For many lighting applications, light-emitting diodes (LEDs) are replacing traditional light sources providing the possibility for smart and efficient systems as well as a reduction in the product weight. A next step in this development is the integration of laser-based light sources to increase luminance and to further scale down the optics possibly leading to a reduction of necessary resources. This article reviews the possibilities and challenges arising from the use of laser diodes especially compared to current high-power LED systems in terms of efficiency, color-rendering properties, and thermal management. © 2014 Thoss Media and De Gruyter.