Advanced Energy Represents $1 Trillion Global Market, New Study Shows

U.S. Advanced Energy Market was $132 Billion in 2011, with 19% Year-Over-Year Growth Estimated for 2012

WASHINGTON, Jan. 15, 2013 /PRNewswire-USNewswire/ -- A new report released today by Advanced Energy Economy shows that advanced energy was a $1.1 trillion global market in 2011, larger than pharmaceutical manufacturing worldwide.  The first-ever analysis of the advanced energy sector also shows that the market in the U.S. represents a significant part of the nation's economy, with $132 billion in revenue in 2011, and a 19 percent growth rate estimated for 2012, with U.S. revenue rising to $157 billion.

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Including direct, indirect, and induced economic activity associated only with the domestic market, advanced energy added an estimated $145 billion to U.S. Gross Domestic Product in 2011, and generated more than $20 billion in federal, state, and local taxes.

"Advanced energy is what happens when energy meets 21^st Century technologies," said Graham Richard, CEO of Advanced Energy Economy, a national business organization. "This report defines precisely, for the first time, the size, breadth, and scope of the advanced energy industry. With a $1 trillion global market and a U.S. industry that is already bigger by revenue than trucking, advanced energy is a significant contributor to the economy today and has greater potential for tomorrow."

The report was commissioned by the Advanced Energy Economy Institute, AEE's educational and charitable affiliate, and produced by Pike Research, a part of Navigant's Energy Practice and a leading market analysis team.

AEE defines advanced energy as the best available commercial technologies for meeting energy needs today and tomorrow. With global energy consumption projected to rise nearly 40 percent by 2030, future prosperity depends on meeting this growing demand with energy that is secure, clean and affordable. Just as the Internet economy transformed society in unexpected ways, the advanced energy economy has the potential to create dramatic new opportunities for economic growth in the U.S. and around the world.

"Telling the story of advanced energy has to start with the facts," said Tom Steyer, a founder and co-chair of the Advanced Energy Economy Institute. "This report helps to define advanced energy as a business category and in dollars-and-cents terms. Advanced energy is here today."

"It is time we moved beyond categories like 'clean' and 'dirty' and recognize that advanced energy represents the future of energy," said Hemant Taneja, managing director of General Catalyst Partners and a founder and co-chair of Advanced Energy Economy. "This report shows that advanced energy has already established a substantial footprint on the world economy and the U.S. industry is a large and growing part of it."

As defined by AEE and detailed in the report, advanced energy is a broad industry category incorporating many discrete technologies and business types that contribute to making energy secure, clean, and affordable. The advanced energy industry consists of seven distinct market segments associated with energy demand (Transportation, Buildings and Industry) and energy supply (Fuel Production, Fuel Delivery, Electricity Generation, and Electricity Delivery and Management).  These segments are divided into 41 subsegments, ranging from Vehicle Design and Materials and Freight Logistics in Transportation to Advanced Metering Infrastructure and Energy Storage in Electricity Delivery and Management. Electricity Generation includes Hydropower, Gas Turbines, Solar, Wind, Geothermal, Marine, Waste, Biomass, Nuclear, and Other Distributed Generation. For each segment and subsegment, the report provides U.S. and global market data for 2011, contribution to U.S. GDP and federal, state, and local taxes for 2011, and estimated revenue for 2012, where data are available.

"Our team is proud to have performed this first comprehensive analysis of advanced energy markets," said Bob Gohn, Senior Research Director, Energy, for Pike Research, a part of Navigant's Energy Practice. "Our experts have followed various parts of advanced energy for many years, but this is the first attempt to size the market for the entire industry. Our analysis shows that the advanced energy industry is a large contributor to the U.S. and global economies, and to the revenues of federal, state, and local governments."

As the first attempt to document the advanced energy industry, this report likely understates the size and extent of advanced energy economic activity in the U.S. and around the world.  Specifically, the U.S. market figures do not account for revenue from export of advanced energy products, and there was no available data for some industry subsegments. Thus, the findings should be considered a conservative statement of advanced energy market size.

