The global blockchain in renewable energy market size was valued at USD XX Billion in 2022 and is likely to reach USD XX Billion by 2031, expanding at a CAGR of XX% during the forecast period, 2023 – 2031. The growth of the market is attributed to the increasing demand for blockchain-powered clean energy solutions to reduce negative environmental impacts.
Increasing investments towards the enhancement of clean and sustainable energy sources are leading to the higher adoption of advanced technology, including blockchain to decentralize and improve renewable energy systems. Blockchain technology streamlines energy trading and reduces the need for intermediaries which makes renewable energy efficient and cost-effective. These factors are likely to boost this technology’s implementation by various industries for their renewable energy measures, thereby, driving the growth of the market.
-
According to the International Energy Agency (IEA), clean and renewable energy solutions are expected to receive an investment of approximately USD 1.7 trillion by 2023. This growth is 24% annually from 2021 to 2023. The investment is to be utilized for various renewable energy projects, including nuclear power, grid, low-emission fuels, storage, and electric vehicles.
Blockchain technology integration with renewable energy is advantageous for tracking and verifying every step in the energy production and distribution process. This technology offers a secure and transparent way to manage energy transactions.
All energy transactions from production to consumption are recorded on the blockchain which is difficult to manipulate data. Moreover, blockchain also helps grid operators manage the flow of electricity from various renewable sources efficiently. It balances supply and demand in real time and optimizes energy distribution.
The market report finds that the COVID-19 pandemic moderately affected the market. The pandemic accelerated the adoption of digital technologies, including blockchain in the renewable energy sector. Blockchain's ability to enhance transparency and automate processes increased interest and investment in blockchain applications for renewable energy.
On the other hand, supply chain disruptions and economic uncertainties have affected renewable energy project financing and slowed down implementations of blockchain solutions.
Artificial Intelligence (AI) Impact on Blockchain in Renewable Energy Market
Artificial intelligence is expected to boost the market. AI algorithms analyze vast amounts of data to optimize energy production and distribution of blockchain-powered renewable energy solutions. Moreover, the utilization of AI-based predictive models to understand weather patterns and changes. It helps grid operators manage the variability of renewables by ensuring a stable and reliable energy supply.
Blockchain in Renewable Energy Market Dynamics
Major Drivers
Growing demand for blockchain technology-based peer-to-peer energy trading platforms is expected to drive the market. Blockchain enables the creation of decentralized smart grid networks, where individuals and communities produce and share renewable energy among themselves.
This decentralization promotes energy independence and resilience while reducing reliance on large centralized traditional energy solutions. Furthermore, the utilization of blockchain technology to improve the efficiency and cost-effectiveness of renewable energy boosts the market. For instance,
-
In 2022, Voltreum, an India-based blockchain startup, announced the launch of its new Volt-X, which is a blockchain-based peer-to-peer energy trading platform. This platform offers transparent energy trading between consumers and products thereby supporting increased access to renewable energy and other distributed resources.
Existing Restraints
High implementation and maintenance costs of blockchain technology are expected to hamper the market. The initial costs associated with developing blockchain solutions and integrating them into existing systems make it hard especially for smaller renewable energy projects or startups. Moreover, the regulatory challenges to integrating this technology further decline the demand for blockchain-based renewable solutions in the market.
Emerging Opportunities
Ongoing research and advancement in blockchain technology is expected to create favorable opportunities for the player competing in the market. Blockchain engineers are integrating blockchain technology into grid management for real-time monitoring and optimization of renewable energy resources. Decentralized networks powered by blockchain technology further automate the balance of supply and demand to improve grid stability and resilience.
Scope of Blockchain in Renewable Energy Market Report
The report on the market includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.
|
Attributes
|
Details
|
|
Report Title
|
Blockchain in Renewable Energy Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
|
|
Base Year
|
2022
|
|
Historic Data
|
2016–2021
|
|
Forecast Period
|
2023–2031
|
|
Segmentation
|
Type (Private and Public), Application (Electric Vehicle, Sustainability Attribution, Energy Financing, Peer-To-Peer Transaction, Grid Transactions, and Others), and End-user (Commercial, Industrial, Residential, and Others)
|
|
Regional Scope
|
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
|
|
Report Coverage
|
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
|
|
Key Players Covered in the Report
|
The Linux Foundation; Microsoft; IBM; Tech Alchemy; Labrys; Cubix Corporation; INC4 BLOCKCHAIN ENGINEERING; EvaCodes LLC; Power Ledger Pty Ltd; and Antiersolutions
|
Blockchain in Renewable Energy Market Segment Insights
Type Segment Analysis
Based on type, the blockchain in renewable energy market is divided into private and public. The private segment is expected to hold a major market revenue share during the forecast period, as this blockchain technology offers a higher level of control and privacy, which is important for the energy sector where sensitive data and transactions need to be securely managed.
