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.

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.

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.

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