The global market for green technology was worth $200 billion in 2010, according to “Green Technologies and Global Markets,” a new report from BCC Research. That value is projected to be $312 billion in 2015, after increasing at a five-year compound annual growth rate (CAGR) of 9.2%. The global market for green technologies can be broken down by technology into nine segments: combined heat and power, windows, insulation, hybrid vehicles, waste-to-energy, lighting, ground-source heat pumps, biomass, and smart meters.
The segment made up of combined heat and power was valued at $60 billion in 2010, and in 2015 should be worth $90 billion, yielding a CAGR of 8.4%. The windows segment was worth $35.5 billion in 2010 and should rise to $44.7 billion in 2015, a CAGR of 4.7%. The insulation segment was worth $30 billion in 2010 and should be worth $38.5 billion in 2015, a CAGR of 5.1%. The segment made up of hybrid vehicles was valued at $23.2 billion in 2010 and, in 2015, should be worth $48.7 billion (16% CAGR). The waste-to-energy segment, worth $22.3 billion in 2010, should be worth $29.9 billion in 2015, a CAGR of 6%. The lighting segment, worth $13.2 billion in 2010, should be worth $32.9 billion in 2015, a CAGR of 20%. The segment comprising ground-source heat pumps was valued at $7.6 billion in 2010 and, in 2015, should be worth $12.8 billion (11% CAGR). The biomass segment, worth $6.9 billion in 2010, should be worth $9.7 billion in 2015, a CAGR of 7%. The segment made up of smart meters was valued at $1.8 billion in 2010, and should be worth $4.5 billion in 2015, a CAGR of 20.1%.
Green technology is often referred to as energy efficiency; this is defined as an energy converting device undergoing a technological change that enables it to provide the same service while using less energy. Energy efficiency is viewed as a resource option just like coal, oil or natural gas, and provides additional economic value by preserving the resource base and reducing pollution.
The world market for energy is estimated at around $5 trillion for 2009. This report estimates that, using current technology and working on specific projects that would save the end users money on the energy they consume, about $1.7 trillion of that could be eliminated through energy efficiency and conservation. The capital costs of installing this equipment are not trivial, however, and, more importantly, would involve the retiring of significant amounts of plant and equipment before the end of their normal lifespan, so this will not happen quickly.
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