WASHINGTON, March 7, 2017 /PRNewswire-USNewswire/ -- Today,
national business group Advanced Energy Economy (AEE) released the
latest industry data that shows advanced energy is a
$200 billion industry in
the United States and
$1.4 trillion worldwide. To
put this in perspective, U.S. advanced energy revenue for 2016 is
nearly double beer sales, equal to domestic pharmaceutical
manufacturing, and approaching wholesale consumer electronics.
Global revenue is almost twice the size of the global airline
industry, and nearly equal to worldwide apparel
revenue.
These are the top findings of the Advanced Energy Now 2017
Market Report, prepared by Navigant Research for AEE. The
report includes global and U.S. revenue for the industry annually
from 2011 to 2016, with data broken down by seven segments covering
both supply and demand and 42 subsegments, representing over 100
specific product and service categories. The 2017 Market Report is
available for download here.
In 2016, strong growth in U.S. power generation and
energy management technologies offset a sharp decline in
fuels, especially ethanol, for growth of 1 percent overall, to
$199.2 billion. As in 2015,
growth in the U.S. advanced energy market was impacted by
persistent low oil prices. Ethanol pricing is highly correlated
with oil prices, as well as prices for corn feedstock, which were
also low in 2016. While production remained steady, ethanol revenue
dropped 24 percent, from $27.3 billion to
$20.6 billion. Without counting ethanol, the U.S.
advanced energy market grew 5 percent in 2016, three times the
growth of U.S. GDP (1.6 percent).
Globally, 14 percent growth in products and services that
make buildings more energy efficient led to overall revenue
growth of 7 percent, double the 3.1 percent growth of the global
economy, to a total of $1.4
trillion.
"Over the past six years, the U.S. advanced energy market has
grown a stunning 28 percent, with significant economic impact, now
supporting more than 3 million jobs across the nation,"
said Graham Richard, Chief
Executive Officer, Advanced Energy Economy. "AEE and our
business members are committed to accelerating this business
opportunity by working with state and federal policymakers, and
with major corporate customers who are demanding advanced energy
options for their operations."
Specific U.S. market findings:
- Overall growth of 8 percent in Building
Efficiency products and services was led by energy efficient
lighting and commercial building retrofits, both up 7
percent, reaching $26.4 billion
and $8.4 billion, respectively. The
largest segment of the U.S. advanced energy market, Building
Efficiency revenue grew by more than $5
billion in 2016, to a total of $68.8
billion.
- Every single product category in Building Efficiency
experienced growth over 2015.
- Power generation technologies were up 5% in revenue, led by
solar, which capped off five years of growth with a 30
percent surge, a $5.7 billion
increase to $24.9 billion, in
2016.
- Wind revenue was relatively steady at $14.1 billion – a welcome change from the
boom-and-bust pattern associated with the on-again, off-again
federal Production Tax Credit (PTC) earlier in the decade. With a
five-year extension and phase-out of the PTC on the books, the
development pipeline shows installations of between 8 and 9
gigawatts (GW) of wind capacity annually from 2015 through
2018.
- Sales of fuel cells for onsite power jumped 21
percent, to $374 million.
- Energy storage also had another big year, with revenue
jumping 54 percent, to $427 million
in the U.S.
- In transportation, sales of clean diesel vehicles were
down sharply, dropping 45 percent for a decline of
$2.7 billion in revenue, likely the
result of Volkswagen's emissions violations.
- Revenue from plug-in electric vehicles (PEV) rose nearly
as much as clean diesel revenue fell – up $2.5 billion – for an increase of 48
percent. PEV revenue has grown tenfold over five years, from
$700 million in 2011 to $7.8 billion in 2016, as these all-electric
alternatives to gasoline power catch on in the marketplace. Under
pressure from low gasoline prices, hybrid electric vehicles
saw revenue fall for the third straight year, dropping 11 percent,
to $8.9 billion. If this trend
continues, revenue from PEVs may surge past hybrid vehicles this
year.
- Investment in charging infrastructure for PEVs continues
to increase as well, with revenue from charging stations surging
11 percent, to $182 million, up
nearly 600 percent since 2011.
