Global Blockchain in Energy Market

MARKET SCOPE:

The global Blockchain in Energy market is projected to grow significantly, registering a CAGR of 35.1% during the forecast period (2024 – 2032).

Blockchain in the energy sector refers to the application of blockchain technology to address challenges and introduce innovations in the production, distribution, and consumption of energy. Blockchain, a decentralized and distributed ledger technology, allows for the secure, transparent, and tamper-resistant recording of transactions. In the energy context, blockchain is employed to create a more efficient, decentralized, and trustworthy energy ecosystem. Energy companies seek technologies that can streamline operations, reduce administrative costs, and improve overall efficiency. Blockchain's decentralized and automated nature reduces the need for intermediaries, lowers transaction costs, and enhances the efficiency of energy transactions. The increasing emphasis on renewable energy sources requires robust solutions for tracking, trading, and certifying renewable energy attributes. Grid operators and utilities require tools to manage the integration of distributed energy resources, respond to demand fluctuations, and ensure grid stability. Communities and individuals express interest in decentralized energy projects where they can collectively invest in and manage renewable energy initiatives. Consumers seek greater control over their energy choices, including the ability to choose clean energy sources and participate in peer-to-peer energy trading. Businesses and consumers increasingly prioritize sustainability, seeking energy solutions that align with environmental goals.

MARKET OVERVIEW:

Driver: Increasing demand for flexibility and adaptability is driving the market growth.

Decentralized blockchain networks provide a flexible and adaptable framework for integrating various energy sources, storage systems, and demand-response mechanisms. The use of blockchain provides a framework that is flexible and adaptable. This means that the structure and protocols of the blockchain can accommodate a variety of elements and can be adjusted to suit different needs and scenarios within the energy sector. The decentralized blockchain framework allows for the integration of a wide range of energy sources, including renewable sources such as solar, wind, hydro, and traditional sources like fossil fuels. Each source can contribute to the overall energy ecosystem. Demand-response mechanisms involve adjusting energy consumption based on real-time conditions and needs. Blockchain allows for the seamless integration of demand-response mechanisms, enabling more responsive and efficient energy usage. Smart contracts, which are self-executing contracts with coded terms, can be deployed on the blockchain. These contracts enable automated actions based on predefined conditions, such as adjusting energy distribution or triggering responses to changes in supply or demand. The security features of blockchain, including cryptographic principles and immutability, enhance the overall security of integrated energy systems. Additionally, the transparent nature of blockchain ensures that all participants have visibility into the integrated processes.

Opportunities: Smart contracts for automated transactions is anticipated for the market growth in the upcoming years.

The driver related to smart contracts on the blockchain is a crucial aspect of the adoption of blockchain technology in the energy sector. Smart contracts, which are self-executing contracts with predefined rules and conditions, automate various processes in energy agreements. When the predetermined conditions are met, the contract executes automatically without the need for intermediaries. This automation significantly improves the efficiency of energy transactions. Processes such as billing, payments, and verification of contractual obligations can be executed seamlessly and in real-time, reducing delays and administrative overhead. Smart contracts operate on a decentralized blockchain, eliminating the need for intermediaries or third parties to oversee and enforce agreements. The code of the smart contract itself ensures compliance with the terms. Removing intermediaries reduces costs associated with transaction fees and administrative processes. It also minimizes the risk of errors or disputes, as the terms of the contract are coded and executed automatically. Smart contracts are executed on a blockchain, providing tamper-proof and immutable records of transactions. Once a smart contract is deployed, its code and execution history cannot be altered.

COVID IMPACT:

The COVID-19 pandemic has had various impacts on industries globally, including the energy sector and the adoption of blockchain technology within it. The pandemic has disrupted global supply chains, affecting the production and deployment of hardware components, such as sensors and devices used in energy blockchain applications. Delays in the supply chain may have temporarily slowed down the implementation of blockchain projects in the energy sector. While the adoption of blockchain technology may continue, the shift to remote work could impact the pace of collaborative efforts and face-to-face interactions that are sometimes crucial in project development. Economic uncertainties resulting from the pandemic have led to budget constraints for many organizations. Some energy companies may delay or scale back investments in innovative technologies like blockchain, focusing on more immediate operational needs. The pandemic has accelerated the adoption of digital technologies and emphasized the importance of digital resilience. Energy companies may prioritize digital transformation initiatives, including blockchain, as part of their long-term strategy to enhance efficiency and resilience. The pandemic has influenced economic recovery plans, with an increasing emphasis on sustainable and green initiatives. Investments in renewable energy projects, which may leverage blockchain for transparency and efficiency, could receive increased attention as part of economic recovery strategies. The pandemic has raised awareness about data security and privacy issues, especially with the increased reliance on digital platforms.

