We’re only starting to see the effects of distributed ledger technologies (DLT) like blockchain on markets other than cryptocurrency, but it is a truly disruptive technology with applications for a variety of sectors. BIS Research estimates the blockchain in energy market, valued at $518.6 million in 2018, will grow at a CAGR of 54.09% during the forecast period from 2018 to 2024 and will reach $6.29 billion by 2024.
The forecasts are available in the BIS report, “Global Blockchain in Energy Market—Analysis and Forecast, 2018-2024.” Market growth is largely attributed to the increasing integration of renewable energy sources, coupled with the increasing demand for decentralized power generation.
The increasing use of renewable sources of energy for electricity generation leads to unstable power supply and increase in the demand-supply gap. There has been a growing need to maintain the demand for energy with adequate supply, by reducing overall energy consumption and increasing energy efficiency sustainably. In the power sector, blockchain combination matched with the proliferation of distributed energy resources and grid-interactive devices makes for a booming market.
The oil and gas sector has also been suffering from high operational costs and low efficiency rates across the industry. Countries such as the U.S., Germany, the Netherlands, and the U.K. are the frontrunners in the blockchain in energy market. Other key countries in the blockchain market for energy have been Estonia and Australia. The introduction of blockchain has resulted in numerous market expansion opportunities for leading companies in these countries.
High growth in the market will be driven by rising awareness among governments about the need to mitigate power outages while also addressing issues concerning the environment. The growing awareness in the market concerning the opportunities in renewable energy and battery storage systems has stimulated large-scale investments in the sector over the last decade.
BIS Research analysis points out that significant investments in the blockchain in energy industry have been made in the last three years from high-profile individuals, financial investors, and major energy companies, a total of $466 million invested in 189 companies.
Moreover, the growing market of blockchain in energy is further expected to increase the involvement of companies across different segments of the value chain. Several companies preferred development strategies, such as partnerships, collaborations, and joint ventures to enhance their presence in the market, as compared to the relatively less adoptive strategies like business expansions. For instance, Power Ledger launched a new blockchain-based project for energy trading across rural Australia in 2019. This project is expected to enable commercial buildings to trade excess solar powerbetween themselves. The project has been launched in collaboration with Innovations Central Midlands WA, BSC Solar, Sonnen and CleanTech Energy.
The report compiles research on more than 70 players in the blockchain in energy ecosystem and draws on in-depth interviews with the key opinion leaders of more than 25 leading companies, market participants, and developers. It also profiles 15 leading companies across the supply chain, including IBM Corporation, Microsoft Corporation, Oracle Corporation, BP plc, LO3 Energy, Inc., Power Ledger, E.ON SE, Energy Web Foundation, Grid Plus, Inc. and others.Source: BIS Research