Blockchain in Energy Market Report Information by Technology Type (Open Blockchain, Closed Blockchain, Consortium Blockchain, Hybrid Blockchain), By Platform Type (Ethereum, Hyperledger, Tendermint, Interbit, and Others), By Implementation Type (Service & Solution, Development Platforms, and Industry Specific), By End-Use (Power & Utilities, Renewable Energy, Oil & Gas), By Applications (Grid Management, Microgrid And Smart Grids, Energy Storage, Energy Trading, Smart Contracts, Real-Time Pricing, Peer-To-Peer Trading, Control & Security, Instant Demand Response, Drilling Optimization, Compliance Monitoring, Payment Schemes, Supply Chain And Logistics, Inventory Management, Purchase Order & Validity Of Documents), By Region - Forecast Till 2028
ID: MRFR/E&P/4358-CR | July 2018 | Region: Global | 100 pages
Blockchain in Energy Market Overview
The blockchain in energy market size witnessed a huge impact since the arrival of the pandemic in 2020. The market was valued at a market worth USD 279 million during the historic forecast period that ended in 2019. For the ongoing forecast period of 2021-2028, the industry analysts and business experts predict that the global market will grow at a whopping CAGR of 78.32% during the period. The efforts of the market players and the launch of new products show that the market will reach a global market value worth USD 17,110.1 million by the end of the period in 2028.
COVID 19 Analysis
Energy is an important resource for the sustainability of mankind that has a long way to go. Since the knowledge of the novel coronavirus has surfaced, people have been focusing on changing their lifestyles and taking their health seriously to improve their immune systems. The pandemic has given rise to major functional issues like the unavailability of resources and raw material that is hampering the functional ability of the market departments like the manufacturing and production units. The rise of the pandemic and the number of positive cases has been such that the global governments had no other option than to opt for strict regulations and measures like lockdowns and seal of the cross-border transactions and logistics. Also, the inability of proper functioning is hampering the market to meet the needs of the audience and disrupt the smooth market functioning.
The global governments have been taking the functional restrictions into considerations and hence, are considering lifting them and further, increasing their investment in the research and development departments. The market players are on the lookout for funds to increase their product portfolio and hence, launch them on the international market during the forecast period that ends in 2028.
Competitive Landscape
Owing to the target of the market players to increase the blockchain in energy market size, the efforts have been enormous. The prominent market players are as follows:
- Deloitte Touche Tohmatsu Limited
- BigchainDB GmbH
- Microsoft Corporation
- SAP SE
- WePower UAB
- IBM Corporation
- Oracle Corporation
- Infosys Limited
- LO3 Energy Inc
- Accenture PLC
Recent Developments
- The increasing blockchain in energy market size is increasing in the global markets and the rising developments show that the private market segment will dominate the global expansion. The main reason behind this domination is that this offers a better degree of security than public blockchains. The market players are also developing public blockchains for promising a better degree of infrastructure and connectivity.
- Also, the service segment is showing great signs of global expansion during the forecast period that will be ending in 2028. Most of the companies are collaborating with blockchain startups for the implementation of operations like energy trading, supply chain, and grid management.
- The advent of blockchain technology has a major role to play in the functional power sectors. Their role is being recognized in the management of distributed energy resources. The companies aim at providing solutions that promise an excellent cost-effective rate and efficiency. These are helpful in recording and processing transactional data that will benefit the larger audience and help the power segment to emerge at a good rate during the forecast period that will be ending in 2028.
Market Dynamics
Drivers
One of the major factors that will help in increasing the chances of the market to grow at a predicted rate during the forecast period that will be ending in 2028 is the growth in decentralized power generation. Also, the rising security concerns across the globe will drive the rising need for the market that will act as a push for the market demand during the forecast period. Also, there has been increased automation with data security and integrity that will enhance the market’s functioning and hence, grow through the predictions and period that will be ending in 2028.
