Advanced Energy Perspectives

We all know that electric vehicles (EVs) are the future, and they’re here today. They’re quicker, quieter, and cheaper to own than old-fashioned gas-powered cars. But the market for EVs is still evolving, with a limited number of models available (though more on the way). And vehicular travel is still built around gas guzzlers and gas stations. In the world of today, how do you find an EV that’s right for you? Even worse – how do you advise someone else about what EV might be right for them? Faced with that dilemma, one of my colleagues took to AEE’s transportation-oriented Slack channel for guidance. Here is the chat that ensued.

This post is the last in a series of excerpts from the Advanced Energy Now 2021 Market Report, prepared for AEE by Guidehouse Insights.

The year 2019 was one of the biggest for Electricity Delivery and Management, recording 13% growth globally and 14% in the United States; 2020 was strong as well, with global growth at 9% and 10% in the U.S.

Total revenue in the global market has traditionally been driven by large-scale transmission infrastructure, but Energy Storage has emerged as the fastest growing subsegment globally, with a CAGR of 47% from 2011 to 2020 and 35% growth last year, reaching $3.8 billion. Conversely, transmission, which comprised nearly half of Electricity Delivery and Management revenue in 2011, dropped from $6 billion to just over $3.2 billion in revenue since 2016.

In the United States, Transmission, which comprised nearly half of Electricity Delivery and Management revenue in 2011, has dropped from $6 billion to just over $3.2 billion in revenue since 2016. Meanwhile, Energy Storage has taken off, especially in the past year, jumping 139%, to $1.6 billion, in 2020, capping a run at 39% CAGR since 2011.

This post is the seventh in a series of excerpts from the Advanced Energy Now 2021 Market Report, prepared for AEE by Guidehouse Insights.

Advanced Industry consists of two subsegments: Manufacturing Machinery and Process Equipment and Industrial Combined Heat and Power (CHP). Manufacturing Machinery and Process Equipment tracks sales of industrial energy management systems, which are software and services for energy management within an industrial facility or across an enterprise to meet efficiency, cost savings, and sustainability targets while maintaining optimal operation of production processes.

In the United States, Advanced Industry revenue grew 10% overall from 2019 to 2020, to $11.6 billion. Since 2011, U.S. Advanced Industry revenue has more than doubled, growing at a CAGR of 12%. U.S. Manufacturing Machinery and Process Equipment revenue increased 10%, to $7.0 billion, in 2020, based on sales of industrial energy management systems. CHP revenue increased by 9% year-over-year, to $4.6 billion, following 13% growth in 2019. Though smaller in the United States than Manufacturing Machinery and Process Equipment, Industrial CHP has grown faster over the 2011-2020 time period, at 18% CAGR versus 9% for Manufacturing Machinery and Process Equipment.

This post is the sixth in a series of excerpts from the Advanced Energy Now 2021 Market Report, prepared for AEE by Guidehouse Insights.

Revenue from Advanced Fuel Delivery – defined as Fueling Stations serving electric, natural gas, and hydrogen vehicles – dropped slightly in 2020 to $9.3 billion globally. This followed a monumental year of 136% growth the previous year. In the United States, the market for Advanced Fuel Delivery also saw declines in 2019 (9%) and 2020 (21%), coming after three consecutive years of growth.

This post is the fifth in a series of excerpts from the Advanced Energy Now 2021 Market Report, prepared for AEE by Guidehouse Insights.

Advanced Fuel Production took a bit hit in 2020. Global revenue fell to $184.3 billion, following its highest year on record in 2019 at $221.8 billion. The United States experienced an even steeper revenue decline, down 38%, to $33.6 billion. This drop was largely due to volatility in Ethanol and Butanol revenue, which fell sharply in the U.S. in 2020 (47%) following 101% growth in 2019. Hard hit by COVID-19, U.S. ethanol consumption fell from 15.8 billion gallons in 2019 to 13.7 billion gallons in 2020. The Compound Annual Growth Rate (CAGR) for Global Advanced Fuel Production revenue over the 2011-2018 period was 6%, while in the United States CAGR was -3%.