Blockchain in Energy Market Size to Reach USD 27,913.0 Million in 2031
The blockchain in energy market size was USD 353.3 million in 2023 and is expected to register a revenue CAGR of 72.6% during the forecast period
December 07, 2024 – The global blockchain in energy market size reached USD 353.3 million in 2023 and is expected to register a revenue CAGR of 72.6% during the forecast period. Increase in demand for blockchain technology in energy sector is a key factor driving market revenue growth.
The demand for power is predicted to roughly quadruple globally by 2040, causing a significant upheaval in the energy environment. The International Energy Agency (IEA) projects that global energy investment will surpass USD 3 trillion in 2024 for the first time, with about USD 2 trillion allocated to clean technologies such as electric vehicles, nuclear power, grids, storage, low-emission fuels, heat pumps, efficiency upgrades, and renewable energy. For the first time, investments in renewable energy and grids surpassed those in fossil fuels in 2023.
On July 2024, a Memorandum of Understanding (MOU) has been signed between Howe-Baker International, a leader in energy design and engineering, and D.Energy, a layer 1 blockchain that is at the forefront of sustainable energy protocols. The goal of this strategic alliance is to further the study and development of using blockchain technology to produce clean hydrogen. The MOU states that Howe-Baker and D.Energy will work together to investigate and create blockchain-based solutions that will improve the security, efficiency, and transparency of hydrogen manufacturing processes.
However, the revenue growth of blockchain in energy market is facing lack of regulatory framework. Blockchain presents special opportunities to solve problems pertaining to better governance. One of the main obstacles to the adoption of blockchain in the energy sector is the absence of worldwide regulations or blockchain procedures, even if regulatory work has already begun in several areas, such as Europe and Japan. To oversee a future decentralized energy system, control power prices, and resolve potential conflicts and transaction reversals, regulations are necessary.
Key Highlights:
- Public segment is expected to register the largest revenue growth rate over the forecast period. Public blockchains are available to anybody with an internet connection, regardless of geography or background. This results in a more inclusive and open environment, in which anybody can join the network and profit from its applications. Public blockchains use powerful cryptographic techniques to secure and authenticate transactions, and they operate on a decentralized network. These characteristics make them highly secure and resistant to attacks, as any effort to alter or manipulate data on the network is noticed by the other nodes.
- Peer-to-Peer (P2P) energy trading segment is expected to account for the largest revenue share over the forecast period. Peer-to-peer (P2P) energy trading has evolved as a next-generation method in energy management, allowing prosumers to exchange excess electricity. This opens potential for power system marketplaces and changes the way consumers use energy by allowing them to trade with their peers. On September 2024, Trende Co., a renewable energy startup, has developed a commercial peer-to-peer (P2P) power trading project for Japanese agricultural cooperatives. The blockchain-based business, which is being deployed by Japan’s National Federation of Agricultural Cooperatives, employs AI-based supply and demand forecasts to exchange electricity between users supplied by local solar power and energy storage facilities.
- Europe accounted for largest revenue share in the blockchain in energy market in 2023 driven by increase in demand for renewable energy and technological advancements in blockchain technology in energy sector. On September 2023, Rabobank has announced its collaboration with 2Tokens, ABN AMRO, and Assetblocks on a combined application for the European Blockchain Sandbox (EBS). The current Assetblocks ‘base case’ provides “an innovative opportunity for individuals to invest in tracking stocks that represent renewable energy sources.” Investors will purchase NFTs that represent a partial ownership interest in solar, wind, and battery parks, allowing them to profit.
- Some major companies in the market report include Microsoft Corporation, Accenture plc, IBM Corporation, Oracle Corporation, SAP SE, LO3 Energy, Inc., WePower UAB, Infosys Limited, Shell, Siemens Energy, GRID+, WPP Energy, Enovate Ai, and Acciona SA.
- On January 2021, Mitsubishi Electric Corporation and the Tokyo Institute of Technology have collaborated to create a blockchain platform that would enable peer-to-peer (P2P) energy trading. The platform is not an application built on an existing blockchain, but rather a new sort of blockchain created expressly for peer-to-peer energy trading. The project fosters a commercial environment by properly matching buy and sell orders between energy suppliers and consumers.
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Navistrat Analytics has segmented blockchain in energy market based on component, type, application, end-use and region:
- Component Outlook (Revenue, USD Million; 2021-2031)
- Services
- Platform
- Type Module Outlook (Revenue, USD Million; 2021-2031)
- Public
- Private
- Hybrid
- Application Outlook (Revenue, USD Million; 2021-2031)
- Peer-to-Peer (P2P) Energy Trading
- Renewable Energy Credits
- Grid Management and Optimization
- Carbon Credit Trading
- Electric Vehicle
- Others
- End-Use Outlook (Revenue, USD Million; 2021-2031)
- Energy Consumers
- Residential
- Commercial
- Industrial
- Power plants
- Grid Operators
- Others
- Energy Consumers
- Regional Outlook (Revenue, USD Million; 2021-2031)
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- France
- U.K.
- Italy
- Spain
- Benelux
- Rest of Europe
- Asia Pacific
- China
- India
- Japan
- South Korea
- Rest of APAC
- Latin America
- Brazil
- Rest of LATAM
- Middle East & Africa
- GCC Countries
- Israel
- South Africa
- Turkey
- Rest of MEA
- North America