The volume of the global automotive blockchain market size is set to hit $1.6 billion by 2026, growing at a CAGR of 65.80% during the period 2018-2026, according to a report by BIS Research.
The company flags up the growing popularity of blockchain technology due to numerous benefits including immutability, reliability and scalability, along with high application potential. Its research is based on a financial analysis of such key market players as Ethereum, Ripple Labs, IBM, BigChain DB and R3.
BIS Research Senior Analyst, Haarish Ahmad, says: “Automotive financing, leasing, and insurance services is the most dominant application segment for the automotive blockchain and accounts for the majority of the total revenue generated by blockchain technology in this domain. Additionally, automotive manufacturing is expected to witness the highest growth in this market with a CAGR of 107.38%, owing to the incorporation of blockchain technology by the OEMs within their assembly lines and operations.”
Bigging up blockchain
Not a week goes by without the release of several new reports predicting big things for blockchain across various sectors. For instance, deployments will enable banks to realise savings on cross-border settlement transactions of more than $27 billion by the end of 2030, reducing costs by more than 11% per on-chain transaction, according to Juniper Research
Those that integrate blockchain will achieve cost reductions not just in payment processing and reconciliation, but in treasury operations and compliance. Juniper Research argues that in compliance, automation of identity/money-laundering checks, allied to the capability of the blockchain to verify the digital identity of an individual, should enable savings of up to 50% of the existing costs base within a few years.
However, it cautions that the need to parallel-run blockchain-based services with legacy systems would mean that savings would not be realised for several years after initial deployment, with annual cost reductions not reaching $1 billion per annum until 2024.
Juniper Research has identified potential savings for consumers and enterprises across a range of industries, from reduced fees for home buyers to fraud in the food export trade, where it is estimated that deployments would reduce the cost of fraud by nearly 50% within 12 years.