Blockchain Technology is one of the essential support system for automotive industry and it is has potential to deliver high end solutions. Blockchain Technology in automotive industry is streamline processes and manages all regulatory and compliance approvals in more efficient and easy way. Blockchain technology is one of the fastest growing technologies and it helps and supports to build future of automotive industry. By 2025, it is expected that automotive industry will spend 0.6% of total IT spend on blockchain technology. Blockchain technology is applicable in automotive industry in number of application like supply chain management, provenance & tracking, lease, insurance and other business processes.
Automotive industry is very huge with involvement of wide range of companies and organizations. It is considered as the one of the most vital economic sectors by revenue and production. Now a day, many automotive companies are interested in blockchain for creating more efficient workflows, and supply chain management. One of the major challenges with supply chain management in automotive sector is keep record, due to the system like faxes, spreadsheets, emails, phone calls and paper.
Blockchain Supply Chain Technologies helps to overcome these challenges. In addition, there are so many cases are coming out of fake part supplies from traders and manufacture. Recently in January 2017, the largest seizure of fake spare parts was found in the emirate, Abu Dhabi Department of Economic Development (ADDED) confiscated more than 500,000 pieces worth Dh15 million. This capture of fake spare parts of several major global vehicle brands has prevented potential threat to the safety of drivers and other road users in the UAE. In the automotive industry, fake parts will not only devalue the price of vehicles, but more importantly, will also compromise driver safety.
In addition to this there is always risk to recall of vehicle activities and such kind of incidence can demand very much transparency in the supply of parts and data. Blockchain is emerging as a perfect solution for such kind of issues and problems. This is expected to drive the market at fast pace in coming years.
North America Automotive Blockchain Technologies Market will increase as growing penetration rate in main city of the North America with higher expectation from major players of automotive industry. In North America, U.S. country was worth more than three quarters of the North America Automotive Blockchain Technologies Market at 82.01%. Asia Pacific Automotive Blockchain Technologies Market will increase as growing penetration rate in main city of the Asia Pacific with higher expectation from major players of automotive industry. Europe Region is expected to grow with significant CAGR during the forecast period.