LaaS Industry - Regional Scope
APAC Market Forecast
The APAC lighting-as-a-service market is poised to dominate with a 38.7% revenue share throughout the forecast period. A significant driver of the APAC market is the large consumer base for LaaS solutions, ranging from the commercial to residential sectors. An industry analysis highlights a growing demand for scalable, subscription-based lighting solutions across industries. The region has experienced considerable urbanization in this decade, with the percentage expected to double by the end of 2037, creating sustained opportunities to supply LaaS solutions in construction projects.
The China LaaS market is poised to maintain its leading revenue share in APAC. The aggressive deployment of smart city projects in the country is a significant market driver. The New Infrastructure Initiative has prioritized IoT and green energy investments, driving the demand for LaaS in commercial and municipal sectors. Additionally, the push to reduce carbon emissions in China has led to a rising demand for smart lighting installations across multiple sectors. Major players such as Signify and Philips have capitalized on this trend to expand their LaaS contracts in the tier 1 and 2 cities of China and leverage the growing bid to improve infrastructure across the country.
North America Market Forecast
The North America lighting-as-a-service market is projected to expand at a 14.2% CAGR throughout the forecast timeline. The regional market is bolstered by the extensive retrofit opportunities in municipal and commercial buildings across the U.S. and Canada. Stringent regulations such as the International Energy Conservation Code (IECC) are pushing the application of IaaS solutions in the private and public sectors. A key segment with lucrative application potential is the large-scale events set to be organized in the region, for instance, FIFA World Cup 2026, which can create major opportunities for the proliferation of LaaS solutions.
The U.S. LaaS market accounts for the bulk of revenue share in North America, owing to rising demand in commercial buildings. For instance, in 2024, the U.S. DOE reported that around 19% of the country’s electricity was consumed by commercial buildings. Additionally, federal incentives encourage LaaS adoption to cut energy costs and reduce greenhouse gas emissions. Within the region, major players such as Cree Lighting have reported a more than 15% reduction in operational expenses for clients via LaaS offerings.
