In a release issued today, global analyst firm Frost & Sullivan reports that the worldwide green energy sector is growing at breathtaking speed, driven by the unprecedented challenges such as climate change.
As might be expected with economic development of this stature, Frost & Sullivan experts are analyzing all the key segments of this market, both in Europe and globally. Based on their research, Frost & Sullivan analysts forecast that revenues are set to double, triple or more over the next few years.
Globally, the green economy has already become a multi-billion dollar industry, with very high growth potential which is attracting record investment. Over the last few years, eco-industries in the European Union alone have grown to such an extent that they have now become a prominent force across the entire European economy. Today they represent about 2.1% of its Gross Domestic Product and account for 3.5 million jobs.
Biodiesel is one of the fastest-growing areas in the chemical industry and the green energy sector. Last year, Europe consumed 3.89 million tons of biodiesel, generating revenues of EUR 2.93 billion. By 2013 the total EU biodiesel market is forecast to be 9.75 million tons in terms of unit shipments while revenues are forecast to be EUR 7.46 billion, based on current biodiesel market prices. The average growth over the forecast period will be 14 percent.
This market earned EUR 8.89 billion in 2005 and is estimated to reach EUR 14.54 billion in 2010. Even in China, the government is stepping up efforts to accelerate the development of clean energy. Frost & Sullivan research analysts reveal that the Chinese Renewable Energy Markets earned revenues of $6.9 billion in 2006, and that these are likely to reach $17.9 billion by 2013. Amongst the market segments, solar PV will be one of the fastest growing renewable energy sources in China until 2013, with its growth exceeding even that of wind power. The biomass power industry has great revenue potential, not only because of government funding but also due to availability of feedstock fuels.
Buildings are responsible for 40% of Europe's total carbon-dioxide emissions. Climate change is a top priority if the EU is to achieve its Kyoto Protocol targets. More stringent standards applied to new buildings and renovations will achieve a significant cut in greenhouse gas emissions. However, analysts remarked that any successful effort must be accompanied by a change in consumer behavior.
According to Frost & Sullivan analysis of alternative fuels and hybrid technologies, while advancements in engine technology have helped reduce emissions to an average of 160 g/km, hybrids, ethanol, biofuels, compressed natural gas (CNG), hydrogen and fuel cells are necessary to reduce them further.
Waste Management and Recycling
An estimated 1.3 billion tons of waste is generated annually in the EU and this still continues to rise. The overall volume of waste is growing at rates proportional to the economic growth rate of the EU25. Amongst the various streams of waste generated, management of hazardous and municipal waste alone costs the EU an estimated EUR 75 billion annually. This translates to the waste management and recycling industry earning huge revenues that are expected to increase enormously over the next few years. The European waste management and recycling market earns total annual revenues of EUR 100 billion.
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