Enabling Product Service Systems Through Technology: A Case of Circular Lighting in Office Buildings

Product Service System (PSS) has emerged as a promising circular business model in the construction industry transition towards a Circular Economy (CE). By shifting the responsibility of maintenance and end-of-life management to the manufacturer/supplier, a PSS model improves product utilization and delivers significant energy savings. One of the main application areas of this business model has been in the building lighting industry, known as Lighting-as-a-Service (LaaS), which offers benefits in terms of energy savings, product durability and reduced cost. In the CE transition, the role of technology has been a critical enabler, particularly through the integration of Industry 4.0 tools within the built environment. Despite this promise, technological enablers from a LaaS business model perspective remain unexplored. This study aims to fill this gap by investigating the key drivers behind successful LaaS implementation. Drawing on insights from 10 semi-structured interviews with senior managers of leading lighting companies, this study uncovers both current and emerging technological advancements essential to LaaS. These technologies include core lighting technologies including LED technology, power and transformer systems, integrated APIs, sensors, and lighting controls. Additionally, Industry 4.0 tools such as big data analytics, 3D Printing, cloud technology, Internet of Things, Artificial Intelligence as well as Building Management Systems were emphasized as essential enablers. The findings also inform future research by highlighting gaps in translating Industry 4.0 technologies into the lighting sector, potentially missing out on the full extent of Industry 4.0 transformation, slowing the transition to CE.