Automotive Blockchain Market Size, Share, Competitive Landscape and Trend Analysis Report, by Application, Provider and Mobility : Global Opportunity Analysis and Industry Forecast, 2020-2030

Automotive Blockchain Market Statistics - 2030

The global automotive blockchain market is expected to value $428.57 million in 2020, and is projected to reach $5.61 billion by 2030, registering a CAGR of 29.3%. North America is expected to be the highest revenue contributor, by generating revenue of around $175.97 million in 2020, and is estimated to reach $2.43 billion by 2030, with a CAGR of 30.3%. Europe is estimated to reach $2.42 billion by 2030 at a significant CAGR of 32.3%. North America and Europe are expected to collectively account for around 76.2% of the market share in 2020, with the former constituting around 41.1% share.    

Automotive blockchain is used to keep track of data and stores it for the processes related to automobile. This includes various processes such as smart contracts, IoT along with other processes involved in car sales, service, warranty claim processing, and other related processes. The automotive related data stored in a blockchain is authentic and cannot be hampered by the users of the system; thus, providing safer and securer data to its customers. Moreover, it helps the buyer and seller to avoid middlemen or third parties to involve in transactions or other processes. Automotive blockchain includes applications and solutions that are helpful for better functioning of the system. This includes a middleware acting as a bridge between the application and database for storing and retrieval of data. Various players operating across the globe have made innovations and developments in the field of automotive blockchain; thereby, offering variety of services to the vehicle users.

Various developments and innovations have been carried out by the top players in the software industry toward the development of blockchain, which fuel the growth of the automotive blockchain market size across the globe. Moreover, rise in investments along with government initiatives in the automotive blockchain industry also boost the growth of the global market. In addition, various startups such as Xain, NXM Labs, Inc., and others have gained experience in the field of blockchain for vehicles, which increases the automotive blockchain market trend across the globe.

The factors such as protection against data leaks & manipulations and reduced operational cost drive the growth of the automotive blockchain industry. However, uncertainty over regulations is supposed to hamper the growth of the market. Further, higher adoption for better payments, logistics and transportation, and usage-based insurance is expected to provide numerous opportunities for the growth and expansion of the global automotive blockchain market.

The automotive blockchain market is segmented on the basis of application, provider, mobility, and region. Based on application, the market is segmented into financing, mobility solutions, smart contracts, and supply chain. Depending on provider, it is categorized into application & solutions, middleware, and infrastructure & protocol. By mobility, it is divided into personal mobility, shared mobility, and commercial mobility. Region wise, the automotive blockchain market analysis is done across North America, Europe, Asia-Pacific, and LAMEA.

The key players including Accenture, Carvertical, CarBlock, Helbiz, HCL Technologies, IBM, Microsoft, NXM Labs, Tech Mahindra, and Xain hold major automotive blockchain market share.

Protection against data leaks and manipulations

Blockchain is considered to be a safer and securer network to store data as the blocks that are used to keep record of the data are linked to each other by means of cryptography. This is helpful in protecting the data against leaks and manipulations as each block used in the process contains a cryptographic hash of the previous block along with the time stamp and transaction data. The data stored in blocks of blockchain require strong identities and authentication to gain access to the data and this includes secure blockchain technologies and communication network across the blockchain; thereby, maintaining security against data leaks and manipulations. Thus, the protection against data leaks and manipulations is the key factor that is expected to boost the growth of the automotive blockchain market during the forecast period.

Reduced operational cost

The blockchain in the automobile industry is used to keep a record of processes related to the vehicles such as insurance and warranty claims, sales, and other operational costs. Earlier, this was done through a dedicated person or third parties who were keeping a record of all the processes. But with the introduction of blockchain, such data and records are maintained by means of software that is designed to do so thereby reducing the cost of paying salary to the third party and other similar expenses. Thus, the introduction of blockchain in the automotive industry reduces the operational cost, which eventually fuels the automotive blockchain market forecast during 2020-2030. 

