Blockchain in the Automotive Industry: Market Potential of $120B in 2030
Blockchain database technology holds enormous monetization potential for the automotive industry with numerous areas of application
Boston – Blockchain is establishing its presence in the automotive sector. 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 (48 percent) and automated payments (54 percent). Applications that provide added security such as protected data access (50%), enable increased efficiency such as automated payments (54%), or greater convenience such as remote access (46%) were also popular with participants.
“The added value of blockchain applications for the end customer is obvious,” says Peter Harms, a Partner in Simon-Kucher’s global automotive practice. “Automakers need to be aware 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:
- Traffic congestion management: 27 percent of survey participants would be willing to pay on average $11.00 per month for this solution
- Protected data access: $11.00 (7 percent)
- Remote control of vehicle (e.g. locking/unlocking): $8.00 (12 percent)
- Automated payments (e.g. at parking or charging stations): $7.00 (17 percent)
- Immutability of vehicle records (when buying a used car): $6.00 (7 percent)
Based on these figures, total revenue generated by 2030 is set to reach $120 billion. “The added value of blockchain solutions and customer willingness to pay for them already indicate enormous monetizing potential,” says Harms. “Now is the time for the automotive industry to start adjusting its strategies and business models, not only to expand their current offerings with blockchain solutions but also to monetize them.” To accomplish this, industry-wide infrastructure is required. “Close cooperation among individual stakeholders (e.g. automotive manufacturers, taxi companies, municipal corporations, toll operators) is essential to unlock the multi-billion-dollar potential of this technology.”
*About the study: The study “Blockchain in the Automotive Industry” was conducted worldwide in October 2018 by Simon-Kucher & Partners (n=362). It surveyed various factors, including participants’ level of awareness of blockchain, future areas of application in the automotive industry, and willingness to pay for individual applications.
Simon-Kucher & Partners, strategy & marketing consultants: Founded in 1985, Simon-Kucher & Partners has more than 30 years of experience providing strategy and marketing consulting with a focus on TopLine Power®. Simon-Kucher is regarded as the world’s leading pricing advisor. The firm has over 1,200 employees in 38 offices worldwide.