Automotive blockchain could hit £90bn
Blockchain is edging its way into the automotive sector and could be worth £90bn by 2030.
Car owners and other road users are already interested in the many ways in which this technology can be used, the strategy and marketing consultancy Simon-Kucher & Partners found in a recent study.
Survey participants were particularly interested in time-saving solutions, such as traffic congestion management (19.7%) and automated payments (17.5%). Applications that reward good road behaviour, such as by offering adapted insurance rates for safe driving (11.7%) or financial incentives for particularly ecofriendly driving (10.3%) were also popular with participants.
”The added value of blockchain applications for the end customer is obvious,’ says Antoine Weill, a partner in Simon-Kucher’s global Automotive practice. ‘Car manufacturers need to bear in mind that they can generate significant profit from these applications.’
The study also revealed how much drivers would be willing to pay each month for various blockchain solutions, such as traffic congestion management, protected data access, remote control, automated payments, immutability of vehicle records.
Based on these figures, total revenue generated by 2030 is set to reach £91bn.
‘This makes it clear that manufacturers can drive sustainable topline growth by investing in digitalisation,’ says UK partner Dr. Peter Colman. ‘Every manufacturer should have a digital plan, but too often that plan is all about the technology. Manufacturers need to remember that ultimately it has to be about monetization, and how you make money. As such, blockchain solutions offer an interesting and innovative new approach.
‘The added value of blockchain solutions and customers’ willingness to pay already hold enormous monetising potential,” said Antoine Weill. ‘The automotive industry should start adjusting its strategies and business models now, not only to expand their current offerings with blockchain solutions, but also to monetise them.
‘To do this, industry-wide infrastructure is needed. Close cooperation between individual players is essential to unlock this multi-billion-euro potential.’