From a report published by Zion Market Research-a New York-based company that seeks to offer informative and up to date reports about industries- Blockchain technology in the energy industry will surge by 78.20% CAGR between 2018 and 2024. The report shows that as at 2018, DLT network in the crucial industry was valued at $208 million, a figure that will surge to $11.889 billion by 2024.
The Report Is All-Inclusive
The report by Zion Market Research encompasses different dimensions of Blockchain application in the energy industry. These segments include Blockchain in the industry by type, component, application, and end-usage. The report aims to present the information about these segments in the perspectives of the global industry, forecast, and comprehensive analysis.
To better understand what the report portrays about the new role of Blockchain in the industry, it is vital to illustrate details about the segments. Firstly, the type of use in the energy market expounds on the private and public nature of the industry. Secondly, component segment entails platform and services reports. Thirdly, the application is extensive in supply chain management, payment schemes, governance risk, and compliance management, grid management, energy trading, etc. Lastly, end-user sections extrapolate on power, oil, and gas sectors management within an energy production, distribution and consumption ecosystem.
Additionally, the analysis breaks down the report to highlight trends in different regions such as North America, the Middle East, and Africa, Europe, Asia and the Pacific, and Latin America.
Blockchain Will Drive The Energy Markets Growth
All over the world, the demand for energy is skyrocketing due to the increased need of energy-dependent machines in domestic, public, and commercial spheres. This is leading to an increase in prices in order to match supply-demand forces. However, there is also an increase in the focus to develop renewable energy at affordable costs and to also improve the supply side to avoid loss of power during transmission. Therefore, much of the growth would occur in the power generation and consumption Blockchain applications.
Blockchain technology will be used to coordinate all these efforts and to also use data-driven features to develop and deploy customized energy solutions. For instance, one of the key players in DLT-based energy solution development-Elec-Tron Inc, is creating a smart agreement supply chain platform for the gas and oil sector. Additionally, another major player -Drift- is developing a platform to centralize the energy market for its clients.
Other major players include Microsoft, Lo3 Energy Inc, WePower, AWS, Power Ledger, Deloitte, Grid+, Infosys, SAP SE, BigchainDB, Accenture, Nodalblock, Oracle, IBM, BTL Group Limited, etc. Many more firms in the energy industry will adopt Blockchain-based solutions for the realization of the forecast.
Despite the fact that Blockchain technology is still in its infancy stage and understood by a very small percentage of industry stakeholders, success cases in Elec-Tron Inc. and Drift are ushering a new era of a Blockchain-powered energy industry.
Regulatory Uncertainty Setback
Lack of clear regulation laws on Blockchain and Cryptocurrencies may be a hindrance in the achievement of the CAGR of 78.2%. Nevertheless, more governments are becoming aware of the importance of Blockchain technology applications and there are efforts in many countries to streamline the industry.