Blockchain Technology in Energy Market Size, Share, Growth, and Industry Analysis, By Type (Trading Platform, Grid Management, and Others), By Application (Electric Power, Oil and Gas, Renewable Energy, and Others), Regional Insights, and Forecast To 2031

Updated On: 01 April 2024

Blockchain Technology In Energy Market Report Overview

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The global blockchain technology in energy market size was USD 497.9 million in 2021 and is expected to touch USD 10535.14 million by 2031, at a CAGR of 35.7% during the forecasted period. 

Blockchain technology in energy market has several applications as innovations take place in blockchain technology in the energy sector. More than 65 use cases have been identified in the environmental industry, which includes new business models, real-time data management, and showcasing carbon credits and renewable energy certificates on the blockchain market. Thus, the energy industry's growth has been catalyzed by innovations such as smart metering, leading to the industry's market growth and share.

Using blockchain technology in energy markets has several advantages, such as reduced costs, environmental sustainability, transparency for stakeholders, and maintenance of secrecy. Leading industrial players are looking for ways to invest in blockchain technology in energy sector as commodities such as oil and gas and renewable energy sources have a complex network of distributors worldwide. The use of blockchain will thus help ease communication while maintaining stakeholders' privacy during trading and sell-offs.

COVID-19 Impact: Innovations in Technology Spurred Market Growth

As the pandemic imposed worldwide restrictions, innovations in blockchain technology spurred market growth as its applications have expanded to include the energy sector. Cryptocurrencies have benefited consumers and stakeholders immensely as the blockchain technology in the energy sector helps bring down complex processes while maintaining transparency and privacy in the proceedings. Thus, costs and resources were saved while maintaining environmental sustainability in various regions worldwide.

The sudden spike in CAGR can be attributed to demand returning to pre-pandemic levels after the pandemic is over. The global COVID-19 pandemic has been unprecedented & staggering, with blockchain technology energies experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels.

LATEST TRENDS

"Peer-to-Peer Electricity Trading to Drive Market Growth"

Renewable energy sales to other network participants through smart, automated contracts will drive market growth. As more and more regions reach energy parity, the cost of renewable energy will become equal to or lower than traditional retail energy. Individuals producing their power will be able to trade it with their neighbors and peers. Many players in the industry thus imagine a future possibility of entirely distributed peer-to-peer grids, having the potential to drive market growth & share. Therefore, as it continues growing, there is a good potential for investments in the market.

Blockchain Technology In Energy Market Segmentation

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• By Type

The market is subcategorized based on types into the trading platform, grid management, and others.

• By Application

Based on applications, the market is subcategorized into electric power, oil and gas, renewable energy, and others.

DRIVING FACTORS

"Decentralization and Security to Drive Market Growth"

Features such as decentralization and security will drive blockchain technology in energy market growth. Decentralization helps eliminate the third party, and transaction data is stored in multiple computers of chain members. Additionally, all the data records are verified by blockchain members before it is attached to a block, thus securing it cryptographically. Therefore, these features maintain security and transparency, thus driving the market growth and share of blockchain technology in energy market.

"Automatic Grid Management to Balance Market Supply and Demand"

The automatic control of power and storage flows on the grid helps to balance the supply and demand with increasing intermittent renewable energy. This will drive the market growth as industries look to diversify their power supply and maintain centralized systems simultaneously. This technique also saves energy and supports sustainability along with saving resources. Hence, the industry's market growth is set to rise exponentially with these factors as innovations emerge in the market, thus driving growth and share.

RESTRAINING FACTORS

"Lack of regulations in the Market to Hamper Growth"

A lack of regulations in the global blockchain technology market may impede market growth and act as a barrier to adopting the technology. Regulations are needed to manage decentralized energy systems, regulate electricity tariffs, and manage transactions, disputes, and reversals. The absence of these features will lead to obstacles in adopting the technology. An integrated smart grid for members to optimize blockchain technology used in the energy sector is also required. Hence, investors must consider these factors before investing in blockchain technology in energy sector.

Blockchain Technology In Energy Market Regional Insights

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"North America to Lead Market Share Owing to Technology Expansion"

North America will lead the blockchain technology in energy market share as technology expands and tech giants come up with various regional innovations. The rising number of countries adopting blockchain technology in energy sector has grown exponentially after the pandemic, as share markets tumbled worldwide and consumers sought ways to invest money in quick solutions such as blockchain or cryptocurrencies. Thus, the region will lead the market growth and share in the industry, with the U.S. leading the maximum share as most tech giants are based in the region.

KEY INDUSTRIAL PLAYERS

The report analyzes various market players in the industry, and the information is published after proper research, analysis of trends, key developments, new initiatives, and technological developments and innovations. Other aspects of the report include research on companies, regions, technical and environmental outcomes, and newly emerging industries' impact and risks. The facts in the information may be subject to change, given the situation of market players from time to time. The research considers all the points after a thorough analysis, thus generating future possibilities for the market. North America will lead the market with the largest share, thus benefiting industrial players and consumers with the product's prices.

List of Market Players Profiled

• IBM (U.S.)
• Microsoft (U.S.)
• Accenture (Ireland)
• ConsenSys (U.S.)
• Infosys (India)
• Drift (U.S.)
• Electron (Japan)
• LO3 Energy (U.S.)
• Power Ledger (Australia)
• Siemens (Germany)
• Yuanguang Software (China)
• WePower (Estonia)

INDUSTRY DEVELOPMENT

• July 2022: ConsenSys, based in the U.S., an Ethereum-based decentralized protocols software company, publicized the launch of the TURN token, which means Time-Unit Representative NFTs. According to the company, the latest token will help develop a tokenized security market. This is likely to benefit people needing auditing services, thus saving their resources and generating massive revenues and profits for the company. Consumers can also function smoothly with the launch of smart tokens, thus driving market growth.

REPORT COVERAGE

The report examines elements that affect the demand and supply factors and estimates dynamic market forces for the forecast period. It also offers drivers, restraints, the latest trends, and critical industrial developments. After evaluating financial and technical market factors, the report provides an extensive SWOT analysis. The research is subject to alteration if crucial players and analysis of market dynamics change. The information is an approximate estimation of the factors mentioned, taken into consideration after thorough research. The report also provides information on segmentation, key industry developments, and an analysis of risks in the hemoperfusion production industry.