Study: Automotive Blockchain Market to Reach $5.6 Billion by 2030

According to a study by “ResearchandMarkets”, the global blockchain market in the automotive industry will reach $428 million this year and increase to $5.6 billion by 2030.

The study notes that the industry’s average annual growth will be around 30%. In systems based on the blockchain (also called as blocks), records about the sale of cars, warranty claims and insurance will be stored. The constancy of the entries made on the blockchain will allow buyers to be confident in the history of their cars, even if they buy them used.

Also, the use of blockchain will reduce the number of intermediaries between the plant and the buyer, and, accordingly, reduce the costs of the manufacturer. There are currently dozens of startups in the industry, including Xain and NXM Labs.

According to analysts, blockchain will have a significant impact on changing the automotive industry. Blockchain-based supply chains prove to be effective compared to other methods.

At the same time, as ResearchandMarkets notes, the blockchain itself is not very useful, however, the correct application of the technology can really increase the efficiency of many processes. Especially if you combine the blockchain with other areas of modern engineerings, such as artificial intelligence and the Internet of Things.

Earlier it was reported that Lamborghini uses the Salesforce blockchain for car certification, while JPMorgan Bank uses technology to track pledged cars.

Author: Marko Vidrih

Featured image credit: Industrywired