The Total Addressable Market for U.S. Bring Your Own Thermostat Demand Response Programs is $3 Billion

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

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.

Contact: Lindsay Funicello-Paul


* The information contained in this press release concerning the report, Bring Your Own Thermostat Demand Responseis 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.

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