Blockchain Market in the Energy Sector - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Blockchain Market in the Energy Sector is segmented by Application (Payments, Smart Contracts, Digital Identities, Governance, Risk, and Compliance Management), and Geography.

Market Snapshot

blockchain market in the energy sector
Study Period: 2018 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: Europe
CAGR: 67.23 %

Need a report that reflects how COVID-19 has impacted this market and its growth?

Market Overview

The market was valued at USD 561.21 million in 2020, and it is expected to reach about USD 12274.67 million by 2026, recording a CAGR of 67.23%, over the forecast period (2021 - 2026). The energy sector has certain limitations, including high administration and transmission costs mainly, due to the centralized functioning of the sector. As blockchain addresses these issues and decreases the scope for single point failures and increases transparency across the supply chain, the technology is expected to be a noteworthy digital transformation for the sector.

  • As the blockchain technology helps regions to meet renewable energy targets, improve the reliability and efficiency of grids, and reduce utility capital expenditure on clean energy generation, its adoption is expected to increase over the forecast period.
  • As microgrids allow trading electricity within a specified area and other benefits during emergencies, with the main grid (act as backup solutions), vendors in the market could leverage from the increasing use of microgrids. For instance, the pilot project in Europe’s microgrid by OLI Systems, an energy blockchain vendor in Germany.
  • With the rising 'Prosumers' across regions (the ones who consume and produce energy), there is a need for regulations regarding the legal framework and licensing. Only by regulations, the state of ‘Prosumers’ would be defined in the energy sector and the use of blockchain for trading with these prosumers would be streamlined.

Scope of the Report

The energy sector has certain limitations, including high administration and transmission costs, mainly due to the centralized functioning of the sector. As blockchain addresses these issues and decreases the scope for single point failures and increases transparency across the supply chain, the technology is expected to be a noteworthy digital transformation for the sector.

By Application
Payments
Smart Contracts
Digital Identities
Governance, Risk, and Compliance Management
Other Applications
Geography
North America
United States
Canada
Europe
United Kingdom
Germany
Netherlands
Rest of Europe
Asia-Pacific
Japan
Australia
New Zealand
Rest of Asia-Pacific
Latin America
Brazil
Mexico
Rest of Latin America
Middle-East & Africa
United Arab Emirates
Israel
Rest of Middle-East & Africa

Report scope can be customized per your requirements. Click here.

Key Market Trends

Payments Presently Hold the Largest Share in the Market

  • The blockchain ledger is used in different sectors to reduce the transaction costs,  increase the efficiency of exchanges, and pinpoint the origins of energy.  Cryptocurrency has gained its importance in December 2017 and consumers started exploring it, owing to factors, such as high reliability and security during the transactions.
  • Furthermore, the adoption of blockchain technology enabled the integration of payments system with smart grids. This further aided the companies to invest more in the integration of financial services with smart grid technology.
  • Moreover, blockchain has made traditional payment methods less effective and is also overcoming the issues of hacking and data breaching. For instance, the RWE’s power utility has tested the blockchain technology to authenticate and manage the billing process for hundreds of autonomous electric-vehicle charging stations in Germany and California.
  • The use of blockchain in the energy sector would also minimize the overhead for utilities and lower costs to consumers by facilitating the billing and metering process between the utility and the consumer, instead of involving intermediary retailers and brokers.
blockchain market in the energy sector

Europe is Expected to Hold Major Share

  • With blockchain adoption in the energy sector, transactions such as energy trading can be recorded and settled almost instantly, with no need for an intermediary and with little need for reconciliation since all parties are using the same platform. Europeans as early technological adaptors are having significant adoption of blockchain in the energy sector.
  • Companies in the region are partnering with other countries or having high investments to develop products related to energy sector using blockchain technology. Recently, the major United Kingdom energy company OVO invested in blockchain firm Electron through its recently launched technology division, Kaluza. 
  • Moreover, European Union, with the aid of European Parliament Think Tank, is striving for a common definition of energy prosumers and is also attempting to persuade the legislature to encourage investments in self-generation capacity. With such efforts, the prosumers are likely to be established in the energy market, leading to the successful decentralization of the energy sector.
blockchain market in the energy sector

Competitive Landscape

The blockchain market in the energy sector is highly competitive and consists of several major players. In terms of market share, few of the major players currently dominate the market. These major players with prominent shares in the market are focusing on expanding their customer base across foreign countries. These companies are leveraging on strategic collaborative initiatives to increase their market shares and profitability. The companies operating in the market are also acquiring start-ups working on blockchain in the energy technologies to strengthen their product capabilities.

