Blockchain in Power Market Analysis

Blockchain in Power Market Analysis

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Based on application, the market is segmented into grid transactions, peer to peer transactions, energy financing, sustainability attribution, electric vehicle charging and others. The peer to peer transactions segment is projected to grow at more than USD 21 billion by 2034. Rising demand for cost-effective technologies to reduce dependence on traditional utility companies by allowing transactions directly between parties will augment the industry statistics in P2P transactions.
 

Furthermore, the technology also eliminates the need for intermediaries, lowering transaction costs, and simplifying billing processes. Increasing need for transparency and flexibility in energy transactions will further bolster the technology penetration, encouraging participation from small-scale energy producers and consumers.

Based on category, the blockchain in power market is segmented into public and private. The public segment is set to expand at a CAGR of over 42% through 2034. Increasing demand for transparency in energy transactions, particularly beneficial for public-sector entities responsible for managing power resources will stimulate the technology adoption.
 

Additionally, the technology also ensures that energy trading data, renewable energy certification, and subsidy distributions are securely tracked, minimizing fraud and improving accountability, strengthening the business outlook. Rising popularity of smart contracts built on blockchain platforms allows for automated, self-executing agreements based on predefined conditions, will further foster the technology expansion.
 

The U.S. blockchain in the power market is anticipated to cross USD 7.5 Billion by 2034. Rising promotions of innovative technologies by government and regulatory bodies to modernize the power sector will uplift blockchain adoption. Growing adoption of blockchain for peer-to-peer (P2P) energy trading in the U.S., especially in states with significant solar power capacity such as California and Hawaii will improve the business scenario. Increasing cyber threats and data breaches in the power sector will fuel the technology demand to secure critical data related to grid operations, energy transactions, and consumer interactions.
 

In Asia Pacific, rapid adoption of renewable energy, particularly solar and wind power, will drive the need for more efficient energy management systems, driving the technology penetration. Rising grid modernization efforts in countries such as China and India to accommodate a more distributed and renewable energy infrastructure will complement the technology growth.