The global automotive blockchain is set to witness a whopping compound annual growth rate in the next eight-year period. This is based on a report prepared by Business Intelligence and Strategy Research (BIS Research). This is a clear indication that despite skepticism surrounding the emerging technology; people are ready to invest in and try finding a solution for different industries. Major automakers in the United States have already indicated their keen interest in the new age technology. The enterprises believe it is necessary to stay in line with the trend.
A BIS report indicated that the automotive blockchain market would hit $1.6 billion by the turn of 2026 from the existing market conditions. That a compound annual growth rate (CAGR) of 65.8 percent thus reaching $1.575 billion during the same period, Cointelegraph reported. The research organization indicated that its estimation was based on key market players’ analysis of financial analysis. This included Ripple Labs, Ethereum, BigChain DB, R3 and IBM Corporation besides few others.
Their research found that the automotive blockchain market will witness strong growth in the upcoming years due to the increased popularity of blockchain technology. Aside from that, the enterprises will start looking at the numerous gains of using the distributed ledger technology (DLT). Most of the surveys or enterprises often come out and indicated that they could gain from using emerging technology. However, not much progress happened during the pilot programs announced by different companies in the past.
In any case, BIS research pointed out some of the key advantages of using the DLT in the automotive sector. This included transparency, data, immutability and reliability, and security. The report indicated that it is because of these factors that the blockchain technology is regarded as the most sought-after one to disrupt the supply chain in the automotive industry. Most of the companies started investing in supply chain management to monitor the system. In fact, UPS has sought a patent for a solution.
In its report, BIS has commented that “By augmenting distributed ledger technology with automation, a plethora of application cases can be realized whose impact spans over the whole supply chain. The immense application potential of this technology opens up plenty of opportunities which can transform products, services, and processes across the automotive industry.”
A few months ago, reports suggested that four big automakers in the world have aligned with startups to establish the largest ever consortium to create a solution in the automotive sector. General Motors, Ford, Renault, and BMW are the founding members of the Mobility Open Blockchain Initiative (MOBI) launched in May. Aside from these, a car-parts manufacturer like ZF and Bosch and other giants like IBM and Accenture have also been part of it.
There were several proofs-of-concept in the automotive sector and the consortium differentiated itself with its wider representation. The initiative is also backed by public and private blockchain systems. MOBI’s objective is to develop common standards, as well as, API that allows data sharing among cars besides payments.