Blockchain
Automotive Blockchain Market to Reach $4.1 Billion by 2032
A recent report by Global Market Insights highlighted the potential growth of blockchain technology in the automotive industry.
The study predicts that the automotive blockchain market, currently valued at around $550 million, will reach $4.1 billion by 2032, with a compound annual growth rate (CAGR) of 25% over an eight-year period.
This substantial growth is attributed to several factors, the main one being the improvement in supply chain efficiency.
According to relationshipMajor automakers are already implementing blockchain solutions for real-time tracking and vehicle authentication, aiming to ensure the provenance of components and prevent counterfeiting.
BMW, for example, has used blockchain technology to track cobalt used in electric vehicle batteries from mining to final application. The company says blockchain’s transparency and immutability have helped ensure compliance and build trust among stakeholders. Similarly, Toyota has pioneered blockchain-based tracking of spare parts, laying the groundwork for advanced supply chain applications.
The report also highlights the growing use of smart contracts in the industry. These automated agreements are expected to streamline transactions by eliminating intermediaries, thereby improving speed and transparency while reducing administrative expenses.
The mobility segment, especially commercial mobility, is expected to be the largest contributor to this growth. Advances in smart city projects could see this segment account for up to $2 billion of the market by 2032.
Geographically, North America leads the market with a 35% share, driven by institutional investment, progressive policies, and regulatory support. Asia follows, with the Chinese auto industry making strides in adopting blockchain for supply chain management and smart contracts.
Japanese manufacturers such as Toyota, Honda and Nissan are also contributing to the regional growth of the blockchain ecosystem.
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