The integration of blockchain technology into the automotive industry is expected to grow significantly over the next five years. According to a report by Allied Market Research (AMR), the global automotive blockchain market is projected to reach $5.6 billion by 2030, with an anticipated compound annual growth rate (CAGR) of 29.3% during this period. Blockchain, the foundation of Web3 technologies such as cryptocurrency and the metaverse, is seen as a viable alternative to traditional Web2 data servers.
Unlike centralized data storage, blockchain technology distributes data across its network, enhancing security by reducing vulnerability to cyberattacks and breaches. Additionally, data recorded on blockchain networks is permanent and cannot be altered.
The report highlights that the automotive sector will increasingly explore blockchain applications in areas such as vehicle sales records, service logs, and warranty claims. AMR also underscores the security and immutability of blockchain-stored automotive data, noting that the technology allows buyers and sellers to conduct transactions without intermediaries.
North America is expected to lead the growth of the automotive blockchain industry, with significant developments in the U.S., Canada, Mexico, and Greenland. However, Europe, Asia-Pacific, and LAMEA (Latin America, the Middle East, and Africa) are also forecasted to see extensive blockchain adoption within automotive systems.
Additionally, a recent study by Exactitude Consultancy predicted that the automotive blockchain market could grow to $9.4 billion by 2034. The report highlights smart contracts and advancements in mobility solutions as key factors driving industry adoption.
Several automakers have already begun integrating blockchain technology. In 2019, Daimler established Daimler Financial Services (DFS), known as the ‘Blockchain Factory.’ Meanwhile, Toyota explored blockchain-based management tools for its employees in 2023, as reported by Coindesk.
