At least one firm sees the compound annual growth rate (CAGR) for the global automotive blockchain market to be quite robust in 2020 and into the next decade.
Allied Market Research said in its recently published report the global automotive blockchain market is expected to garner $428.6 million in 2020 and is projected to reach $5.6 billion by 2030, growing at a CAGR of 29.3% from 2020 to 2030.
The report identified 10 companies that the authors described as the major market players expected to fuel the growth, including:
— HCL Technologies
— Tech Mahindra
— NXM Labs
“Decreased operational cost and security against data leak and manipulations have boosted the growth of the global automotive blockchain market,” Allied Market Research said in a news release announcing the report’s availability. “However, uncertainty over regulations hampers the market growth.
“On the contrary, higher adoption for better payments, logistics and transportation and usage-based insurance is expected to create lucrative opportunities in the near future,” the firm continued about its report titled, "Automotive Blockchain Market by Application (Financing, Mobility Solutions, Smart Contracts, and Supply Chain), Provider (Application & Solution, Middleware, and Infrastructure & Protocol), and Mobility (Personal Mobility, Shared Mobility, and Commercial Mobility): Global Opportunity Analysis and Industry Forecast, 2020-2030."
Allied Market Research projected the supply chain segment is expected to contribute the largest share in 2020, accounting to nearly two-fifths of the global automotive blockchain market.
The firm explained the rise in use of blockchain in automobiles and increased demand for efficient means to track data regarding supply chain drives the segment. However, Allied Market Research added that the financing segment is projected to register the fastest CAGR of 32.7% during the forecast period, due to the implementation of blockchain in automobiles coupled with the application in financing and rise in trend of automation.
Allied Market Research went on to mention the application and solution segment is expected to hold the largest share in 2020, accounting for nearly half of the global automotive blockchain market. The firm contends the segment is expected to dominate the market throughout the forecast period.
“Moreover, the segment is anticipated to portray the fastest CAGR of 30.8% from 2020 to 2030. The application and solution providers provide better and efficient system, which supports the growth of blockchain in automobiles,” the firm said.