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A new report is forecasting the meteoric rise of the use of blockchain technology in the automotive sector driven by the need for key industry players to achieve improved security and efficiency.
The study, compiled by Report Prime, claims that the market share of blockchain in the sector is expected to grow from $82.50 million in 2023 to $160.78 million by 2030. From its present levels, the leap pegs the compound annual growth rate (CAGR) at 10% with several factors integral to the predicted growth spurt.
Per the report, the rise of electric vehicles and connected vehicle technologies are key factors responsible for the spike in blockchain applications between 2022 and 2024. Future drivers of adoption will revolve around the need for automobile manufacturers to protect consumers’ data from bad actors.
Another use case for blockchain is its application in streamlining supply chain management, allowing manufacturers and consumers to track the movement of vehicle parts and their histories. Experts say that the real-time tracking functionalities provided by distributed ledgers will be key in stifling the proliferation of fake parts while reducing fraud.
By segments, publicly distributed ledgers will slug it out with enterprise solutions for dominance, with firms weighing the tradeoffs before opting for their preferences. Firms seeking greater control over data to protect proprietary systems are more likely to opt for private blockchains, while public blockchains will offer firms with the highest levels of transparency.
In terms of applications, the largest drivers by 2031 will be vehicle safety and data security, while supply chain use cases will come in a close second place. Applications in manufacturing will rise steadily as innovation reaches new levels, with use cases in the segment orbiting certification and tracking production statuses.
By regional analysis, North America, led by the U.S. and Canada, will surge ahead of their peers, buoyed by considerable investments in research and development. The report claims that the cultural acceptance of the technology in North America gives it an edge over other regions with Europe and the Asia Pacific keen on closing the gap.
“The Asia-Pacific region, particularly China and India, is the fastest-growing area, driven by increasing urbanization, demand for smart vehicles, and governmental support for blockchain initiatives,” read the report.
Tussle between giants and disruptors
The report highlights a brewing tussle between established technology firms and innovators for blockchain’s market share in the region. In the first few years under review, giants like IBM (NASDAQ: IBM) and Microsoft (NASDAQ: MSFT) are expected to hold a significant lead over the sector with their open-source and Azure Blockchain Services, respectively.
However, SHIFTMobility and carVertical are gaining traction in the sector for their innovative vehicle tracking and mobility approach. The report claims that as more firms wade into the space, the market size of tech giants in the space is expected to take a hit from innovative disruptors.
Watch: Revolutionizing everyday life with blockchain
New to blockchain? Check out CoinGeek’s Blockchain for Beginners section, the ultimate resource guide to learn more about blockchain technology.
