December 7, 2024
Cryptocurrency Mining Market
Ict

The Cryptocurrency Mining Market Is Shifting Towards Renewable Energy Trends Boosted By Sustainability Concerns

The cryptocurrency mining market involves validating blockchain transactions and adding them to public ledgers in exchange for being rewarded with virtual currency. Cryptocurrencies are a new class of digital assets that utilize blockchain technology to record transactions on distributed ledgers without the need for central authorities like governments or banks. Mining cryptocurrencies requires high-powered computers that consume massive amounts of electricity in the process of solving complex algorithms required to validate transactions. This has led to concerns about the environmental impact and carbon footprint of mining operations that conventionally rely on energy sources like coal. Mining rigs running on electricity sourced from non-renewable fossil fuels contributes significantly to greenhouse gas emissions. However, as sustainability concerns mount, there is a growing shift towards renewable energy sources like solar, wind and hydropower among key mining firms to reduce their carbon footprint and energy costs.

The Global Cryptocurrency Mining Market Size is estimated to be valued at US$ 4960.06 Bn in 2024 and is expected to exhibit a CAGR of 12% over the forecast period from 2024 to 2030.

Key Takeaways

Key players operating in the cryptocurrency mining market include CropX Inc., Enablon France SA, Enviance Inc., General Electric, Hortau Inc., IBM Corporation, LO3 Energy, Inc., Oracle Corporation, Tech Mahindra Limited, and Trace Genomics, Inc. Key players are investing in sustainable mining facilities powered by renewable energy to gain a competitive edge in the industry.

Growing concerns around cryptocurrency’s carbon footprint are driving increased demand for mining solutions relying on renewable energy sources. Countries like China with cheap electricity sourced from coal are facing crackdowns and policy changes prompting miners to relocate to regions with renewable energy supplies.

Major mining operations are expanding globally to regions with abundant renewable power potential like Iceland, Sweden and Georgia which offer attractive incentives. This shift is expected to significantly lower emission levels from cryptocurrency networks in the long run.

Market key trends

The cryptocurrency mining market is witnessing a key trend of growing investments in renewable energy powered sustainable mining farms across major markets. For instance, mining giants like Core Scientific and Genesis Mining are investing heavily in solar powered mining facilities to meet over 50% of their power needs through solar panels. This helps reduce electricity costs as well as gain a better ESG compliance score. As the industry matures, the renewable energy trend is likely to accelerate further to minimise environmental damage from the entire cryptocurrency sector.

Porter’s Analysis

Threat of new entrants: High capital requirements for establishing farms and obtaining certifications pose entry barriers.

Bargaining power of buyers: Buyers have moderate bargaining power due to fragmented market with many farmers.

Bargaining power of suppliers: Cryptocurrency miners have low bargaining power as there are many equipment suppliers.

Threat of new substitutes: Moderate threat due to possibility of new blockchain platforms gaining popularity.

Competitive rivalry: High competition due to low differentiation between cryptocurrencies and large number of players.

Geographical Regions

North America occupies the largest share in terms of value due to high adoption of cryptocurrencies for trading and investments in countries like US and Canada. Asia Pacific is the fastest growing region due to rising cryptocurrency trades in countries like China, Japan and South Korea attributed to growing internet penetration, young demographic and increasing blockchain applications.

*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it

Money Singh
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. 

Money Singh

Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. 

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