December 5, 2023

Automotive Blockchain Market Size: Driving Industry Transformation 2030

The automotive industry is experiencing a transformative shift, driven by the rapid adoption of blockchain technology. This cutting-edge technology is empowering the sector with the ability to distribute data quickly and effectively, marking a significant departure from traditional centralized systems. The decentralized nature of automotive blockchain enables every node to access information with unprecedented precision and speed.

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Enhanced Transparency Leading to Reduced Fraud

One of the standout advantages of blockchain in the automotive sector is its exceptional transparency quotient. This transparency has resulted in a substantial reduction in fraudulent activities, making it a compelling choice for industry players. This newfound trustworthiness is a driving force behind the growing adoption of blockchain in the automotive sector.

Secure Payments and Cryptocurrency Integration

Blockchain’s prominence as a cryptocurrency-supporting technology has also significantly impacted the automotive industry. Automobile owners can now seamlessly make payments through automotive blockchain technology. For instance, a car owner’s account can be linked to third parties like insurance companies or charging stations, enabling direct withdrawals from the account as the owner charges their electric vehicle. While still in its nascent stage, these advantages are expected to propel the growth of automotive blockchain in the coming years.

Decentralized P2P Car Rentals on the Rise

Blockchain’s capacity to provide decentralized and transparent business operations is revolutionizing various industries, including automotive. Car leasing and rentals have witnessed remarkable growth worldwide, with a shift from ownership to shared usage. Automotive blockchain is set to capitalize on this shift, offering a reliable and secure car-sharing platform that fosters peer-to-peer sharing. Smart contracts executed on the digital platform ensure greater safety and transparency, mirroring the traditional rental model but with enhanced efficiency.

Enhanced Visibility and Efficiency

Another compelling factor driving the demand for automotive blockchain in car leasing and rental is improved visibility. Automotive blockchain technology enables the management of car tracking, ownership transfers, fueling, mileage, maintenance, and repairs on a single decentralized ledger. This streamlined approach reduces paperwork and enhances efficiency, resulting in faster processes throughout the automotive blockchain network.

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Compliance and Regulatory Solutions

The automotive blockchain market is witnessing the deployment of new solutions designed to track compliance of various vehicle components in real-time. In response to new regulations, automotive companies have collaborated with tech firms to develop innovative solutions. For example, the “eXtended Compliance End-to-End Distributed” (XCEED) protocol, launched in 2019 through collaboration between Groupe Renault, Simoldes, Knauf Industries, Coşkunöz, Faurecia, and IBM, uses automotive blockchain to share compliance information across the entire supply chain. This technology ensures improved and secure information exchange within the system and with external stakeholders, promoting real-time sharing, alerts, and data checks. XCEED is intended to be deployed through a hybrid cloud architecture.

Asia Pacific Emerges as a Lucrative Hub

Developing countries in the Asia Pacific region hold immense growth potential for the automotive blockchain market. Collaborations between technology companies and automotive OEMs are on the rise, supporting the nascent automotive blockchain technology. For instance, Tata Motors developed TACNet 2.0 (Tata Motors AutoMobility Collaboration Network) in 2019, dedicated to startups, where products incorporating AI and blockchain solutions are nurtured.

Driving Transformation in China

China is at the forefront of adopting automotive blockchain technology, particularly in the used car sector. Initiatives like the auto-data storage avenue for smart cars, launched by the China Association of Automotive Manufacturers (CAAM) in April 2021, utilize blockchain technology to enhance data management. Geely Holding Group and Concordium Foundation’s joint venture in February 2021 aims to provide new automotive blockchain solutions and user DApps to various industries, further propelling the technology’s growth.

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Key Players Leading the Way

In the competitive landscape of the automotive blockchain market, notable companies such as Microsoft Corporation, IBM, BigchainDB GmbH, Shift Mobility Inc., Tech Mahindra, carVertical, and XAIN are pioneering innovative solutions that are reshaping the automotive industry.

Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 – By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa)

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This press release first seen on Brilad