Blockchain technology is a relatively new technology that has the potential to transform the way energy industry operates by shifting away from a centralized structure toward a decentralized system. The implementation of blockchain in energy industry operations, eliminates the need for services such as switching websites, energy brokers and energy efficiency advice providers from third-party intermediaries. This can effectively increase the speed of energy industry processes as well as it can reduce the cost of operations. The blockchain technology makes energy industry operations more flexible and accelerate the speed of changes.
The global blockchain technology is at an early stage of its innovation and key technological operators are still experimenting and exploring its capabilities. Blockchain has its roots and use in the financial sector, wherein central control has been removed the financial transactions and the execution of contractual commitments. The major factor for this is that the energy industry is quite advanced when compared to the other sectors and is much regulated in its operations. There is significant potential for blockchain technology in energy industry as blockchain technology is an instrument to manage the sector’s growing complexity, data security, and ownership.
For the purpose of the study the global blockchain in energy market has been segmented by technology type, platform type, implementation type, end-use industries, and application. Based on technology type, the market has been segmented as open blockchain, closed blockchain, consortium blockchain, and hybrid blockchain. Closed blockchain segment dominated the market in 2017 and is expected to remain dominant during the forecast period as these participants have the permission to decide future entrants, facilitate financial transactions between participants, and enable moving from bilateral retail arrangements to multi-lateral trading ecosystems and deliver higher security and reliability as they are restricted to limited participants. Based on platform type, the market has been segmented as ethereum, hyperledger, tendermint, interbit, and others. Ethereum segment dominated the market in 2017 and is expected to hold the largest market share during the forecast period due to their capability of executing smart contract function within decentralized ledger. On the basis of implementation type, the market has been segmented as service and solution, development platforms, and industry-specific. Service & Solution segment dominated the market in 2017 and is expected to hold the largest market share during the forecast period as it provides solution for fluctuating demand for energy, demand for improved and personalized customer service, increasing operating costs and many more. On the basis of end-use industries, the market has been segmented as power and utilities, renewable energy, and oil & gas.
Renewable Energy segment dominated the market in 2017 and is expected to remain dominant during the forecast period due to increasing transactions from renewable energy producers for smart contracts, controlling the supply and demand of power. On the basis of application the market has been segmented as energy trading, grid management, payment schemes, control & security, and supply chain & logistics. Energy Trading segment dominated the market in 2017 and is expected to remain dominant during the forecast period as it enables the operators to develop their own closed blockchain enabled ecosystem that will cover the entire transaction lifecycle including back office settlements and payments. On the basis of region, the market is segmented into North America, Europe, Asia-Pacific, and Rest of the World.