The automotive blockchain market is expected to hit an estimated valuation of about $1.6 billion by 2026 with an annual growth rate of approximately 28.5%. It’s projected to grow to USD 5.29 billion by 2030 at a CAGR of 31.19% during the forecast period.
The market valuation has been revised due to the ongoing COVID-19 pandemic. The US market, as of 2021, had an estimated valuation of about $136.8 million. This will lead the growth alongside Japan and China. In the European region, Germany is expected to have an estimated CAGR of 19.7%. China is expected to trail its projected annual growth of 27.5% when its automotive blockchain market surges to $266.7 million by 2026.
The latest report by Global Industry Analysts highlighted that infrastructure and protocol providers will be among the biggest gainers hitting a valuation of $307 million. It gathered insights from a pool of 667 executives drawn from 42 companies within the sector. The report acknowledged that the blockchain automotive market has grown recently, aiming to simplify business processes and create transparency and immutability in distributed ledger technology. It comes with benefits such as faster transactions and a reduced total cost of ownership.
There would likely be an emergence of a new breed of programmable blockchain technology platforms. Venture capital funding continues to grow in the blockchain space. New technology providers, offering new service models, are expected to enter the market. High-growth potential in Asia Oceania and MEA makes the automotive blockchain market more competitive. But the market is still far from reaching its potential. This can be attributed to the lack of consumer awareness, fickle system reliability, and concerns over data privacy.
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The report believes that ongoing new product developments and partnerships by leading companies will propel the growth of the automotive blockchain in the untapped markets for the long forecast.