March 19, 2014—At $1.1 trillion in estimated global revenue, advanced energy grew at a rate more than double the global economy last year, according to a market report commissioned by Advanced Energy Economy (AEE), a national association of businesses and business leaders who are making the global energy system more secure, clean and affordable. In the United States, the advanced energy market excluding wind energy experienced double-digit growth the last two years—outpacing the economy by a factor of four—while wind energy saw a boom and bust in that two-year period, reportedly due to inconsistent federal policy.
The study, conducted by market research and consulting firm Navigant Research, found that advanced energy in the United States was a $169 billion market in 2013. Excluding the wind industry, which experienced a drop due to uncertainty regarding the federal Production Tax Credit (PTC), U.S. advanced energy revenue grew 18% in 2012 and 14% in 2013. Revenue from wind installations jumped from $13 billion in 2011 to $25 billion in 2012, then plunged to $2 billion in 2013. Overall, U.S. advanced energy revenue in 2013 was 27% higher than 2011 and down 2% from 2012.
In 2013, the global advanced energy market was bigger than pharmaceutical manufacturing worldwide, according to the report, and in the United States, the advanced energy market was as large as the airline industry.
The report, Advanced Energy Now 2014 Market Report, provides details on the most noteworthy trends in advanced energy both nationwide and globally.
United States
- In the United States, the advanced energy market grew strongly from 2011 to 2013 with the exception of wind. Excluding wind, the U.S. advanced energy industry grew 14% from 2012 to 2013, over four times the rate of the economy overall, with dramatic gains in Solar, Transportation (advanced vehicles), and Building energy. At $168.9 billion, the U.S. share of the $1.1 trillion global advanced energy market was 15% in 2013, up from 11% in 2011. The exception was wind energy, which had a severe, $23 billion revenue plunge after a banner year in 2012, due to uncertainty around the federal Production Tax Credit (PTC).
- The most dramatic growth came in the Transportation segment, where revenue from advanced vehicles more than doubled over the two-year period. Hybrid vehicles led the way in revenue, rising from $7.2 billion in 2011 to $14 billion in 2013. The fastest growth came in plug-in electric vehicles (from $707 million in 2011 to $3.6 billion in 2013) and natural gas trucks and buses ($102 million to $530 million in that two-year span).
- The United States has become a major market for solar energy, as solar photovoltaic revenue grew steadily over this two-year period, up 27% in 2012 and 54% from in 2013. Two-year growth, from $8.2 billion to $16.2 billion, was 97%.
Worldwide
- Globally, the Electricity Generation segment grew by nearly 6% driven by hydro, solar, and biomass. Revenue from advanced vehicles (led by clean diesel autos in Europe) allowed Transportation to bounce back (up 6%) in 2013 from a slight dip (down 3%) in 2012, driven by strong growth in hybrid and plug-in hybrid vehicles.
- Steady growth occurred worldwide over the past two years in advanced Fuel Production (up 34% from 2011 to 2013), led by ethanol, compressed and liquefied natural gas for transportation, and bio-oils associated with development of non-food-crop-based biofuels. The Buildings segment showed similar two-year growth (up 27%), led by advanced lighting. Significant growth in revenue from industrial applications of combined heat and power (CHP) accounted for much of the 26% growth in the Industry segment from 2011 to 2013.
- The United States remains a world leader (34% of global revenue) in the production of advanced fuels, principally in biofuels and synthetic diesel and gasoline, as revenue in fuel production grew steadily, up 17% from 2011 to 2013. Revenue from advanced building products and technologies increased 11% in 2012 and 12% in 2013, for two-year growth of 24%.
The full Advanced Energy Now 2014 Market Report: Global and U.S. Markets by Revenue 2011-2013 and Key Trends in Advanced Energy Growth is available for download on the AEE Web site. For a graphic presentation of the advanced energy story, and more detail on the seven industry segments and 41 subsegments that constitute advanced energy, go to the Advanced Energy Now Web site. For more detail on advanced energy, as well as gross domestic product (GDP) and federal, state, and tax impacts of 2011 and 2012 advanced energy market revenue, see AEE’s landmark Economic Impacts of Advanced Energy report, published last year.
“As a nation, we need to seize on the opportunity that advanced energy provides to become more prosperous and energy independent,” said AEE’s Graham Richard. “That means continued business investment, R&D to spur innovations, and smart government policies at the federal and state level to drive continued growth and job creation.”
