Beatrice Lang
The industrial sector is the largest consumer of electricity worldwide, accounting for about 42% of total electricity consumption as of 2018. Within the industrial sector, manufacturing, chemicals, and petroleum and coal products are the most significant energy consumers. The residential sector is the second-largest consumer of electricity, followed by the commercial and public services sectors. However, the transportation sector is the primary energy consumer when considering all energy sources, not just electricity. China is the largest consumer of electricity by country, representing 31% of global consumption in 2023.
| Characteristics | Values |
|---|---|
| Sector with the most electricity consumption | Industrial sector |
| Year with the most recent data available | 2022 |
| Percentage of electricity consumed by the industrial sector | 42.2% |
| Other sectors and their electricity consumption | Residential sector (26.8%), Commercial and public services (21.1%), Transport sector (1.8%), Agriculture and fishing (8.1%) |
| Total final electricity consumption in 2022 | 29,000 TWh |
| Country that is the largest producer and consumer of electricity | China |
| Percentage of consumption in Asia by China | 55% |
| Percentage of world consumption by China | 31% |
| Year with data for China's consumption | 2023 |
| Unit of measurement for total consumption figures | Terawatt-hours (TWh) |
| Unit of measurement for per capita consumption figures | Megawatt-hours (MWh) |
| Country with the highest per capita consumption | Scandinavia, the United States, Canada, Taiwan, South Korea, Australia, Japan, and the United Kingdom |
| Country with the lowest per capita consumption | Developing countries |
| Companies with the highest electricity consumption | Samsung (22,916,000 MWh), TSMC (16,058,000 MWh), Alphabet (Google) (12,237,000 MWh), Microsoft (10,244,000 MWh), Intel (7,170,000 MWh), and Facebook (7,170,000 MWh) |
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What You'll Learn
Industrial sector: 42.2% of electricity consumed
The industrial sector is the largest consumer of electricity, responsible for about 42.2% of total electricity consumption worldwide. This figure has decreased slightly since 1981, when the sector's electricity consumption was at its highest. In contrast, the residential and commercial/public services sectors have witnessed an increase in electricity consumption during this period.
The industrial sector's electricity consumption varies across countries. In the United States, 77% of industrial electricity is used in manufacturing, with the chemicals industry alone accounting for 37% of this energy usage. Other energy-intensive industries in the US include petroleum and coal products (22%), paper and paper products (11%), and primary metals (8%).
The manufacturing industry's high energy consumption is not limited to electricity but also includes other energy sources. In 2018, the top six energy-intensive industries in the US consumed 16.9 quadrillion BTUs of energy from all sources, including electricity.
The commercial sector's electricity consumption is also significant, with tech giants like Samsung, TSMC, Alphabet (Google), Microsoft, Intel, and Facebook being some of the world's highest energy-consuming businesses. The transportation sector's electricity consumption is also increasing, particularly with the growth of the electric vehicle market.
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Residential sector: 26.8% of electricity consumed
In 2022, the residential sector consumed nearly 26.8% of the world's electricity. This is a notable increase from 1981, when the residential sector consumed 15% of the world's electricity. This increase is due, in part, to the growing number of electric devices in homes, which promote the convenience of modern life. For example, in developed countries, families can use a wide array of electric equipment to carry out household activities.
The residential sector's electricity consumption is also influenced by economic development. An inverted-U-like pattern has been observed, where electricity consumption increases as per capita income rises, with a turning point at about $20,000. This pattern is particularly relevant in the developing world, where improving living conditions requires a significant amount of electricity.
The consumption of electricity in the residential sector also varies by region. For instance, in 2022, the per capita electricity consumption of urban residents in Sichuan Province, China, was 51.40 kWh/year lower than that of rural residents. Similarly, in Western Europe, the average per capita consumption is between 4 and 8 MWh/year, while in Scandinavia, the United States, Canada, and several other developed countries, the per capita consumption is higher.
Looking forward, the residential sector's electricity consumption is projected to continue increasing. In the United States, residential electricity sales are expected to climb to 1,524 billion kWh in 2025, surpassing the previous peak of 1,509 billion kWh in 2022. This projected increase is attributed to rising electricity use in homes for heating and transportation, as well as the growing demand from data centers powering artificial intelligence and cryptocurrency operations.
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Commercial sector: 21.1% of electricity consumed
In 2022, the commercial and public services sector consumed about 21.1% of the world's electricity. This equates to nearly 10,000 TWh of electricity, with the sector's consumption continuing to rise. In 2024, the commercial sector set a new record of 1,421 billion kWh, and this figure is projected to increase to 1,458 billion kWh in 2025.
The commercial sector includes businesses such as Samsung, TSMC, Alphabet (Google), Microsoft, Intel, and Facebook, which are some of the world's highest electricity-consuming businesses. Samsung, for example, consumed 22,916,000 megawatt-hours of electricity, while Facebook used 7,170,000 megawatt-hours. Small businesses also contribute significantly to the sector's total electricity consumption, as they account for 95% of all businesses in the United States.
