Blockchain In Energy Market Size, Share & Trends Analysis Report By Type (Private, Public), By Component (Platform, Services), By Application, By End-use, By Region, And Segment Forecasts, 2023 - 2030

Blockchain In Energy Market Size & Trends

The global blockchain in energy market size was valued at USD 0.69 billion in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 71.1% from 2023 to 2030. The blockchain in energy market growth can be attributed to the increasing adoption of blockchain technology to prevent failure in various power grid applications in the energy sector. Moreover, blockchain technology is being widely used in the energy sector since it has the potential to revolutionize the energy sector by offering a transparent and secure platform for transactions and data management.

The technology has gained prominence in the energy vertical as it helps in securing transactions for customers. Various factors, such as reduced total cost of ownership, rapid transactions, and high compatibility with the energy industry ecosystem, are further expected to contribute to the market growth over the forecast period. The integration of blockchain technology in the energy sector applications is expected to help businesses in efficiently tracking down failure in the power grid applications in advance and effectively communicate it to the companies. Moreover, with the use of blockchain technology, businesses can get a daily update, which thereby helps in the timely detection of problems.

Blockchain has emerged as an extremely promising technology in the energy domain. It is an immutable, open, distributed public ledger which can be accessed by numerous entities involved in the transaction. It acts as a universal depository of all transactions between the involved parties. Blockchain technology is an evolving technology of distributed databases. This technology records all the digital events and transactions shared and executed among numerous contributing parties. Moreover, each transaction process across the public ledger is authenticated by a contract between numerous stakeholders in the organization. Furthermore, it comprises a demonstrable and certain record of every transaction ever executed.

Type Insights

Based on the type, the blockchain in energy market is segmented into private and public. The public segment accounted for the largest market share in 2022. Various factors, such as decentralized architecture, the ability to increase platform awareness, and greater usability, are expected to drive the adoption of the public blockchain segment. The private sector is anticipated to expand significantly over the coming years. This, as a result, is expected to create growth opportunities for the public segment over the forecast period.

Component Insights

Based on the component, the market is segmented into platforms and services. The services segment held the largest market share in 2022. Most of the businesses across the globe are focusing on collaborating with various blockchain companies to implement blockchain operations such as grid management, energy trading, and supply chain management. Furthermore, blockchain services can provide power management and more efficiency to consumers. Moreover, an encrypted database blends energy consumption information with stable and real-time updates.

Application Insights

Based on application, the blockchain in energy market is segmented into sustainability attribution, electric vehicles, grid transactions, energy financing, peer-to-peer transactions, and others. The peer-to-peer transaction segment accounted for the largest market share in 2022. Blockchain technology can be efficiently applied in numerous fields of smart grids, particularly for peer-to-peer energy trading. Improving system resiliency, decreasing transaction costs, guaranteeing privacy, and increasing system security are among the most significant benefits of blockchain technologies. This, as a result, is expected to create growth opportunities for the peer-to-peer transaction segment over the forecast period.

End-use Insights

Based on the end use, the blockchain in energy market is segmented into power and oil & gas. The power segment accounted for the largest market share in 2022. The segment growth can be attributed to blockchain technology’s capability to efficiently control distributed energy sources. Moreover, blockchain technology also offers a comprehensive view of energy usage and also monitors energy usage, thereby allowing businesses to make informed business decisions.

Regional Insights

The European region dominated the blockchain in energy market in 2022. The regional market growth can be attributed to the shifting focus to growing power supply complexity and adopting smart grids. Moreover, the increasing investment from energy businesses and expanding funding activities are expected to strengthen the industry’s outlook. Furthermore, government incentives for renewable energy adoption to increase product installations, coupled with favorable regulatory rules and policies to facilitate technology adoption, are expected to drive the regional market growth over the forecast period.

Key Companies & Market Share Insights

Key players operating in the blockchain in energy market include BigchainDB GmbH, Deloitte Touche Tohmatsu Limited, Microsoft Corporation, IBM Corporation, Accenture plc, Oracle Corporation, SAP SE, and Infosys Limited, among others. The market's landscape is characterized by its fragmented nature, comprising a diverse array of both established industry players and start-ups, all diligently pursuing various business strategies to secure their market share. The following is an instance of such an initiative:

• In October 2023, Powerledger, a founding signatory of the UN Energy Compact, promised to attain 100% 24/7 carbon-free energy by 2030. The company also pledged to offer an energy-efficient blockchain for modernizing energy systems by 2024.