Restraints
However, the market’s journey towards growth is witnessing pitfalls in the form of the lack of presence of a common set of regulatory standards followed by the availability of an uncertain regulatory landscape that might challenge the market from growing as per the predictions for the forecast period between 2021 to 2028.
Technology Analysis
The rising blockchain in energy market share is witnessing that technology will help the market and overcome the possible market restraints. There has been a rise in focus towards energy utilities in exploring the latent benefits of employing technology for low-carbon transition followed by a higher degree of sustainability will stimulate the share of the market in the energy sector. There has been a reduction in dependency on fossil fuels that is coupling with increased independence of local grids from the outside energy sources available in the long term. This is anticipated to formulate positive attributes for the market to grow as per the predictions by the business analysts for the forecast period of 2021-2028. Further, there has been an increase in the quantum of investment in projects that range from solar systems for electric vehicle charging and e-mobility followed by the boost in product adoption based on the market trends and demand for the audience and market players.
Study Objectives
- The report aims to help the market investors understand the market conditions after the pandemic hit and the measures that are on the way for the market that will drive the trends towards growth and global expansion by the end of the forecast period in 2028. The report also discusses the basis on which the global market experts and leaders have predicted the CAGR growth and attainable market revenue by the end of the forecast period.
- The report aims to highlight the factors that form the basis of the global market segmentation in the period. The market report discusses the market segmentation and its ability to meet the rising needs of the target audience. Also, the report highlights the potential of the market segments to enhance the profits and increase the chances of reaching the expected market revenue.
- The report also has a major study to fulfill in understanding the rising degree of competition amongst the market based on the efforts put in by the market players. The market discusses the recent developments of the market undertaken followed by the available opportunities like mergers, acquisitions, joint ventures, amongst others that will lead to a global company expansion.
Segment Overview
Based on the market attempts to enhance the opportunities that will help in increasing the blockchain in energy market revenue, the market has been segmented to function in different locations and hence, meet the rising needs of the target audience. The market segments are also helpful in increasing the revenue that will impact the final market valuation. The market has been segmented based on the following:
Based on the type
Based on the type segment of the market, the market deals in private and public requirements.
Based on the components
The component segment of the market has been divided into platforms and various services.
Based on the end-users
The market end-users are power units, along with oil and gas.
Based on the applications
The market applications include supply chain management and grid management amongst others like payment schemes, energy trading, government risk, and compliance management.
Regional Analysis
The blockchain in energy market trends is the most prominent in 4 major regions namely North America, the APAC region, the European countries, along the rest of the world (RoW). During the historic forecast period that ended in 2019, the European region dominated the global market operations and held a market share of 32.7%. Similar trends are expected to be followed in the current forecast period as there has been an increase in the number of project executions followed by the involvement of startups in the region.
Intended Audience
- Third-part service and trading software providers
- Support and maintenance providers
- Network solution, payment gateway, infrastructure, and protocol providers
- Blockchain security and technology providers and vendors
- Consultants and consultancy firms
- Advisory and development firms
- Energy associations and government agencies
- Independent software vendors and infrastructure providers
- MSPs
Report Overview
The blockchain in the energy market report helps in discussing the impact of the virus on the market functioning followed by the considerable steps that will enhance the market growth during the forecast period. The report provides qualitative market insights regarding the market segmentation followed by the performance of the market players in the domestic and international markets. The report deals in discussing the competitive market degree by understanding the recent developments and the segment domination in the forecast period that will be ending in 2028.
Report Scope:
| Report Attribute/Metric | Details |
|---|---|
| Market Size | 2028: USD 17,110.1 Million |
| CAGR | 78.32% CAGR (2021-2028) |
| Base Year | 2019 |
| Forecast Period | 2021-2028 |
| Historical Data | 2018 |
| Forecast Units | Value (USD Million) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Platform, Implementation, End-Use |
| Geographies Covered | North America, Europe, Asia-Pacific, and Rest of the World (RoW) |
| Key Vendors | Power Ledger Pty Ltd, WePower UAB, LO3 Energy, Inc, Grid +, BTL Group Ltd., The Sun Exchange (Pty) Ltd, Conjoule GmbH, Enosi Foundation and Electron (Chaddenwych Services Limited) |
| Key Market Opportunities |
|
| Key Market Drivers | Increased automation with data integrity and security |
Frequently Asked Questions (FAQ) :
The global blockchain in the energy market might increase from USD 180.3 Mn in 2017 to more than USD 5,000 Mn by 2023.