SEGMENTATION ANALYSIS:

Payment segment is anticipated to grow significantly during the forecast period

Blockchain enables peer-to-peer (P2P) energy trading, allowing consumers to buy and sell excess energy directly to one another. Smart contracts on the blockchain automatically execute and settle transactions based on predefined terms. Participants in P2P energy trading can receive instant and automated payments for the energy they contribute to the grid. Blockchain ensures transparency and security in the payment process. Smart contracts on a blockchain can be used to automate and enforce the terms of energy agreements. These self-executing contracts automatically trigger payments when predefined conditions are met. Automated payment execution through smart contracts reduces the need for intermediaries, streamlining the payment process and ensuring that contractual obligations are met without delays. Blockchain facilitates transparent and traceable transactions related to Renewable Energy Certificates (RECs). Participants can buy, sell, and trade RECs on a blockchain, ensuring the authenticity of renewable energy attributes. Payments for RECs can be executed automatically through smart contracts on the blockchain, providing a secure and auditable record of transactions.

REGIONAL ANALYSIS:

The Asia Pacific region is set to witness significant growth during the forecast period.

Countries in the Asia Pacific region, such as Australia and Singapore, have seen pilot projects and initiatives exploring peer-to-peer energy trading using blockchain. This can be particularly beneficial in areas with a high penetration of distributed energy resources. Blockchain is used to create transparent and tamper-proof records of renewable energy generation and the issuance of Renewable Energy Certificates (RECs). Countries like Japan and South Korea, with a focus on increasing renewable energy capacity, have explored blockchain for REC tracking. This ensures the authenticity of renewable energy claims and promotes renewable energy investments. Blockchain is employed to enhance transparency in the energy supply chain by recording and verifying transactions at each stage of the energy production and distribution process. Blockchain applications in supply chain transparency have been explored in countries like China, where ensuring the authenticity of energy sources and reducing fraud are key priorities. Countries like Singapore and Japan are exploring blockchain applications in grid management, helping to integrate distributed energy resources, manage demand, and improve overall grid efficiency. With the rise of electric vehicles, countries like China and Singapore are exploring blockchain solutions for EV charging payments and data management.

COMPETITIVE ANALYSIS

The global Blockchain in Energy market is reasonably competitive with mergers, acquisitions, and product launches. See some of the major key players in the market.

SAP SE

Electron

• In 2022, Blockchain is a powerful technology to facilitate decarbonization, decentralization, digitalization, and democratization (4D's) of the energy systems of the future. The 4D's are the driving forces of transition into new energy systems that are more sustainable, resilient, efficient, and equitable.

Accenture PLC

• In 2022, Accenture recognized by Everest Group for depth of technical expertise and leadership in blockchain in PEAK Matrix® Assessment 2023.

IBM Corporation

LO3 Energy Inc.

GREENEUM

Drift Marketplace Inc.

IOTA Foundation

Btl Group Ltd.

Power Ledger Pty Ltd.

ImpactPPA

Scope of the Report

By Application

Payments

Smart Contracts

Digital Identities

Governance, Risk, and Compliance Management

Other Applications

By Region

North America (the United States & Canada)

Europe (Germany, UK, France, Spain, Italy, and the Rest of Europe)

Asia Pacific (China, Japan, India, and Rest of Asia Pacific)

Rest of the World (the Middle East & Africa, Latin America, and Rest of The World)

Keys reasons to purchasing this report

It provides a technological development map over time to understand the industry’s growth rate and indicates how the Blockchain in Energy market is evolving.

The report offers a dynamic method to various factors that drive or restrain the growth of the market and specifies which Blockchain in Energy submarket will be the main driver of the overall market from 2024 to 2032.

It renders a definite analysis of changing competitive dynamics and stipulates the leading players and what are their prospects over the forecast period.

It builds a nine-year estimate based on how the market is predicted to grow and shows what will market shares of the global region change by 2032 and which country will lead the market in 2032.