Since blockchain is establishing its presence in the automotive sector, strategy and marketing consultancy Simon-Kucher & Partners projected after dissecting recent study findings that the revenue potential for this technology could ramp up to be nearly $120 billion by 2030.
Simon-Kucher orchestrated a survey to delve deeper into what’s prompting car owners and other road users to be interested in the many ways in which blockchain can be used to create revenue opportunities. The firm learned that survey participants were particularly interested in time-saving solutions such as traffic congestion management (48 percent) and automated payments (54 percent).
The firm’s newest blockchain research also mentioned applications that provide added security such as protected data access (50 percent), enable increased efficiency such as automated payments (54 percent), or greater convenience such as remote access (46 percent) were also popular with participants.
“The added value of blockchain applications for the end customer is obvious,” said Peter Harms, a partner in Simon-Kucher’s global automotive practice. “Automakers need to be aware that they can generate significant profit from these applications.”
The study also revealed how much drivers would be willing to pay each month for various blockchain solutions:
—Traffic congestion management: 27 percent of survey participants would be willing to pay on average $11 per month for this solution
— Protected data access: $11 (7 percent)
— Remote control of vehicle (such as locking/unlocking): $8 (12 percent)
— Automated payments (such as at parking or charging stations): $7 (17 percent)
— Immutability of vehicle records (when buying a used vehicle): $6.00 (7 percent)
Based on these figures, Harms computed that total revenue generated by 2030 is set to reach $120 billion.
“The added value of blockchain solutions and customer willingness to pay for them already indicate enormous monetizing potential,” Harms said. “Now is the time for the automotive industry to start adjusting its strategies and business models, not only to expand their current offerings with blockchain solutions but also to monetize them.”
To accomplish this feat, Harms pointed out industry-wide infrastructure is required.
“Close cooperation among individual stakeholders (e.g. automotive manufacturers, taxi companies, municipal corporations, toll operators) is essential to unlock the multi-billion-dollar potential of this technology,” he added.
The study titled, “Blockchain in the Automotive Industry,” was conducted worldwide in October by Simon-Kucher & Partners. It surveyed various factors, including participants’ level of awareness of blockchain, future areas of application in the automotive industry, and willingness to pay for individual applications.
Founded in 1985, Simon-Kucher & Partners has more than 30 years of experience providing strategy and marketing consulting with a focus on top-line power. The firm has more than 1,200 employees in 38 offices worldwide.