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Energy use by sector

Energy consumption grows across all sectors of the economy, although slower than in the past

Primary energy consumption by end-use sector
Primary energy consumption by end-use sector
Annual demand growth and sector contributions
Annual demand growth and sector contributions

The strength and composition of energy growth over the next 30 years depends importantly on ‎how that energy is used across the main sectors of the economy.‎

The industrial sector (excluding the non-combusted use of fuels) consumed around 45% of global ‎energy in 2018, with the non-combusted use of fuels accounting for an additional 5% or so. The ‎remainder was used within residential and commercial buildings (29%) and transport (21%).‎

The outlook for primary energy also depends on the form in which that energy is used at the final ‎point of consumption. In particular, although it is possible to decarbonize the production of ‎electricity and hydrogen, they require considerable amounts of primary energy to produce. As ‎such, increasing the use of these forms of energy carriers tends to boost primary energy. ‎

In Rapid, the growth in primary energy used in all three sectors slows relative to the past 20 ‎years. This deceleration is most pronounced in the industrial and buildings sectors, with the use ‎of primary energy in both sectors falling in the second half of the Outlook. In contrast, primary ‎energy used in transport increases throughout the Outlook – accounting for nearly 60% of the ‎total increase in primary energy in Rapid – boosted by greater switching to electricity and ‎hydrogen. This hydrogen can be used either directly or combined with carbon or nitrogen to ‎make it easier to transport. ‎

The use of electricity and hydrogen expand by even more in Net Zero, particularly in transport ‎and industry. As a result, even though the pace of underlying efficiency gains in both sectors is ‎faster than in Rapid, the increase in primary energy is somewhat greater. Primary energy used in ‎buildings by 2050 is largely unchanged from its current level. ‎

In contrast, the use of primary energy increases materially in all three sectors in BAU, albeit ‎significantly slower than in the past 20 years. This deceleration is most marked in industry and ‎transport, with energy use in buildings and the non-combusted sector together accounting for ‎around half of the increase in primary energy consumption.‎