The global automotive blockchain market size could reach as much as $1.6bn by 2026, growing at a CAGR (compound annual growth rate) of 65.80%, according to researchers BIS.
The growing popularity of blockchain technology, owing to its numerous benefits including immutability, reliability, and scalability, among others, along with the high application potential of blockchain technology, are the main reasons outlined for the growth in the study, Strategic Assessment of Blockchain in Automotive, Focus on Influencing Factors, Industry Trends, and Applications-Analysis and Forecast, 2018-2026.
The area of application for blockchain technology during this stage would encompass the whole automotive value chain, says the group – but which then notes that the uptake of this technology would still be extremely varied and “highly skewed” toward finance, payments, and insurance applications.
However, report author and senior BIS analyst Haarish Ahmad adds that, “Automotive manufacturing is expected to witness the highest growth in automotive blockchain market with a CAGR of 107.38%, owing to the incorporation of blockchain technology by the OEMs within their assembly lines and operations.”
You might also like
Some of the key players in the automotive blockchain market include Ripple Labs, Ethereum, BigChain DB, Factom, IBM, Mesosphere, Reply SpA, R3, and Oaken Innovations, says Admad, who points out that the key strategies being adopted by the market players to attain market shares in this emerging domain are joint ventures, collaborations, and partnerships.
All of these key players collaborate and partner with each other to enhance their product and service offerings in order to deliver the most cutting-edge solutions including databases, platforms, and decentralized applications to facilitate in-vehicle payments, data exchange & storage, insurance claim settlements, supply chain, and logistics, among others, the study concluded.
The details can be found in the research group’s full study here.