Energy Sector Research

Delivered April 6th, 2018. Contributors: Annabelle T., Sara F. and

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Single Family Home Energy Consumption

Globally, energy consumed by single-family households was 3,550 Terawatt hour (tWh) as compared to the total energy consumed by all industry at 20,917 tWh. Single-family household energy consumed in the United States annually was 1,176 tWh, 1,096 tWh in Europe, and 355.61 tWh in China.

The above figures were presented in tWh unit instead of TBD unit as there was no available conversion factor found for TBD units. When looking for ways to express the answer in TBD units, we looked at various online converters, as well as articles and reports about measuring energy consumption. While there were no precompiled statistics pertaining to the requested information, we have estimated the figures using available statistics from various reports, database, and news articles. Below you will find detailed calculations, estimations, methodologies, and assumptions made to derive the figures.

UNITED STATES' SINGLE-FAMILY HOUSEHOLD ENERGY CONSUMPTION According to EIA, the average annual energy consumption for a U.S. residential household was 10,766 kilowatt-hours (kWh) in 2016. The US consumption was more than 3 times higher than the global average of 3,353 kWh. In 2017, the total housing units in the US totaled 136.57 million and a report from the Federal Reserve Bank revealed that since the year 1990 up to present, single-family units accounted for 80% of the total housing units.

This means that the US single-family energy consumption was estimated to be 1,176tWh in 2017.
= 136.57 million housing units * 80% * 10,766 kilowatthours (kWh)
= 1.176 trillion kWh [1,176 tWh]

Conversion used:
1 Kilowatt hour [kWh] = 0.000 000 001 Terawatt hours [TWh]

EUROPE'S SINGLE-FAMILY HOUSEHOLD ENERGY CONSUMPTION In Europe, "the households or residential sector represented 25.4% of final energy consumption or 17.4% of gross inland energy consumption" as of 2016. According to EuroStat database, gross inland consumption of energy in Europe was measured 1,627 million tonnes of oil equivalent (Mtoe). Europe's housing status was classified into three — detached (single-family), semi-detached and flats. Detached households consisted of 33.3%, while families living in flats represents 42% of the population.

Total household energy consumption in Europe
= 1,627 Mtoe * 17.4% = 283.10 Mtoe

Europe's single-house home energy consumption
= 283.10 Mtoe * 33.3% 
= 94.27 Mtoe [1,096 tWh]

Conversion used:
1 Mtoe = 11630000000 kWh
1 kWh = 0.000 000 001 TWh

CHINA'S SINGLE-FAMILY HOUSEHOLD ENERGY CONSUMPTIONAccording to the ACEEE 2016 survey for Chinese households, "there is a notable gap in residential electricity consumption between urban and rural areas. The electricity consumption of urban households is about 1.4 times that of rural households, with the absolute value of 1,888 kWh/household/year and 1,371 kWh/household/year, respectively." The average residential electricity consumption between urban and rural areas was 1,630 kWh/household/year. A separate statistics reported that almost half (50%) of the total population in China lives in a high-rise residential building. In here, we assumed that the remaining 50% accounts for single-family households.

As of 2016, the average number of people living in one household in China was 3.11. If the latest total population in the country was at 1.357 billion, then the estimated number of household is:

Number of Chinese households
= 1,357,000,000/3.11 = 436,334,405

Estimated single-family household
= 436,334,405 * 50% = 218,167,203

China's single-family energy consumption
= 218,167,203 * 1,630 kWh 
= 355.61 billion kWh [355.61 tWh]

Conversion used:
1 kWh = 0.000 000 001 TWh

GLOBAL SINGLE-FAMILY HOUSEHOLD ENERGY CONSUMPTIONAccording to the latest data available from Enerdata, the average kWh per household globally was 3,353. From UN report released in 2017, world's average number of people per household from 202 countries was 3.91. Current world population is measured at 7.6 billion. 

Estimated total household worldwide
= 7.6 billion/3.91 = 1.94 billion

World's total household energy consumption
= 1.94 billion * 3,353 kWh = 6.52 trillion kWh

While there are no available statistics for % of single-family worldwide, and in order to estimate global single-family household energy consumption, we took the average percentage share of the 3 regions (US = 80%, China = 50%, and Europe = 33.3%). The average % of these 3 regions is 54.43%.

