Rising security concerns regarding grids and networks on account of increasing interconnection and digitalization will drive the blockchain technology in energy market growth. That’s according to a recent study by Global Market Insights, Inc.
The report states that the ability to enhance process efficiency, flexibility and lead time reduction have garnered the attention of power industry giants, thereby stimulating the technology demand. Moreover, increased loads from the influx of electric vehicles, the burgeoning number of smart appliances, along with the growing share of variable distributed generation in the grids will complement the industry outlook.
Blockchain technology in the energy market is set to grow more than 45% by 2025. The capability to provide simple governance structures, lower cost operations and faster transactions are some of the prominent features stimulating the technology growth. The increasing trend to build smart contract applications coupled with the accessibility to select the participants will enhance the business outlook.
Specifically, oil and gas blockchain technology in the energy market is set to witness substantial growth on account of fewer cost intermediaries, limited overhead cost and reduced cash cycle times. The rising focus of various industry giants toward the adoption of technology to streamline trading in the non-digital crude oil industry along with plans to exhibit enhanced security and optimized efficiency in transactions will boost the industry landscape. For instance, Shell and BP announced the launch of blockchain oil trading platform to automate and digitize various oilfield related services. Furthermore, the potential to reduce discrepancies in the operations by enhancing accuracy in freight rates, invoice generation and shipment routing will propel industry growth.
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