"This report shows that the advanced energy sector is vibrant and growing fast," said Alex Laskey, President and Founder of Opower, the leading customer engagement solutions provider for the utility industry. "We are proud to be part of this dynamic market of companies that are developing solutions that help secure sustainable, domestic and affordable forms of energy."

"The question is no longer if advanced energy technologies will be a part of our mainstream energy future. Instead our choice is how we prioritize the role they play," said Arno Harris, CEO of Recurrent Energy. "With a trillion dollar global market, renewables and other advanced energy technologies already play a significant role in meeting our energy needs."

The report, titled "Economic Impacts of Advanced Energy," found that:

• In 2011, global revenue from the seven advanced energy segments reached more than $1.16 trillion.  The following is a breakdown of market segments:
  • The largest segment was Electricity Generation with $549.3 billion in 2011 revenue, accounting for 49 percent of the total, led by Hydropower ($257 billion), Solar ($113.2 billion) and Wind ($67.1 billion).
  • Transportation was the second largest global segment, with $325.9 billion in revenue.
  • The third largest segment was Buildings, with $118 billion in annual energy revenue for 2011, followed by Fuel Production at $87.6 billion, Electricity Delivery and Management at $31.4 billion and Fuel Delivery at $2.2 billion.
• Advanced energy generated $132 billion in U.S. revenue in 2011 and added $145 billion to U.S. GDP.  The GDP impact includes direct, indirect, and induced economic activity associated with the domestic content of the U.S. market revenue.
• The U.S advanced energy industry contributed an estimated $20.6 billion in combined federal, state and local tax revenue. 
  • At the federal level, advanced energy contributed $13.9 billion in tax revenue in 2011, while $6.7 billion was created in state and local tax revenue.
• The U.S. share of the global advanced energy market is expected to rise from 12 percent to 15 percent from 2011 to 2012. 
• Year over year, the U.S. is expected to see a 19 percent increase in advanced energy revenue (from $132 billion in 2011 to $157 in 2012).
• In the U.S., advanced energy revenue by market segment for 2011 were:
  • Fuel production at $42.7 billion, Buildings at $35.3 billion, Electricity Generation at $32.5 billion, Transportation at $11.7 billion, Electricity Delivery and Management at $8.4 billion, Industry at $1.2 billion and Fuel Delivery at $0.2 billion.
• In 2012, all seven U.S. advanced energy industry segments are expected to grow, ranging from 10 percent (Fuel Production) to 121 percent (Fuel Delivery).
  • The largest estimated jump in U.S. revenue is expected to be the Transportation segment, adding $7 billion in revenue compared to 2011 (60 percent growth). This will be led by a more than doubling of clean diesel vehicle sales and moderate growth in hybrid vehicles.

For a full copy of the report, please visit http://AdvancedEnergyNOW.net.

About Advanced Energy Economy and the AEE Institute

Advanced Energy Economy is a national organization representing the advanced energy industry. AEE's mission is to influence public policy, foster advanced energy innovation and business growth, and provide a unified voice for a strong U.S. advanced energy industry that will drive the global transition to a smarter energy future. The AEE Institute's mission is to raise awareness of the public benefits of advanced energy, drive the policy debate on key topics, and provide a forum where leaders can address energy challenges and opportunities facing the United States.

About Pike Research

Pike Research, which joined Navigant's global Energy Practice on July 1, 2012, provides in-depth analysis of global clean technology markets.  The team's research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Utilities, Smart Transportation, Smart Industry, and Smart Buildings sectors.  Additional information about Pike Research can be found at www.navigant.com/pikeresearch.

About Navigant

Navigant (NYSE: NCI) is a specialized, global expert services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities. Through senior level engagement with clients, Navigant professionals combine technical expertise in Disputes and Investigations, Economics, Financial Advisory and Management Consulting, with business pragmatism in the highly regulated Construction, Energy, Financial Services and Healthcare industries to support clients in addressing their most critical business needs. More information about Navigant can be found at www.navigant.com.

SOURCE Advanced Energy Economy