This control attracts renewable energy companies and utilities seeking to maintain confidentiality. Moreover, a private blockchain is scalable and efficient than a public blockchain which further boosts their demand in the market.
The public segment is anticipated to register healthy growth in the market owing to its capability to cater large user base. Public blockchains are decentralized and extremely difficult to hack as its does not rely on solo entity to maintain and control the network.
Public blockchains often come with lower operational costs since they do not require the same level of infrastructure and maintenance as private blockchains. Moreover, compatibility with various renewable energy use cases further propels this segment in the market.
Application Segment Analysis
On the basis of application, the market is classified as electric vehicle, sustainability attribution, energy financing, peer-to-peer transaction, grid transactions, and others. The peer-to-peer transaction segment is expected to hold a key market share during the projected period, as this technology allows individuals, businesses, and communities to directly exchange renewable energy without the need for intermediaries.
This reduces costs and increases the efficiency of energy trading. Moreover, transparency and security inherent in blockchain technology ensure trust in peer-to-peer transactions and further fuel the growth of the market.
The grid transactions segment is projected to register a considerable CAGR during the forecast period, due to its capability to manage data efficiently. Grid transitions offer flexible, decentralized, and digitally-driven models to traditional renewable energy systems.
Blockchain technology seamlessly supports this shift by providing a secure and transparent platform for managing data. Additionally, the increasing integration of blockchain-based grid transactions in existing renewable energy infrastructures further boosts the market.
End-user Segment Analysis
In terms of end-user, the blockchain in renewable energy market is fragmented into commercial, industrial, residential, and others. The industrial segment is estimated to hold a key market share during the projected period, as industries often have large carbon footprints due to their large consumption of energy.
This advanced blockchain technology helps them to transition to renewable energy sources efficiently and transparently to meet their sustainable goals. Furthermore, the increasing investments of global industries towards blockchain-based renewable startups or service providers contribute to the growth of the market. For instance,
-
On June 26, 2023, FlexiDAO, a leading provider of blockchain-powered energy traceability solutions, announced their USD 6.5 million funding round series. This round is led by SET Ventures with investment from Microsoft Climate Innovation Fund, Google, and existing backer EIT InnoEnergy. Google and Microsoft are both companies using FlexiDAO's solutions to monitor their renewable energy consumption.
The commercial segment is projected to register a considerable CAGR during the forecast period, due to the automation capabilities of blockchain technology particularly in managing renewable energy usage and optimizing cost-effective energy procurement.
Blockchains real-time data tracking capabilities help commercial entities achieve their green goals. Moreover, the growing demand for blockchain-driven renewable energy sources in small businesses, hotels, and offices to reduce traditional energy consumption expenses further propels the segment in the market.
Regional Analysis
In terms of region, the global blockchain in renewable energy market is segmented into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market, due to the strong presence of the advanced renewable energy sector supported by substantial investments.
This facilitates the integration of blockchain into renewable energy to enhance its efficiency. Additionally, the region's strong governmental regulatory support and incentives towards developing renewable energy infrastructure contribute to the growth of the market. For instance,
The market in Asia Pacific is anticipated to expand at a rapid pace in the coming years, as this region is experiencing rapid growth in both renewable energy adoption and blockchain technology implementation. Governments and businesses across the Asia Pacific are increasingly investing in renewable energy projects and recognizing the potential of blockchain-based energy solutions. Furthermore, the region's rising demand for energy due to the growing population propels the market. For instance,
Segments
The global blockchain in renewable energy market has been segmented on the basis of
Type
Application
- Electric Vehicle
- Sustainability Attribution
- Energy Financing
- Peer-To-Peer Transaction
- Grid Transactions
- Others
End-user
- Commercial
- Industrial
- Residential
- Others
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- The Linux Foundation
- Microsoft
- IBM
- Tech Alchemy
- Labrys
- Cubix Corporation
- INC4 BLOCKCHAIN ENGINEERING
- EvaCodes LLC
- Power Ledger Pty Ltd
- Antiersolutions
Competitive Landscape
Key players competing in the global blockchain in renewable energy market are The Linux Foundation; Microsoft; IBM; Tech Alchemy; Labrys; Cubix Corporation; INC4 BLOCKCHAIN ENGINEERING; EvaCodes LLC; Power Ledger Pty Ltd; and Antiersolutions
The market players are boosting their market share by implementing various strategies such as partnerships, mergers, acquisitions, reduction in production costs, launching new products, and implementing advanced technologies.
-
On June 12, 2022, Power Ledger Pty Ltd announced the migration of their Energy Blockchain platform from Ethereum to a Solana-based blockchain. The new platform is faster and can support higher transaction throughput. Power Ledger's blockchain technology solutions are being utilized globally, as it offers a safe and accountable platform that audits and smooths the process of purchasing and selling renewable energy.
Request For Customization
Enquiry Before Buying
Speak With Analyst
