Energy & Tech Disruption

Part
01
of two
Part
01

US Energy Market Size

In reference to our findings, the U.S. energy market size in 2017 in terms of energy consumption within the country was 97.7 quadrillion Btu. Additionally, in 2017, the amount of energy that was produced in the U.S. was approximately equal to 87.5 quadrillion Btu. Our research methodology and findings follow below.

METHODOLOGY

To provide the U.S. energy market size, research began by conducting a search for relevant information in U.S. energy and electricity agencies and authorities, such as the U.S. Energy Information Administration (EIA), Edison Electric Institutes (EEI), and the Advanced Energy Economy. While we were able to find the market size of the advanced energy market in the U.S. through this strategy, we were only able to find the market size of the total U.S. energy market in terms of the amount of energy consumed.
Next, we scoured U.S. energy market reports from reputable resources that included IBISWorld, Markets and Markets, and Deloitte for information on the market size of the U.S. energy market in terms of dollars. With this strategy, we were unable to find information on the dollar value of the U.S. energy market in the public domain.

In our third strategy, we searched through media and news resources that included Breaking Energy, CNBC, US News, and Forbes for information on the dollar value of the U.S. energy market. However, after a thorough such through this type of resources, we were still unable to find any helpful information on the U.S. energy market size in terms of dollars.
Our final strategy was to try to triangulate the dollar value of the U.S. energy market size using the information that was available in the public domain. We searched for relevant information in the sources outlined in the strategies above i.e. information on the average price of energy in the U.S. While we were able to find the average cost of electric energy in the U.S., we were not able to find information on the average cost of energy as a whole. Consequently, in the end, there was insufficient data in the public domain that would enable us to triangulate the dollar value of the energy market of the U.S. Further details of our findings follows below.

MOST RECENT MARKET SIZE U.S. ENERGY MARKET

In 2017, the total U.S. primary energy consumption was equal to about 97.7 quadrillion British thermal units (Btu). Additionally, in 2017, the amount of energy that was produced in the United States was equal to 87.5 quadrillion Btu. This energy production amount was equal to 89.6% of the energy consumption in the U.S. As of 2017, the energy consumption/GDP ratio in the U.S. was 5,720 Btu per $2009.
According to the Advanced Energy Now 2019 Market report, in 2018, the market size of the advanced energy market in the U.S. was $238 billion. This industry grew at a CAGR of 11% from 2011 to 2018.

In addition, in 2017, the market size of the electric power industry in the U.S. was approximately $390.3 billion. In 2018, the total electric company revenues from sales to consumers was $402 billion, a figure that represented a 3.1% increase from 2017.
Lastly, the electric power industry of the U.S. contributes around $865 billion annually to the GDP of the United States. This contribution represents about 5% of the total GDP of the U.S.

GROWTH PROJECTION

The electricity demand of the U.S. is projected to increase by 31% from 2019 to 2050. This represents an annual increase rate of 0.9%.

​​​​​​​GROWTH FACTORS

The growth factors in the U.S. energy market include:

ENERGY CONSUMPTION BY SOURCE

In the U.S., total energy consumption by energy source is segmented into:

  • Petroleum 37%.
  • Natural gas 29%.
  • Coal 13.9%.
  • Renewable energy 11%.
  • Nuclear electric power 9%.

ENERGY PRODUCTION BY SOURCE

In the U.S., total primary energy production is segmented into:

  • Natural gas - 32%.
  • Petroleum (crude oil and natural gas plant liquids) - 28%.
  • Coal - 18%.
  • Renewable - 13%.
  • Nuclear - 10%.

ENERGY CONSUMPTION BY SECTOR

In the U.S., energy consumption by sector is segmented into:

  • Transportation 29%.
  • Industries 22%
  • Residential and commercial 11%
  • Electric power 38%.
Part
02
of two
Part
02

Tech Disruptions In Retail, Transport, Media

Wayfair, Carvana, Poshmark, Lyft, and Buzzfeed are five examples of companies disrupting the home furnishing and furniture, auto retail, fashion retail, transport, and media, respectively. For example, Carvana provides a sophisticated digital platform that streamlines the online car buying experience using large glass automobile vending machines and door-to-door delivery options. Read on for in-depth analyses of each company, including how they impact the market sizes of the segments they serve.

1. POSHMARK

Poshmark targets the fashion retail industry and has changed the industry by providing a platform that facilitates new ways of buying and selling clothes online. It leverages technological solutions that bring the human aspect to online shopping. Poshmark deploys social elements on the platform to expand connections with buyers and sellers directly. It offers options such as “Posh Parties” — a virtual live events solution that brings together buyers and sellers. Poshmark influenced the market by distributing its fashion products valued at over $1 billion across 4 million sellers.

2. LYFT

Lyft continues to disrupt the transportation sector by providing lucrative ride-sharing or carpooling services. Digital innovations have forced consumers to opt for on-demand and fast services, such as Lyft ride-sharing and carpooling offerings. Ride-sharing companies ensure that customers get access to means of transport at any time through applications that connect passengers and cars. Overall, Lyft has influenced the transport market significantly by increasing the total addressable market to approximately the entire expenditure on transportation for a household. In the U.S., the market is currently estimated at over $1.2 trillion.

