The automotive and aerospace fields have been diving headlong into the blockchain market, and as per a recent report from market research project Reportlinker published on June 13, the reach of the technology will reach over $20 billion by 2029.
As per the analysis, the blockchain applications in automotive and aerospace and aviation industries will grow at a compound annual growth rate of 60.35% between 2019 and 2029. The study further claims that blockchain features such as transparency, fast transaction settlements, and removal of the risk of fraud will be the major drivers for the growth. The report reads:
“The finance, payments, and insurance services for automotive industry and manufacturing and supply chain for aerospace & aviation industry is dominating the blockchain in automotive and aerospace & aviation market and is anticipated to maintain its dominance throughout the forecast period. This is mainly due to a complexity in supply chain of the automotive industry, as automotive ecosystem is highly connected, and therefore the issues of cyber threat increases.”
The current dominating private blockchain segment is expected to maintain its position throughout the forecasted period, majorly due to the advantages of private blockchains over public and hybrid blockchains such as highly secured, permissioned networks, and faster speeds.
The report further elaborates over regional adoption, North America will purportedly lead the world in blockchain application in the automotive and aerospace and aviation market. The study also went on to name the issues that stifle blockchain adoption in the said industries, namely the lack of regulatory framework, standardization, and lack of technical expertise and awareness among the industry players.
A report in may suggested that global blockchain spending will purportedly account for almost $2.9 billion in 2019, which is an 88.7% increase from 2018. As per the market research firm International Data Corporation, manufacturing and distribution services are predicted to see spending on blockchain amount to $653 million and $642 million respectively in 2019.
Image source – Pixabay.com