Global Lighting-as-a-Service (LaaS) Market Size, Forecast, and Trend Highlights Over 2025-2037
Lighting-as-a-Service Market size was valued at USD 1.6 billion in 2024 and is poised to reach USD 10 billion by the end of 2037, expanding at a CAGR of 16.7% during the forecast timeline from 2025 to 2037. In 2025, the industry size of lighting-as-a-service is evaluated at USD 1.9 billion.
The LaaS supply chain is characterized by a multi-tiered network of raw material suppliers and service-level operators. Key upstream inputs include copper and aluminum for wiring and heat sinks. In 2023, the U.S. imports of unwrought aluminum reached USD 4.8 billion, while that of copper reached USD 3.2 billion, highlighting a YoY increase of 8.5% and 6.1% respectively. The assemblers are saturated in APAC, particularly in South Korea and China, and in Eastern Europe, leveraging proximity to semiconductor fabs. In terms of exports, the U.S. exported USD 1.1 billion of lighting fixtures in 2023, an increase of 4.7% from 2022, to leverage the rising demand from smart systems.
An analysis of the value chain indicates the Producer Price Index (PPI) for lighting equipment increased by 12.0% during the period from January 2022 to December 2024. The rise in PPI outpaced the overall increase in manufacturing of 7.7% over the same time period. Similarly, the Consumer Price Index (CPI) for household furnishing, including residential lighting, increased by 9.1%, reflecting higher component costs to end users.
A major indicator of the burgeoning IaaS market is the increase in public investment. For instance, in FY 2024, the U.S. DoE allocated USD 180 million towards R&D of solid-state lightning research. The investments are poised to improve the lifetime efficiency by over 25%. Another major public investment is via the Horizon Europe program, which has earmarked 120 million euros for smart-lighting pilots in urban testbeds. Additionally, as the LaaS model shifts CapEx into OpEx, service providers are investing in regional assembly hubs to mitigate the impact of supply chain bottlenecks. The favorable trends indicate a rising expansion of the LaaS market.
