Understanding how different sectors consume energy can provide valuable insights into where improvements can be made for both cost savings and environmental impact. This overview explores energy usage across major industrial sectors and key commercial industries, highlighting their respective demands and consumption patterns.

Industrial Sector

The industrial sector accounts for 35% of energy used in the United States, this includes electricity, gases and oil. Manufacturing takes the lead in industrial energy consumption, followed by mining, construction, and agriculture.

Energy Use Breakdown by Industry

Manufacturing

Manufacturing is the largest energy consumer within the industrial sector, making up 76% of the total industrial energy consumption. There are a variety of subsectors under the manufacturing industry, such as chemicals, oil, coal, paper, metals and food processing.  According to the EIA’s Annual Energy Outlook, six energy-intensive manufacturing industries—chemicals, petroleum and coal, paper, primary metals, food, and nonmetallic mineral products—accounted for 87% of all manufacturing energy use in 2018.

The most significant energy users within manufacturing are:

• Chemicals (37%): Energy is used in the production of ammonia, chlorine, ethylene, and other petrochemical intermediates.
• Petroleum and Coal Products (22%): Energy consumption in this sector involves transforming crude oil into usable products.
• Paper (11%): Energy is used in both papermaking and pulping processes.
• Primary Metals (8%): This subsector includes iron and steel mills, aluminum production, and foundries.

Mining

Mining uses 12% of the industrial energy consumption due to the heavy machinery being used. Businesses extract materials from the ground like oil, natural gas, minerals and nonmineral products which are then transported and processed.

Construction

Construction makes up 7% of industrial energy use, with energy needed for machinery operation, site lighting, heating, cooling, and office equipment.

Agriculture

Lastly, the agriculture industry uses 4% of energy consumption within its sector. Energy is used to mass produce crops within farms, irrigation, heating greenhouses and other heavy machinery.

Commercial Sector

The commercial industry also uses a significant amount of energy. Where industrial sectors use more gas energy for fuel, commercial sectors typically use more electricity over natural gas. The Energy Information Administration reported in 2023, the commercial sector accounted for 36% of electricity sales, second to residential homes. They tend to use the most amount of their energy on HVAC and lighting. Commercial industry includes businesses like retail stores, restaurants, hotels, government buildings, and organizations like churches. The most significant energy users are:

Offices

Office spaces use the most amount of electricity and second most amount of natural gas with 775 TBtu (trillion British thermal units) and 250 TBtu respectively. Buildings categorized as office spaces include government buildings, religious offices and medical offices that do not use medical equipment.

Education

Education comes second in energy consumption. In 2018, data shows 437 TBtu in electricity and 328 TBtu in natural gas was consumed. All educational buildings from grade school to universities fall under the education category. 

Enclosed Malls and Strip Malls

Malls and strip malls have a variety of businesses in them like retail and food services. This results in ranking third for energy consumption in 2018, with 373 TBtu in electricity and247 TBtu in natural gases.

Lodging

Lodging used a total of 342 TBtu in electricity and 224 TBtu in natural gas. Under this category falls hotels, motels, retirement homes, nursing homes and shelters. Reports show hotels typically use most of their energy towards heating and cooling throughout the facility.

Understanding commercial energy consumption is vital for businesses looking to reduce costs and improve sustainability. With industrial sectors like manufacturing and mining consuming vast amounts of energy, the potential for efficiency improvements is significant. As industries adopt new technologies and energy management strategies, they can lower their energy use, reduce their environmental impact, and enhance profitability.

Adopting energy-efficient practices can be done in any industry. Investing in energy management can help lower consumption but also lead to cost savings and improving brand image. Incentive Rebate360 provides rebate management services for energy projects to offset the initial costs and simplify the rebate process. Contact us today by calling 480-653-8180, emailing [email protected], or scheduling a call that fits your needs by clicking the button below!