- Shared mobility is projected to be the fastest-growing segment in the automotive blockchain market.
- Smart contracts are projected to be the fastest-growing application in the automotive blockchain market.
- Asia Oceania is projected to be the fastest-growing regional market for automotive blockchain.
The Automotive Blockchain Market is projected to grow at a CAGR of 31.19% during the forecast period and the market size is projected to grow from $35 billion in 2020 to $5.29 billion by 2030.
The automotive industry is a complex connected ecosystem with multiple transactions involved. There is a need for an immutable database to record these transactions with shared, secured, and highly permissioned access.
In response, many OEMs have initiated pilot projects on automotive blockchain to bring the transparency of information in the business network, which accelerates the growth of the automotive blockchain market. For instance, French automaker Renault unveiled a new digitized car maintenance log prototype built using blockchain in July 2017.
The market for application and solution providers is projected to hold the largest share in the automotive blockchain market
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The application and solution provider segment is projected to be the fastest-growing segment in the automotive blockchain market during the forecast period. There is an increasing competition between start-ups, leading to new product developments, which has led to the high growth of this segment. carVertical is a blockchain-based solution company that offers the world’s first decentralized vehicle check.
Helbiz offers a seamless car sharing solution, allowing users to rent out their private vehicles using blockchain without any manual involvement. Hence it would be very important for application developers to collaborate with OEMs and Tier 1 companies and develop new applications and solutions using blockchain for the automotive industry.
Shared mobility to be the fastest-growing market for automotive blockchain, by mobility type
Shared mobility is projected to be the fastest-growing segment in the automotive blockchain market, by mobility type, during the projected period. To manage significant migration in urban areas and to reduce emissions, many countries such as the US, China, India, France, and Germany are focusing on shared mobility. Shared mobility requires a decentralized integrated
The blockchain helps execute fast and secure transactions related to every aspect of shared mobility. OEMs and automotive industry-related companies have announced blockchain-based pilot projects for a diverse set of use cases in shared mobility. In September 2017, German supplier ZF and IBM announced Car eWallet a payment technology targeting future mobility services. With the rise in popularity of ride-hailing and other related mobility-on-demand services, the requirement for driver and passenger authentication, security management, and payments will increase.
These are some of the best applications where blockchain technology can ensure transparency and data integrity. Hence, the growing demand for ride-hailing services is projected to drive the market for automotive blockchain.
IBM (US), Microsoft (US), Accenture (Ireland), caVertical (Estonia), Helbiz (US), Tech Mahindra (India), HCL Technologies (India), XAIN (Germany), NXM Labs (US), CarBlock (US), Cube (UK), Context Labs (US), SHIFTMobility (US), BigchainDB (Germany), Dashride (US), Consensys (US), FOAM (US), RSK Labs (Argentina), Gem (US), etc.
Smart contracts are projected to be the fastest-growing application in the automotive blockchain market
The smart contracts segment is projected to be the fastest-growing segment in the global market, by the application. Smart contracts have a significant number of applications in the automotive industry, such as title transfer, dealership management, and B2B contractual agreements. For example, in May 2017, smart contracts enabled Innogy SE to launch hundreds of blockchain-powered charging stations for electric cars across Germany through its e-mobility startup venture Share&Charge. The significant concept testing and implementations of blockchain-based smart contract in the automotive industry is expected to play a major role in the growth of this market for smart contracts.
Americas is estimated to be the leading market for automotive blockchain
The Americas region will be one of the early adopters of the blockchain technology for automotive applications and is estimated to be a major contributor to this market over the forecast period. The growth will likely be driven by two key factors increasing demand for transparency and immutability in business operations and the significant investments by technology providers in the blockchain platform. In May 2018, SHIFTMobility revealed the world’s first blockchain-powered platform for the automotive industry.
The platform will help connect, understand, and harness the demand from the myriad of vehicles and supply chain apps, commerce channels, enhanced diagnostics, and transportation logistics for now and in the autonomous future. The major companies such as IBM, AWS, and Microsoft, which have their operating base in the Americas, have a major impact on the regional and global market. Also, the strong financial position of this region allows these countries to invest heavily in leading technologies such as automotive blockchain.
Asia Oceania is projected to be the fastest-growing regional market for automotive blockchain
In recent years, the region has emerged as a hub for automobile production. Cost advantages for OEMs, low vehicle per population levels, and increased vehicle population in this region offer attractive market opportunities for automobile manufacturers and automotive component suppliers. In developing countries, such as China and India, where the automotive industry still follows the traditional approach for business transactions, blockchain is expected to play an important role in simplifying the supply chain of the automotive industry.
Several OEMs in Japan and India have started the testing of automotive blockchain in business operations. For instance, the Toyota Research Institute is working with the MIT Media Lab to explore how blockchain could securely share autonomous car data and information for insurance rates. Additionally, Hino Motors, Isuzu Motors, Volvo-owned UD Trucks, and Daimler subsidiary Mitsubishi Fuso Truck and Bus have initiated the testing of on-highway truck platooning in Japan in January 2018, under a project backed by the Japanese government. Such initiatives are also expected to drive the growth of the automotive blockchain in fleet management applications in the near future.