Blockchain in Energy Market - Report, Global Industry Trend & Analysis, Size, Share, Competitive Strategy, Geography, Forecast, 2024 to 2030

The blockchain in energy utilities market size is expected to witness substantial growth; growing at a Compound Annual Growth Rate (CAGR) of 48.6% from 2024 to 2032. The market size in 2032 would reach USD 25.90 Billion by 2032. Historical growth in blockchain adoption within the energy sector can be attributed to several key factors: the increasing demand for transparency and security, the rise of decentralized energy systems, the pursuit of operational cost reductions, supportive regulatory frameworks and pilot programs, the acceleration of digitalization across the sector, advancements in grid management technologies, and the growing consumer demand for green energy solutions.

Blockchain technology possesses the transformative potential to revolutionize the energy sector by offering a secure, efficient, and transparent framework for transactions and data management. Its applications within the energy market are diverse, encompassing peer-to-peer energy trading, renewable energy certificates (RECs), grid management, supply chain management, and smart contracts.

Market

Market growth during the forecast period is driven by several key factors, including the expansion of renewable energy sources, the evolution of advanced energy trading platforms, the increasing deployment of smart grids, supportive regulatory frameworks, and collaborative initiatives within the industry.

Key trends shaping the future of blockchain in the energy sector include advancements in consensus mechanisms, the integration of artificial intelligence, the expansion of Blockchain-as-a-Service (BaaS) offerings, enhanced interoperability with legacy systems, innovations in smart contract technology, the emergence of decentralized energy markets, and a strong focus on cybersecurity.

Markey Dynamics

Market Drivers

Increased renewable energy production to meet sustainable initiatives

The energy and utilities sectors are poised for accelerated blockchain adoption. This surge is driven by several factors: the escalating adoption of renewable energy sources to align with sustainability goals, coupled with the oil and gas industry's pursuit of enhanced operational efficiency and security. The burgeoning interest in blockchain implementation among startups, both within enterprises and directly with consumers, is significantly fueling the growth of blockchain within the energy utilities market. The anticipated decline in fossil fuel dependence, alongside the growing trend towards localized and independent energy grids, is projected to further bolster the demand for blockchain solutions within the energy utilities sector throughout the forecast period

Automation is gaining traction within the energy sector

The rise of automation within energy utilities is driving significant infrastructure overhauls. These changes aim to reduce operational costs and facilitate the transition to blockchain-based software platforms. Blockchain technology offers the potential to enhance overall energy utility output. The emergence of new electricity consumers, including connected homes and electric vehicles, coupled with the proliferation of advanced communication devices like smart meters, sensors, and remote controls, is generating a massive influx of data. Energy companies must effectively analyze this data to make informed decisions. Blockchain technology can empower energy utilities to achieve greater reliability and efficiency while dynamically balancing energy consumption and production within a constantly evolving energy landscape.

Challenges

The energy industry, known for its stringent regulations, presents significant hurdles for blockchain adoption. New technologies, such as blockchain, often face legal and regulatory challenges when integrated into existing frameworks. A primary concern is compliance with data privacy laws. The energy sector handles sensitive information, including personal and financial data, necessitating robust data protection measures.

Adhering to data privacy regulations, such as the European Union's General Data Protection Regulation (GDPR) and the California Consumer Privacy ¹ Act (CCPA), poses a significant challenge for blockchain solutions that involve data storage and transfer. Furthermore, ensuring compliance with existing energy market regulations is critical. Blockchain-based energy trading platforms, for instance, must operate within the confines of market structure rules, anti-manipulation measures, and anti-fraud regulations, among other regulatory requirements.

Market Opportunities

Decentralization of Energy Market

A significant growth avenue for blockchain technology lies in decentralizing the energy market. Traditionally, the energy sector has been characterized by centralization, with a few dominant utility companies controlling electricity generation, distribution, and sales. However, blockchain technology offers the potential to disrupt this centralized model by facilitating peer-to-peer energy trading and enabling the development of microgrids. Peer-to-peer energy trading empowers individuals and businesses to transact electricity directly with each other, bypassing the intermediary role of centralized utility companies.

Market Segments Analysis

By type, the public segment is projected to dominate the market, driven by enhanced user-friendliness, improved platform visibility, and decentralized architecture. This segment facilitates seamless user entry and secure, incentive-driven transactions through encryption. The private sector is poised for substantial growth during the forecast period. Key factors driving service adoption include enhanced security, increased transaction speeds, and a more favorable regulatory landscape aimed at optimizing throughput.

By application, the Peer-to-Peer Transaction segment is anticipated to lead the market in the coming years. Transitioning towards Renewable Energy Sources (RES) power generation, including wind, solar, and ocean energy, is crucial for fostering the production and availability of renewable energy, significantly advancing the system's development. Beyond the inherent high level of standardization in purchases, pre-trade transparency empowers customers to become active consumers, thereby shaping the industry landscape

By end use, the power sector is projected to dominate the market during the forecast period, primarily driven by blockchain's capacity to manage decentralized energy sources and provide comprehensive energy consumption monitoring. The oil and gas sector is also poised for significant growth within the forecast period. Blockchain technology presents a transformative platform with substantial applications within the oil and gas industry. Given the widespread use of sensor technology in this sector, blockchain can directly integrate payment and financial data onto these sensors, streamlining processing times by linking resources to contracts.

Across the major regional market, the U.S. energy market is poised for significant blockchain growth, driven by the technology's potential to revolutionize the industry's fundamental structure. Blockchain facilitates peer-to-peer energy trading within microgrids through secure and immutable record-keeping. The Brooklyn Microgrid, launched in 2016, serves as an example, enabling residents to directly buy and sell electricity while maintaining a secure ledger of energy asset ownership.

Germany is also expected to witness rapid blockchain adoption, fueled by the increasing complexity of the power grid and the growing emphasis on smart grid integration. According to the European Commission, 308 smart grid projects are currently underway in Germany, with a combined investment of USD 2.43 billion. Increased investment from energy startups, robust funding activities, and government incentives for renewable energy generation further support this growth. A favorable regulatory environment encouraging technology adoption is also expected to boost blockchain product installations significantly.

Key Players – Competitive Landscape

The key players in the blockchain in energy market are BigchainDB GmbH, LO3 Energy, Inc., Deloitte Touche Tohmatsu Limited, Microsoft Corporation, IBM Corporation, WePower UAB, Accenture plc, Oracle Corporation, SAP SE, Infosys Limited, Energy Web Foundation Inc., Pexapark Ltd, WePower Limited , Clean Carbon Private Limited, Blok-Z, Shell plc, Microsoft Corporation, Enel SpA, Engie S.A., Siemens AG, Accenture PLC, International Business Machines Corporation, Iberdrola S.A., Oracle Corporation, Electrify Asia Limited, FlexiDAO GmbH, Vespene Energy Inc., SAP SE, Sun Exchange AG, Infosys Limited, Wien Energie GmbH, COI Energy Services, Power Ledger Pty Ltd, and Lition Technology,

Scope of the Report (Market Segmentation Covered)

By Type

• Private
• Public

By Application

• Sustainability Attribution
• Electric Vehicle
• Energy Financing
• Grid Transactions
• Peer-To-Peer Transaction
• Others

By End-Use

• Power
• Oil & Gas

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America, Middle East and Africa