A recent report from Navigant Research offers an overview of the developing market for energy blockchain applications, providing global forecasts for energy blockchain revenue through 2028.
According to the report, Energy Blockchain Applications Overview, energy blockchain applications are expected to generate US$19 billion in cumulative revenue over the next decade, reaching an annual market size of US$7.7 billion in 2028, at a compound annual growth rate (CAGR) of 66.9%.
The report further explores the blockchain market by region and segment, with examples of key use cases in each market. It describes the components of blockchain architecture, and looks into the competitive landscape and key challenges that must be addressed before blockchain can be widely adopted in the energy sector.
Early growth of energy blockchain applications is expected to be concentrated in regions with competitive market structures and low barriers to market entry in Europe, Asia Pacific, and parts of the United States. Europe and North America are projected to be the leading markets for most of the forecast, but a rapid growth rate of 83.3% in Asia Pacific propels the region to the front in 2027.
Energy and power sector stakeholders are experimenting with blockchain technology along the energy value chain. This extends from supply chain transparency to asset financing, proof of origin for power generation, electric vehicle (EV) charging and grid integration, and transactive energy. Although a few energy blockchain products have been commercialized, most remain in the early stages of testing and business model development.
“As the grid system becomes increasingly digital, distributed, and decentralized, new information technologies are needed to support interactions and transactions between grid participants,” said Johnathon de Villier, research analyst at Navigant Research. “Blockchain is one of the several distributed ledger technologies that could serve as a framework for these emerging markets by providing a mathematical basis for information management and coordination across participants in a network and minimizing the role of intermediaries while reducing transaction costs and friction.”
An executive summary of the report is available for download here.