The operational costs, capital expenditure, risk management, and security are the significant factors motivating the global blockchain in the energy market.
End-use industries, technology type, platform type, implementation type, and application type are the segments affecting the global blockchain in the energy market’s growth.
The European region is one of the forefront regions in the adoption of blockchain technology and influencing the market’s growth.
The European market has recorded USD 46.6 million and is now projected to grow at the highest CAGR of 81.49%.
We believe blockchain is a key tool to speed up the process of decarbonising the economy, as it makes transactions traceable, secure and quick. This technology makes the supply of green energy more efficient, flexible and transparent, which incentivises the production and consumption of 100 % renewable energy.
Surprising Fact. A single bitcoin transaction uses roughly 707.6 kilowatt-hours of electrical energy–equivalent to the power consumed by an average U.S. household over 24 days, according to Digiconomist.
The global blockchain in energy market valued at USD 180.3 million in 2017 and is expected to grow significantly to reach an estimated evaluation of USD 5.03 billion by the end of 2023. The market is poised to proliferate in response to robust demand and achieve a highly remarkable CAGR of 74.35% during the assessment period of 2018 to 2023. Blockchain technology has many superior and desirable features such as complete security and transparency of all transactions and interactions. Information entered is difficult to tamper with and is permanently stored and is witnessing a high adoption rate, thus driving demand and growth of the global market.
Implementation of blockchain technology in the energy sector has a significant impact on operating costs, capital expenditure, risk management, and security, making the technology increasingly popular with industry leaders. The relative novelty of blockchain technology leaves immense room for growth and carries the strong potential to revolutionize the energy industry as it offers flexibility and the ability to keep up with the rapid changes of the energy industry as it grapples with globally increasing demands. Other factors which drive the global blockchain for energy market include the increased growth in decentralized energy generation and the increasing demand for increased automation in the energy sector with a focus on data integrity and security.
Presently, there is no standardization or regulatory framework which applies to blockchain technology which may prove challenging for the growth of the market. The U.S Federal Trade Commission has created a Blockchain Working Group to work toward this and navigate uncharted territory through resource sharing and hosting experts from around the globe. Since blockchain technology is still in its initial stages of growth and implementation, the development of new business models that utilize blockchain is expected to promote the novel opportunities during the review period.
The global blockchain in energy market is segmented based on technology type, platform type, implementation type, end-use industries, applications, and region. By technology type, the market has been segmented into open blockchain, closed blockchain, consortium blockchain, and hybrid blockchain. Closed or private blockchains account for over three fourth of the total market and are expected to achieve an exuberant CAGR of 76.88% during the forecast period. Closed blockchain offer participants to enable access to operation as relationships in the energy sector are governed by formal contracts or confidentiality agreements. This type of blockchain technology allows participants to engage directly in a peer-to-peer manner while ensuring security and integrity of data.
By platform type, the market is segmented into Ethereum, Hyperledger, Tendermint, and Interbit. Of these, the Ethereum segment possesses close to 76% of the total market share and is used by several companies for their smart contract applications. Ethereum has its own programming language which makes it possible to develop complex, decentralized autonomous apps (DApps). Additionally, the platform has its own highly desirable cryptocurrency called Ether which is driving the popularity of the platform.
By implementation type, the market is segmented into service & solution, development platforms, and industry-specific. By end-use industries, the market is segmented into power & utilities, renewable energy, and oil & gas. The renewable energy sector accounts for over half the market share and is expected to grow at the highest CAGR during the forecast period due to the high demand for renewable energy and the increasing development and implementation of blockchain-based applications for the energy sector.