3. BUZZFEED

Buzzfeed continues to disrupt the media by changing how news is written and delivered. The company presents news pieces creatively, and in 2016, it slit its services to feature news and entertainment options to create a balance of the contents it offers. A report by Pew Research asserted that most Americans consume news featured on Facebook; thus, this presents a unique opportunity for Buzzfeed to optimize its delivery to a broader audience via extensive news coverage. In 2017, Buzzfeed was valued at $1.7 billion and secured a total funding of $400 million for investments.

4. WAYFAIR

Wayfair is driving tech disruptions in the furniture/home furnishing retail sector by disproving the notion that consumers would not buy big furniture online and now it is selling big furniture online and shipping it to the customers. It offers consumers a wide range of furniture and decor priced differently. According to Seeking Alpha, with the current trend, brick-and-mortar stores are gradually losing their market share to Wayfair. The impact of this disruption is evidenced by Wayfair’s Q1 2017 results, which beat analyst expectations with revenue figures growing 29% to $961 million, and 55-60% repeat customers rate. Besides, Wayfair’s stock prices jumped, increasing its attractiveness to potential acquirers such as Walmart.

5. CARVANA

Carvana targets to transform the auto retail sector by offering an online platform that provides an easy way for the customer to buy a car online via big glass automobile vending machines and door-to-door delivery services. The e-commerce platform is reinventing the traditional used-car buying process. Surveys indicate that 81% of consumers do not enjoy the conventional car-buying process. Regarding its impact on the market, Carvana’s market penetration more than doubled in the two quarters after its launch. Its 2018 full-year retail unit sales grew from 93,858 units to approximately 96,358 units. Moreover, year-over-year growth ranged from 112% and 118% compared to that of traditional auto retailers.
Sources
Sources

From Part 01
Quotes
  • "To meet this need, capital expenditures in the power and utilities sector continue to rise, with an estimated increase in 2018 of 14 percent, to reach an all-time high of $133.8 billion for the 50 electric and gas utilities S&P Global tracks annually.11 Further increases are expected in 2019, covering multiple needs in generation, transmission, and distribution—grid modernization, building in resilience to weather events and cyber threats, and deploying new technologies such as digital capabilities or storage are all examples of this."
Quotes
  • "At $238 billion, U.S. advanced energy revenue is roughly equal to aerospace manufacturing4 and double the biotechnology industry.5 (Figure 2) Since 2011, U.S. advanced energy revenue has grown at CAGR of 8%."
Quotes
  • "The statistic represents the revenue of the electric power industry in the United States between 1970 and 2017. In 2017, the U.S. electric power industry generated a revenue of around 390.3 billion U.S. dollars. "
Quotes
  • "Total electric company revenues from sales to ultimate customers equaled $402 billion—a 3.1 percent increase from 2017."
Quotes
  • "The industry contributes $865 billion annually to our nation's GDP, or about 5 percent of total GDP."
Quotes
  • "In 2017, total U.S. primary energy consumption was equal to about 97.7 quadrillion (97,728,000,000,000,000) Btu."
  • "In 2017, the amount of energy produced in the United States was equal to about 87.5 quadrillion Btu, and this was equal to about 89.6% of U.S. energy consumption."
  • "Total renewable energy production and consumption both reached record highs of about 11 quadrillion Btu in 2017. Hydroelectric power production in 2017 was about 2% lower than the 50-year average. "
From Part 02
Quotes
  • "With its community of millions of buyers and sellers, Poshmark offers a new way to buy and sell clothes, leveraging technology to bring the human element to online shopping. The model might seem unlikely; the initial version of the store didn’t even have search functionality, instead emphasizing the social element of the platform. "
Quotes
  • "And after seven years of selling off Tory Burch clutches, never-returned Bat Mitzvah gifts and gently-worn Reformation dresses, the site announced on Wednesday that its community of four million sellers have earned a total of $1 billion (!) since its founding in 2011. "
  • ""We are creating the next generation of fashion businesses," said Manish Chandra, founder and CEO of Poshmark in a press statement. "Our Seller Stylists have redefined the fashion landscape by leveraging social selling to build a community centered around style and sharing." "
Quotes
  • "Changing News Writing. While it has achieved fame writing listicles and sharing quizzes, BuzzFeed doesn’t ignore contemporary news. In June of 2016, BuzzFeed split itself into news and entertainment divisions in order to help create a balance between the content the site produces."
Quotes
  • "Carvana is an online retailer of used cars which just went public in April of 2017. Its online platform provides an easy way to buy a car online utilizing its large glass automobile vending machines and door-to-door delivery options."
  • "Wayfair has been one of the retail disruptors in the home furnishing space. Whereas the conventional wisdom used to be that shoppers would not buy large items like furniture online, Wayfair’s success has proven the naysayers wrong. The company’s first quarter results blew past estimates, with revenue surging 29% to $961 million"