A recent Ernst & Young (EY) study found that the global cleantech sector grew a staggering $26 billion in the last fiscal year.
The study analyzed 424 companies, only including companies that got over half of their value from clean energy business. It found that these 424 companies employed 512,500 people and together had a market capitalization of $170 billion in April 2013, 18% higher than the same time the previous fiscal year.
The report, Cleantech Industry Performance 2013, highlighted clean energy growth in the Asia-Pacific region as a key reason for the strong upturn. This is certainly where solar power growth is booming right now, helping the global solar market to get going in a positive direction again.
“Globally, the cleantech sector saw the creation of 68 new PPP companies and lost 63 companies in 2012,” EY wrote in a news release about the new report. “The Asia-Pacific region was the main winner, increasing 16% to 177 companies, while the company population in Europe, Middle East and Africa (EMEA) contracted by 8% to 135 companies. The US and China remain the leading countries in terms of PPP companies, with 70 and 64, respectively.”
Energy Efficiency Sector Growing Strong
In terms of cleantech sectors, the energy efficiency sector was a key growth sector on the stock market. The number of companies grew 14%, reaching 50 in total. Their combined market capitalization grew 25%, hitting $34.6 billion.
Renewable Energy Sector Rebounding
In the renewable energy space, the number of companies grew 14% to 32 in total. Their combined market capitalization increased 8%, reaching $25.5 billion. And their combined revenue increased 23%, totaling $11.1 billion. “The renewable energy sector showed important signs of recovery as generation companies showed across the board gains, benefitting from lower equipment costs,” EY wrote.
Here are more details on the wind, solar, and biofuels sectors:
While the number of wind equipment companies fell by 2% to 53, market capitalization increased by 2% to US$30.8b and revenues increased 14% to US$35.3b. The picture for solar is more mixed, with the number of solar equipment companies falling by 2% but market capitalization up 14% to US$28.8b; however, solar revenues declined by 16% to US$42.5b.
Biofuels also experienced significant growth in 2012 as the number of companies in the segment increased 8% to 41, market capitalization shot up 25% to US$13.1b and revenues grew 14% to US$26.0b.
“The cleantech sector globally has shifted to growth. Resource scarcity, energy security concerns, population growth and increasing consumption, by expanding middle classes in emerging markets, will continue to drive this cleantech market growth,” Gil Forer, EY’s Global Cleantech Leader said. “China is consolidating its position as the most important cleantech market and is poised to overtake the US as the number one center for public cleantech companies.”