Clean energy's path to $2 trillion
By Dexter Gauntlett, Pike Research
Dexter Gauntlett is a cleantech market research analyst with Pike Research, a part of Navigant Consulting Inc.
Oregon installed 640 megawatts of wind power in 2012, which represents about $1 billion in revenue associated with the development of those wind farms. Revenues include sales of the actual wind turbine, transport fees, installation fees by an engineering firm, permitting among other costs that market analysts like myself look at to assess the size and growth of various clean energy markets.
Over the past six months, my colleagues at Pike Research have provided market data for two important reports that are now published and free to the public. They paint a conservative picture of the market size of the “clean energy” and “advanced energy” markets. The reports use a similar methodology as I outlined in the wind example for Oregon, except for the focus being on U.S. and global markets separately.
Both reports, described below, bump into the "Big T" that stands for trillion.
The following summarizes the key findings of each report, but I encourage you to download the reports in their entirety.
$1.9 trillion clean energy market forecast for 2012-2018
The first report, “Innovate, Manufacture, Compete”, in partnership with The Pew Charitable Trusts, leverages Pike Research market forecasts across seven major clean energy industries, solar photovoltaics, wind power (onshore and offshore), biomass power, concentrating solar power, and marine and hydrokinetic energy.
We cover all of these industries in depth in our Smart Energy practice market research reports – and it’s interesting to see them lined up together as they appear in Figure 6 of the Pew report (see below). In total, the market for these seven core industries is projected to grow from $200 billion worldwide in 2012 to about $327 billion a year in 2018, representing $1.9 trillion in cumulative revenue during the forecast period. During this time, installations are expected to grow from 80 gigawatts in 2012 to 192 gigawatts annually in 2018.
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