Blockchain in Automotive - Thematic Intelligence

Blockchain in Automotive - Thematic Intelligence Summary Blockchain is a type of distributed ledger comprised of unchangeable, digitally recorded data in packages called blocks. Each block is “chained” to the next block using a cryptographic signature. The technology can be viewed as a digital record of transactions that is decentralized, meaning no central authority, such as government or bank, validates a transaction. The initial development of blockchain generated huge interest, with companies adopting the technology for novelty rather than strategic reasons. Since then, more practical, efficiency-based use cases have slowly emerged throughout the automotive sector. The global blockchain market will grow from $12 billion in 2023 to $291 billion in 2030, expanding at a compound annual growth rate (CAGR) of 55%, according to GlobalData. Blockchain is hyped, but adoption is slow Blockchain is a type of distributed ledger comprised of unchangeable, digitally recorded data in packages called blocks. Each block is “chained” to the next block using a cryptographic signature. The technology can be viewed as a digital record of transactions that is decentralized, meaning no central authority, such as government or bank, validates a transaction. The initial development of blockchain generated huge interest, with companies adopting the technology for novelty rather than strategic reasons. Since then, more practical, efficiency-based use cases have slowly emerged throughout the automotive sector. The global blockchain market will grow from $12 billion in 2023 to $291 billion in 2030, expanding at a compound annual growth rate (CAGR) of 55%, according to GlobalData. Blockchain technology has various uses in automotive Blockchain can benefit every level of the automotive value chain, from supply chain management to sales and post-sale activity. Supply chain traceability tools help automakers by providing transparent and immutable records of transactions. This can also help them achieve their sustainability goals by enabling the procurement of ethically sourced raw materials. Smart contracts can automate automotive supplier transactions, minimizing payout times. Customers can access transparent and secure vehicle history, ownership, and maintenance records. This reduces fraud in the used car market, promoting trust and improving resale value. Digital assets, such as non-fungible tokens (NFTs), can promote customer loyalty and create new ways for vendors to interact with customers. Cost and complexity will hinder widespread adoption The success of blockchain in the automotive sector is heavily dependent on scale. Typically, only large automakers have the capital and existing technology infrastructure to implement blockchain. Conducting testing and research into blockchain adoption can be costly, especially for smaller automakers with fewer resources. Automakers often partner with specialist blockchain vendors, which requires customization and complex integration with existing automotive systems. Scope - This report provides an overview of the Blockchain theme. The detailed value chain comprises four layers: infrastructure, applications, software, and services. Leading and challenging vendors are identified across both segments. - It identifies automotive challenges, such as ESG, CASE megatrends, geopolitics, labor shortages, cost efficiency, high inflation, and supply chain disruption, and an impact assessment of blockchain on the automotive industry, addressing these challenges. - Several case studies are included to analyze the multiple ways companies have responded to the impact of this theme’s growth and what they are doing to grow with this theme. Reasons to Buy - This report will help you to understand blockchain and its impact on the automotive sector. - Benchmark your company against your competitors and assess how automotive companies are utilizing blockchain to drive revenues. - Identify attractive investment targets by understanding which companies are most advanced in the themes that will determine future success in the automotive industry. - Understand key industry challenges and where blockchain use cases are most useful. - Develop and design your corporate strategies through an in-house expert analysis of blockchain by understanding the primary ways in which this theme is impacting the automotive industry. - Position yourself for future success by investing in the right blockchain technologies.