Increasing Focus on Data Integrity and Transparency Coupled with Faster Transaction Time to Drive the Global Automotive Blockchain Demand to $5.29 Billion By 2030

Automotive Blockchain Market worth $5.29 billion by 2030

Posted on 2021-05-12 by MarketsandMarkets in Automotive, Computers, Semiconductors, Technology, Transportation & Logistics // 0 Comments

Automotive Blockchain Market

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 $0.35 billion in 2020 to $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.

Opportunities:

A) Higher Adoption of Automotive Blockchain for Payments, Logistics and Transportation, and Usage-Based Insurance

Payments and Mobility Services
Logistics and Transportation
Usage-Based Insurance

B) Increasing Cryptocurrency Market Capital

The companies profiled in the report include IBM (US), Microsoft (US), carVertical (Estonia), Tech Mahindra (India), SHIFTMobility (US), BigchainDB (Germany), RSK Labs (Argentina), NXM Labs (US), XAIN (Germany), and others.

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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.

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. Additionally, China and India, being the leading markets for mobility solutions, have the potential to integrate blockchain technology in ridesharing applications.

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 digital platform used for end-to-end trip planning, renting, booking, e-ticketing, and payment services. The blockchain helps execute fast and secure transactions related to every aspect of the 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 the automotive blockchain.

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