Automotive Blockchain Market by Application (Financing, Mobility Solutions, Smart Contract, Supply Chain), Provider (Application & Solution, Middleware, Infrastructure & Protocol), Mobility (Personal, Shared, Commercial) and Region
Northbrook, IL -- (SBWIRE) -- 05/24/2021 -- The Automotive Blockchain Market is projected to grow at a CAGR of 31.19% from 2020 to 2030, and the market size is projected to grow from USD 0.35 billion in 2020 to USD 5.29 billion by 2030.
The market growth is primarily driven by factors such as the increasing immutability and the reduction in operating cost made possible by the automotive blockchain technology. Other factors driving the growth of the automotive blockchain market are the increasing implementation and testing of potential use cases of blockchain in various automotive applications.
The automotive blockchain market consists of companies such as IBM (US), Microsoft (US), Accenture (Ireland), carVertical (Estonia), Helbiz (US), Tech Mahindra (India), SHIFTMobility (US), and BigchainDB (Germany).
1. Increasing Focus on Reducing Data Leaks and Manipulations
2. Faster Transactions
3. Reduced Operational Costs
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The automotive blockchain has the ability to streamline supply chain processes significantly, especially regulatory, quality control, and compliance approval related processes. 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. Further, the increasing production and sales of automobiles will require monitoring of the supply chain, which will drive the demand for supply chain applications of the blockchain in the automotive industry.
The smart contracts segment is projected to be the fastest-growing segment in the global market, by 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.
In the automotive blockchain market, by the provider, the application and solution provider segment is projected to hold the largest market share because of the introduction of technologically advanced blockchain solutions and the significant investments by OEMs and Tier I companies in the automotive blockchain in partnership with solution providers. Additionally, applications and solutions require higher costs to develop and maintain than middleware and platforms. Hence, the revenue generated by the application and solution providers is higher.
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Asia Oceania is projected to be the fastest-growing market for automotive blockchain. In recent years, the region has emerged as a hub for automobile production. Strong economic growth, increasing population, rapid urbanization, and growing purchasing power has triggered the demand for automobiles in the region. The growing automotive industry in Asia Oceania is set to adopt blockchain technology to increase transparency and combat frauds in the automotive sector. For instance, in 2015, Chinese conglomerate Wanxiang Group, one of the largest auto parts manufacturers, decided to invest USD 50.0 million in blockchain technology. Hence, these developments are expected to drive the growth of automotive blockchain in the region in the near future. Additionally, China and India, being the leading markets for mobility solutions, have the potential to integrate blockchain technology in ridesharing applications.
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.