Bigger than beer and closing in on consumer tech: advanced energy is hotter than you think
Total revenue for global advanced energy set a record at $1.4 trillion in 2015, making the industry twice as big as the airline industry, bigger than apparel/fashion, and approaching worldwide spending on media and entertainment.
That is according to new research conducted by Navigant
Research for the business group Advanced Energy Economy (AEE),
who also reported the U.S. advanced energy market hit $200
billion -- nearly double the nation's beer market, larger than
pharmaceutical manufacturing, and closing in on wholesale
consumer electronics.
In 2015, advanced energy revenue grew 8 percent worldwide over
2014, according to AEE -- more than three times the rate of the
global economy overall; U.S. advanced energy revenue grew 1
percent over 2014.
Growth in the U.S. advanced energy market was impacted by
persistent low oil prices in 2015. Ethanol pricing is highly
correlated with oil prices. So, while production increased
slightly, from 14.3 to 14.7 billion gallons as the federal
Renewable Fuel Standard was fulfilled, ethanol revenue dropped
33 percent, from $40.9 billion to $27.3 billion. Without
counting ethanol, the U.S. advanced energy market grew at a 10
percent rate in 2015, or four times the growth of U.S. GDP.
"Advanced energy has made stunning progress over the past five years, reaching new heights both globally and in the U.S.," said Graham Richard, CEO of AEE. "This vital industry is making the energy we use more secure, clean, and affordable, while creating economic growth."
The report shows that 2015 global advanced energy revenue was 17 percent higher than 2011. The U.S. advanced energy market grew 29 percent since 2011.
Further, representing 30 percent of total U.S. advanced energy revenue in 2015, building efficiency led all segments for the second year in a row, reaching $63.6 billion, up nearly 11 percent over 2014, and 50 percent over 2011. This industry segment accounts for improved building envelope, appliance and electronics, and lighting as well as managing energy use with demand response and enabling information technologies.
"The report's findings closely reflect the significant growth opportunities we see in building efficiency as well as demand response, microgrids and distributed energy storage," said Terrill Laughton, vice president and general manager, Integrated Demand Resources, Johnson Controls.
Electricity generation was the second largest advanced energy segment, at $52.3 billion in 2015, and experienced the second largest year-on-year growth, at 18 percent.
Solar PV was up 21 percent, to $22.6 billion, nearly tripling since 2011 while wind was up 75 percent, reaching revenue of $8.2 billion.
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report
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