Ceramic phosphors have high thermal conductivity and high thermal stability, showing great potential for use in laser lighting. However, it is difficult to further improve the forward efficiency in transmissive mode because of the arbitrarily emitting ceramic phosphors and light loss by secondary optical components. Here, an effective design of rod-shaped LuAG:Ce transparent ceramics was proposed, and the silicone encapsulated ceramic-based devices could operate stably under 3.5 W laser excitation, possessing a luminous efficiency of 150-180 lm/W, far exceeding the level of existing commercial transmissive mode. Besides, because of the gradual absorption of blue light and the gradient distribution of heat, the rod-shaped LuAG:Ce transparent ceramics could bear a power density of 46 W/mm2 without luminous saturation, and the thermal-induced luminous degradation only accounted for 7% under a 15 min operation. The ceramic-based laser lighting sources with low divergence angle (∼4°) and uniform spatial distribution were obtained. Our optimized transparent ceramic rod and encapsulation scheme provided a solution to improve the efficiency of a transmissive mode for laser lighting.