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Automotive Blockchain Market Size, Share & Industry Analysis, By Application (Smart Contracts, Supply Chain, Financing, Mobility Solutions, Others), By Provider (Middleware, Infrastructure and Protocols, Application and Solution), By Mobility Type (Personal Mobility, Shared Mobility, Commercial Mobility), and Regional Forecast, 2024-2032

Last Updated: June 10, 2024 | Format: PDF | Report ID: FBI106432

 

KEY MARKET INSIGHTS

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The automotive blockchain market size was valued at USD 468.0 million in 2023. The market is expected to grow from USD 672.0 million in 2024 to USD 7,379.2 million by 2032, exhibiting a CAGR of 34.9% during the forecast period.


The automotive blockchain-based solution executes monetary transactions and agreements and records to enable automobile owners to monetize trips. This blockchain-based automotive solution would interconnect the end-users, car-sharing providers, and smart and autonomous vehicles reliably and securely. The need for faster business transactions, better quality control, and an increasing focus on reducing the manipulation of data have triggered the adoption of blockchain in the automotive industry.


As venture capital (VC) funding continues to upsurge, new technology providers are anticipated to enter the market, providing new service models. The market is estimated to see the emergence of a new breed of programmable blockchain technology platforms. Initial coin offering (ICO), crypto-currency, and Blockchain-as-a-Service (BaaS) are expected to propel the growth of the market during the forecast period, thereby creating immutability and transparency in the distributed ledger technology and simplifying business processes with benefits such as reduced total cost of ownership and faster transactions.


In 2020, the coronavirus crisis had a negative impact on the worldwide integrated automotive industries. Many service-based and automotive technology companies faced a slowdown in income as there was a sharp drop in both sales and production of vehicles. However, the market is expected to return to normalcy. Therefore, it is expected that the market will experience positive growth from 2024 to 2032.


Automotive Blockchain Market Trends


Vehicle Manufacturing to be the Largest Adopter of Blockchain Technology


Automotive blockchain solutions help the original equipment manufacturers (OEMs) to have a follow-up on auto parts and components, about their current modification, and original manufacturer. These solutions help in targeted vehicle recall at any time or when there is a requirement for an upgrade as OEMs have information regarding auto parts and components installed in vehicles sold to clients.


In the vehicle manufacturing process, blockchain technology solutions help in storing work-in-process data, quality inspection data, vehicle data for every automobile on the assembly line, and others. With the growing trend for autonomy and connected vehicles, automobiles are prone to cyber-attacks. The robust cryptographic structure of blockchain is impossible to reverse engineer and offers a secure and safe place to store data. The high level of encryption in blockchain offers maximum security to vehicle telematics data. The above-mentioned factors play an important role in driving the global market.


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Automotive Blockchain Market Growth Factors


Reduced Operational Cost Expected to Drive the Automotive Blockchain Market Growth


With the increasing integration of digital technologies, such as IoT devices and telematics systems in vehicles, there is a growing need to establish secure digital identities for vehicles and ensure the integrity of vehicle data. Blockchain provides a tamper-proof platform for managing vehicle identities and securing communications between vehicles and infrastructure.


In January 2021, The Mobility Open Blockchain Initiative (MOBI) unveiled the second iteration of its Vehicle Identity Standard, known as VID II. This milestone marks a collaboration among prominent entities in the automotive sector, convened under a working group chaired by BMW and Ford. Building upon the foundation laid by the initial Vehicle Identity Standard (VID I), VID II serves as a pivotal advancement, offering a comprehensive framework for vehicle identification. Initially conceptualized as a "birth certificate" for vehicles, VID I has paved the way for various applications, including the monitoring of significant events throughout a vehicle's lifecycle, such as changes in ownership, repairs, insurance claims, and the logging of odometer readings.


VID II builds upon the groundwork established by VID I and extends its utility across a spectrum of use cases. These include but are not limited to vehicle registration and maintenance traceability. Notably, the implementation of VID II facilitates the integration of disparate vehicle registration systems by establishing a secure and unified platform based on a trusted shared ledger. This drives the market growth.


RESTRAINING FACTORS


Uncertainty over Regulations Hurdle for the Industry


Regulatory challenges hinder the automotive blockchain market growth by necessitating compliance with data privacy and ownership laws. Adapting to these regulations demands significant resources and time, delaying implementation. Moreover, varying regulations across regions add complexity, stalling widespread adoption. Uncertainties regarding legal frameworks also deter investment, slowing the integration of blockchain solutions into automotive systems. These regulatory hurdles impede innovation and limit the market expansion potential.


Automotive Blockchain Market Segmentation Analysis


By Application Analysis


Supply Chain Segment to Dominate Owing to the Increasing Vehicle Production and Sales


Based on application, the market is segmented into smart contracts, supply chain, financing, mobility solutions, and others. Blockchain technology provides several advantages to the automotive sector by increasing the efficiency of the supply chain and decreasing unnecessary costs. The supply chain segment held a major share in 2023. This is due to increasing vehicle sales and production of electric vehicles, which are expected to boost the supply chain segment across the world. Moreover, the smart contracts segment is projected to be the fastest-growing market from 2024 to 2032. The fastest growth of the smart contracts segment is primarily attributed to its applications in the automotive industry, including B2B contractual agreements, dealership management, and title transfer.


