Zion Market Research has published a new report. According to the report, the global blockchain in energy market was valued at around USD 208 million in 2017 and is expected to reach approximately USD 11,899 million by 2024, growing at a CAGR of above 78.20% between 2018 and 2024.
Blockchain, also know as decentralized ledger technology has no core system or a central server. The authentication of these servers is handled publicly. It helps people to trade energy among themselves. The applications of blockchain in the energy market include payment schemes, grid management, governance risk, and compliance management, energy trading, and supply chain management.
The ‘blockchain in energy market’ is developed and will be able to fulfill the increasing power demand across the globe. These new systems are beneficial, as they offer fast and secure transaction at a low cost without involving any conventional intermediates. This, in turn, is likely to drive this market in the future. The power and utility companies are exploring different ways to develop and implement blockchain technology, as it provides efficient ways to record and process data. With this system, customers can have streamlined and accurate access to their bills. It also provides effective access to various energy sources and accurate utilization of the service data.
Because of these features, blockchain energy is gaining more popularity in the power sector, and thus, is likely to become the driving technology of the future. However, the lack of a clear set of regulatory standards and uncertainty of the regulatory landscape might hinder the market. Nevertheless, advancements in the international trade and supply chain management are expected to provide many opportunities for the key players working in the global ‘blockchain in energy’ market.
The global ‘blockchain in energy’ market is segmented based on type, component, application, and end-user. By type, this market is bifurcated into private and public. The component segment includes platform and services. The application of global blockchain in energy market includes grid management, energy trading, government risk, compliance management, payment schemes, supply chain management, and others. By end-user, this global market is divided into power and oil and gas sectors. In 2017, the power sector dominated the market and is expected to continue the trend over the forecast time period. This can be attributed to the rising demand for renewable energy around the globe.
By region, the global blockchain in energy market includes North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. The European ‘blockchain in energy’market is projected to witness major growth in the upcoming years. This can be attributed to a large number of startups for blockchain and executed projects and the government support in the region. UK and Germany held the largest market share in this regional market in 2017. Furthermore, major energy firms in Europe are likely to apply for blockchain processes in network management and billing, electric mobility, renewable power origin testimonials, decentralized power production, and retail sales. This, in turn, is anticipated to boost the market in the future.
North America is projected to witness significant growth in the ‘blockchain in energy’ market in the future, due to various government initiatives to support this market. For instance, the government made an investment of around USD 22 million for various products and services in the field of emerging technologies. Moreover, the key players, such as Drift, and WePower, are also involved in various technological innovations for the region’s blockchain in energy market growth.
Asia Pacific is likely to expect a rapid rate of growth in the ‘blockchain in energy’ market in the upcoming years. The region’s financial services organizations are making huge large investments for the development of this regional market. Various strategies and collaborative efforts are being made by various organizations to address the security and latency concerns and the expansion of new and renewable energy supply in Asia Pacific countries are expected to further boost this market in the upcoming years.
The Latin American and the Middle Eastern and African regions are expected to witness moderate growth in the ‘blockchain in energy’ market over the forecast time period. This can be attributed to the growing oil and gas sector in the Middle East region and rapid industrialization in the Latin American region.