Industrial Energy Use By Sector
The industrial sector’s considerable energy consumption has consequences for business operations, surrounding communities, and global carbon emissions. The breadth of industrial sectors means there is no one-size-fits-all solution to reducing industrial energy consumption; lowering emissions in sectors as diverse as mining, transportation, and chemical engineering requires case-specific analysis.
Discovering energy-efficient solutions has never been more important for industrial operations. Increased energy prices, volatility, and a strict regulatory environment are putting real pressure on industrials to meet the energy challenge, often with the help of energy experts.
What Is Industrial Energy Use?
Industrial energy use includes any energy consumption related to industrial operations. This includes food processing, mining, transportation and distribution, and a wide swath of other sectors. As of 2023, the International Energy Agency found the industrial sector accounted for 37% of global energy use.
Industrial operations rely on a regional mix of electricity, natural gas, coal, and renewable energy, which is varied by local grid power generation and on-site power generation capabilities. Industrial businesses have higher and more diverse energy uses. Commercial and residential energy use is primarily focused on lighting, heating, and cooling, whereas industrial energy use also encompasses thermal, mechanical, and chemical energy.
Industrial businesses that use a lot of energy tend to use more energy than commercial facilities but also use more energy at specific periods of time, which is referred to as peak demand.
Related: Data Center Energy Efficiency
Energy Consumption By Sector: Commercial, Industrial, Transportation, Residential
From electricity in factories to gas in your car, all energy use is categorized into four sectors. Energy experts define these sectors based on a few characteristics.
Commercial Energy Use
Commercial energy consumption includes businesses in the “end-use sector”, which includes retail locations, government, non-profit, and for-profit businesses. Heating, cooling, and lighting are typically the highest energy uses in the commercial sector, although most have additional needs, such as electronics, refrigeration, and more.
Industrial Energy Consumption
Industrial energy use includes businesses like refineries, manufacturers, mining, and other processing facilities. These operations have a sizeable energy footprint.
Transportation Energy Consumption
Transportation energy uses encompass all forms of personal and commercial vehicles, public transportation, planes, ships, and barges. Despite substantial investment in electrification, the transportation sector is still heavily reliant on fossil fuels.
Residential Energy Consumption
Residential energy uses include heating, cooling, lighting, and other needs associated with apartments, single-family housing, and multi-family applications.
What Are the Most Energy Intensive Industries?
Industrials use the most energy of any industry, but specific sectors have higher needs than others. This list of the most energy-intensive industries shows businesses with the most opportunity to lower operational costs and emissions through energy investments.
1. Chemical Manufacturing
Chemical and petrochemicals account for 40% of all industrial energy use and emissions in the US. This is due to the sector’s need for considerable thermal requirements to facilitate chemical reactions during refinement and processing.
2. Steel and Aluminum Production
Refining steel and aluminum requires electrolysis, smelting, and other processes that consume enormous amounts of power. Combined, these sectors account for 10% of industrial and manufacturing energy use.
3. Cement Manufacturing
Cement manufacturing relies on extremely high temperatures to transform raw materials like lime into cement. Cement plants consume around 100 kWh of electrical energy for each ton of production, making cement the most energy-intensive manufactured product on the planet.
Other high-consumption sectors are glass manufacturing, food processing, paper manufacturing, the textile industry, and mining.
Take Control of Your Energy Use with Keen
No two facilities are identical. Keen brings fresh eyes to your energy environment to discover energy-saving opportunities to lower operating costs and meet your sustainability goals. We’ll work with you to identify grants, rebates, and financing options to reduce upfront costs and shorten your return on investment. Grow your business efficiently; speak with a Keen energy consultant today.