Advanced energy technologies and services proved resilient in tough economic times, and landmark federal legislation will provide a historic opportunity for growth

WASHINGTON, D.C., June 15, 2023 — Today, Advanced Energy United, the national association of businesses working to achieve 100% clean energy and electrified transportation in America, announced that the total revenue for advanced energy worldwide reached $2.1 trillion in 2022, and reached $374 billion in the U.S. alone, with both markets growing by about 14% over 2021. 

These findings, along with details by market segment, are found in the Advanced Energy Now 2023 Market Report produced by Guidehouse Insights for Advanced Energy United (formerly Advanced Energy Economy / AEE). The 2023 edition covers global and U.S. revenue for 2021 and 2022 – two years impacted in large part by the COVID-19 pandemic and ensuing recovery. 

“The figures tell a story of resilience during a tumultuous period that included supply chain constraints and price fluctuations of materials,” said Heather O’Neill, President and CEO of Advanced Energy United. “Advanced energy technologies and services are driving America’s economy, and through a difficult economic period they provided jobs, financial savings, and durable solutions to our nation’s energy needs.” 

Underlying this resilience has been a surge in revenue across several product categories, including electric vehicles, energy storage, residential energy efficiency, and solar. The fastest-growing segment in the U.S., and now the largest segment globally, is Advanced Transportation, reflecting the quickly accelerating popularity of electric vehicles, a product category that more than doubled its global sales revenue between 2020 and 2022. 

“We are already seeing gains from recent federal investments with billions of dollars in planned domestic manufacturing facilities across the advanced energy supply chain in states across the country,” added O’Neill. “The sooner states adopt policies to accelerate deployment of clean energy technologies, services, and supporting infrastructure, the more jobs will be created, and the more financial savings consumers and businesses will enjoy.” 

Additional market findings include:  

• Building Efficiency remained the largest segment of U.S. advanced energy revenue with a total of $111.5 billion in revenues, up 8.4% from 2021. As happened globally, this segment is on track to be surpassed by Advanced Transportation as the largest segment in the U.S., but it continues its position as a reliable growth segment thanks to LED lighting technology (up 5.2% in 2022), water heating (up 250% over past 5 years), and the growing affordability of demand response technology such as smart thermostats, AI, and sensors. 
• Advanced Transportation became the largest advanced energy segment worldwide in 2022, following an explosive 41.8% year-over-year growth. Nearly $650 billion in revenue was generated last year alone, driven in large part by the surge in demand for Plug-in Electric Vehicles (PEVs), up 61.8% globally and up 67.4% in the U.S.  
• Electricity Delivery and Management revenue grew by over 15% both globally and in the U.S. to $192 billion and $37 billion, respectively. The growth in this overall segment in 2022 was driven mainly by Enabling Information and Communications Technology (IC&T), which was up about 26% in the U.S. Meanwhile, Energy Storage grew dramatically from 2020 to 2021 (334% in the U.S.), but only about 7% in 2022. Thanks to the passing of the Inflation Reduction Act (IRA) and Infrastructure Investment and Jobs Act (IIJA), which together allocate billions of dollars in clean energy generation, transmission investments, and grid modernization, this category is expected to see significant investment in the coming decades. 
• Advanced Electricity Generation is the second largest advanced energy segment globally at $548.6 billion. Solar led all subsegments with $220.2 billion in global revenue in 2022 and led all U.S. subsegments with $34.2 billion. There is now more than 1 terawatt of installed solar capacity worldwide, with almost a quarter of that installed in 2022 alone. After a record-setting 2021, global wind revenue dropped 27% in 2022. The biomass subsegment saw the largest year-over-year revenue percentage increase globally, at just over 12%. 
• Advanced Fuel Production rebounded from a COVID-19 era global market decline to surpass the $200 billion threshold for the first time. The Ethanol/Butanol category continues to pace this segment, producing $86 billion in revenue in 2022, a new global high. The big story in this segment is the growth of the clean hydrogen industry; while still a nascent subsegment, the sale of clean hydrogen production technologies grew 226%. In the U.S., Hydrogen Hub proposals and state government incentives suggest continued growth is likely. 

The full report is available for download by clicking here.