World's single-family home energy consumption
= 6.52 trillion kWh * 54.43%
= 3.55 trillion kWh [3,550 tWh]

Conversion used:
1 kWh = 0.000 000 001 TWh

CONCLUSIONAmong the three regions, the United States has the highest energy consumption in the single-family household segment with consumption recorded at 1,176 tWh. Globally, energy consumed by single-family households was estimated to be 3,550 tWh. Europe's households account for more than 17% of the total gross inland energy consumption in the EU region. The Chinese single-family household's average energy consumption is 1,630 kWh/household per year.

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Energy Consumption of the Personal Auto Market

Globally, energy consumption for light-duty vehicles was 48 quadrillion Btu in 2015. US automobile energy consumption was 16.1 quadrillion Btu in 2017. In China, automobiles accounted for 10.73% of the country's total energy consumption in 2015, which would be around 14.28 quadrillion Btu. Insufficient data is available to definitely state the energy consumption attributable to private automobiles in Europe, but the energy consumption from road gasoline was 3.033 quadrillion Btu in 2015.

METHODOLOGYI have consulted sources such as the US Energy Information Administration (EIA), the US Department of Energy (DoE) and its Alternative Fuels Data Center (AFDA), the Enerdata Global Energy Statistical Yearbook, the European Environment Agency, the Chinese National Energy Administration, and the World Bank. While data on the overall energy consumption of the transportation sectors in the requested regions was available, data regarding personal vehicles was more difficult to locate. 

Global British thermal unit (Btu) is the most commonly cited metric for energy consumption. It measures the heat content of energy sources and fuels, which offers a good comparison of energy sources. As explained below, Mtoe and terejoules are also used in some countries.

According to a US Energy Information Administration report, energy consumption from light-duty vehicles (the closest proxy for private vehicles) in 2015 (the most recent data reported) was as follows:

Global: Light-duty vehicles — 48 quadrillion Btu
OECD: Light-duty vehicles — 31.8 quadrillion Btu
Non-OECD: Light-duty vehicles — 16.2 quadrillion Btu 

UNITED STATESTransportation makes up 29% of all energy use in the US, and gasoline makes up 55% of the transportation sector's energy consumption. In the US, transportation had an energy consumption level of 25.823 quadrillion Btu in 2017.

According to a 2017 article at Fuel Fix, automobile energy consumption in the US was 16.1 quadrillion Btu. However, as fuel economy standards continue to tighten, that figure is expected to drop to 14.2 quadrillion Btu by 2025.

In 2016, US motor vehicles consumed 658 gallons of gasoline per 
vehicle. According to the DoE's Alternative Fuels Data Center, fuel use by US cars in 2015 was at 480 GGE (gasoline-gallon equivalents), while US light-duty vehicles came in at 682 GGE.

EUROPEAccording to the European Environment Agency, energy consumption from road gasoline was 3.2 million terajoules (TJ). (A terejoule equals 947,817,119 Btu). Using these figures, we can calculate the total to be 3.033 quadrillion Btu (3,200,000 x 947,817,119). However, this statistic relates to road transportation, in general, which would include vehicles other than personal vehicles. 

The EIA's International Energy Outlook 2017 notes that non-OECD Europe and Eurasia have a total energy consumption of around 50 quadrillion Btu.

CHINAIn 2015, China's total energy consumption was 133.1 quadrillion Btu with its transportation sector accounting for 15.6 quadrillion Btu. In that year, energy consumption from automobiles accounted for about 10.73% of the country total, which would be around 14.28 quadrillion Btu.

The sector's demand for energy grew from 34 Mtoe (Million tonne, or megatonne, of Oil Equivalent) in 1990 to 249 Mtoe in 2013. A Mtoe equals 39,683,207,193,277.9 Btu. 

CONCLUSIONIn conclusion, the global energy consumption for light-duty vehicles was 48 quadrillion Btu in 2015, while China's automobile energy consumption for that year was 14.28 quadrillion Btu. While insufficient data for Europe's private automobile sector, the energy consumption from road gasoline was 3.033 quadrillion in 2015. US automobile energy consumption was 16.1 quadrillion Btu in 2017.

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Residential HVAC Units

In 2016, the total residential HVAC market size (represented by the total number of residential HVAC units used or installed globally) was 104.73 million. Of these, 88.81 million units are residential A/C and an estimated 15.92 million accounts for other HVAC units. Regionally, total residential HVAC units installed in the United States was 9.29 million, 6.33 million in Europe, and 45.29 million in China. Globally, residential HVAC was worth $42.93 billion in 2017.

The above-presented figures were based on available reports for air-conditioning (A/C) units and combined with estimated figures based on HVAC market value from industry reports and news articles. Our detailed calculations, estimations, and assumptions of how the above figures were derived are presented below.

