Energy blockchain applications are expected to see a 67% compound annual growth rate (CAGR) over the next ten years, according to new research.
Annual market size to reach $7.7 billion in 2028
Navigant Research, Colorado-based market research and consulting team, has released a report devoted to the development of blockchain applications in the energy industry on Oct. 22.
Titled “Energy Blockchain Applications Overview,” the research provides an analysis of the blockchain market by region and segment as well as global forecasts of blockchain-driven revenue in the energy market until 2028.
As such, global energy blockchain implementations are forecasted to generate $19 billion in cumulative revenue over the next decade, hitting an annual market size of $7.7 billion in 2028 at a CAGR of 66.9%, the report says.
According to Navigant Research, the majority of early energy blockchain applications will be concentrated in regions with competitive market structures and low barriers to market entry such as Europe, Asia Pacific as well as some parts of the United States.
In particular, Europe and North America are expected to lead the market for most of the forecast, while the Asia Pacific region is expected to become the top global leader in 2027, the report notes.
Johnathon de Villier, a research analyst at Navigant Research, outlined the importance of new information technologies in order to facilitate transactions between grid participants with the rapid growth of digital and decentralized applications.
The analyst noted that blockchain tech could serve as a framework for these emerging markets by providing a basis for information management and coordination as well as minimizing the involvement by intermediaries and reducing transaction time and costs.
Blockchain technology has been applied and tested globally in the energy industry to date. In early October, Australian tech firm Power Ledger announced the second blockchain-based energy trial in Japan in order to track surplus solar energy levels and electricity trading. In August, U.S. Department of Energy awarded a $1 million grant to organizations developing a commercial blockchain energy transaction platform.