The global blockchain technology is at an early stage of its innovation and major technological operators are still experimenting and exploring its capabilities. Though blockchain has its roots and major presence in the financial sector, the automotive industry is not far behind in implementing blockchain technology for its applications. It is technologically advanced and is characterized by stringent regulations regarding cybersecurity and data theft. Therefore, there is significant potential for blockchain technology as it is expected to speed up the transformation of automobiles towards decentralization. Blockchain technology can enable easier management of trusted information, while enabling access to critical data though maintaining information security. Once information is created in blockchain, it is difficult to change or delete by a single individual as they are verified and managed by automation and shared protocols.
The wide use of blockchain technologies in vehicles and the global increase in the sale of electric vehicles drive the automotive blockchain market. In addition, the growing support from governments to have a sound ICT infrastructure, rising purchasing power, and rising lifestyles are set to accelerate the market growth.
Market Research Analysis:
In terms of region, the global market for the automotive blockchain is segmented into North America, Europe, Asia-Pacific, and the Rest of the World. Asia-Pacific is expected to hold the largest market share during the forecast period, owing to growing production and sales of electric vehicles in China and Japan. Moreover, the growing development in blockchain technology across the country, leads to the growth of automotive blockchain market. For instance, in march, 2017, Chinese conglomerate, Wanxiang Group, known as the country’s biggest makers of automotive parts, launched a new startup accelerator to fund blockchain entrepreneurs.
North America automotive blockchain market is expected to grow at a significant rate during the forecast period owing to the presence of key players, such as IBM Corporation (US), Microsoft Corporation (US), and ShiftMobility (US).
The prominent players in the global automotive blockchain market 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). The major players in this market have adopted the strategies such as geographic expansion, product launch, collaboration, and mergers & acquisitions. The growth of the market vendors is dependent on the market conditions, government support, and industry development. Thus, the vendors should focus on expanding, geographically and improving the services.