Blockchain in Automotive Market | Acumen Research and Consulting

Blockchain in Automotive Market Highlights

• The global blockchain in automotive market is projected to reach USD 6,880.8 Million by 2032, with a CAGR of 31.8% from 2024 to 2032
• In 2023, the North American blockchain in automotive market was valued at approximately USD 207.23 million
• The Asia-Pacific blockchain in automotive market is expected to grow at a CAGR of over 33.2% from 2024 to 2032
• Public cloud accounted for 61% of the market share in 2023, based on type
• OEMs held 46% of the market share in 2023 in terms of end use
• Increased adoption of blockchain for secure vehicle data management and ownership tracking is a popular blockchain in automotive market trend that fuels the industry demand

The blockchain is a distributed database that stores records of all transactions and payments made by different parties. The blockchain includes a precise and verifiable record of every transaction ever made. Blockchain technology ensures the safe, secure, and transparent flow of data, assets, and money. The blockchain includes a precise and verifiable record of every transaction ever made. Blockchain technology is an innovative and critical technology since it serves as proof of all transactions on the network. It generates a chain of all the blocks stored in the system. Blockchain technology assists in maintaining a complete database of all addresses and their balances from the origin blocks to the most recent blocks, which is a critical aspect for driving the automotive blockchain market growth.

Global Blockchain in Automotive Market Dynamics

Market Drivers

• Rising demand for secure and transparent supply chain management in the automotive sector
• Increased adoption of blockchain for vehicle identity management and history tracking
• Growing interest in decentralized ride-sharing and mobility-as-a-service (MaaS) solutions

Market Restraints

• High implementation costs and complexity in integrating blockchain with legacy systems
• Lack of industry-wide standards and interoperability among blockchain platforms
• Limited awareness and understanding of blockchain's potential among smaller automotive players

Market Opportunities

• Expansion of blockchain applications in electric vehicle (EV) charging and payments
• Integration of blockchain with IoT for real-time data sharing and predictive analytics in smart cars
• Rising focus on carbon footprint tracking and sustainability initiatives using blockchain

Blockchain in Automotive Market Report Coverage

Blockchain in Automotive Market Insights

The increased focus on avoiding data breaches and manipulations is propelling the automotive blockchain market forward. Furthermore, the simplicity of speedier transactions contributes to the global growth of blockchain in the automobile business. Furthermore, the lower operational costs drive the rise of global blockchain in the automotive business. However, strict or ambiguous government restrictions may hinder the expansion of worldwide automotive blockchain market.

Furthermore, the uncertainty around privacy, control, and security impedes the growth of global blockchain in the automotive industry. Furthermore, restricted scalability and a lack of technical professionals impede market expansion. Nonetheless, rising usage of blockchain technology in the automobile industry for logistics, insurance, and payments presents profitable growth potential for global blockchain in the automotive business. For instance, Toyota, a major player in the automobile business, has increased its research into blockchain technology applications. This included supporting a Web3 hackathon on the multi-chain smart contract network Astar Network.

The automotive blockchain market is populated by a variety of companies. Many firms have used various strategies to drive market growth. For example, May 2024: Wave, and SEC-regulated digital asset-focused investment manager, launched a polygon network-focused yield vehicle with an initial USD30 million. In addition, Ford Motor Company announced collaboration with Microsoft in March 2024 to integrate blockchain technology into its vehicle telematics systems. This collaboration intended to improve data security, simplify safe car-to-Everything (V2X) interactions, and enable secure and frictionless car software updates. Ford intends to use Microsoft's Azure Blockchain platform to improve vehicle connection, operational efficiency, and give customers with enhanced safety and tailored driving experiences via advanced blockchain-enabled technologies.

Blockchain in Automotive Market Segmentation

The worldwide market for blockchain in automotive is split based on type, provider, application, mobility, end use, and geography.

Blockchain in Automotive Types

• Hybrid Cloud
• Public Cloud
• Private Cloud

According to blockchain in automotive industry analysis, public cloud type leads market in 2023, because of its scalability, cost-effectiveness, and ease of implementation. Automotive firms used public cloud infrastructure to execute blockchain technologies without making major upfront hardware costs. This concept improved collaboration among manufacturers, suppliers, and mobility service providers, by providing real-time access to blockchain networks. The increasing use of public cloud services has expedited innovation in areas such as supply chain transparency, vehicle identification management, and decentralized mobility platforms.

