Automotive Blockchain Market

Global Automotive Blockchain Market:

The global automotive blockchain market size reached US$ 759.1 Million in 2023. Looking forward, IMARC Group expects the market to reach US$ 6,111.8 Million by 2032, exhibiting a growth rate (CAGR) of 25.6% during 2024-2032. The growing incidences of cyberattacks like phishing on connected vehicles are bolstering the market.

Automotive Blockchain Market Analysis:

• Major Market Drivers: The increasing inclination among individuals towards autonomous vehicles (AVs), on account of the growing disposable income levels of individuals, is fueling the market.
• Key Market Trends: The widespread popularity of mobility as a service (MaaS) platforms, along with the rising need for secure and transparent payment transactions, is one of the emerging trends catalyzing the market.
• Competitive Landscape: Some of the prominent companies in the global market include Accenture plc, BigchainDB GmbH, carVertical, ConsenSys, GemOS, HCL Technologies Limited (HCL Enterprise), International Business Machines Corporation, Microsoft Corporation, NXM Labs Inc., ShiftMobility Inc., and Tech Mahindra Limited, among many others.
• Geographical Trends: North America exhibits a clear dominance in the market, owing to the elevating number of car-sharing services.
• Challenges and Opportunities: One of the main challenges hindering the market is the lack of standardized protocols. However, the implementation of stringent government regulations will continue to fuel the market in the coming years.
   

Automotive Blockchain Market Trends:

Rising Focus on Security

The increasing concerns about safeguarding sensitive information are propelling the market. In addition, as modern vehicles become more autonomous and connected, the need to protect vehicle performance data and personal details is paramount. This technology aims to build trust with consumers and stakeholders, which is escalating the market. For instance, in January 2024, Tuhu Car launched a new auto parts traceability function based on Huawei Cloud’s blockchain technology.

Increasing Popularity of Smart Contracts

Smart contracts are gaining traction, as they offer automated and self-executing agreements that enhance operational efficiency. Moreover, they streamline processes, including insurance claims, vehicle leasing, parts procurement, etc. By eliminating the need for intermediaries and reducing manual oversight, smart contracts decrease administrative costs and minimize errors, which is bolstering the automotive blockchain market demand. For instance, in February 2024, the city of Shenzhen collaborated with the Agricultural Bank of China to implement digital yuan smart contracts for car pre-payments.

Emerging Technological Advancements

Hybrid blockchains are emerging as a flexible solution for automotive applications, which is contributing to the market. This trend enables companies to leverage the transparency of public blockchains for certain aspects of their operations. In May 2024, DeLorean collaborated with Otherlife to create a marketplace that allows automakers to sell, buy, and trade vehicle reservation build slots by leveraging automotive blockchain technology.

 Global Automotive Blockchain Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with the automotive blockchain market forecast at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on the type, provider, mobility type, application, and end user.

Breakup by Type:

• Public Blockchain
• Private Blockchain
• Hybrid Blockchain
   

The report has provided a detailed breakup and analysis of the market based on the type. This includes public blockchain, private blockchain, and hybrid blockchain.

Public blockchain, such as Ethereum and Bitcoin, is decentralized and open to anyone. On the other hand, a private blockchain is restricted and controlled by a single organization, which offers enhanced security. Furthermore, a hybrid blockchain is well-suited for applications requiring both public verification and private collaboration.

Breakup by Provider:

• Application and Solution
• Middleware
• Infrastructure and Protocol
   

Application and solution currently hold the majority of the total automotive blockchain market share

The report has provided a detailed breakup and analysis of the market based on the provider. This includes application and solution, middleware, and infrastructure and protocol. According to the report, application and solution represented the largest market segmentation.

The inflating need for improving efficiency, transparency, and security across the automotive industry is bolstering the segment's growth. For instance, companies like VeChain launched solutions that enable the tracking of parts from manufacturers to consumers using blockchain's immutable ledger.

Breakup by Mobility Type:

• Personal Mobility
• Shared Mobility
• Commercial Mobility
   

The report has provided a detailed breakup and analysis of the market based on the mobility type. This includes personal mobility, shared mobility, and commercial mobility.

For personal mobility, blockchain provides maintenance histories, secure vehicle ownership records, facilitates seamless peer-to-peer transactions, etc. Moreover, the rising number of car-sharing services is augmenting the demand for automotive blockchain technology. For commercial mobility, it is used to optimize fleet management.

Breakup by Application:

• Financing
• Mobility Solutions
• Smart Contract
• Supply Chain
   

Supply chain holds the majority of the global automotive blockchain market revenue

The report has provided a detailed breakup and analysis of the market based on the application. This includes financing, mobility solutions, smart contract, and supply chain. According to the report, the supply chain represented the largest market segmentation.

The growing focus on providing a transparent ledger that records every transaction and movement of parts within the supply chain is catalyzing the segment's growth. For example, startups like XAIN are developing blockchain-based platforms to streamline supply chain logistics.

Breakup by End User:

• OEMs
• Vehicle Owners
• Mobility as a Service Provider
• Others
   

The report has provided a detailed breakup and analysis of the market based on the end user. This includes OEMs, vehicle owners, mobility as a service provider, and others.

For OEMs, the technology ensures efficient management of supply chains. Besides this, vehicle owners benefit from blockchain through immutable records of ownership. MaaS providers, including ride-sharing and car-sharing companies, require transparent ride tracking. This is positively influencing the automotive blockchain market outlook in the segmentation.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America exhibits a clear dominance in the market

The automotive blockchain market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America accounted for the largest market share.

Regulatory support from government agencies is propelling the regional market. Besides this, the escalating demand for enhanced automotive software is also acting as another significant growth-inducing factor. According to the IMARC, the United States automotive software market size reached nearly about US$ 4.24 Billion in 2023. Looking forward, IMARC Group expects the market to reach approximately US$ 6.75 Billion by 2032, thereby exhibiting a growth rate (CAGR) of 5.30% during ​2024-2032​.

Competitive Landscape:

The leading companies integrate artificial intelligence (AI) and connected devices with automotive blockchain to collect real-time data from vehicles. These advancements in vehicles transmit data related to performance, maintenance needs, and even driver behavior, thereby propelling the automotive blockchain market statistics. These advanced technologies enable predictive maintenance and can anticipate maintenance needs, reducing downtime, and improving vehicle reliability by analyzing historical data recorded on the blockchain. Moreover, key players are adopting the use of blockchain-based decentralized identity solutions to enable secure and private verification of driver and vehicle identities.

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major market automotive blockchain companies have also been provided. Some of the key players in the market include:

• Accenture plc
• BigchainDB GmbH
• carVertical
• ConsenSys
• GemOS
• HCL Technologies Limited (HCL Enterprise)
• International Business Machines Corporation
• Microsoft Corporation
• NXM Labs Inc.
• ShiftMobility Inc.
• Tech Mahindra Limited
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

 Automotive Blockchain Market Recent Developments:

• May 2024: DeLorean collaborated with Otherlife to create a marketplace that allows automakers to sell, buy, and trade vehicle reservation build slots by leveraging automotive blockchain technology.
• May 2024: Wave, a digital asset-focused investment adviser regulated by the SEC, introduced a polygon network-focused yield vehicle with an initial US$30 Million.
• January 2024: Tuhu Car launched a new auto parts traceability function based on Huawei Cloud’s blockchain technology.

Automotive Blockchain Market Report Scope:

Key Benefits for Stakeholders:

• IMARC's industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the automotive blockchain market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global automotive blockchain market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the automotive blockchain industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market