Blockchain in Energy Market Expected to Top $6 Billion by 2024

A recent market intelligence report titled Global Blockchain in Energy Market − Analysis and Forecast, 2019-2024 shows that blockchain as part of the energy sector was valued at $518.6 million in 2018.

Furthermore, the report made by BIS Research forecasts that, during the period 2019-2024, the value of blockchain will continue to rise at a Compound Annual Growth Rate of 54.09%.

The global B2B market intelligence and advisory firm expects that by 2024 the market will reach $6.29 billion. This growth is very much connected with the ever-so rising integration of renewable energy sources, mixed with the growing demand for decentralized power production.

This rapidly rising use of renewable sources for generation of electricity causes an unstable power supply and builds up the gap between supply and demand.

The appeal for energy with adequate supply created by efficient and sustainable means, eventually leading to lowering the overall energy consumption is still growing.

Technological innovations like distributed ledger technology (DLT) and blockchain, in particular have a very wide gamma of potential uses in several industry sectors.

The cryptographic mechanisms that are the base of blockchains are remodeling inventive combinations into useful packages. When talking about the power sector, such a combination may work together with the generation of energy resources and grid-interactive devices.

When we talk about the use of blockchain in the energy sector, the leading countries are the United States, Germany, the Netherlands, and the United Kingdom, followed by Estonia and Australia. Blockchain introduction has led to many market opportunities for companies in these countries.

The awareness of governments of the need for reducing power outages, while also thinking about the surrounding environment should eventually drive this expected growth in the market.

As the Principal Analyst at BIS Research, Rakhi Tanwar, commented:

“There have been significant investments in the blockchain in energy industry since last three years. The industry is receiving investment from high-profiled individuals, financial investors, and major energy companies. In 2018, an amount of $466 million was invested in the industry, with 189 companies operating in the blockchain in energy market.” 

In addition, this boost of the “blockchain in energy” market should increase the interest of companies from various industries towards blockchain. A couple of firms favored partnerships and joint ventures to improve their market presence, instead of business expansions, that proved to be less adoptive.   

An example of the aforementioned would be Power Ledger, which in September 2019 started a new blockchain-based project for power commerce across agricultural Australia.

This attempt would allow commercial buildings to exchange surpluses of solar energy between one another – at a reasonable price, of course. The project is in partnership with BSC Solar, Innovations Central Midlands WA, Sonnen and CleanTech Energy.

The BIS Research report is an accurate collection of research attempts covering more than 70 big firms that work on growing the blockchain in energy ecosystem. It takes insights from interviews with developers, market participants and the management of 25 leading companies.

The report also includes some profiling work on 15 firms across the supply chain. Some of them are the Microsoft Corporation, Oracle Corporation, BP plc, IBM Corporation, LO3 Energy, Energy Web Foundation, Grid Plus, E.ON SE, Power Ledger and others.

As stated on BIS Research’s website, the report answers some important questions like:

• What is the revenue generated by different types of blockchains, such as public and private ones, at a global and regional level?
• What is the global blockchain in energy market size in terms of revenue from 2018-2024, and what is the expected growth rate during the forecast period 2019-2024?
• Who are the major stakeholders in terms of their contribution and impact in the blockchain in energy ecosystem?
• What are the major driving forces that are expected to increase the demand for the blockchain in energy market during the forecast period?