Global Cleantech (Energy Technology) Industry
The global cleantech industry encompasses a wide range of processes, services and products used to limit environmental waste by relying on renewable energy sources and materials, and reducing natural resource use. This sector includes green transport, renewable energy, information technology, recycling and green chemistry. The industry is focused on reducing negative environmental impact and boosting the energy efficiency of transport, infrastructure and buildings. The cleantech sector continues to benefit from increasing levels of investment. In 2007, close to $150 billion was invested in solar, wind and biofuel outfits, according to the United Nations Environment Program.
Cleantech Sectors
- The global energy efficient services and equipment market is benefiting from state imperatives to cut down on energy consumption through more energy efficient buildings. Pike Research reports that energy service companies dominate in the domain of energy efficiency concerning commercial building. Energy service companies put energy efficient equipment in place and bolster efficiency services through energy performance contracting and other financing channels. The energy efficient equipment sector is driven by the need for efficient systems created by increased green building activity. Demand for energy efficient services and equipment is affected by technology costs and national policy.
- China looms large in the world rare earth metals industry. The country accounts for more than 95% of the global rare earth metals market. The introduction of new export quotas in mid 2010 set rare earth prices soaring, reports Pike Research. Rare earth metals may therefore pose a problem for clean energy technologies such as fuel cells, energy efficient lighting, electric vehicles and wind turbines. The country’s tight new export quotas carry a supply risk that clouds the long-term outlook for clean technology, which will have an impact on the technologies adopted and commercialized by the global cleantech sector. As a result, clean technology manufacturers will be forced to examine their rare earth requirements and find ways to limit them.
- The clean mass transit sector aims to cut carbon emissions through mass transit with lower emissions using electric rail or alternative fuel buses. While diesel still looms large in the bus transit industry, the newer alternative of natural gas buses are witnessing more than 8% yearly growth, reports Pike Research. The hybrid electric bus market is expanding at a yearly rate of almost 20%. The natural gas and hybrid electric bus market segments are expected to maintain growth through 2016. Fuel cell buses will witness a slower rate of growth, reaching almost 1,100 deliveries in 2016.
- The world biofuels production industry generated more than $49 billion in 2010, having recorded almost 20% yearly growth for the four preceding years, reports MarketLine. The biofuel production market refers to the sale of ethanol and biodiesel. In terms of production volumes, the global biofuel sector witnessed a yearly growth rate of close to 30% over the same four-year period, reaching almost 145,000 thousand tons in 2010. Market growth is expected to slow to a yearly rate of less than 10% between 2010 and 2015, bringing the industry to almost $76 billion in 2015.
Regional Market Share
- The biofuel production market in the Asia-Pacific region exceeded $3 billion in 2010, having recorded more than 28% yearly growth for the four preceding years, according to MarketLine. Production volumes grew at a yearly rate in excess of 23% over the same four-year period, exceeding 4,000 thousand tons in 2010. Market growth is forecast to slow to a yearly rate of less than 11% for the five-year period ending 2015, to exceed $5 billion.
- North America’s biofuel production industry was worth almost $21 billion in 2010, reports MarketLine. The market witnessed 23% yearly growth between 2006 and 2010, with production volumes increasing at 24% a year, reaching almost 37,000 thousand tons in 2010. Industry performance is set to slow to yearly growth of just over 8% between 2010 and 2015. The North American biofuel market is expected to be worth almost $31 billion in 2015.
Market Outlook
Firm Australian CleanTech cites the main factors driving the cleantech industry as growing population and wealth, changing regulations, natural resource depletion along with real assets providing recycling, water, power and waste management.
Rising energy demand and depletion of fossil fuel reserves combine to make clean energy supplies a growing need. Investment and subsidies remain central factors in the long-term development of clean technologies.
Leading Industry Associations
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