Market Dynamics
Introduction
The blockchain in energy is the use of blockchain technology for energy-related processes, including peer-to-peer energy trading, grid management, billing, asset tokenization, and supply chain tracking. Blockchain technology offers a decentralized, secure, and transparent way to digitally track all transactions, allowing energy companies to minimize transactions, cut costs, maintain data integrity, and facilitate the incorporation of renewable energy. By supporting automated, real-time, secure transactions across distributed energy systems, blockchain technology is playing an important role in the modernization of traditional energy systems.
Market Drivers
The primary driver of the blockchain in the energy market is the increasing desire for an efficient decentralized option for trust and transparency in energy transactions. As renewable and distributed energy systems become the predominant method of energy production, stakeholders require secure, tamper-proof platforms for tracking, trading, and settling in real time, in which blockchain technology outperforms in an even more efficient way than traditional systems.
Recent Market JVs and Acquisitions:
A considerable number of strategic alliances, including M&As, JVs, etc., have been performed over the past few years:
- In January 2024, Acciona partnered with FlexiDAO to expand the reach of its GreenH2chain platform
- In March 2024, Shell extended its collaboration with LO3 Energy to pilot blockchain-enabled local energy trading systems in the U.S.
- In May 2024, Power Ledger announced a joint venture with a Southeast Asian utility to deploy peer-to-peer energy trading
Segment Analysis
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Segmentations
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List of Sub-Segments
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Segments with High-Growth Opportunity
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Blockchain-Type Analysis
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Private Blockchain, Public Blockchain, and Consortium/Hybrid Blockchain
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Private Blockchain is expected to remain the dominant blockchain type in the energy industry.
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Component-Type Analysis
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Platform/Solutions and Blockchain-as-a-Service
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Platform/Solutions hold the largest share and will continue to dominate the component segment.
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Application-Type Analysis
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Peer-to-Peer (P2P) Energy Trading, Grid Management, Supply Chain Tracking, Billing & Smart Contracts, and Energy Asset Tokenization
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Peer-to-Peer (P2P) Energy Trading is anticipated to lead the application segment in the coming years.
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End User-Type Analysis
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Power, Oil & Gas, and Renewable Energy Providers
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Power maintains the largest market share among end users and is expected to dominate going forward.
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Region Analysis
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North America, Europe, Asia-Pacific, and The Rest of the World
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North America is expected to maintain its reign over the forecast period.
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By Blockchain Type
“Private blockchain is expected to remain dominant in the market during the forecast period.”
Currently, the most popular type of blockchain used in the energy space is a private blockchain. This is because they provide security, access control, and scalability — a necessity in regulated industries like energy, where data sensitivity and the assurance of operational integrity are vital.
While public blockchains offer transparency and decentralization, they are less commonly adopted because they are inefficient and energy-intensive, and issues surrounding public blockchains and regulations remain unclear. Consortium or hybrid blockchains are also gaining traction, but may not overtake private model blockchains, as enterprise organizations are addressing a need for blockchain adoption for internal and inter-company use cases.
By Component Type
“Platform/Solutions is expected to remain the dominant market during the forecast period.”
Platforms/Solutions are dominant in this segment, as most organizations are implementing customized or semi-custom blockchain infrastructures suited to their energy-related operations. This includes platforms that offer peer-to-peer trading capabilities, grid monitoring, regulatory compliance, etc.
Blockchain-as-a-Service (BaaS) is still an emerging area, in particular for smaller players or start-ups that do not have internal knowledge or abilities. However, larger energy organizations still want core ownership of the platform, which is why platforms are the only type to dominate the industry.
By Application Type
“Peer-to-peer is expected to dominate the market during the forecast period.”
Peer-to-Peer (P2P) Energy Trading is the leading application. It goes to the heart of blockchain's decentralization and enables consumers to trade excess energy easily and transparently.
The other applications, including grid management, billing, and tokenizing assets, have lower adoption rates, but they are growing steadily. However, these applications are in pilot studies or in support roles, while P2P trading has more commercial rollout and policy support in Australia and Europe.
By End User Type
“Power is anticipated to remain dominant in the market during the forecast period.”
The Power is the dominant end user, with utilities and transmission companies, in particular, using blockchain for grid management and coordination, smart contracts, and energy traceability at scale and with large investment from incumbent organizations. With established infrastructure and with stakeholders more commonly implementing and governing regulations, their experience with the blockchain technology should lead to faster adoption and more chronic adoption.
The oil & gas industry and renewable energy providers are also somewhat active, especially in supply chain and GHG emission tracking. However, their use of blockchain technology is limited either to niche players or pilots and one-time studies, while utilities take a more robust use of blockchain implemented at a much broader scale.
Regional Analysis
“North America is expected to remain the largest market for blockchain in energy during the forecast period.”
North America is at the forefront of blockchain in the energy market globally. The region is home to a mature tech environment, enabling regulations, and a number of important pilot projects spanning throughout the U.S. and Canada around energy trading and smart grid applications.
Europe follows, spurred by ambitious climate targets and the decentralization of energy markets. The Asia Pacific region is approaching fast with large-scale smart grid rollouts, but North America continues to lead after establishing firm positioning through early adoption of the technology and innovation.
Key Players
The market is fragmented, with over 100 players. Most of the major players compete in some of the governing factors, including price, service offerings, regional presence, etc. The following are the key players in the Blockchain in Energy market.
Here is the list of the Top Players (Based on Dominance)
- SAP SE
- Acciona
- WePower
- Power Ledge
- SunContract
- Iberdrola Group
- Enel
- Engie
- Shell
- Siemens
Note: The above list does not necessarily include all the top players in the market.
Are you the leading player in this market? We would love to include your name. Please write to us at [email protected]
Report Features
This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:
- Market structure: Overview, industry life cycle analysis, supply chain analysis.
- Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
- Market trend and forecast analysis.
- Market segment trend and forecast.
- Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
- COVID-19 impact and its recovery curve
- Attractive market segments and associated growth opportunities.
- Emerging trends.
- Strategic growth opportunities for the existing and new players.
- Key success factors.
The global blockchain in energy market is segmented into the following categories.
Blockchain in Energy Market, by Blockchain Type
- Private Blockchain (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
- Public Blockchain (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
- Consortium/Hybrid Blockchain (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
Blockchain in Energy Market by Component Type
- Platform/Solutions (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
- Blockchain-as-a-Service (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
Blockchain in Energy Market by Application Type
- Peer-to-Peer (P2P) Energy Trading (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
- Grid Management (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
- Supply Chain Tracking, Billing & Smart Contracts (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
- Energy Asset Tokenization (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
Blockchain in Energy Market by End User Type
- Power Industry (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
- Oil & Gas Industry (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
- Renewable Energy Providers (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
Blockchain in Energy Market by Region
- North America (Country Analysis: The USA, Canada, and Mexico)
- Europe (Country Analysis: Germany, France, The UK, Russia, and the Rest of Europe)
- Asia-Pacific (Country Analysis: Japan, China, India, and Rest of Asia-Pacific)
- Rest of the World (Country Analysis: Brazil, Saudi Arabia, and Others)
