The automotive blockchain industry is likely to flourish most in North America, according to an Allied Market Research report.
The blockchain automotive market expected to grow in Europe, Asia-Pacific
Photo Credit: Unsplash/ Alina Grubnyak
The integration of blockchain technology with the automotive ecosystem is projected to expand significantly over the next five years. A report by Allied Market Research (AMR) has estimated that the global automotive blockchain market is on the track to hit the $5.6 billion (roughly Rs. 47,801 crore) mark by 2030. Its compound annual growth rate (CAGR) within this period is predicted to be 29.3 percent. The blockchain is the backbone of other Web3 technologies like crypto and metaverse, and it is perceived as replacement to traditional Web2 data servers.
Data stored on a blockchain is distributed across its network rather than being accumulated at one place. This makes the data safer from hack attacks and data breaches. Data stored on blockchain networks leave permanent records and cannot be altered.
As per the report, the auto sector will ramp up the exploration of blockchain solutions for operational areas like maintaining car sale records, service logs, and warranty claim processing among others.
AMR also highlights the security and immutability of automotive data stored on a blockchain, adding that this technology enables buyers and sellers to bypass intermediaries or third parties in transactions and other processes within the automotive sector.
The automotive blockchain industry is likely to flourish most in the region of North America that includes Canada and the US alongside Mexico and Greenland. The report further said that the regions of Europe, Asia-Pacific, and LAMEA (Latin America, the Middle East, and Africa) will also witness auto players give their internal systems a blockchain revamp.
A recent report by Exactitude Consultancy had also predicted that the automotive blockchain market is expected to touch $9.4 billion in valuation by 2034. It said smart contracts and improvement in personal mobility solutions among key trends that will attract the auto industry to experiment with blockchain use cases.
In recent years, a number of carmakers have forayed into blockchain-related technologies. German carmaker Daimler reportedly created the Daimler Financial Services (DFS) group, also known as the ‘Blockchain Factory', in 2019. In 2023, Toyota also explored the development of management tools for its employees, Coindesk had reported.
Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.