Global Automotive Blockchain Market To Reach $1.6B USD By 2026 – Reportbr>
The global automotive blockchain market size is estimated to reach $1.6 billion by 2026, according to a new report by market intelligence and advisory firm BIS Research.
In a new market research report titled “Strategic Assessment of Blockchain in Automotive- Analysis, and Forecast, 2018-2026,” BIS forecasts that the global automotive blockchain market will reach $1,575 million by 2026, growing at a robust Compound Annual Growth Rate (CAGR) of 65.80% in the period 2018-2026.
The report was based on detailed financial analysis of key players in the automotive blockchain market, including SWOT analysis of each company. These include Ripple Labs, Ethereum, BigChain DB, Factom, IBM, Mesosphere, Reply SpA, R3, and Oaken Innovations.
“Blockchain technology holds massive application potential in the automotive industry,” the report said. “As a consequence of the multitude of benefits, the blockchain technology can disrupt the entire automotive value chain. In terms of application, Automotive Finance, Payments, and Insurance Services (FPIS) accounts for the largest share among all the application segments of the blockchain technology in the automotive domain. However, automotive manufacturing, automotive safety & security, and supply chains are expected to grow robustly during the forecast period, owing to various benefits of the distributed ledger technology.”
Haarish Ahmad, BIS Research senior analyst, said that automotive financing, leasing, and insurance services is the most dominant application segment for the automotive blockchain and accounts for majority of the total revenue generated by the blockchain technology in the automotive domain.
“Additionally, automotive manufacturing is expected to witness the highest growth in automotive blockchain market with a CAGR of 107.38%, owing to the incorporation of blockchain technology by the OEMs within their assembly lines and operations,” said Ahmad.
Major automotive companies around the world are already investigating blockchain potential for their business processes and investing heavily in order to conduct trials and to implement pilot projects. In July of this year, automobile giants including BMW, Ford, General Motors, Groupe Renault, and others formed the Mobility Open Blockchain Initiative (MOBI) to explore blockchain’s applicability in the industry. MOBI’s mission is to explore blockchain for “use in a new digital mobility ecosystem that could make transportation safer, more affordable, and more widely accessible.”