Blockchain in Energy Market size was valued at USD 958.5 million in 2023 and is set to cross USD 1.53 trillion by 2036, registering more than 76.4% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of blockchain in energy is evaluated at USD 1.54 billion.
The growth of the market can primarily be attributed to the growing demand for energy worldwide, along with the increasing adoption of advanced digital technologies in the energy sector. According to the bp’s Statistical Review of World Energy 2021, the consumption of primary energy around the world increased from 505.38 Exajoules in the year 2010 to 581.51 Exajoules in the year 2019. Additionally, emerging technologies, such as internet of things (IoT), artificial intelligence (AI), cloud computing, big data, advanced analytics, and others are widely now being adopted by almost all industry domains, including the energy sector. The blockchain technology in the energy sector is primarily used to address the rising global concerns regarding the environment, including climate change, biodiversity & conservation, healthy ocean, water security, clean air, and resilience to weather & disaster. Besides this, blockchain in energy is also used to lower costs of distribution, and to increase transparency amongst the stakeholders without compromising privacy.
Blockchain in energy is also widely being adopted as the technology enables decentralized communication and coordination by creating an infrastructure which allow peers to connect safely, cheaply and quickly with each other without the need of a centralized intermediary. Moreover, blockchain in energy also helps in the management of power generation & distribution, sales, payments, contract management, billings, innovative financing mechanisms, and trading & incentives.
Growth Drivers
Challenges
|
Base Year |
2023 |
|
Forecast Year |
2024-2036 |
|
CAGR |
76.4% |
|
Base Year Market Size (2023) |
USD 958.5 million |
|
Forecast Year Market Size (2036) |
USD 1.53 trillion |
|
Regional Scope |
|
The global blockchain in energy market is segmented by type into public, and private. Out of these, the private segment is anticipated to grow with the highest CAGR of 52.3% during the forecast period. On the basis of component, the market is segmented into platform, and services, out of which, the platform segment is anticipated to register the highest market share throughout the forecast period. By end-user, the market is segmented into power sector, and oil & gas sector, out of which, the power sector is expected to generate the largest revenue by the end of 2036, and also grow with the highest CAGR during the forecast period. Moreover, the market is segmented by application into peer-to-peer transaction, grid transactions, energy financing, electric vehicle, sustainability attribution, and others. Out of these, the peer-to-peer transaction segment is expected to garner the largest revenue share of 0.67% by the end of 2036.
Regionally, the global blockchain in energy market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Europe is set to account for 40% industry share by 2036, attributed to increasing emphasis of the government of nations in the region for refining energy efficiency, enhance interoperability, and encourage cross-border engagement amongst the various stakeholders that provide energy. Besides this, the European Commission has also introduced the EU Blockchain Observatory and Forum as a European Parliament pilot project, whose prime task is to monitor the blockchain initiatives in Europe, and also produce a comprehensive source of blockchain knowledge. Moreover, increasing funding initiatives to promote the adoption of the technology is also expected to drive the market growth in the region. According to the European Commission, the European Blockchain Partnership (EBP) has aimed to scale the investment fund of around USD 2.33 Billion to fully develop its European Blockchain Services Infrastructure (EBSI) platform. The blockchain in energy market in the region is segmented by country into Germany, France, United Kingdom, Italy, Spain, Russia, Netherlands, and the Rest of Europe. Out of these, the market in Germany is anticipated to generate the largest revenue share 0.16% by the end of 2036.
February 24th, 2021: Accenture in association with Microsoft Corporation, announced that their joint venture, Avanade, would work together to transform the energy system of the utility and energy companies in the United Kingdom, and also work towards lowering the cost of decarbonizing the supply and demand of electricity in the nation by the utilization of open data, artificial intelligence and a digital workforce.
Author Credits: Abhishek Verma
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