Energy Efficiency: Understanding a Growing Industry

SUMMARY

Overview

Introduction

Energy efficiency has emerged as a major environmental issue that, due to regulation and higher energy prices, is now a growing and important energy business segment in its own right. Economic growth and consumer trends, combined with technological improvements, will only reinforce this emerging industry that is increasingly targeted by both utilities and energy services companies.

Scope

• Insight into how energy efficiency is tied to economic growth and what are the trends in both to 2014.
• An examination of the relationship between home construction, large appliances and energy use across Europe.
• A case study on the world's most successful energy efficiency labelling program.
• Market sizes and projections for the energy services industry across European countries.

Report Highlights

Labour productivity will have increased 352% and 158% in the US and EU7, respectively, from 1990 to 2015. In contrast, power consumption will only have increased 77% and 68% for the US and EU7, respectively, over the same period, leading to major gains in measures of energy efficiency.

Environmental regulations, technological improvements and voluntary compliance with tougher performance standards mean that some appliance categories are approaching the level where further cost effective energy efficiency gains are no longer possible.

In the EU from 2003 to 2006, there was an 89% correlation between new home construction and purchases of major residential appliances. This highlights the fact that the greatest residential energy efficiency gains through improvements appliances arise through new home construction.

Reasons to Purchase

• Understand trends in economic growth and energy efficiency improvements across Europe.
• Identify home product categories in which consumption is growing, and how this relates to energy efficiency improvements.
• Underatand which European markets hold the greatest market potential for the sale of energy services.

TABLE OF CONTENTS

• DATAMONITOR VIEW
  • CATALYST
  • SUMMARY
• ANALYSIS
  • After major gains from 2001-05, energy (power) efficiency in the EU is leveling out
    • Europe's lead over the US in energy efficiency will narrow in the coming decade
    • Although power consumption is increasing, labor productivity gains mean the energy efficiency of major economies will rise
    • The UK will remain one of the most energy efficient major economies
    • Many countries are now experiencing a downward convergence in the carbon intensity of their economies
  • New housing construction across the EU will spur the purchase of newer, more efficient large appliances
    • Sales of residential appliances track new home construction, which highlights these important energy-saving opportunities
    • Housing booms in Spain and France will create new energy efficiency opportunities
    • European homes spend much less energy on large appliances than American homes, but more on space cooling and lighting
    • In the UK, fridges and freezers are the only appliances with steady, absolute improvements in energy efficiency since the 1970s
    • Cooking appliances and home electronics are flattening out in terms of potential future energy efficiency gains
    • Europeans dramatically increased purchases of refrigerators in 2006
  • Voluntary energy certification programs can produce major gains in energy efficiency
    • Energy Star is the world's most successful voluntary energy efficiency labeling program
  • Energy Star market penetration and energy-saving results have soared in recent years
    • Energy Star has become an international energy efficiency standard
    • Much of the success of Energy Star comes from investment in professional brand management
  • In some European markets the energy services industry is growing at a rapid pace
    • Energy efficiency as a business offering is rolled into the energy services divisions of many utilities
    • Economic growth and energy market liberalization will drive growth in energy services markets
    • France, Germany and the UK are Europe's largest energy services markets
    • Latvia and Romania will become the fastest growing energy services markets
• APPENDIX
  • Definitions
  • Datamonitor Consultancy
  • Ask the Analyst
  • Further reading
  • Disclaimer
  • List of Figures
    • Figure 1: Growth in wealth compared to growth in energy efficiency
    • Figure 2: Labor productivity and power consumption in the US and Europe
    • Figure 3: Energy efficiency of economic growth (based on power consumption)
    • Figure 4: Carbon output per unit of GDP
    • Figure 5: Home building and new appliances purchase trends in the EU
    • Figure 6: New housing constructed annually
    • Figure 7: Breakdown of residential energy use in Europe and the US
    • Figure 8: Energy efficiency improvements with British appliances per decade
    • Figure 9: Energy efficiency trends in British appliances
    • Figure 10: Sales of top energy-consuming residential appliances in the EU
    • Figure 11: Increase in key Energy Star performance factors from 2000-06
    • Figure 12: Energy services markets in Europe
    • Figure 13: Growth in European energy services markets