As the digitization trend sweeps across industry verticals, blockchains have begun to capture a bigger share of IT budgets.By 2025, the total automotive industry's spend on technology is expected to be ~168.80 billion, with ~0.6 percent investment on blockchain technology due to their value in smart manufacturing, supply chain logistics, retailing & leasing, connected living & IoT (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's new analysis, Blockchain Technology Revolutionizing Automotive Industry, provides in-depth insight of key areas in the automotive industry that can utilize blockchain technology.
"OEMs are only gradually waking up to blockchain technology's benefits of real-time monitoring, auditability and scalability in an era of connected living," said Frost & Sullivan Mobility Research Analyst Meena Subramanian. "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."
PR Newswire press team mentioned on May 26 that 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.
"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," noted Subramanian. "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."