The Total Addressable Market for U.S. Bring Your Own Thermostat Demand Response Programs is $3 Billion, According to Navigant Research

Utilities must ensure interoperability with multiple thermostat brands and learn to work with vendors more as partners than contractors, report finds

BOULDER, Colo.--()--A recent slide-based report from Navigant Research analyzes the U.S. market for bring your own thermostat (BYOT) demand response (DR) programs, focusing on technology trends, utility rollouts, and the vendor landscape, with cost curve projections and adoption forecasts, through 2024.

BYOT refers to utility policies that allow customers to purchase their own device from multiple potential vendors but still participate in DR and other load-curtailing programs managed through the utility. With about 50,000 customers currently participating, plus drivers such as lower adoption cost, demand for customer choice, and improved synergies with dynamic pricing programs, BYOT programs have the potential to continue to grow. Click to tweet: According to a recent report from @NavigantRSRCH, the addressable customer base for BYOT DR programs is estimated to be 20 million, representing a $3 billion market.

“Utilities across the United States have been piloting BYOT DR programs since 2012, supplementing legacy direct install strategies that use pre-selected one-way thermostat models,” says Brett Feldman, senior research analyst at Navigant Research. “By taking advantage of two-way communicating smart thermostats, BYOT DR programs can help utilities reduce acquisition costs for load curtailment programs and improve customer satisfaction.”

Because today’s customers want more choice in the devices they use to participate in DR programs, it is no longer sustainable for utilities to offer only one thermostat model, according to the report. As numerous technology vendors develop user-friendly thermostats, utilities must ensure interoperability with multiple brands and learn to work with vendors more as partners than contractors to maintain solid system interaction and customer service.

The report, Bring Your Own Thermostat Demand Response, examines the BYOT DR market in the United States, with a focus on technology trends, customer adoption, utility rollouts, and the vendor landscape. Cost curve projections and adoption forecasts are provided through 2024, along with estimated customer distribution by U.S. state. Featuring Navigant Research’s Utility Technology Disruption Matrix and Execution Grid, the report also examines implications for traditional utility business models, highlights utility case studies, and offers strategic recommendations for industry stakeholders to position for long-term success. An Executive Summary of the report is available for free download on the Navigant Research website.

This report is part of a new Navigant Research series called Utility Technology Disruption, which highlights new technologies that can pose both threats and opportunities to utilities and provides insights into new business models for utilities to take advantage of these disruptions.

About Navigant Research

Navigant Research, the dedicated research arm of Navigant, provides market research and benchmarking services for rapidly changing and often highly regulated industries. In the energy sector, Navigant Research focuses on in-depth analysis and reporting about global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Energy Technologies, Utility Transformations, Transportation Efficiencies, and Buildings Innovations sectors. Additional information about Navigant Research can be found at www.navigantresearch.com.

About Navigant

Navigant Consulting, Inc. is a specialized, global professional services firm that helps clients take control of their future. Navigant’s professionals apply deep industry knowledge, substantive technical expertise, and an enterprising approach to help clients build, manage and/or protect their business interests. With a focus on markets and clients facing transformational change and significant regulatory or legal pressures, the Firm primarily serves clients in the healthcare, energy and financial services industries. Across a range of advisory, consulting, outsourcing, and technology/analytics services, Navigant’s practitioners bring sharp insight that pinpoints opportunities and delivers powerful results. More information about Navigant can be found at navigant.com.

* The information contained in this press release concerning the report, Bring Your Own Thermostat Demand Response, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.

Contacts

Navigant Research
Lindsay Funicello-Paul, +1-303-493-5477
lindsay.funicello.paul@navigant.com
or
Megan Maupin, +1-312-583-5703
megan.maupin@navigant.com

Release Summary

A recent slide-based report from Navigant Research analyzes the U.S. market for bring your own thermostat (BYOT) demand response (DR) programs, focusing on technology, utility rollouts, and vendors.

Contacts

Navigant Research
Lindsay Funicello-Paul, +1-303-493-5477
lindsay.funicello.paul@navigant.com
or
Megan Maupin, +1-312-583-5703
megan.maupin@navigant.com