Global Automotive Blockchain Market Size, Share, Forecast Report, 2020-2027
Blockchain technology is a relatively new technology that has the potential to transform the way automotive industry operates by shifting away from a centralized structure towards a decentralized system. With the implementation of blockchain in automotive industry, third-party intermediaries, whose services are needed today in automotive industry would no longer be needed. This can effectively increase the speed of automotive industry processes and reduce the cost of operations. Through blockchain technology, the automotive industry operations, such as design, production, distribution, marketing, selling, finance and servicing of vehicles, will become more flexible and can also effectively contribute to the growth of the automotive industry.
The factors that are responsible for the growth of this market are an increase in e-mobility and on-demand services, popularity of car/ride sharing among young urban consumers, increasing sales of automobiles globally, reduced operational cost, and the need for faster transaction. The growth is, however, restrained by the uncertainty over regulations, such as general data protection regulation (GDPR) in Europe, lack of technical expertise, and limited scalability. The rise in adoption of blockchain for logistic and transportation, development of new business models for automotive aftermarket, and the increasing vehicle recall optimization in US, are the opportunities for the market. Global blockchain operators are facing the challenge of integrating blockchain interface with existing systems for applications, such as peer-to-peer trading, smart contract generation and other potential blockchain applications in the automotive sector.
The global market is segmented on the basis of technology type, application, provider, propulsion, vehicle type, and region. On the basis of technology type, the market has been segmented into open blockchain, closed blockchain, consortium blockchain, and hybrid blockchain. On the basis of application, the market has been segmented into mart contracts, supply chain, financing, mobility solutions, and others. On the basis of provider, the market has been segmented into middleware provider, infrastructure & protocols provider, and application & solution provider. On the basis of propulsion, the market has been segmented into ICE and electric vehicle, whereas the electric vehicle segment is further sub-segmented into battery electric vehicle (BEV), hybrid electric vehicles (HEV), and plug-in hybrid electric vehicles (PHEV). On the basis of vehicle type, the market has been segmented into passenger car and commercial vehicle.
The prominent players in the global automotive blockchain industry include IBM Corporation (US), Microsoft Corporation (US), BigchainDB GmbH (Germany), carVertical (Estonia), Helbiz (US), ShiftMobility (US), RSK Labs (Argentina), Tech Mahindra (India), HCL Technologies (India), and XAIN (Germany).