The automotive industry is undergoing a massive technological disruption on multiple fronts since last decade. The introduction an
The automotive industry is undergoing a massive technological disruption on multiple fronts since last decade. The introduction and subsequent growth in sales of electric & hybrid vehicles, the development of advanced driver assistance systems & self-driving technologies, increasing demand for connected vehicles, and disruptive trends, such as ride-hailing, car sharing, and in-car payments, are expected to change the way people use mobility services. The future automotive industry would be massively different from the industry it is today. In order to lead this technological disruption, the automotive stakeholders need to adopt innovative strategies and redefine their business models. The automotive market needs to be more integrated, connected, and capable of providing on-demand and personalized services with the highest level of safety and convenience. Blockchain technology is one such instrument that has the potential to underpin the upcoming technological transformation and place the automotive stakeholders at a position from where they can adapt to this paradigm shift.
Blockchain technology is a decentralized distributed ledger that allows information to be recorded, secured, maintained, and shared among the participating members without a governing authority. It presents an innovative approach for managing data and executing transactions with utmost accuracy, safety, and reliability. As the automotive industry is going through the digitalization era, therefore, it has become imperative for automotive stakeholders to be more proactive toward the implementation of disruptive technologies within their business processes. Blockchain technology is certainly going to be a highly integral part of the connected mobility and smart infrastructure ecosystem.
The myriad number of benefits associated with the blockchain technology, such as near real-time exchange of data, transparency, reliability & security, and immutability, among others, has made it a top contender to disrupt the automotive supply chain. By augmenting distributed ledger technology with automation, a plethora of application cases can be realized whose impact spans over the whole supply-chain. The immense application potential of this technology opens up plenty of opportunities which can transform products, services, and processes across the automotive industry.
The report defines and estimates the market size and future growth potential of the automotive blockchain market during the period 2018-2026. The global automotive blockchain market revenue is expected to reach $1,575.0 million by 2026, growing at a robust CAGR of 65.80% in the period 2018-2026. The growing popularity of blockchain technology, owing to its numerous benefits including immutability, reliability, and scalability, among others, along with the high application potential of blockchain technology is expected to fuel the market growth during the forecast period.
Blockchain technology holds massive application potential in the automotive industry. As a consequence of the multitude of benefits, the blockchain technology can disrupt the entire automotive value chain. In terms of application, Automotive Finance, Payments, and Insurance Services (FPIS) accounts for the largest share among all the application segments of the blockchain technology in the automotive domain. However, automotive manufacturing, automotive safety & security, and supply chains are expected to grow robustly during the forecast period, owing to various benefits of the distributed ledger technology.
Top automotive players are already investigating blockchain potential for their business processes and investing heavily in order to conduct trials and to implement pilot projects. The competitive landscape is also witnessing the emergence of various start-ups and early-stage companies leveraging blockchain for automotive specific solutions. These companies are developing databases, platforms, and decentralized applications to facilitate in-vehicle payments, data exchange & storage, insurance claim settlements, supply chain, and logistics, among others.
