Automotive Industry Uses Blockchain Platforms to Enhance Security
A new analysis by Frost & Sullivan, ‘Blockchain Technology Revolutionizing Automotive Industry’, provides in-depth insight of key areas in the automotive industry that can utilize blockchain technology. Blockchain Technology Revolutionizing Automotive Industry is part of Frost & Sullivan’s Automotive & Transportation Growth Partnership Subscription.
The areas that the report answered included the various industries disrupted by blockchain technology, how blockchain technology revolutionize the automotive industry, the various use cases that blockchain technology can support in the automotive industry, the key participants involved, and what the future outlook for blockchain technology in the automotive industry is.
By 2025, the total automotive industry’s spend on technology is expected to be approximately $168.80 billion, with around 0.6 percent investment in blockchain technology due to its value in smart manufacturing, supply chain logistics, retailing & leasing, connected living & Internet of Things, and mobility services. Automotive original equipment manufacturers (OEMs) primarily employ blockchain technology in financial applications, but in the long term, they will extend their use to functional areas such as smart manufacturing and connected cars.
Frost & Sullivan Mobility Research Analyst, Meena Subramanian commented: “OEMs are only gradually waking up to blockchain technology’s benefits of real-time monitoring, auditability and scalability in an era of connected living. Stakeholders all along the value chain are showing great eagerness to harness the power of this technology to achieve best-in-class decentralization, transparency and security.”
Meanwhile, financial divisions in the automotive industry are forming consortiums to frame policies that will help them comply with regulations on a global level. For instance, in 2017 Bosch, Cisco and many start-ups, formed a consortium to build IoT applications based on blockchain technology.
Subramanian noted: “By 2025, the penetration rate of blockchain technology in functional areas such as retailing & leasing, supply chain logistics, mobility solutions, smart manufacturing, connected living & IoT is expected to be at ~37.2 percent. The most successful solution providers will be the ones that create tailored ideas and products that address business requirements, recurring issues, as well as process automotive use cases.”