News
Automotive Blockchain Market Sees Significant Increase in Adoption: Report
Blockchain technology has come a long way from its humble beginnings in 2009 to taking over the scene in recent years. While the emerging technology has lagged behind artificial intelligence (AI) in recent years, blockchain use cases in the automotive sector are set to reach new highs.
According to a relationship According to Global Market Insights, the automotive blockchain sector could see a significant increase in market capitalization due to increasing adoption metrics and technological advancements.
As of 2023, the industry is valued at just over $550 million, but a combination of several factors is expected to drive the market size to $4.1 billion by 2032. The giant leap translates into a compound annual growth rate (CAGR) of 25% over an eight-year period, supported by a number of market trends.
According to the report, use cases include improving supply chain efficiency are touted to grow the industry’s market size. Early adopters are relying on blockchain for “real-time tracking and vehicle authentication,” ensuring parts are sourced to prevent counterfeiting.
One use case involves the German car manufacturer BMW (NASDAQ:BMWYY) using blockchain to track the cobalt in its electric vehicle batteries from mining to final application. In 2019, a company relationship revealed that blockchain’s inherent transparency and immutability features have contributed significantly to ensuring compliance and “building trust among stakeholders.”
Toyota (NASDAQ:TM) has since joined the fray tracking spare parts with blockchain, achieving relative success along the way and laying the groundwork for advanced supply chain applications in the future. The report predicts a spike in the use of smart contracts in the industry to eliminate third parties from transactions, while improving speed and transparency.
“These smart contracts minimize administrative overhead and increase transaction speed and transparency by automating payments based on pre-set parameters,” the report reads.
According to the report, the mobility segment is expected to be the main driver of the surge, with commercial mobility leading the way. Recent advances in smart city projects could see the mobility segment contribute up to $2 billion before the end of 2032.
Asymmetric regional distribution
The report indicates that North America, especially the United States, holds a clear lead in the sector, with a market share of nearly 35%. The region’s lead seems justifiable, given the steady infusion of capital from a pool of institutional investors, forward-looking policies, and support from regulators. respect towards other regions.
Outside of North America, Asia comes in second, buoyed by the Chinese auto industry’s progress in areas of supply chain and reliance on smart contracts. Japan is also on the same path with Toyota, Honda (NASDAQ Quote: HMC), and Nissan (NASDAQ: NSANY), contributing to the growth of the ecosystem.
Watch: Reviving the True Value of Blockchain: The Utility
Italian: https://www.youtube.com/watch?v=mI_rM1N814w width=”562″ height=”315″ frameborder=”0″ allowfullscreen=”allowfullscreen”>
New to blockchain? Check out CoinGeek Blockchain for Beginners section, the definitive guide to learn more about blockchain technology.