WASHINGTON, March 9, 2016 - The total revenue for the U.S. advanced energy market hit $200 billion in 2015, according to Advanced Energy Economy’s Advanced Energy Now 2016 Market Report. According to AEE, the 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.”
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, the company says.
According to the report, growth in the U.S. advanced energy market was affected by persistent low oil prices in 2015, as ethanol pricing is highly correlated with oil prices. So, while production increased slightly from 14.3 to 14.7 billion gallons, ethanol revenue dropped 33 percent, from $40.9 billion to $27.3 billion, says AEE. 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, the report says.
“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.
Specific U.S. market findings include:
- Building efficiency represented 30 percent of total U.S. advanced energy revenue in 2015. It 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, experiencing 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 to $8.2 billion in revenue.
- Gas turbine revenue was up 14 percent, to $10.5 billion.
- 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 (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 (PEV) still continued to grow, reaching $4.9 billion in 2015 – seven times the 2011 revenue for PEVs.
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