  • February 2019- IBM launched a blockchain platform on cloud service in Melbourne. With the establishment of physical infrastructure, customer data may not have to cross borders and may provide security for regulated applications in government and financial services in the country.
  • July 2018 - Microsoft Corporation announced the launch of the Enterprise Blockchain partnership, in Taiwan. The company has entered the partnership with Digital China and Hot Cool, in the hope that the three companies can use the blockchain technology to enhance financial, e-commerce, entertainment, and other industries.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Introduction to Market Drivers and Restraints

    3. 4.3 Market Drivers

      1. 4.3.1 Emergence of Variable Electricity Rates and Need for Peer-to-Peer Trading

      2. 4.3.2 Aggressive Spending by Venture Capitalists

    4. 4.4 Market Restraints

      1. 4.4.1 Scalability Constraints

    5. 4.5 Value Chain / Supply Chain Analysis

    6. 4.6 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.6.1 Threat of New Entrants

      2. 4.6.2 Bargaining Power of Buyers/Consumers

      3. 4.6.3 Bargaining Power of Suppliers

      4. 4.6.4 Threat of Substitute Products

      5. 4.6.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Application

      1. 5.1.1 Payments

      2. 5.1.2 Smart Contracts

      3. 5.1.3 Digital Identities

      4. 5.1.4 Governance, Risk, and Compliance Management

      5. 5.1.5 Other Applications

    2. 5.2 Geography

      1. 5.2.1 North America

        1. 5.2.1.1 United States

        2. 5.2.1.2 Canada

      2. 5.2.2 Europe

        1. 5.2.2.1 United Kingdom

        2. 5.2.2.2 Germany

        3. 5.2.2.3 Netherlands

        4. 5.2.2.4 Rest of Europe

      3. 5.2.3 Asia-Pacific

        1. 5.2.3.1 Japan

        2. 5.2.3.2 Australia

        3. 5.2.3.3 New Zealand

        4. 5.2.3.4 Rest of Asia-Pacific

      4. 5.2.4 Latin America

        1. 5.2.4.1 Brazil

        2. 5.2.4.2 Mexico

        3. 5.2.4.3 Rest of Latin America

      5. 5.2.5 Middle-East & Africa

        1. 5.2.5.1 United Arab Emirates

        2. 5.2.5.2 Israel

        3. 5.2.5.3 Rest of Middle-East & Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 SAP SE (SAP)

      2. 6.1.2 Microsoft Corp.

      3. 6.1.3 Accenture PLC

      4. 6.1.4 IBM Corporation

      5. 6.1.5 LO3 Energy Inc.

      6. 6.1.6 GREENEUM

      7. 6.1.7 Drift Marketplace Inc.

      8. 6.1.8 IOTA Foundation

      9. 6.1.9 Btl Group Ltd

      10. 6.1.10 Power Ledger Pty Ltd

      11. 6.1.11 ImpactPPA

      12. 6.1.12 Electron (Chaddenwych Services Limited)

    2. *List Not Exhaustive
  7. 7. INVESTMENT ANALYSIS

  8. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

You can also purchase parts of this report. Do you want to check out a section wise price list?

Frequently Asked Questions

The Blockchain Market in the Energy Sector market is studied from 2018 - 2026.

The Blockchain Market in the Energy Sector is growing at a CAGR of 67.23% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Europe holds highest share in 2020.

SAP SE (SAP), Microsoft Corp, Accenture PLC, IBM Corporation, LO3 Energy Inc. are the major companies operating in Blockchain Market in the Energy Sector.

80% of our clients seek made-to-order reports. How do you want us to tailor yours?

Please enter a valid email id!

Please enter a valid message!