Global market for blockchain applications in microgrids to surpass $1.2bn by 2028
The latest report from Navigant Research has predicted that the global market for blockchain applications in remote and grid-connected microgrids is expected to exceed $1.2b by 2028, experiencing a compound annual growth rate (CAGR) of 67.8 per cent from 2019-2028.
The report, which examines trends driving the development of blockchain applications for both microgrids, states that the microgrid vendors and energy blockchain vendors are exploring more and more use cases wherein both technologies are combined together.
As blockchain is still in the early stages of development and commercialisation, its attributes demonstrate potential in solving the main issues related to the financing and operations of grid-connected and remote microgrids.
Johnathon de Villier, research analyst with Navigant Research, said: “For grid-connected microgrids, low friction, smart contract-driven transactions can open new revenue streams for service providers, aggregators, and distributed energy resources (DER) owners – and potentially play a future role in grid automation. In remote microgrids, blockchain-based models for asset finance and ownership can help fund microgrid deployments for energy access and create a foundation for future investment.”
Last December, Gartner’s survey titled “IoT Adopters Embrace Blockchain” argued that blockchain is a matching technology for the Internet of Things and can help it to overcome some of its biggest problems. According to the survey, 75 per cent of IoT technology adopters in the US have already adopted blockchain or are planning to adopt it by the end of 2020. It was revealed that pharmaceuticals, energy, healthcare, and transportation are the industries which are leading in blockchain adoption.