Market transformation (MT) is a proven strategic process of intervening in a market to create lasting change. In the context of CalMTA’s work, these changes work to deliver cost-effective energy efficiency and support California’s other goals on greenhouse-gas (GHG) reduction, workforce development, and equity.
The purpose of market transformation programs is to accelerate diffusion — or market share — of the desired energy-efficient technology or practice. Diffusion is the process by which market adoption spreads over time across consumer groups of innovators and early adopters to a tipping point of acceptance (see graph above).
By reducing barriers to the adoption of specific energy-efficient technologies or practices and capitalizing on market opportunities, a market transformation approach can yield measurable benefits that remain long after active market interventions have ended.