Both residential and commercial customers in the United States have been investing in Internet of Things (IoT) solutions to help manage energy costs and improve comfort and convenience. Utilities have largely focused on traditional demand-side management (DSM) program engagement with both customer segments to incentivize investment in specific technologies or behavior changes. IoT opens the door to deeper and ongoing relationships through devices, software, and services. Taking advantage of two-way communicating devices, data analytics, and services, IoT can help utilities transition into new ongoing advisory and managed services relationships to gain better insight into customer loads and improve customer satisfaction.
Navigant Research estimates that 70,000 customers will be in pilot-scale utility IoT engagements across the United States by 2020, representing an estimated $50 million market. The total addressable market for IoT across the country, meanwhile, is estimated to be 1.6 million customers, representing a $500 million market in 2020. A number of drivers such as cost containment, demand for customer choice, and improved synergies with existing DSM programs point toward the potential for IoT to help transform the relationship between utilities and their customers. IoT enables customers to manage their energy independent from their utility and will require a rethinking of current utility business models to capture market share in this broader demand management landscape.
This slide-based Navigant Research Utility Technology Disruption Report examines the IoT 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 2025, 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, features utility case studies, and offers strategic recommendations for industry stakeholders to position for long-term success.
Key Questions Addressed:
- What is the state of the Internet of Things (IoT) for residential and commercial buildings?
- What market drivers are motivating utility participation in the U.S. IoT market?
- What factors may inhibit utility IoT offerings in the United States?
- How quickly will IoT grow in various regions around the United States?
- Who are the major vendors in the IoT value chain?
- What are the potential threats and opportunities that IoT presents to utilities?
- What actions can utilities take to benefit from IoT adoption and avoid disruption to existing processes?
Who needs this report?
- Internet of Things (IoT) device vendors
- Intelligent building technology providers
- Demand-side management (DSM) program managers
- U.S. state regulatory agencies
- Investor community
Table of Contents
Cost vs. Demand
Opportunities & Threats
Utility Execution Grid
Scope of Study
List of Charts and Figures
- IoT Offering Maturity
- IoT Enablement by State: 2016
- IoT for Demand Management, Market Share by Region: 2016
- IoT Device Adoption: 2016
- IoT Buildings Addressable Market: 2020
- Illustrative IoT Device (Smart Thermostats) Shipments and Price Curves, United States: 2015-2024
- IoT Vendor Landscape
- Navigant Research Utility Disruption Matrix
- Navigant Research Utility Execution Grid: IoT
- IoT Business Model Attributes
- Utility Use Cases
- Traditional DSM Measures
- Utility IoT Managed Services
List of Tables
- Direct Energy’s Wireless Electricity Monitoring
- Pacific Gas & Electric’s BMW i ChargeForward Pilot Program
- Green Mountain Power’s eHome Program
- EnergyUnited’s GridPoint Energy Management Offering