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 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.
Asia Pacific to register the highest growth rate
Asia Pacific countries such as India and China are home to some of the biggest IT companies in the world and both are major automotive markets in the world. China is the largest manufacturer of vehicles and a major producer and exporter of automotive components. Automotive blockchain will see collaboration between OEMs and Technology companies in the region during the forecast period. In September 2019, Indian automotive manufacturer Tata Motors announced “Tata Motors AutoMobility Collaboration Network 2.0” for startups by which it wants to produce industry-related products that include Blockchain and Artificial Intelligence Solutions.
In China, blockchain technology is finding applications in the used car industry which is a booming market in the country. Several companies in the automotive industry are partnering with blockchain technology offering companies.