By application, the market is segmented into grid management, energy trading, control & security, payment schemes, and supply chain & logistics. The energy trading sector is expected to achieve the highest CAGR while maintaining its leading market size. The use of blockchain technology is emerging primarily in areas such as energy trading, maintenance of distributed energy systems and peer-to-peer energy trading systems.
Regional Analysis
Europe accounts for the largest regional segment in the global blockchain in energy market due to the regions forward-thinking the approach to the adoption of blockchain platforms in the energy sector. The European Commission has recently launched the EU Blockchain Observatory & Forum with the aim of understanding the key developments in the blockchain technology and to promote European players to develop and invest in blockchain activities. Investments in this technology are encouraged by the fact that blockchain platforms offer substantial reductions in operating costs, transparency and security. Countries such as the U.K, France, Germany, Spain, Norway, and the Netherlands are a part of 22 European nations which have formed a blockchain partnership in an effort to freely exchange information which will assist in advancing applications of the technology.
North America possesses the second most significant segment in the global market and closely follows Europe. There is a rapid growth in blockchain based energy projects as the adoption of renewable energy grows in order to meet the burgeoning demand for power in the region. Use of blockchain platforms in the region is expected to reduce costs, and solve data management complications. The use of blockchain technology for data management, development of new business models and to keep a better track of clean energy generated is expected to drive growth in the region during the forecast period.
Competitive Tracking
The development of new business models, research activities into the applications of blockchain technology and venture investments in start-ups are some of the major marketing strategies employed by key players in the competitive landscape. Top market-leading players profiled in this report include WePower UAB, BTL Group, Power Ledger Pty Ltd, Lo3 Energy, Inc., and Grid +. Other prominent players in the market include The Sun Exchange Pty Ltd, Electron, Enosi Foundation, and Conjoule GmbH.
Global Blockchain in Energy Market: Competitive Landscape
In competitive landscape, the report covers the development strategies adopted by the companies between 2017 and 2018. The key players adopted various strategies to retain and/or expand their market share. The key strategies followed by most companies within the global blockchain in energy market were that of product launch followed by the partnerships and collaborations.
The key players of global solar panel market are Power Ledger Pty Ltd (Australia), WePower UAB (Republic of Lithuania), LO3 Energy, Inc (U.S.), Grid + (U.S.), BTL Group Ltd. (Canada), The Sun Exchange (Pty) Ltd. (South Africa), Conjoule GmbH (Germany), Enosi Foundation (Australia), and Electron (Chaddenwych Services Limited) (U.K).
Power Ledger is an Australia based energy trading platform developer that uses blockchain for its operations. The company is mainly focused on blockchain based decentralized energy platform for buying and selling of energy. One of the main advantages of Power Ledger’s blockchain platform is that it is an automated market trading and transparent platform for its users. Power Ledger’s operations is unique in itself as the company uses dual-token blockchain ecosystem layers namely POWRTM and Sparkz for operation. POWRTM is the Power Ledger token that is used in the Power Ledger blockchain ecosystem for energy trading applications and creates Sparkz. Sparkz are then used in transactions for real currencies or fiat money for energy trading. Power Ledger is mainly focused on sale of renewable energy that are generated at residential, commercial and industrial developments to the existing grid network.
WePower is a blockchain based energy trading and financing firm with specific focus in renewable energy. Renewable energy producers such as solar and wind power operators can raise their own operating capital by issuing their own energy tokens using WePower. This is different from other blockchain based operators since power producers with WePower will have their own tokens rather than a standard token issued by other blockchain providers. The main advantage of using this WePower technology is that renewable energy produced by individual producers can be traded directly with buyers by selling energy upfront at below-market rates. WePower is currently in the process of launching a pilot project in Elering, an Estonian transmission and distribution operator for its blockchain technology implementation. The primary goal of this project is to demonstrate the capacity of Ethereum blockchain technology in recording of country-level energy production and consumption data. The company believes that this will enable blockchain based power markets to venture into reality.
