What’s larger, worldwide, than the market for apparel and fashion, and nearly four times the size of semiconductor manufacturing? What’s bigger in the United States than the airline industry, as big as pharmaceutical manufacturing, and catching up to consumer electronics? Advanced energy, that’s what.
Revenue from the sale of advanced energy technologies, products, and services totaled nearly $1.3 trillion globally in 2014, and $200 billion in the U.S. Those are the topline findings of the Advanced Energy Now 2015 Market Report, AEE’s third annual report on the size of advanced energy markets in the U.S. and around the world. But they are by no means the end of the advanced energy growth story.
Prepared for AEE by Navigant Research, the Advanced Energy Now 2015 Market Report contains four years of revenue data on the seven segments, more than 40 subsegments, and dozens of specific products and services that make up the advanced energy marketplace.
The 2015 Market Report shows global revenue growth of 12% from 2013 to 2014, the largest year-over-year increase since Navigant started tracking the advanced energy market for AEE in 2011. The U.S. advanced energy market grew 14% year over year, five times as fast as the national economy overall.
“This report shows that advanced energy is a vibrant industry that is driving economic growth,” said AEE CEO Graham Richard, in a press release announcing the report. “Across the country and around the world, advanced energy companies are delivering technologies and services that make the energy we use secure, clean, and affordable. AEE is committed to bringing together business leaders and policy makers to accelerate the progress of this industry.”
Here is a sampling of the progress we saw in 2014:
- The wind industry bounced back to $8.2 billion in 2014 (from $2.1 billion in 2013), with a full pipeline of projects in the works for 2015 – 12 GW, nearly as much as the industry installed in the banner year of 2012.
- Dynamic growth in solar PV continues – up 39% last year, to $22.5 billion, nearly triple 2011 revenue of $8.2 billion.
- A surge in sales of natural gas turbines, up 48% – the first time in our tracking that we’ve seen the natural gas revolution translate into sales of equipment for natural gas power plants.
- Building Efficiency is now the biggest advanced energy segment in the U.S. – $60 billion dollars. That industry segment has grown 43% over four years.
- In transportation, U.S. revenue was up 34% for plug-in electric vehicles, while light duty and heavy duty natural gas-powered vehicles both jumped 26%. Electric Vehicle Charging Infrastructure was up 31% to $201.5 million, a seven-fold increase over four years.
Plug-in Electric Vehicles
In addition to the most comprehensive market data ever compiled, AEE’s 2015 Market Report contains 17 feature articles on significant trends and developments shaping advanced energy markets now and in the future. These range from “smart parking” systems and biofuels for specialized markets and emerging economies to distributed generation and energy storage. These stories will be posted here on Advanced Energy Perspectives on a weekly basis starting next Monday. But if you can’t wait, download the full Advanced Energy Now 2015 Market Report now!