The commercial sector's electricity consumption is influenced by various factors, including the use of data centers, artificial intelligence, and cryptocurrency operations. Additionally, rising electricity usage in businesses for heating and transportation also contributes to the sector's overall consumption.
While the commercial sector's electricity consumption has been increasing, it is important to note that the industrial sector has historically been the largest consumer of electricity, with manufacturing, chemicals, and petroleum and coal products being some of the high energy consumption industries within this sector. However, in recent decades, the commercial sector has seen a growth in electricity consumption while the industrial sector's consumption has declined.
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Transport sector: 1.8% of electricity consumed
The transport sector's electricity consumption is an important aspect of the global energy landscape. While the sector's electricity usage stands at 1.8% of the total worldwide consumption, it is significant in the context of the broader energy transition.
The transport sector's electricity consumption encompasses a range of activities. These include the energy used for transportation within economic sectors such as industry and services, as well as transportation connected to households, such as private cars. The sector also includes various modes of transport, from high-speed trains, metros, and trams that are powered exclusively by electricity for passenger transport, to conventional rail that may be powered by electricity, oil, and petroleum products, or other energy sources.
The electrification of the transport sector is a key trend in the global energy transition. The growth in the electric vehicle market has contributed to an increase in electricity consumption in the transport sector. This shift from combustion engines to electric drive systems is expected to lead to higher electricity demand in the sector. Additionally, the electrification of heating systems in vehicles, moving away from gas and oil, will further contribute to the electricity consumption of the transport sector.
The transport sector's electricity consumption varies across regions. In Western Europe, the per capita consumption is between 4 and 8 MWh/year. However, in Scandinavia, North America, East Asia, and certain other developed countries, the per capita consumption is higher. On the other hand, developing countries have much lower per capita consumption. These regional disparities are important to consider in the context of global energy policies and the push for electrification.
While the transport sector's electricity consumption currently stands at 1.8%, the ongoing electrification and the growth in electric vehicle adoption are expected to impact this figure in the coming years. As countries and regions transition towards more sustainable energy systems, the transport sector's electricity consumption is likely to become an even more prominent factor in global energy consumption.
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China: 31% of world consumption
China is the largest producer and consumer of electricity in the world, representing 55% of consumption in Asia and 31% of global consumption in 2023. The country's electricity consumption is significantly higher than that of other countries, and its high consumption has a considerable impact on the world's overall energy usage.
China's substantial electricity consumption is driven by several factors, including its large population, rapid industrial development, and increasing demand for energy across various sectors. China's massive population, the largest in the world, naturally results in high electricity usage for residential and commercial purposes. The country's industrialization has also been a significant factor, with a substantial portion of electricity dedicated to powering manufacturing, construction, and other industrial activities.
The industrial sector in China is a major contributor to the country's overall electricity consumption, and it aligns with the global trend of the industrial sector being the largest consumer of electricity. In 2018, the global industrial sector consumed about 42% of electricity, with manufacturing, construction, and other energy-intensive industries contributing significantly. China's position as a manufacturing hub, producing a vast array of goods for both its large domestic market and international export, contributes to its high electricity consumption in this sector.
In addition to the industrial sector, China's residential and commercial sectors also contribute significantly to the country's overall electricity consumption. As global trends indicate, electricity consumption in these sectors has been increasing over the years, and this is particularly true in China due to its growing economy and rising standards of living. The demand for electricity in homes, businesses, and public services has been steadily rising, contributing to China's overall electricity consumption.
China's high electricity consumption has implications for the country's energy policies and global efforts toward sustainable energy solutions. The country has been working to improve energy efficiency and diversify its energy sources, including investing in renewable energy technologies. However, the sheer magnitude of China's electricity consumption also underscores the challenges in meeting the energy demands of a large and rapidly developing country while also addressing environmental concerns. China's electricity consumption and the resulting environmental impact are, therefore, critical areas of focus in global discussions on energy and sustainability.
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Frequently asked questions
The industrial sector consumes the most electricity worldwide, accounting for 42.2% of total electricity consumption.
Yes, the industrial sector has historically been the largest consumer of electricity. However, in recent decades, the residential and commercial sectors have seen an increase in consumption, while the industrial sector has declined.
China is the largest consumer of electricity, representing 31% of the world's consumption in 2023. The United States is also a large consumer of electricity and is projected to break consumption records in 2025 and 2026.
Differences in electricity consumption across countries often reflect differences in population size. Countries with larger populations tend to consume more energy. However, when looking at consumption per capita, the picture can change. For example, in Western Europe, consumption per capita is between 4 and 8 MWh/year, while in Scandinavia, the United States, and other developed countries, the per capita consumption is higher.
In the commercial sector, Samsung is the highest electricity consumer, followed by TSMC, Alphabet (Google), Microsoft, Intel, and Facebook.