RESIDENTIAL HVAC SYSTEM GLOBAL MARKET SIZEAccording to a Marketsandmarkets report, the global HVAC system (commercial, industrial and residential) was worth $115.99 billion in 2015 and is forecast to reach $173.16 billion by 2022 at a CAGR of 5.9%. In 2016, the market was worth $122.83 billion [$115.99*1.059] and $130.08 billion [$122.83*1.059] in 2017.

From Howard Air and ACHR News report in 2017 and 2015 respectively, segmenting HVAC market by residential and non-residential, both reports stated that 67% of HVAC market accounts for non-residential. The remaining 33% [100%-67%] accounts for residential HVAC.

Residential HVAC market size in 2017
= $130.08 billion * 33% = $42.93 billion

RESIDENTIAL AIR CONDITIONING UNITSA comprehensive report on global and regional (per country) A/C market-demand both for residential and commercial use was released by the Japan Refrigeration and Air Conditioning Industry Association (JRAIA) in 2017. The data collected was for FY 2011 to 2016. In 2016, the total number of A/C units used by both the commercial and residential sector was 102,311,000 units. See below for 2016 residential breakdown for global, US, China, and Europe market.

Global: 88,807,000 units [13,119,000 window-type, 75,688,000 split-type]
US: 7,881,000 units [7,223,000 window-type, 658,000 split-type]
China: 38,409,000 units [309,000 window-type, 38,100,000 split-type]
Europe: 5,366,000 units [66,000 window-type, 5,300,000 split-type]

The above figures represent only the residential A/C units (or also called room A/C). From the above figure, by dividing the region's total units from global, the US accounts for 8.87% of the total market, China accounts for 43.25%, and Europe accounts for 6.04%. Estimate of the total HVAC units including for heating and ventilation units are presented below.

ESTIMATED RESIDENTIAL HVAC UNITSWhile there were no precompiled reports that could directly quote the total global, US, China, or Europe HVAC units stored or installed in the recent years (except for A/C as presented above), we were able to come up with an estimated figure utilizing the available data on HVAC market size ($ value) and assume it to carry similar trend as per number of units installed.

From the report presented by Transparency Market Research (TMR) in 2018, room air-conditioning (used in residential sector) was worth $24.7 billion in 2012. According to this report, "the market value [global HVAC] is projected to reach US$155.1 billion by 2022 from a value of US$91.3 billion in 2013" at a CAGR of 6.20%. In 2012, the market was worth $85.97 billion [$91.3 billion/1.062]. Using this figures to calculate residential room A/C market share;

% share = ($24.7bn/$85.97bn)*100 = 28%

Assuming that the 28% share was concurrently similar in 2017 and using the 2017 market size from Marketsandmarkets report;

Global residential room A/C market size in 2017 
= $130.08 billion * 28% =$36.42 billion

Earlier, we have determined that the residential HVAC market size in 2017 was $42.93 billion. If residential (room) a/c was valued at $36.42 billion, this would translate to 84.8% market share of the total residential HVAC market and the remaining 15.2% accounts for other units, i.e. heating and ventilation units.

Residential room a/c % share = ($36.42/$42.93)*100 = 84.8%
Others (heating and ventilation units) = 100%-84.5% = 15.2%

Using the JRAIA report of the global and regional total residential (room) a/c units and applying the 84.8% share; the estimated total HVAC units are as per below;

Global = 88,807,000 / 84.8% = 104,725,236 units
US = 7,881,000 / 84.8% = 9,293,632 units
China = 38,409,000 / 84.8% = 45,293,632 units
Europe = 5,366,000 / 84.8% = 6,327,830 units

Overall, the summary of the total HVAC units is presented below. The 'other HVAC units' was calculated by subtracting the total A/C units from total.

Global: 104,725,236 units [88,807,000 a/c, 15,918,236 other HVAC units]
US: 9,293,632 units [7,881,000 a/c, 1,412,632 other HVAC units]
China: 45,293,632 units [38,409,000 a/c, 6,884,632 other HVAC units]
Europe: 6,327,830 units [5,366,000 a/c, 961,830 other HVAC units]

CONCLUSIONThe total residential HVAC units used or installed globally was 104.73 million in 2016, and this market estimated value was $42.93 billion. Residential air-conditioning units account for over 84% of the total market with China taking the largest share of 43.25%. The United States' residential sector installed about 9.29 million HVAC units while Europe demanded 6.33 million units.