LO3 Energy Inc., is a U.S. based technology provider that also offers business development consulting services. The company has its major operations on decentralized business models with specific focus to innovative technologies in sectors such as energy, cleantech and currency systems. LO3 Energy has diverse operational portfolio including operations such as the development of utility design hardware, policy advocacy, and final product design including technical standard setting. LO3 energy also benefits from its deep expertise in cryptography, cybersecurity, peer-to-peer consensus along with distributed energy computing. The company’s major strength is its unique experience of integrating blockchain technology with different energy generation techniques, such as thermal and renewable sources.
Grid + was established by ConsenSys, a global leader in blockchain technology through its continuous research in implementing blockchain technology for the energy industry. The company is currently focusing on bringing next-generation energy efficiencies to the energy market by developing new hardware and software solutions including blockchain. Grid+ was formed with the objective of revolutionizing the way the energy market operates by functioning as a commercial electricity retailer in deregulated market. Ethereum platform is used to enable customers pay and settle payments real-time, which significantly reduces costs. Furthermore, Grid+ Ethereum based blockchain platform can instantly introduce efficiency in energy retailing and this enables renewable energy production more sustainably and efficiently. Ethereum based blockchain enables Grid+ to enable automated billing and transaction processes with payments being recorded and moved through smart contracts.
BTL Group is a blockchain technology based in Vancouver, Canada which has its operations on developing blockchain technologies for various industries and businesses. The company is the creator of InterbitTM, a next-generation blockchain platform, which has the unique capability of joining thousands of InterbitTM blockchains that can enable enhanced security along with data integrity and privacy than other blockchain platforms. One of the most important advantages of the BTL’s InterbitTM platform is that businesses and enterprises can build their own applications focusing on trading, settlement, remittance, audit, and back-office processes. BTL Group believes that this flexibility of their blockchain platform must enable InterbitTM to become the professional-grade blockchain development tool of choice among various businesses. In Europe, the BTL Group is currently testing its InterbitTM platform with the trading arms of oil and gas supermajors along with leading energy traders including Eni Trading & Shipping, Total, Gazprom Marketing & Trading Limited and Vattenfall for delivering gas trading and settlement.
Enosi foundation is an Australia based blockchain energy market operator with a focus on increasing the utilization of clean locally generated energy. Enosi develops blockchain based open-sourced systems that are used to sell excess energy generated from renewable energy sources, such as solar PV within communities. In addition to that, the Enosi platform creates smart contracts, which will enable rapid deployment and the use of the renewable energy. Smart contracts are generated through a mobile application, which is commonly known as a “Decentralised Application” or dApp. The app does not require a centralized server or 3rd party server as it runs on decentralized blockchain network. For higher adoption of blockchain based distributed energy applications, Enosi foundation has set up partnership programs with energy retailers, such as Solar Analytics and Energy locals, who are based in Melbourne.
The key players adopted various strategies to retain and/or expand their market share. Out of all the key strategies adopted by the companies in the global blockchain in energy market, LO3 Energy based in U.S. had the maximum number of partnerships and collaborations with a share of 36%, during the period 2017 - 2018. Power Ledger (Australia) accounted for 18% share in partnerships and collaborations during the period. For instance, LO3 energy in partnership with Siemens established blockchain technology based microgrid pilot in Brooklyn, U.S. the project facilitates the residents with solar panel based power generation to sell their excess generated energy to their peers. This peer-to-peer power transfer takes advantage of blockchain technology to minimize the amount of energy lost through transmission.
BTL group (Canada) has undergone the highest number of on new product development with a share of 43% each during the period 2017-2018. For instance, on April, 2019, BTL Group announced that its proprietary next-generation blockchain platform InterbitTM is made available for public testing and feedback. This will enable users to create their own multiple blockchain solutions and they can also provide their feedback. This is specifically done to address the privacy and scalability shortcomings of existing generations of blockchain platforms. In January 2018, BTL Groups European energy project entered its second phase following its initial pilot implementation phase. The project is now focused on expanding its scope to enable straight settlement processes and also bringing wider participation from the industry.