Advanced energy hits record revenue at nearly $1.4 trillion
This marked 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.
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.
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. ■