Market research conducted by Technavio has predicted that use of blockchain technology in the energy industry will increase between 2019 and 2023.
Energy Sector Embracing Blockchain
While blockchain technology was invented for facilitating peer-to-peer money transfers, it is finding its use within multiple industries including energy.
Technavio, a leading market research company has forecast growing adoption of blockchain technology within the sector in the coming years.
The summary of the research was reported earlier by Power Engineering International (PEi). According to the PEi, blockchain technology will see a growth of 65% in the sector between 2019 and 2023.
Many significant use-cases have emerged that can transform the energy industry to bring efficiencies.
Blockchain can be used to prevent failures in power grids. According to Technavio, the grid operators are using the technology to distribute power sources.
Blockchains can provide grid operators with real-time data on the operation of grid assets and help in modernization. Access to real-time data helps operators to track failures faster, reduce losses and bring down the operational and maintenance cost.
Another prominent use-case is the enablement of peer-to-peer energy trading. Independent renewable energy sources that connect to the grid can sell their excess power.
According to the research, the technology is helping in improving customer services and facilitating the transition to a low carbon footprint.
“Other key factors that are expected to boost the growth of the blockchain technology in the energy market is the integration of blockchain technology with smart meter and improved supply chain efficiency in the energy sector,” said a senior analyst at Technavio for research on IT professional services.
Technavio mentions that a significant trend that is emerging is the use of BaaS (Blockchain as a service). Firms like IBM, Amazon, and Microsoft have launched their BaaS offerings which are cost-effective for their customers and facilitate instant deployment at the enterprise level.
It is reported that the EMEA region held the largest share of the global market in 2018. The geography accounted for close to 41% market share followed by Americas and APAC.
The use of blockchain in the energy sector of the APAC region is expected to witness the most substantial increase in coming years.
The mentioned use-cases, however, may just be the beginning. Decentralization of the industry can cause disruption of the sector and bring down the cost of energy considerably.
What are your thoughts on the implementation of blockchain technology in the energy sector? Let us know in the comments below.
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