BIS Research, global B2B market intelligence and advisory firm published a report on August 21, 2018, which estimates that the global automotive blockchain market size will reach figures around $1.6 billion by 2026. The report attributes the growing popularity of blockchain technology to its immense potential benefits, including immutability, reliability and continually improving scalability.
Blockchain’s Universal Malleability
The report sheds ample light on the factors that work for and against the mass adoption of blockchain in industries all across the globe. Some of the areas where blockchain can aid foster an automotive ecosystem is manufacturing, supply chain management, security solutions, finance industry, insurance, and infotainment.
However, it was also concluded that the benefits derived out of the technology would have a high degree of variance across industries, with the results skewed mostly towards finance, payments and insurance industries.
Haarish Ahmed, a senior analyst at BIS Research, believes that automotive blockchain will dominate application segments such as financing, leasing and insurance services.
“Automotive manufacturing is expected to witness the highest growth in automotive blockchain market with a CAGR of 107.38%, owing to the incorporation of blockchain technology by the OEMs within their assembly lines and operations.”
BIS seems to have done enough homework, which is evident by the details the report captures from the market. It includes an exhaustive financial analysis of the big enterprises in the market, along with their respective SWOT analysis.
Per the report, some of the key players in the market include Ripple Labs, Ethereum, BigChain DB, IBM, and R3, among others. It was also observed that the majority of these corporates are trying to create their market shares by entering into collaborations, joint ventures, and partnerships with other firms. Shared data and knowledge about the emerging technologies enables them to offer cutting-edge products and services to the customers.
Blockchain the Catalyst for Automation
The blockchain is viewed as an active evangelist to migrate the traditional industries to more cost-efficient automated infrastructure. BTCManager reported on July 25 that a NewZealand based start-up has already put its steps forth to utilize blockchain to keep track of its supply chain management.
The conclusions drawn in the report by BIS Research are not surprising at all, considering that major enterprises have already made their intentions clear about incorporating blockchain into their business model in the recent past.