Currently, global blockchain revenue is estimated at $394.3 million dollars. However, in a new report released by MarketsandMarkets in their analyses predicted the growth in blockchain generated revenue to hit $7.1 billion, up 78.32 percent by 2023. This surge in revenue is expected to emanate from the adoption of more blockchain based technology in the energy market to service ends users.
The reported stated factors responsible for such growth includes the increasing popularity, acceptance and adoption of the blockchain technology as projected revenue drivers. Five areas where this technology would have profound impact on the energy market, namely; type of sector, regional markets, component, consumers and applications were examined in this report.
By the type of sector, the report established that the private sector would continue to exert much influence on the blockchain economy in the period forecasted. The reason for the dominance is the control enjoyed by private organisations particularly with a technology that has not developed a universally accepted standard. This control makes the blockchain secure, efficient and faster in transactions and service delivery. By security, only authorised users are allowed to transact and verify transactions.
Regionally, Europe is expected to continue to lead the race for blockchain based technology in energy markets ahead of North America, Latin America, Asia, Africa and the rest of the globe. This leadership stems from the number of startups and projects that are blockchain based, with regulatory support from European bodies. The UK and Germany are currently in the driving seat with most other companies like Swedish Vattenhall, Italian Enel and even RWE (Germany) partnering with Germany’s Ponton.
In the component, consumers and applications, the services sector leads in the component section, courtesy of firms collaborating with startups to build industry specific applications in energy trading, grid control and supply chain management. The report states that many utility firms are already taking advantage of the blockchain technology in offering smart contracts, peer-to-peer energy trading and real time energy pricing in daily operations to final consumers.
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