- Under price pressure from low prices of both oil and corn
stock, revenue from ethanol fuel fell nearly $7 billion, or 24%, despite steady production
levels. For the second year in a row, declines in ethanol revenue
counterbalanced nearly all the growth in other advanced energy
market segments. Revenue from ethanol sales has dropped by half
from its 2012 peak of $40 billion,
while investments in ethanol refineries have fallen from
$1.9 billion in 2014 to zero in
2016.
"The AEE Market Report demonstrates growth in innovation,
reduction in the cost of advanced energy, and investment in U.S.
manufacturing and supply chains," said Paul Kaleta, AEE Board member and Chief Legal
Counsel for First Solar, Inc (Nasdaq: FSLR).
"Electric generation and delivery markets are experiencing a period
of rapid change. First Solar is proud to engage with AEE and
our utility and commercial customers to promote an energy
transition that fulfills the promise of reliable, affordable and
clean electric power."
"This latest advanced energy market report confirms the
continued growth and opportunity we are seeing firsthand in our key
business units for energy management and automation,"
said Kevin Self, SVP
Strategy, Business Development & Government Relations, for
Schneider Electric (Paris Stock Exchange: SU.PA) and AEE
Board member. "Our customers also see the real benefits of
integrating the latest technologies, like energy storage and energy
management systems, in managing their buildings, grids, industrial
processes and data centers–all while improving safety,
reliability, and sustainability of their operations."
"We see a growth market in providing energy programs and
demand-side management strategies for our utility clients, as well
as institutional, commercial, and industrial organizations,"
said Aziz Virani, AEE Board
Member and Chief Executive Officer and President of
CLEAResult."What we hear from our nearly 3,000 employees
across the U.S. and Canada is that
when you help people change the way they use energy, improve
building and operations efficiency, and reduce energy bills, you
also improve the customer experience."
In addition to revenue data and analysis, the Advanced Energy
Now 2017 Market Report contains 17 stories of key trends
shaping the current and future advanced energy market, both
domestic and global. Among these is the burgeoning trend of direct
corporate purchasing of renewable energy, with technology companies
like Microsoft, Apple, Amazon, and Salesforce taking the lead to
power their data centers with advanced energy.
"Investing in clean energy helps us operate more sustainably and
makes good business sense, especially as we continue to build a
cloud for global good," said Dan'l Lewin, Corporate Vice
President of Technology and Civic Engagement, Microsoft
(Nasdaq: MSFT) and AEE Board member. "And as today's report
confirms, these investments also create new jobs, support American
businesses and help local and national economies. We're pleased to
play a part in supporting this important and growing industry
sector."
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 27 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.
Background Materials:
Full
Report: http://info.aee.net/aen-2017-market-report
Data Charts:
- Global Growth Rate,
2016: http://info.aee.net/hubfs/AEN-2017/world-economy.png
- U.S. Growth Rate (with and without Ethanol),
2016: http://info.aee.net/hubfs/AEN-2017/us-economy-sans-ethonal.png
- Global Revenue by Industry,
2016: http://info.aee.net/hubfs/AEN-2017/airlines-apparel-media.png
- U.S. Revenue by Industry,
2016: http://info.aee.net/hubfs/AEN-2017/beer-pharma-electronics.png
- U.S. Solar PV
Revenue: http://info.aee.net/hubfs/AEN-2017/us-solar.png
- U.S. Wind
Revenue: http://info.aee.net/hubfs/AEN-2017/us-wind.png
- U.S. Plug-in Electric
Vehicles: http://info.aee.net/hubfs/AEN-2017/plug-in-electric-vehicles.png
- U.S. Energy Storage
Revenue: http://info.aee.net/hubfs/AEN-2017/energy-storage.png
- U.S. Building Efficiency
Revenue: http://info.aee.net/hubfs/AEN-2017/building-efficiency-v2.png
See this statement online here.
Media Contact:
Monique Hanis, Director of Media
Relations, mhanis@aee.net, 202-391-0884
To view the original version on PR Newswire,
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SOURCE Advanced Energy Economy