Report: Advanced Energy Hits Record Revenue at Nearly $1.4 Trillion – Grew 8%, More Than 3X Overall Global Economy in 2015
- In 2015, global advanced energy was twice as big as the airline industry, bigger than apparel/fashion and approaching worldwide spending on media and entertainment.
- At $200 billion in revenue, the U.S. advanced energy market is more than double the nation’s beer market, larger than pharmaceutical manufacturing, and close to wholesale consumer electronics.
[Washington, D.C., March 3, 2016, 10 a.m. ET] – Today, the business group Advanced Energy Economy announced that total revenue for global advanced energy was a record $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. 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, 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.
These findings, along with details by market segment, are found in the annual Advanced Energy Now 2016 Market Report produced by Navigant Research for AEE. The 2016 edition includes global and U.S. revenue for the industry annually from 2011 to 2015, showing powerful growth over the five-year period.
“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. AEE and its business members are committed to accelerating this progress by working with state and federal policymakers, as well as the customers who are demanding advanced energy options.”
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.
Specific U.S. market findings were:
- 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.
- Electricity Generation was the second largest advanced energy segment, at $52.3 billion in 2015, and also experienced the second largest year-on-year growth, at 18 percent.
- Solar PV was up 21 percent, to $22.6 billion. Revenue from solar PV nearly tripled since 2011.
- Wind was up 75 percent, reaching revenue of $8.2 billion.
- Gas turbine revenue was up 14 percent, to $10.5 billion, in 2015.
- Following global trends, U.S. Electricity Delivery and Management experienced the largest year-over-year growth, 24 percent, reaching $18.2 billion in 2015, led by Transmission.
- Reductions were seen in Fuel Delivery (down 31 percent), Transportation (down 9 percent), and Fuel Production, which was down 28 percent, primarily due to lower prices for ethanol, which track gasoline prices. Sales of hybrid vehicles were also impacted by low gasoline prices, while revenue from Plug-in Electric Vehicles still continued to grow, reaching $4.9 billion in 2015 – seven times 2011 revenue for PEVs.
“Energy storage installations more than doubled in the U.S. last year and the sector is poised to hit 10 GW by 2020 globally,” said Kiran Kumaraswamy, Market Development Director, AES Storage. “We expect that energy storage will grow faster than renewable generation as it can act as an alternative for not only peaking generation but also for traditional transmission and distribution investments.”
“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. “We continue to invest in increased efficiencies and innovation in these areas to create value for our customers, who ultimately benefit from reduced operating and energy costs while contributing to overall grid reliability.”
“We are seeing market growth in building energy efficiency, but also the tremendous benefit to millions of customers around the world,” said Rick Counihan, Head of Energy Regulatory and Government Affairs, Nest Labs. “To date, Nest-equipped homes have saved their residents 4 billion kilowatt-hours of energy compared to what they would have with thermostats left at a consistent temperature.”
“There has never been a better time for cost-competitive solar power,” said Howard Wenger, President, Business Units, of SunPower. “Strong worldwide demand for distributed generation and large scale solar power is being driven by innovative technologies delivering proven value, and by the global imperative to reverse climate change.”
“Our company is experiencing first-hand the growth trajectory described in this report, and these results drive home the point that wind and advanced energy are cost-effective solutions that makes business sense” said Chris Brown, President, Vestas Americas. “We are seeing more markets opening up as wind offers competitive pricing and the opportunity to diversify our energy portfolio.”
Check out the Advanced Energy Now 2016 Market Report Press Conference featuring:
- Jon Chase, VP, Public Affairs, Vestas Americas
- Rick Counihan, Head of Energy Regulatory & Government Affairs, Nest Labs
- Kiran Kumaraswamy, Market Development Director, AES Storage
- Terrill Laughton, Vice President & General Manager, Integrated Demand Resources,Johnson Controls
- Tom Starrs, VP, Market Development & Policy, SunPower
- Malcolm Woolf, SVP, Policy & Government Affairs, AEE
About Advanced Energy Economy
Advanced Energy Economy is a national association of businesses that are making the energy we use secure, clean, and affordable. Advanced energy encompasses a broad range of products and services that constitute the best available technologies for meeting energy needs today and tomorrow. AEE’s mission is to transform public policy to enable rapid growth of advanced energy businesses. AEE and its State and Regional Partner organizations are active in 26 states across the country, representing more than 1,000 companies and organizations in the advanced energy industry. Visit AEE online at www.aee.net
About Navigant Research
Navigant Research, a part of Navigant Consulting’s Energy Practice, is a market research and advisory group that provides in-depth analysis of global clean technology markets with a specific focus on the commercialization and market growth opportunities for emerging energy technologies. Our client base includes Fortune 1000 multinational technology and energy companies, government agencies, utilities, investors, industry associations, and clean technology pure plays. We provide these companies with market research reports, custom research engagements, and subscription-based research services. Navigant is focused across four research programs: Energy Technologies, Utility Transformations, Transportation Efficiencies, and Building Innovations. Additional information about Navigant Research can be found at www.navigantresearch.com.
- Advanced Energy Now 2016 Market Report and Highlights here.
- Data Chart Images for download here.
- This Is Advanced Energy, directory of 52 technologies, here.
- See the Market Report Press Conference featuring industry leaders here.