Navigant Research forecasts the total utility spending on blockchain based platforms to reach $3.7 billion by 2026.
According to the research firm, millions of dollars were invested in energy-related blockchain projects including wholesale energy trading, EV charging and integration and transactive energy platforms in 2016 and 2017.
Investments in such technologies are expected to increase as decentralised energy markets continue to emerge.
Johnathon de Villier, Research Analyst with Navigant Research, commented: “The expectations for blockchain in the energy sector are sky-high, helped along by hundreds of millions of dollars in venture capital investments and initial coin offering (ICO) fundraising.
“However, the technology is still immature and unproven, and utility spending will grow at a much more measured pace.”
The growth will also be influenced by external technological factors, including the penetration of smart meters and networked charging infrastructure for electric vehicles.
According to the report, blockchain adoption will not be disruptive until Internet of Things devices and communications technologies are integrated into compatible blockchain networks.
The company’s Utility Blockchain Applications Market Overview, explores key challenges that must be addressed before blockchain can be widely adopted in the energy sector.