SANTA CLARA, Calif., May 26, 2017 /PRNewswire/ -- As the digitization trend sweeps across industry verticals, blockchains have begun to capture a bigger share of IT budgets. By 2025, the total automotive industry's spend on technology is expected to be ~168.80 billion, with ~0.6 percent investment on blockchain technology due to their value in smart manufacturing, supply chain logistics, retailing & leasing, connected living & IoT (Internet of Things) and mobility services. Automotive original equipment manufacturers (OEMs) primarily employ blockchain technology in financial applications, but in the long term, they will extend their use to functional areas such as smart manufacturing and connected cars.
Frost & Sullivan's new analysis, Blockchain Technology Revolutionizing Automotive Industry, provides in-depth insight of key areas in the automotive industry that can utilize blockchain technology.
To learn more about Frost & Sullivan's research or to sign-up for our Growth Strategy Dialogue, a complimentary one-hour interactive session, with Frost & Sullivan thought leaders please visit: https://goo.gl/OtvaKq
"OEMs are only gradually waking up to blockchain technology's benefits of real-time monitoring, auditability and scalability in an era of connected living," said Frost & Sullivan Mobility Research Analyst Meena Subramanian. "Stakeholders all along the value chain are showing great eagerness to harness the power of this technology to achieve best-in-class decentralization, transparency and security."
Meanwhile, financial divisions in the automotive industry are forming consortiums to frame policies that will help them comply with regulations on a global level. For instance, in 2017 Bosch, Cisco and many start-ups, formed a consortium to build IoT applications based on blockchain technology.
"By 2025, the penetration rate of blockchain technology in functional areas such as retailing & leasing, supply chain logistics, mobility solutions, smart manufacturing, connected living &IoT is expected to be at ~37.2 percent," noted Subramanian. "The most successful solution providers will be the ones that create tailored ideas and products that address business requirements, recurring issues, as well as process automotive use cases."
Blockchain Technology Revolutionizing Automotive Industry is part of Frost & Sullivan's Automotive & Transportation Growth Partnership Subscription.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Contact us: Start the discussion
Blockchain Technology Revolutionizing Automotive Industry
Corporate Communications – North America
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/automotive-industry-relies-on-blockchain-platforms-to-enhance-security-in-increasingly-digitized-environment-300464314.html
SOURCE Frost & Sullivan