Market Size of Blockchain Industry in the Energy Sector
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 34.00 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Europe |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Blockchain in the Energy Sector Market Analysis
The energy blockchain market is expected to register a CAGR of 34% over the next few years. Because the energy sector is centralized, it has some problems, such as high costs for administration and transmission. Since blockchain solves these problems, reduces the chance of a single point of failure, and makes the whole supply chain more transparent, it is expected to bring a big digital change to the sector.
- Blockchain technology helps regions meet their goals for renewable energy, makes grids more reliable and efficient, and cuts down on the amount of money utilities have to spend on clean energy generation. Thus, its adoption is expected to increase over the forecast period.
- Since microgrids allow electricity to be traded within a certain area and have other benefits during emergencies with the main grid (like acting as backup solutions), vendors on the market could take advantage of the growing use of microgrids. One illustration is the pilot project that German company OLI Systems, which sells energy blockchains, set up in Europe's microgrid.
- The biggest benefits of blockchain in the energy sector are lower costs, less damage to the environment, and more openness among stakeholders without sacrificing privacy.
- Software solutions, such as enterprise Ethereum solutions, can also help traditional energy sectors like oil and gas. With these private blockchain networks, oil and gas companies can protect their privacy and trade secrets by giving only pre-approved parties access to their data and letting them join select consortiums.
- Among significant applications, the 'payments' category exhibited the highest association and implementation of blockchain in the energy sector. By tracking the chain of custody for grid materials, distributed ledger technology can potentially improve utility providers' efficiencies. Beyond provenance tracking, blockchain offers unique solutions for renewable energy distribution.
The COVID-19 pandemic crisis made it more important for people, businesses, and the economy to use digital and energy technologies. The company knew how much it depended on digital and energy solutions to help people work from home, heat their homes, run hospitals, and run their businesses.