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By Provider Analysis


Application & Solution to Register the Fastest Growth Due to Increased Demand


Based on provider, the market is segmented into application & solution, infrastructure & protocols, and middleware. The application and solution segment held a major share in 2023, and is anticipated to register the highest CAGR during the forecast period. The growth is attributed to investments by Tier-I companies and OEMs and the introduction of technologically advanced blockchain solutions. Moreover, application & solution necessitates higher costs to maintain and develop than middleware. Hence, the revenue generated by the application & solution providers is higher.


By Mobility Type Analysis


Personal Mobility Segment to Hold the Largest Automotive Blockchain Market Share Due to Increased Growing Purchasing Power


Based on mobility type, the market is segmented into personal mobility, shared mobility, and commercial mobility. In 2023, the personal mobility segment held the highest share of the global market. The growth of the personal mobility segment can be attributed to the growing purchasing power, rapid urbanization, increasing population, and strong economic growth that are directly contributing to the market growth. Likewise, the commercial mobility segment is estimated to be the highest growing market from 2024 to 2032.


REGIONAL INSIGHTS


North America Automotive Blockchain Market Size, 2023 (USD Million)

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North America dominated the market in 2023 and accounted for a revenue share of more than 44%. The growth is anticipated to be driven by significant investments by technology providers in the blockchain platform and the growing demand for immutability and transparency in business operations. Moreover, North American is expected to be one of the early adopters of blockchain technology for automotive applications and is projected to be the major contributor to this market in the coming years. Further, the key market players, such as Microsoft, AWS, and IBM, which have their operating base in North America, are projected to accelerate the market growth in the region.


Asia Pacific is projected to emerge as one of the most profitable regions in terms of revenue from 2024 to 2032. This upsurge is attributed to the increasing use of this technology in ridesharing applications in India and China. Further, rising electric vehicle (EV) manufacturing and sales are expected to surge the demand for automotive blockchain in Europe.


List of Key Companies in Automotive Blockchain Market


The major players in this market include BigchainDB GmbH, Microsoft Corporation, IBM Corporation, Tech Mahindra Limited, ShiftMobility Inc., Accenture, RSK Labs, and GEM. These players continuously focus on partnerships, acquisitions, new product development and launches, and expansions strategy to strengthen their position in the market. The market is witnessing a lot of partnerships between major innovative startups, tech companies, and OEMs for the development of blockchain infrastructure.


LIST OF KEY COMPANIES PROFILED:



  • Microsoft (Washington, U.S.)

  • BigchainDB GmbH (Berlin, Germany)

  • IBM Corporation (New York, U.S.)

  • ShiftMobility Inc. (California, U.S.)

  • Accenture (Dublin, Ireland)

  • Tech Mahindra Limited (Pune, India)

  • GEM (California, U.S.)

  • HCL Technologies Limited (Noida, India)

  • NXM Labs, Inc. (California, U.S.)

  • CONSENSYS (New York, U.S.)


KEY INDUSTRY DEVELOPMENTS:



  • March 2024 - NXP introduced the S32 CoreRide platform to expedite the advancement of Software-Defined Vehicles. This platform aims to alleviate the challenges faced by automakers in transitioning functions from conventional multi-ECU setups to zoned or centralized processing, which often encounter hurdles related to software and architectural disparities.

  • February 2023 - Toyota, a leading figure in the automotive industry, expanded its exploration of blockchain technology applications. This involved sponsoring a Web3 hackathon hosted on the multi-chain smart contract network Astar Network.

  • August 2021 - MG, a car manufacturer owned by the Chinese auto company SAIC, planned to employ blockchain technology to document driving data within a digital passport for its SUV model, MG Astor. The vehicle is slated for commercialization in India, with MG collaborating with the Indian blockchain firm Koinearth for this initiative.


REPORT COVERAGE


The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, applications, and mobility types. The report covers market statistics from 2019 to 2032. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market over recent years.



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Report Scope & Segmentation















































ATTRIBUTE



DETAILS



Study Period



2019-2032



Base Year



2023



Estimated Year



2024



Forecast Period



2024-2032



Historical Period



2019-2022



Unit



Value (USD million)



Segmentation



By Application



  • Smart Contracts

  • Supply Chain

  • Financing

  • Mobility Solutions

  • Others



By Provider



  • Middleware

  • Infrastructure and Protocols

  • Application and Solution



By Mobility Type



  • Personal Mobility

  • Shared Mobility

  • Commercial Mobility



By Geography



  • North America (By Application, By Provider, By Mobility Type)

    • U.S. (By Application)

    • Canada (By Application)

    • Mexico (By Application)



  • Europe (By Application, By Provider, By Mobility Type)

    • U.K. (By Application)

    • Germany (By Application)

    • France (By Application)

    • Rest of Europe (By Application)



  • Asia Pacific (By Application, By Provider, By Mobility Type)

    • China (By Application)

    • India (By Application)

    • Japan (By Application)

    • South Korea (By Application)

    • Rest of Asia Pacific (By Application)



  • Rest of the World (By Application, By Provider, By Mobility Type)






Frequently Asked Questions

Fortune Business Insights says that the global market size was USD 468.0 million in 2023 and is expected to reach USD 7,379.2 million by 2032.

In 2023, the North America market value stood at USD 206.2 million.

The market is projected to grow at a CAGR of 34.9% and will exhibit steady growth over the forecast period (2024-2032).

The supply chain segment is expected to be the leading segment in this market during the forecast period.

The need for faster business transactions, better quality control, and increasing focus on reducing manipulation of data to propel the automotive blockchain market growth.

North America dominated the market share in 2023.

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