Combined global revenue for solar PV, wind power, and biofuels surged 35.2% over the prior year in 2010, growing from $139.1 billion to $188.1 billion, according to new market research.
The Clean Energy Trends 2011 report states the overall trend for the clean-energy market continued to be one of growth and expansion in 2010. The bulk of this expansion came from a more than doubling in global solar PV installations and steady growth in the biofuels sector.
However, for the first time in a decade the global wind market witnessed a slight year-over-year decline in market size, in both overall dollars and installations.
According to Clean Edge research, the global market for solar photovoltaics (PV) has expanded from just $2.5 billion in 2000 to $71.2 billion in 2010, representing a compound annual growth rate (CAGR) of 39.8%. The global market for wind power has similarly expanded from a global market worth $4.5 billion in 2000 to more than $60.5 billion today, for a CAGR of 29.7 percent.
“As witnessed over the past decade, clean tech has proven to be a significant business opportunity, and its growth rates now rival that of earlier technology revolutions like telephony, computers, and the Internet,” said Ron Pernick, Clean Edge co-founder and managing director. “We expect overall growth to slow down in some sectors as the clean-energy market reaches wide adoption and utility-scale deployment, but there’s still considerable room for expansion.”
The report includes growth projections for the major clean-energy sectors (solar PV, wind, and biofuels), as well as analysis of global clean-tech investment and trends.
Key findings include:
- Biofuels (global production and wholesale pricing of ethanol and biodiesel) reached $56.4 billion in 2010 and are projected to grow to $112.8 billion by 2020. In 2010, the biofuels market consisted of more than 27.2 billion gallons of ethanol and biodiesel production worldwide, up from 23.6 billion gallons in the prior year.
- Wind power (the capital cost of new installation) is projected to expand from $60.5 billion in 2010 to $122.9 billion in 2020. Last year’s global wind power installations declined slightly to 35.2 gigawatts (GW), down from a record 37.5 GW the prior year. China, the global leader in new installations for the third year in a row, continued to see strong growth with total new installations of more than 16 GW, an increase of 27%. The U.S., the world’s second-largest market, declined after record growth in 2009, adding only half as much capacity as the prior year with just 5 GW installed in 2010.
- Solar photovoltaics (including modules, system components, and installation) are projected to grow from a $71.2 billion industry in 2010 to $113.6 billion by 2020. New installations reached more than 15.6 GW worldwide in 2010, a more than doubling from 7.1 GW in 2009, representing the largest year-over-year increase on record.
- According to data provided by the Cleantech Group, U.S.-based venture capital investments in clean tech increased 46% from $3.5 billion in 2009 to $5.1 billion in 2010. Clean Edge analysis found that clean-tech’s% of total U.S. venture capital investments continued to rise, accounting for a record 23.2% of total U.S. venture activity in 2010.
Five trends will impact clean energy markets in the coming years:
- Incandescent bulb phase-out paves the path for low cost LEDs
- Natural gas advances as key partner for wind and solar
- Cleaner aviation fuels are poised for takeoff
- Low cost green building materials bring relief and sustainability around the world
- Innovation provides alternatives to rare earths
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