Lighting as a service

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Lighting as a Service (LaaS) , also known as Light as a Service, describes a service model in business that includes the rental of lighting and services in the areas of lighting planning, product selection, project management, assembly, retrofitting and maintenance on the basis of a subscription. External service providers take on all associated tasks and lighting services.

LaaS services are often used for the installation of LED lighting systems in commercial and government facilities and primarily pursue the goal of reducing investment costs. In addition, the concept of renting light is becoming more and more important nowadays, as lighting planning is no longer just about the lighting itself, but aspects such as safety and health in the workplace, environmental friendliness, energy consumption and product life. Buildings that are equipped with costly and consumption-intensive lighting systems can be operated more economically by retrofitting to LED lights and the services associated with LaaS, such as the integration of artificial, intelligent lighting systems as well as daylight and shading mechanisms.

In German-speaking countries, the term “light as a service” or “light for rent” is used alongside the translation “light as a service”.

principle

"As a Service" strategies - also known as XaaS (Everything / Anything as a Service) are a form of outsourcing that is established in various markets without initial investment or acquisition. X can represent a product, service or a complex service package. Relevant details such as service description, financing and duration are defined and stipulated in the form of contracts. Examples are SaaS (Software as a Service) or PaaS (Platform as a Service).

development

For some years now, the trend on the lighting market has been developing energy-saving lighting technology, such as LED products, over conventional lighting systems. As a result of this development, the LaaS rental model was born. The system is preferably used in industrial companies which, with the help of light control systems and the Internet of Things, enable liquidity-saving retrofitting without investing and reducing the greenhouse gas CO 2 .

The concept of marketing light as a service was brought to life in the joint project “Pay per Lux” by the architect Thomas Rau and the Philips company . The user is only charged for the amount of light actually used. The idea arose when Thomas Rau set up his architecture office in Amsterdam. Instead of buying lighting products, he asked Philips to equip his office with LED lights that use sensors and control systems to regulate energy consumption. Philips retained ownership of the products. This is how the business model known today as Lighting as a Service developed.

Light as a service offerings include indoor and outdoor lighting services. The demand market is largely made up of customers in the commercial, municipal or commercial sectors. The offer includes equipment with economically efficient lighting options as well as other related services such as project planning, product delivery, installation and maintenance.

Financing models

The following types of financing are possible: rental , leasing , contracting and leasing .

advantages

Nowadays, companies have to face the challenges of our time, such as climate change, digital transformation and the energy transition. This is often associated with high costs, especially with regard to lighting, especially because LED technology is not cheap. Renting the finished product light enables companies to convert without investment. By outsourcing all services associated with a retrofit to a specialist, there is less capital commitment when subscribing to a LaaS offer. The funds freed up as a result can be used, for example, to promote research and development projects, to optimize products and processes and to improve corporate liquidity. In addition, LaaS providers generally work with modern lighting solutions, such as LED technology. Its advantages, such as better light, reduced power consumption and energy costs, as well as significantly lower CO 2 emissions, can be used by service users without investing or tying up capital. A switch to energy-efficient LED lighting technology is also advantageous with regard to occupational safety and the health aspect of all employees. As the owner of the lighting systems, the LaaS provider is responsible for the control and maintenance of the lighting systems, including replacement services and the correct handling of recycling aspects. Remote maintenance and monitoring systems can be used for this.

disadvantage

The service recipient does not acquire any material value through the LaaS subscription, as the luminaires are returned to the service provider after the end of the contract. As a rule, the contract terms in the capital goods sector are long and under certain circumstances offer the service recipient little flexibility to react to changed conditions in the company or on the market. A termination during the contract period is often not possible.

Individual evidence

  1. Baunetz Knowledge: Light as a Service-LaaS. accessed on July 25, 2020
  2. baulinks.de: Deutsche Lichtmiete and Zumtobel agree on cooperation: focus on new application segments accessed on August 8, 2020
  3. Material flow : Experts predict strong growth for Light as a Service. accessed on August 8, 2020
  4. Ruairí O'Brien : Lighting planning: current trends and what you should always know In: Deutsches Architektenblatt , accessed on August 10, 2020
  5. Christoph Fehling, Frank Leymann: Everything as a Service (EaaS) In: Gabler WIrtschaftlexikon , accessed on August 8, 2020
  6. Porsche Consulting: Smart Building as a Business , accessed on August 8, 2020
  7. Persistence Market Research: Lighting as a Service (LaaS) Market: Global Industry Analysis and Forecast 2017-2025. accessed on July 25, 2020
  8. Kerstin Schweighöfer: Building with Vision In: goethe.de , accessed on August 9, 2020
  9. Christian Rabhansl: Only rent everything and no longer buy it? In: deutschlandfunkkultur.de , accessed on August 9, 2020
  10. Peter Lacy, Jakob Rutqvist, Philipp Buddemeier: Value creation instead of waste: The future belongs to the circular economy. Redline Verlag, Munich 2015
  11. Architekturzeitung: Light for Rent or Light as a Service (LaaS) August 2, 2020, accessed on August 6, 2020
  12. Allgemeine Bauzeitung: Lease LED instead of buy: Special model on offer. July 19, 2019, accessed August 6, 2020
  13. Inpact Mediaverlag: The smart way to optimal light. October 2019, accessed July 26, 2020