The Global Blockchain in Energy Trading Market is projected to grow at a CAGR of around 25.55% during the forecast period of 2023-28, cites MarkNtel Advisors in the recent research report. The increasing digitalization of global economies & the rising energy demand across various sectors have created a need for real-time evaluation of energy consumption & distribution. Blockchain technology offers significant advantages in this regard by eliminating intermediaries, streamlining trading activities, reducing administrative burdens, and enabling instant transaction settlements. As a result, energy traders are adopting Blockchain to enhance cost savings & improve operational efficiency.
Furthermore, North America & Europe are witnessing a growing trend where residences & businesses are generating their energy through decentralized sources like solar panels & other Distributed Energy Resources (DERs). This trend not only reduces dependency on centralized energy production but also opens the door for innovative energy sharing. Through blockchain technology, surplus energy can be seamlessly traded among neighbors & local communities, fostering a sense of energy autonomy & sustainability.
Also, these nations embrace a more sustainable & interconnected energy landscape, and the potential of blockchain to facilitate peer-to-peer energy trading emerges as a pivotal solution. This technology empowers individuals & businesses to play an active role in energy distribution, enhancing both local self-sufficiency & the global transition to cleaner mobility & renewable energy sources.
Moreover, the oil & gas sector is also embracing digital technologies, which is leading to the anticipated use of Blockchain trading for crude & natural gas among distribution facilities to enhance the requirement for blockchain in energy storage in the forthcoming years, further states the research report, “Global Blockchain in Energy Trading Market Analysis, 2023.”
Peer-to-Peer Energy Trading Witnessing Notable Momentum in the Market
Based on the application, the market is further bifurcated into Peer-to-Peer Energy Trading, Regulation and Compliance Management, Commodity Trading, Electricity Data Management, and Grid Management. Of them, P2P energy trading is anticipated to register the fastest growth rate, due to its rising adoption among individuals and businesses for cost optimization. In P2P energy trading, the power sector currently holds the largest share in the P2P Energy Trading Market. This can be attributed to the rising awareness among individuals about renewable energy sources & government initiatives that support decentralized grids powered by solar energy.
Further, as the electricity demand continues to rise and access to the national grid remains limited, commercial facilities are expected to adopt P2P energy trading to meet their energy needs. This allows them to balance the excess demand & supply of electricity within their local community.
Europe to Register a Considerable Growth Rate in the Forecast Years
Europe has emerged as a focal point for the adoption of blockchain-based energy trading, propelled by its progressive integration of advanced technologies across diverse sectors & strong government support. Notably, Europe boasts a substantial number of major utility players at the forefront of embracing blockchain innovation. A report by Wipro reveals that 23 prominent utility companies, including industry leaders like Enel SpA & RWE AG, are actively implementing blockchain technology through pilot programs. These initiatives are designed to guide in a new era of energy trading characterized by anonymity and direct peer-to-peer transactions across the region.
In addition, companies such as Vattenfall AB and Tennet Holding BV are capitalizing on blockchain capabilities to manage consumer-centric electricity platforms & intricate networks. The European landscape actively fosters cross-border energy trading, a strategic move to diversify revenue streams by augmenting renewable energy production. This collaboration paves the way for a unified energy market, transcending national boundaries and driving the integration of cleaner & more sustainable energy sources in the coming years.
With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players, including Power Ledger, SunContract, Wepower, Restart Energy, Electron, Mission Innovation, Blockchain Tech LTD, Enosi, Grid Singularity, LO3 Energy, etc., are looking forward to strengthening their market position.
Key Questions Answered in the Research Report