Potential Benefits of Blockchain to Spur its Demand in the Automotive Industry
Need for distribution of data quickly and effectively is driving the use of blockchain in the automotive sector. Decentralized nature of automotive blockchain allows every node to gain access to information with high precision and speed. Moreover, its high transparency quotient has resulted in reduction of frauds, which is further pushing its adoption in the automotive sector. Apart from data distribution, automotive blockchain also allows secure payments. Its prominence as a cryptocurrency supporting technology gained high traction, which has also impacted the automotive industry. Automobile owners eventually can make payments through automotive blockchain technology. For instance, with automotive blockchain, car owner’s account can be linked to a third party such as insurance companies or charging stations, where money could be withdrawn directly from the account as the owner charges the electric vehicle. Albeit in a nascent stage, such advantages of automotive blockchain are expected to influence its market growth in the coming years.
Decentralized P2P Car Rentals via Automotive Blockchain to Gain Prominence
With its capacity to provide significantly more decentralized and transparent method of conducting business operations, blockchain has the ability to disrupt industries and the way they operate. Automobile sector being no exception to this, automotive blockchain has plunged in the car leasing and rentals space. Driven by growing technological advancements, the car rental and car leasing sectors have witnessed significant growth worldwide. With this paradigm shift from ownership to car leasing or car rental, automotive blockchain is likely to witness potential opportunities. Adoption of automotive blockchain in this space offers a reliable and safe car sharing platform, which is expected to further drive peer-to-peer sharing. Car owners along with end users registered on the automotive blockchain can e-sign contracts on the digital platform that executes terms of contract based on in-place rules that are pre-agreed, mirroring the traditional rental model but with greater safety and transparency. Using automotive blockchain in such smart contracts, owner and user data can be stored and all financial transactions can be carried out on one single dashboard.
In addition, improved visibility is another by-factor pushing the demand for automotive blockchain in the car leasing/rental space. Car tracking from OEM, ownership transference details, and tracking of other factors such as fuelling, mileage, maintenance and repairs can be managed over a single decentralized ledger through automotive blockchain technology. Moreover, a single ledger can avoid time-consuming paper work at every node in the automotive blockchain, in turn improving efficiency and reducing time to carry out the entire process.
Trace Compliance Translates into Deployment of New Solutions Based on Automotive Blockchain Technology
Automotive blockchain market is witnessing a new solution deployment, developed by companies to track compliance of several parts that are assembled in vehicles on a real time basis. New regulations that came in force in 2020, demanded for advanced regulatory controls for the already present vehicles in the market. Considering the situation, automotive companies collaborated with tech companies to come up with novel automotive blockchain solution. For instance, Groupe Renault, Simoldes, Knauf Industries, Coşkunöz and Faurecia collaborated with IBM for deployment of an open source automotive blockchain protocol – “eXtended Compliance End-to-End Distributed” (XCEED) – that was launched in 2019. It uses automotive blockchain to develop a network to share compliance information across the entire automotive supply chain, from part manufacturers to vehicle manufacturers. With XCEED, the European automotive sector has been benefited on the back of improved and safe information exchange within the system as well as with outside ecosystem via automatic sharing, alerts and checks on data on a real time basis. This protocol is intended to be deployed through hybrid cloud architecture.
Asia Pacific Touted to be a Highly Lucrative Region for the Automotive Blockchain Market
Developing countries in Asia Pacific are expected to showcase high growth potential for automotive blockchain market. Collaborations between technology companies and automotive OEMs have been witnessed, which is likely to support the growth of the nascent automotive blockchain technology. For instance, in 2019, Tata Motors developed TACNet 2.0 (Tata Motors AutoMobility Collaboration Network), especially for startups through which it will develop products that will include AI and blockchain solutions.
Automotive blockchain technology is being adopted in the used cars sector in China. In April 2021, CAAM (china Association of Automotive Manufacturers) launched an auto-data storage avenue for smart cars using blockchain technology. Likewise, in February 2021, Geely Holding Group and Concordium Foundation signed a joint venture wherein the two entities will provide new automotive blockchain solutions and user DApps to various industries.
Automotive Blockchain Market Competitive Landscape
Few of the key companies in the automotive blockchain market are Microsoft Corporation, IBM, BigchainDB GmbH, Shift Mobility Inc., Tech Mahindra, carVertical and XAIN.
Key Elements Included In The Study: Global Automotive Blockchain Market
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