Automotive Blockchain Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The Automotive Blockchain market is valued at USD 0.3 billion in 2020 and is expected to reach USD 2 Billion exhibiting a growth rate of 27.12% during the forecast period 2021-2026

The COVID-19 pandemic had a negative impact on the globally integrated automotive industry. Many automotive technology and service-based companies faced a severe decline in revenue as there was a sharp decline in both production and sales of vehicles. As the situation is coming back to normalcy, it is expected that the market experiences positive growth in the coming years.

Owing to the growth in investments in autonomous and connected vehicles and various types of mobility services, such as vehicle rental, leasing, hailing, sharing, pooling, etc., the automotive blockchain market will see growth during the forecast period. Blockchain would allow car rental companies to manage their fleet by monitoring the maintenance, cleaning, etc. of registered vehicles.

Blockchain technology is also finding application in car manufacturing by enhancing supply chain management. Blockchain technology helps in keeping the complete record and information of the parts and components, which eventually helps the OEMs during vehicle recall and service. This also helps in identifying counterfeit products thus, ensuring the customers gets high-quality products and service.

With the rise in vehicle accidents, primarily in countries such as India, blockchain technology could help in eliminating redundant steps that a customer goes through while claiming insurance. Blockchain technology will see growth owing to the increasing demand for smart finance solutions.

Blockchain offers a lot of benefits to the automotive industry by increasing the efficiency of supply chain and reducing unnecessary costs. However, building a blockchain infrastructure follows a complex development process and requires heavy investment. Nearly 95% of OEMs are willing to do moderate to significant investments and most consider not to invest only for the basic offerings of blockchain technology.

Scope of the Report

The automotive blockchain market is segmented on the basis of type, application, end-users, and geography.

Based on type, the market is segmented as Public Blockchain, Private Blockchain, Hybrid Blockchain.

By Application, the market is segmented as Manufacturing, Supply Chain, Insurance, Financial Transaction, And Others.

By End-users, the market is segmented as OEMs, Vehicle Owners, Mobility as a Service Providers, and Others)

and by Geography, the market is segmented into North America, Europe, Asia-Pacific, South America, and Middle-East.

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Key Market Trends

The vehicle manufacturing will see the largest use of blockchain technology

The automotive parts and components are susceptible to damage, stealing, lost in delivery, etc. and the manufacturer may not be knowing about this or could not take necessary measures to prevent it even after knowing about the component. Blockchain helps the OEMs to have a follow up on these components, about their original manufacturer, and current modification. This helps in targeted recall of vehicles whenever there is a need for an upgrade as OEMs have information regarding what components and parts are installed in what vehicles, sold to which customer.

In the manufacturing process, blockchain technology helps in storing the vehicle lading data, quality inspection data, work in process data for each and every vehicle on the assembly line, etc. With the rising trend for connected vehicles and autonomy, vehicles are becoming prone to cyber-attacks. The strong cryptographic structure of blockchain is impossible to reverse engineer and provides a safe place to store data. The high level of encryption in blockchain provides maximum security to vehicle telematics data.

Blockchain enables safe and transparent storage of sensor data from a vehicle in a decentralized network. This helps in error free documentation of data during the instances of accidents that makes insurance claiming hassle free. Blockchain can allow the sharing of insurance profile while using other vehicle services such as car sharing.

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