How is Blockchain Changing the Automotive Industry?
Blockchain technology will enhance the complete perception of the business platform. In addition, the formation of the blockchain and the smart contract is enhancing the user experience and security for the industry.
The automotive industry is creating a large amount of revenue in the market. The automotive big-bull sector collaborates with blockchain companies to make their brands more advanced and reliable. Discover the potential benefits and challenges of implementing blockchain in automotive Industry.
PARKGENE, CarVertical, Helbiz, VINchain, etc., are some prime examples of companies that have built their automotive businesses on blockchain to enhance the user experience.
Automotive Business Market Stats
The global automotive blockchain industry is predicted to be worth $428.57 million in 2020 and $5.61 billion by 2030, at a CAGR of 29.3%. North America is predicted to be the biggest revenue contributor, with roughly $175.97 million in sales in 2020, and is expected to reach $2.43 billion by 2030, with a CAGR of 30.3%. Europe is expected to reach $2.42 billion by 2030, with a CAGR of 32.3%. North America and Europe are estimated to account for around 76.2% of the market share in 2020, with the former accounting for approximately 41.1%.
Source: Allied Market Research
How Blockchain Helps Automotive Industry?
Automotive software companies look greatly towards the blockchain to make their businesses more advanced without third-party interference. Let’s see how the blockchain will enhance the market for the automotive industry.
Blockchain technology could help carsharing by enabling secure digital identification. Personal settings and preferences might be safely saved in the car via blockchain, minimizing exposure to unneeded parties. It may also enable peer-to-peer car sharing. Meanwhile, blockchain could make the carsharing process easier for customers because a single registration in the blockchain ecosystem is valid for all carsharing offers from the ecosystem’s many service providers.
Shipping companies are getting the best possible solution from blockchain technology. The communication gap was there before among freight forwarders, customs, port authorities, warehouses, the government, etc., but after the implementation of blockchain technology, things changed drastically.
Maersk, one of the most renowned cargo shippers around the globe, has implemented the blockchain in its business to deliver complete transparency in the supply chain for all the members attached to it.
Let’s understand this with an example: when a driver picks you up and drives to your location by using the map on their smartphone, the blockchain will enhance the market for ridesharing applications. The blockchain will omit third-party interference between the rider and the person who wants to take the ride.
The driver will receive the payment automatically in crypto with the help of a smart contract.
Instead of an arbitrary cancellation fee, if a rider cancels, the contract might refund a tiny amount of the payments to the driver to account for their time.
How To Hire Blockchain Development Company To Start Automotive Business
If you are searching for companies who can help you out in implementing blockchain technology into your automotive business, here are some of the suggestions that you can consider while hiring them.
The first thing you can do as a business owner is research the companies offering automotive blockchain development. Within this research, there are multiple things that you have to take care of and do the research about it. A few of them are the technology you want to build with, the team you want to work with, the complexity of the platform, etc.
While searching for a company that will help you implement the blockchain into your automotive business or develop the platform for you, that blockchain company should have experience in developing a blockchain-based platform. The experience of the company matters as it shows how they are well versed with the technology.
The next thing that matters a lot for the development is the budget discussion with the development company. As per the standard cost, the integration cost of the blockchain in the automotive business can cost from $25,000 to $60,000(approximate). Apart from that, the development cost also depends on the features, size of the platform, complexity, etc., that impacts the cost.
Why Should You Choose Blockchain For Automotive Industry?
Apart from just being the decentralized technology, there is much more potential blockchain keeps in itself. Let’s see what are those factors of blockchain that help the business.
Blockchain technology gives every user of the network access to all financial transactions and contracts in the chain, and the risk involved in transactions is considerably reduced. Because every transaction is safely stored without penetration, organizations can choose providers without fear of losses from fraudulent supplies and counterfeit parts.
Simplifying the supply chain and increasing accountability throughout the supplier network is certain to favor other elements of an automaker’s business and generate opportunities for savings across the board. A more effective supply chain will help improve the manufacturing process and production capacity by allowing for greater resource utilization. Improved validation and tracking will increase compliance with regulations while decreasing the need for human intervention and control. Improved compliance is going to, in turn, reduce the possibility of fines and other penalties levied by the regulator.
High-End User Experience
While blockchain technology has the potential to alter the corporate side of the industry, it also has the ability to provide much greater consumer advantages. Better products at lower costs will result from a more efficient and transparent manufacturing process. Direct blockchain applications, on the other hand, can enable users to track vehicle history, transfer or share ownership, share rides, file insurance claims, and pay for services while on the go.
Consumers will be able to acquire things with total transparency in car history, production, and source thanks to digitalization using blockchain technology. The verification, transfer of ownership, and retail processes would be simplified, avoiding onerous paperwork and the danger of fraud.
When automakers are involved in larger, distributed supply chains, there is always the possibility of counterfeit spare parts. These components can be difficult to find since they necessitate more resources and labor. A blockchain development company in the US can assist in resolving this issue and ensuring that all pieces are real.
Smart contracts and real-time notifications can help automakers verify parts more simply. Individuals can validate the hash ID by comparing it to the preceding hash code. This will save time and help the operation scale.
The demand for the blockchain is increasing day by day, and many industries like fashion, education, healthcare, and many more are moving towards the blockchain industry. It’s one of the robust technologies that is making our lives more advanced and highly secure. This is the right time to invest your time and money into this technology to be the leading automotive company in the coming days.
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