What’s more popular than fashion and beer? According to a new market report by the Advanced Energy Economy (AEE), energy. Kind of surprising, right? Not really. The global advanced energy market has been growing steadily over the past five years, increasing 17 percent since 2011. In the U.S. alone, it has grown 29 percent, with building efficiency as the top growth leader. “In 2015, advanced energy revenue grew 8 percent worldwide over 2014, more than three times the rate of the global economy overall.”
What is Advanced Energy?
According to Greentech Media, The AEE defines it as a “broad, encompassing energy supply and demand including electricity generation and delivery, fuel production and delivery, building efficiency and delivery, fuel production and delivery, building efficiency, transportation and industry.” Advanced energy technologies aim to define and change the way the world uses energy, focusing on a comprehensive set of secure, clean, and affordable innovations.
Growth Leader: Building Efficiency
The largest boomer in U.S. advanced energy markets, accounting for 30 percent of total energy revenue in 2015, was building efficiency, “reaching $63.6 billion, up nearly 11 percent over 2014, and 50 percent over 2011.” This is the second year in a row, building efficiency has led the U.S. advanced energy market. Building efficiency includes lighting, mechanical equipment, building envelope, energy management, and demand response technologies. We’re seeing no slowdown of emerging technologies, with a 350 percent increase in the past five years. According to Rick Counihan, Head of Energy Regulatory and Government Affairs at Nest Labs, “We are seeing market growth in building energy efficiency, but also the tremendous benefit to millions of customers around the world.”
The U.S. and the world are embracing energy efficiency and advanced energy technologies. Emerging technologies continue to be developed and existing technologies continue to be improved. Energy efficiency equipment installed only a few years ago may now be considered outdated. To combat rising energy costs and protect against unpredictable market forces, building managers should investigate new technologies continuously to stay competitive and espouse sustainable business practices.