Blockchain database technology holds enormous monetisation potential for the automotive industry, expected to reach a market potential of $120 billion in 2030.

A recent study from Simon-Kucher & Partners revealed that time-saving solutions, such as traffic congestion management and automated payments caught the most interest from participants. They were also particularly interested in the possibility of improved security, such as protected data access and remote access.

With blockchain now becoming a major player within the automotive industry, vehicle owners are now looking to integrate the technology into their everyday lives.

“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  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)

“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 monetise them.”

Source: online marketplaces.com – Blockchain technology ready to grow quickly within the car industry

8 Feb 2019