aligning with broader environmental goals.
Report Scope:
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2018 | 590.4(USD Million) |
| MARKET SIZE 2024 | 722.4(USD Million) |
| MARKET SIZE 2035 | 1871.0(USD Million) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 9.037% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Million |
| KEY COMPANIES PROFILED | Signify, Royal Philips, Eaton, Enel X, Acuity Brands, Leviton, Osram Licht, LEDVANCE, Current, Schneider Electric, Cimco, Cree, Philips Lighting, General Electric, Lumiere |
| SEGMENTS COVERED | Lighting Technology, Application, End Use, Service Type |
| KEY MARKET OPPORTUNITIES | Energy efficiency initiatives, Rapid urbanization trends, Growing demand for smart lighting, Increased focus on sustainability, Expanding commercial sector applications |
| KEY MARKET DYNAMICS | Energy efficiency regulations, Rising demand for smart lighting, Cost savings for businesses, Sustainability and environmental concerns, Technological advancements in lighting |
| COUNTRIES COVERED | US |
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