Uncertainty over regulations

The introduction of blockchain in the automotive industry is still an uncertain thing as it is not a much popular and advanced technology as per the current demand. Top companies are continuously making innovations in the blockchain industry, which is expected to supplement the growth of the market. Meanwhile the cost incurred in the implementation of blockchain in the automobile industry is high due to its advanced features, which restrain the market growth. Hence, uncertainty over regulation is the restraining factor that hamper the growth of the market.

Higher adoption for better payments, logistics & transportation, and usage-based insurance

The features such as enhanced security and real-time processing increase the adoption of blockchain in the market for better and efficient payment methods. In addition, elimination of middleman for transactions boosts the growth of the global automotive blockchain market. Moreover, immutable data storage provided by blockchain and the accuracy of the data stored over it fuel its higher adoption in transportation & logistics for accurate data representation. Furthermore, various developments and innovations have been carried for the use of blockchain in vehicles; thereby, providing better services to its customers. For instance, Japan has decided to use blockchain for car insurance registrations; thereby, reducing the involvement of third party and middleman, which leads to the growth of the global market. Hence, higher adoption for better payments, logistics & transportation, and usage-based insurance is expected to boost the growth of the global automotive blockchain market during the forecast period.

Key Benefits for Automotive Blockchain Market :

• This study presents the analytical depiction of the global automotive blockchain market analysis along with the current trends and future estimations to depict the imminent investment pockets.
• The overall automotive blockchain market opportunity is determined by understanding the profitable trends to gain a stronger foothold.
• The report presents information related to the key drivers, restraints, and opportunities of the market with a detailed impact analysis.
• The current market is quantitatively analyzed from 2020 to 2030 to benchmark the financial competency.
• Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.

  Automotive Blockchain Market Report Highlights

Aspects	Details
By Application	Financing Mobility Solutions Smart Contract Supply Chain
By Provider	Application & Solution Middleware Infrastructure & Protocol
By Mobility	Personal Mobility Shared Mobility Commercial Mobility
By Region	NORTH AMERICA  (US, CANADA, MEXICO) EUROPE  (GERMANY, FRANCE, IRELAND, UK, REST OF EUROPE) ASIA-PACIFIC  (CHINA, JAPAN, INDIA, SOUTH KOREA, REST OF ASIA-PACIFIC) LAMEA  (LATIN AMERICA, MIDDLE EAST, AFRICA)
Key Market Players	carVertical, Accenture, Helbiz, CarBlock Corp., IBM, HCL Technologies Limited, XAIN., Microsoft, Tech Mahindra Limited, NXM Labs, Inc.

Analyst Review

Blockchain is an online platform that is used to keep record of the data stored in the form of blocks that are linked together through cryptography. The automobile industry uses blockchain to keep a track of data for the processes related to automobile. This includes various processes such as smart contracts, IoT along with other processes involved in car sales, service, warranty claim processing, and other related processes. The data stored in a blockchain is authentic and cannot be hampered by the users of the system; thus, providing safer and securer data to its customers. Automotive blockchain includes applications and solutions, which is helpful for better functioning of the system. This includes a middleware acting as a bridge between the application and database for storing and retrieval of data. Various developments have been carried out in the field of automotive blockchain, which further boosts the growth of the global automotive blockchain market. In addition, various startups are focusing toward the development of blockchain system for automobiles, which fuels the market growth.

The factors such as protection against data leaks & manipulations and reduced operational cost drive the growth of the automotive blockchain market. However, uncertainty over regulations is supposed to hamper the growth of the market. Further, higher adoption for better payments, logistics and transportation, and usage-based insurance is expected to provide numerous opportunities for the growth and expansion of the global automotive blockchain market.

Among the analyzed regions, currently, North America is the highest revenue contributor, and is expected to maintain the lead during the forecast period, followed by Europe, LAMEA, and Asia-Pacific.

Author Name(s) : Abhay Singh | Lalit Janardhan Katare

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