According to a new report released by Premium Market Insights (PMI), global investment in blockchain technology in energy markets will reach $ 34.7 billion by 2025. The industry is estimated to be only $ 156.5 million in 2016 and is expected to grow by 82. % per year.
While $ 35 billion appears high, it is overshadowed by the net worth of $ 1.85 trillion for the energy market as a whole. Major players using blockchain and DLT in the field include Accenture, AWS, Bigchaindb, Deloitte, IBM, Infosys, Microsoft, Nodalblock, Oracle, SAP, Enosi, and Electron.
Blockchain is used in energy markets for data management, financial tracking and interactions. According to the report, the drivers for adoption include lowering operating costs and capital expenditures. Due to increasing automation, blockchain will be used for data security and integrity.
However, the expected high rate of growth may be affected this year as energy markets are hit hard by both the corona virus and the oil crisis.
Companies are increasingly finding use cases for blockchain in the energy sector. Power Ledger has just announced a partnership with ekWateur, a green energy supplier, to enable nearly a quarter of a million French residents to choose their renewable energy source.
VeChain also recently announced the next phase of an ongoing partnership with Shanghai Gas to develop a blockchain-powered “Energy-as-a-Service” platform and business ecosystem.