This blog post is an excerpt from the Overview of the Advanced Energy Now 2023 Market Report, prepared for Advanced Energy United by Guidehouse Insights. This post is the second in a series of excerpts from the report.
Advanced energy revenue reached nearly $2.1 trillion worldwide in 2022, growing by nearly 14%, following strong 26% growth in 2021. Despite COVID-19 related slowdowns across many sectors globally in 2020, the advanced energy industry nonetheless posted solid growth over the past several years, thanks largely to a buoyant Advanced Transportation sector.
Advanced energy revenue now exceeds the pharmaceutical manufacturing industry globally and is nearly 1.5x the size of the coal mining industry. Since Guidehouse Insights started tracking for Advanced Energy United (previously Advanced Energy Economy) in 2011, global advanced energy revenue has risen at a Compound Annual Growth Rate (CAGR) of more than 9%.
Globally, the largest of the seven segments of advanced energy is Advanced Transportation, up a massive 41.8%, to just shy of $650 billion in 2022. This growth was led by a doubling in Plug-In Electric Vehicles (PEV) sales. PEVs overtook Hybrid Electric Vehicles (HEV) as the largest Advanced Transportation subsegment in 2017 and has only grown its share since.
Electricity Generation, formerly the largest segment in this analysis, fell to second globally in 2022 as revenue fell 5% to just under $550 billion. Building Efficiency continued to post steady growth in 2022 with revenue rising 7.6% to nearly $391 billion globally.
Advanced Fuel Production has rebounded following the COVID-19-related decline in 2020. The segment grew 10% in 2022 following a 7.7% gain in 2021 and accounted for an estimated $210 billion in worldwide revenue last year.
In the U.S., advanced energy revenue had another strong year in 2022, growing a robust 14%, after expanding 25% in 2021. At more than $370 billion today, and given market growth dynamics, U.S. advanced energy revenue is likely to overtake that of power utilities in another year or two. Since 2011, U.S. advanced energy revenue has grown at a healthy 9.4% CAGR.
Generally, growth in U.S. advanced energy investments has remained solid, despite COVID-19 and the subsequent associated challenges to materials pricing and supply chains. Driving this resilience has been a surge in revenue across several product categories, including PEVs, energy storage, residential energy efficiency, and solar. As in the global figures, the largest gains over the past two years came from Advanced Transportation and the burgeoning growth in PEV sales revenue, which more than doubled between 2020 and 2022.
