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Blockchain technology has come a long way, from its humble beginnings in 2009 to hogging the spotlight in recent years. Although the emerging technology has fallen behind artificial intelligence (AI) in recent years, blockchain use cases in the automobile sector are poised to reach new highs. According to a report by Global Market Insights, the automotive blockchain industry could see a significant increase in market capitalization amid rising adoption metrics and technological advancements. In 2023, the industry is valued at a little over $550 million, but the combination of several factors is expected to grow the market size to $4.1 billion by 2032. The giant leap translates to a compound annual growth rate (CAGR) of 25% over an eight-year period, buoyed by a raft of market trends. Per the report, use cases around improving supply chain efficiency are touted to grow the industry’s market size. Early adopters lean on blockchain for “real-time tracking and vehicle authentication,” ensuring provenance for parts to prevent counterfeits. One use case involves German car manufacturer BMW (NASDAQ: BMWYY) using blockchain to track the cobalt in its electric vehicle batteries from mining until its final application. In 2019, a company report disclosed that blockchain’s inherent characteristics of transparency and immutability have contributed in no small measure to ensuring compliance and “building stakeholder trust.” Toyota (NASDAQ: TM) has since joined the fray by tracking spare parts with blockchain, racking up relative success along the way, and laying the foundation for advanced supply chain applications in the future. The report predicts a spike in the use of smart contracts in the industry to eliminate third parties in transactions while improving speed and transparency. “These smart contracts minimize administrative expenses and increase transaction speed and transparency by automating payment settlements according to preset parameters,” read the report. According to…

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Filed under: News - @ July 6, 2024 7:26 am