The Automotive Blockchain Market is projected to grow to USD 5.29 billion by 2030 from USD 0.35 billion in 2020, at a CAGR of 31.19% during the forecast period.
The emergence of connected vehicles and the integration of blockchain to reduce data leaks and manipulations and to simplify the business process would trigger growth in the automotive blockchain market.
- Higher adoption of automotive blockchain for payments, logistics and transportation, and usage-based insurance
- Increasing cryptocurrency market capital
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The automotive industry is currently going through a major phase of evolution with the introduction of disruptive autonomous vehicle technology. Autonomous vehicles are self-driven vehicles that are capable of sensing the environment and navigate to the destination without any physical (human) input; they can be operated through voice commands. The autonomous cars involve highly sensitive cameras and sensors equipped with advanced technology in artificial intelligence (AI) and machine learning, which have also raised the concern of safety and security. According to a report by the MIT Technology Review, malicious cyber attacks are a significant challenge to the adoption of autonomous car technology. Blockchain decentralized ledger technology, ensuring data transparency and accuracy while protecting the transactions from manipulation. It will help the autonomous cars to verify the accuracy of the data when they collect it from the environment. OEMs have already started working on the implementation of blockchain technology in autonomous car testing. For instance, in June 2018, IOTA and Volkswagen (Germany) demonstrated a proof-of-concept that uses IOTA’s blockchain-based Tangle system for autonomous cars. Additionally, Mercedes (Germany) introduced its safe driving program that rewards drivers in crypto. Hence, the introduction of autonomous cars will change the business landscape of automotive blockchain and is expected to create substantial opportunities for OEMs and Tier I companies to implement blockchain technology.
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.
The shared mobility segment is the fastest-growing segment in the automotive blockchain market as it requires a decentralized integrated digital platform for end-to-end trip planning, renting, booking, e-ticketing, and payment services across shared mobility services. Mobility services such as ride hailing and ride sharing have reached a level of vast public acceptance. OEMs and the automotive industry-related companies have announced blockchain-based pilot projects for a diverse set of use cases in shared mobility. For instance, Toyota is developing proof-of-concept applications specifically targeted at data sharing and peer-to-peer exchanges. In September 2017, German supplier ZF and IBM announced Car eWallet—a payment technology targeting future mobility services. Ride-hailing companies will be driving this change by incorporating blockchain into their applications for payments, driver & passenger authentication, and safety alerts. Incorporating such services would ensure better operations for the ride-hailing companies and would also drive the market for automotive blockchain.
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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 an 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.
The automotive and transportation industry forms the backbone of the Americas’ economy. The automotive industry in the Americas region is the second-largest in the world for premium vehicle sales and production. The market is dominated by domestic OEMs such as the Ford Motor Company (US) and General Motors (US) along with established European and Japanese OEMs. Many companies are testing the use cases of blockchain in various automotive applications to manage such an advanced automotive industry and its connected ecosystem. For instance, the United States’ fourth-largest mobile network operator Sprint and a blockchain start-up NXM Labs have decided to launch a 5G connected car platform powered by blockchain technology. 54 million US customers of Sprint will use this platform to provide passengers with mobile Wi-Fi and vehicle health monitoring. In May 2018, SHIFTMobility revealed the world’s first blockchain-powered platform for the automotive industry. The US also happens to be one of the largest used-vehicles markets in the world, and blockchain applications such as title transfer, insurance, and smart contracts are in demand. Such potential use cases are expected to drive the market for automotive blockchain. The above-mentioned factors, coupled with an increasing demand for transparency and immutability in business operations and the presence of technology players, will drive the growth of the automotive blockchain market in the Americas.
• Automotive OEMs
• Automotive blockchain platform providers
• Application and service providers
• Cloud service providers
• Crypto-currency companies
• Investors and venture capitalists
• Infrastructure and protocols providers
• Technology providers
• The automobile industry as an end-user industry and regional automobile associations
• Traders, distributors, and suppliers in the automotive blockchain industry
• Automotive blockchain system suppliers
• Research institutes and government organizations