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What we’re clearly seeing and hearing right now is that there is a uniquely strong opportunity for lighting luminaire and lamp OEMs to enter the Smart Building Control market with their own IoT-based lighting control solutions.

The latest data shows that the Smart Lighting Control market is poised to grow by over 35% to $3.7 billion in revenue by 2020.

Perhaps by partnering with a software-as-a-service (SaaS) and data analytics firm, you begin offering a subscription based service for optimizing energy efficiency and cost-savings. The sensors from your installed SLC solution provide real-time usage data of and when people are in or out of the building, combined with data on existing sunlight levels. The solution then consistently and automatically adjusts luminaire brightness levels in the building to achieve the lowest energy usage without sacrificing productivity.

Most of the management of the system is done remotely over the web and through mobile devices, enabling you to offer the service nationally or even internationally. In this example, perhaps an end-customer pays you a monthly subscription of $10, for a total of $120 annually. In return, they save $160 in energy costs each year, so the solution pays for itself.  If you were to win 1,000 such contracts, you’d have added $120,000 in highly profitable software revenue that recurs annually.

You add recurring revenue, they reduce costs, everybody wins.

This is just one example of the infinite types of subscription-based revenue opportunities that SLC can usher in.