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This is Alternative Energy marketing research and can include information on the background, market structure, definitions, competitors, trends and developments of alternative energy and is related to other topics such as solar, hydro, geothermal, wind and the environment.
Table of Contents
[edit] Background
Pollution and fast depleting fossil fuel has given rise to increase in use of alternative fuel sources like Solar Power, Hydro Energy, Wind Energy, all of which constitute Alternative Energy.
Alternative energy is renewable form of energy and does not pollute the environment like non renewable energy forms. All these forms of energy have been around for quite some time but just that they are not classified as Alternative Energy now.
Basic types of Alternative Energy sources are:
- Solar Energy
- Hydro Energy
- Biomass
- Geothermal Energy
Many people believe the best form of alternative energy is concentrated solar power, but as of this writing, is still cost-prohibitive for many energy consumers.
[edit] Market Structure
More than 4.3 trillion barrels of unconventional oil resources in place. Recoverable estimates for Canada and Venezuela alone are estimated at 580 billion barrels. Net business of Oil, exports, imports etc is USD $1,023,109 million.
Still there is no chance that we will make it to next century without turning to renewable sources for energy or Green energy. Presently, about 11% of energy requirements world over come from Green energy. In 2005, about 6.1 Quadrillion Btu (Quads) of U.S. energy came from renewable fuels. Still Oil and gas remain most used energy resources.
Over the next few decades, the oil and gas infrastructure looks to be replaced or supplemented with new entrants in the market for alternative energy. The industry is very fragmented, but as the dust settles on who will be long term players, there is still a good chance for consolidation with development, distribution and operations.
In the case of solar for example, there are a few manufacturers who are represented in the field by local retailers of their product who combine service with their offering.
[edit] Industry Definitions
- Biomass - Energy source is created from plant material, vegetation, or agricultural waste.
- Geothermal - electrical energy for example is created by converting thermal energy contained in the earth
- Hybrid - a vehicle that uses two or more distinct power or fuel sources such as a battery and gas
- Hydrogen - About 7.8 million metric tons (17.6 billion pounds) of hydrogen are produced in the United States today, enough to power 20-30 million cars or 5-8 million homes. Nearly all of this hydrogen is used by industry in refining, treating metals, and processing foods. Most of this hydrogen is produced in just three states: California, Louisiana, and Texas. Some people believe an entirely new energy infrastructure can be created from hydrogen, but there are technical challenges.
- Solar – taking the energy from the sun and converting into energy.
- Wind – using wind turbines, wind can be converted into electricity.
[edit] Market Metrics
Global wind and solar energy markets reached USD $11.8 Billion and USD $11.2 Billion in 2005. Market for bio fuels hit USD $15.7 Billion in 2005, which was more than 15% from the previous year. This usage is estimated to grow to USD $52.5 Billion by 2015. Wind power installation is expected to reach USD $48.5 Billion from USD 11.8 Billion. The global market for wind turbines is set to grow from its present €8 billion to €80 by 2020.
Solar photovoltaic energy resources (including modules, system components, and installation) will grow from an USD $11.2 billion industry to USD $51.1 billion by 2015. And the fuel cell and distributed hydrogen market will grow from $1.2 billion (primarily for research contracts and demonstration and test units) last year to $15.1 billion by 2015.
In all the above mentioned four alternate energy technologies, which were valued at USD $40 billion in 2005, they are expected to grow fourfold to USD $167 billion within the coming decade.
U.S. biodiesel production tripled in 2005 to 75 million gallons, domestic ethanol output continued its steady growth to nearly 4 billion gallons, while U.S. hybrid car sales grew 144 percent to more than 205,000, more than half of them Toyota’s Prius. Plug-in hybrids, still in the demo stage but gaining speed, can get 80 miles per gallon or more by running in all-electric mode for the first 30 miles, about the length of a typical commute.
Energy demand of developing countries will increase by as much as 80% in coming few years. Global primary energy demand from fossil fuels will rise by an average of 1.6% till 2030.
[edit] Industry Players
In the table below, top countries as per their existing capacities of alternative energy are ranked from 1 to 5,
Existing Capacity Rank 1 Rank 2 Rank 3 Rank 4 Rank 5
Renewable power capacity
(excl. large hydro) China` Germany USA Spain India
Large hydro USA China Brazil Canada Japan/Russia
Small Hydro China Japan USA India Denmark
Wind Power Germany Spain USA India Denmark
Biomass Power USA Brazil Philippines Sweden Finland
The graph below shows the share of top countries in the world, in terms of alternate energy capacities,
[edit] Recent Trends and Developments
Investments in alternative energy companies are rising. From USD $30 Billion in 2004, they exceed USD $38 billion now. Germany and China lead the world while the US and Japan follow their lead in this investment. Estimated value of companies in this domain, world over exceed USD $50 Billion.
Brazil, Chile, Colombia, Egypt, India, Iran, Madagascar, Malaysia, Mexico, Morocco, Pakistan, the Philippines, South Africa, Thailand, Tunisia, Turkey, and Uganda are some of the countries who have taken policy decisions and have encouraged investments in alternate energies.
By 2006, the number of publicly traded companies in the world in alternate energy had risen to 85. Major companies in this sphere are Suntech Power (China), Suzlon (India), REC (Norway), and Q-cells (Germany).
[edit] Sources
- Energy Efficient Home Articles
- UK Invest
- Warc
[edit] Related ResearchWikis
Green Energy Marketing Research
Energy - Renewable - Germany 2007 Marketing Research
Energy - Renewable - India 2008 Marketing Research
Energy Marketing Research - Short Term Outlook May 2008 U.S.
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