Blockchain in Automotive Providers

• Application & Solution
• Middleware
• Infrastructure & Protocol

According to blockchain in automotive industry analysis, infrastructure and protocol providers dominate business because they serve as the basic layer that enables blockchain networks. These vendors provide critical tools, frameworks, and platforms, such as Hyperledger and Ethereum, which automotive firms use to create specialized blockchain solutions. Their prominence arises from the growing demand for reliable, scalable, and interoperable infrastructure to serve a wide range of applications, such as supply chain management and vehicle identification systems. Infrastructure and protocol providers promote widespread adoption of blockchain in the automotive industry by simplifying implementation and assuring network security.

Blockchain in Automotive Applications

• Financing
• Mobility Solutions
• Smart Contract
• Supply Chain

According to blockchain in automotive industry analysis, mobility solutions are expected to experience the most growth during the projection period due to the thriving shared mobility industry and an increase in consumer desire for advanced mobility services. Mobility solutions allow for decentralized ride-sharing, peer-to-peer vehicle rentals, and seamless payment systems. Blockchain transforms traditional mobility services into more efficient and secure ecosystems by increasing transparency, eliminating intermediaries, and strengthening user confidence.

Blockchain in Automotive Mobility

• Personal
• Shared
• Commercial

According to blockchain in automotive market forecast, the personal mobility segment dominates industry, owing to rising consumer demand for safe, efficient, and personalized vehicle ownership experiences. Blockchain technology creates a transparent and tamper-proof system for recording car history, ownership, and maintenance data. It also allows for more efficient management of car-sharing and leasing businesses, which reduces transaction friction. As more people seek digital solutions for car management and payments, blockchain will play an important role in altering the personal mobility in automotive blockchain market.

Blockchain in Automotive End Uses

• Mobility as a Service Provider
• OEMs
• Vehicle Owners
• Others

According to blockchain in automotive market forecast, the original equipment manufacturer (OEMs) is a significantly growing end user segment in market because of their desire for more transparency, efficiency, and traceability in their operations. Blockchain enables OEMs to improve supply chain procedures, ensure part authenticity, and reduce fraud. It also improves collaboration with suppliers and partners by enabling safe, real-time data exchange. With rising pressure to adopt sustainable and creative technology, OEMs are using blockchain to enhance manufacturing processes, lower costs, and meet consumer demand for smarter, more connected automobiles.

Blockchain in Automotive Market Regional Outlook

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

The Middle East & Africa

• South Africa
• GCC Countries
• Rest of the Middle East & Africa (ME&A)

Blockchain in Automotive Market Regional Analysis

Regional analysis of blockchain in automotive market, North America is one of the world's leading marketplaces due to increased expenditure in numerous areas, advanced technology, and public knowledge of blockchain technology.

Asia-Pacific is expected to experience the most rapid growth in the coming years because of its powerful automotive industry. Blockchain technology is mostly used in the Asia-Pacific automobile industry for supply chain, financing, production, safety and security, payments, and insurance. The region is likely to see enormous demand for blockchain technology from the automobile industry as a result of government measures to promote blockchain technology and the growing acceptability of blockchain for digital identities, payments, and smart contracts. Furthermore, government financing for blockchain technology is expected to accelerate the growth of blockchain in the region's automotive business.

Europe has the second largest automotive blockchain market, which is related to widespread acceptance of blockchain technology and the availability of significant investment. In Europe, Mitsubishi Motors chose Vinturas' private blockchain technology in August 2023 to improve supply chain transparency, traceability, and security for the New Generation ASX and the future All-New COLT vehicles. This system improved logistical transparency and data management, allowing Mitsubishi to control and own data across its supply chain. Vinturas' solution was designed to improve process automation and interoperability between Mitsubishi's IT systems and trading partners. This program showed the emerging trend of using blockchain to streamline supply chains in the car industry. The use of such technology was projected to result in significant cost savings and operational gains for OEMs.

The LAMEA area has the smallest automotive blockchain market share due to the existence of poor-economy countries in Africa. The Middle East has the largest share of the Middle East and Africa market due to the existence of well-developed economies such as Kuwait, Qatar, Oman, and others.

Blockchain in Automotive Market Players

Some of the top blockchain in automotive companies offered in our report include Ripple Labs Inc., ShiftMobility Inc., Context Labs BV, Helbiz Mobility System PTE Ltd., Accenture PLC, Ethereum, IBM Corporation, BigchainDB GmbH, Tech Mahindra Ltd., Microsoft Corporation, carVertical, Factom Inc., Mesosphere Inc., and ConsenSys.