Automotive Blockchain Market

Automotive Blockchain Market Size and Share:

The global automotive blockchain market size was valued at USD 957.07 Million in 2024. Looking forward, IMARC Group estimates the market to reach USD 8,414.72 Million by 2033, exhibiting a CAGR of 24.3% during 2025-2033. North America currently dominates the market, holding a significant market share of over 34.8% in 2024. The growing incidences of cyberattacks such as phishing on connected vehicles are bolstering the market.

The global market is majorly driven by increasing demand for enhanced transparency and traceability in supply chain processes, as blockchain technology ensures secure and tamper-proof recordkeeping. Along with this, the rising adoption of electric vehicles (EVs) and connected car technologies is also increasing the need for decentralized platforms to manage data securely. On 18^th March 2024, Egoras Technology, a Nigerian energy startup, launched blockchain-powered EV charging stations, "Egostation," in Rivers State. Using its Egochain technology, the initiative incentivizes station ownership with USD EGAX tokens and offers DC fast chargers capable of charging EVs up to 80% in 20 minutes. Egoras plans to introduce APEX 28, a made-in-Nigeria EV, in April, aiming to enhance EV adoption and expand Nigeria's infrastructure. Furthermore, the automotive industry's push for more efficient fraud detection and prevention methods in areas such as vehicle identity and financing enhance blockchain integration. Besides this, regulatory support for blockchain adoption and the potential for cost reduction in vehicle manufacturing and maintenance further fuel market growth.

The United States stands out as a key regional market, primarily driven by the rising focus on enhancing operational efficiency and reducing costs across the automotive value chain. Companies are increasingly leveraging blockchain to streamline payment systems, improve contract management, and optimize warranty claims processing. For instance, on December 03, 2024, Nacha’s Payments Innovation Alliance released Diving into the Fundamentals of Cryptocurrency as a Form of Digital Payment, exploring blockchain technology's role in digital payments. The paper highlights blockchain, distributed ledgers, and cryptography in transaction flows, emphasizing governance, consumer protections, and future resources on blockchain-related fraud, security, and regulatory challenges. Besides this, continual advances in IoT integration within vehicles create opportunities for blockchain to manage secure data exchange between connected devices. Additionally, the increasing prevalence of shared mobility services, such as ride-sharing and vehicle leasing, necessitates transparent and decentralized systems to manage ownership and usage records, further contributing to the US automotive blockchain market share.

Automotive Blockchain Market Trends:

Rising Focus on Security

The increasing concerns about safeguarding sensitive information are propelling the market. In addition, as modern vehicles become more autonomous and connected, the need to protect vehicle performance data and personal details is paramount. This technology aims to build trust with consumers and stakeholders, which is escalating the market. For instance, in January 2024, Tuhu Car launched a new auto parts traceability function based on Huawei Cloud’s blockchain technology.

Increasing Popularity of Smart Contracts

Smart contracts are gaining traction, as they offer automated and self-executing agreements that enhance operational efficiency. Moreover, they streamline processes, including insurance claims, vehicle leasing, and parts procurement, among others. By eliminating the need for intermediaries and reducing manual oversight, smart contracts decrease administrative costs and minimize errors, which is bolstering the automotive blockchain market demand. For instance, in February 2024, the city of Shenzhen collaborated with the Agricultural Bank of China to implement digital yuan smart contracts for car pre-payments.

Emerging Technological Advancements

Hybrid blockchains are emerging as a flexible solution for automotive applications, which is contributing to the market. This trend enables companies to leverage the transparency of public blockchains for certain aspects of their operations. In August 2023, Mitsubishi Motors Europe leveraged Vinturas' private blockchain technology to raise transparency, traceability, and security for its supply chain of New Generation ASX and its new All-New COLT model. The technology made Mitsubishi have better logistical transparency as well as data management capabilities, ensuring that Mitsubishi fully controls and owns the data in its entire supply chain. In May 2024, DeLorean collaborated with Otherlife to create a marketplace that allows automakers to sell, buy, and trade vehicle reservation build slots by leveraging automotive blockchain technology.

Automotive Blockchain Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global automotive blockchain market, along with forecast at the global, regional, and country levels from 2025-2033. The market has been categorized based on the type, provider, mobility type, application, and end user.

Analysis by Type:

• Public Blockchain
• Private Blockchain
• Hybrid Blockchain

Public blockchain leads the market with 61.5% of the total market share. Public blockchain in the automotive sector enables open access and transparency, making it ideal for applications such as vehicle history tracking and supply chain visibility. It supports applications such as secure data sharing with external stakeholders, and its decentralized nature ensures trust and reduces fraud risks. Additionally, public blockchains allow seamless integration with Internet of Things (IoT) devices, enhancing real-time data sharing and analytics. They also foster collaboration among multiple entities, promoting innovation and interoperability across the industry.

Analysis by Provider:

• Application and Solution
• Middleware
• Infrastructure and Protocol

Application and solution lead the market in 2024 due to its broad utility across various industry processes. This segment includes blockchain-enabled solutions for supply chain management, secure payment systems, and vehicle identity verification. Its capability to streamline operations, reduce fraud, and enhance data accuracy has driven widespread adoption. Additionally, the integration of blockchain in applications such as smart contracts for leasing agreements and warranty management underscores its transformative potential. With increasing digitization and the rising need for efficient data management systems, this segment continues to attract significant investment, solidifying its position as the largest contributor to automotive blockchain market growth. Moreover, the inflating need for improving efficiency, transparency, and security across the automotive industry is bolstering the segment's growth. For instance, companies such as VeChain launched solutions that enable the tracking of parts from manufacturers to consumers using blockchain's immutable ledger.

Analysis by Mobility Type:

• Personal Mobility
• Shared Mobility
• Commercial Mobility

The personal mobility segment leverages blockchain for secure vehicle ownership records, personalized maintenance tracking, and insurance management. It enhances user experience by offering transparency and seamless transactions for individual vehicle purchases and services. Additionally, blockchain enables automated service scheduling and warranty claims, ensuring convenience and efficiency for vehicle owners. The integration with digital identity solutions also simplifies user verification, further personalizing and securing the mobility experience.

Shared mobility benefits from blockchain by providing secure and transparent payment systems, user authentication, and ride-sharing records. It ensures trust among users and operators, streamlining operations for car-sharing, ride-hailing, and subscription-based services. Blockchain also facilitates dynamic pricing and real-time updates on vehicle availability, enhancing operational efficiency. Furthermore, the technology supports the creation of decentralized mobility ecosystems, empowering users and service providers with equal participation in decision-making processes.

Commercial mobility utilizes blockchain to optimize fleet management, monitor vehicle performance, and manage logistics. It ensures real-time tracking, reduces operational inefficiencies and enhances trust in transactions across supply chains and transportation networks. Concurrently, blockchain enables smart contracts for automated invoicing and payment processing, reducing delays and errors. Its ability to provide immutable audit trails supports compliance with industry regulations and improves accountability across commercial mobility operations.

Analysis by Application:

• Financing
• Mobility Solutions
• Smart Contract
• Supply Chain

Supply chain leads the market with around 32.5% of market share in 2024 due to its critical role in ensuring transparency, efficiency, and security. Blockchain technology enables real-time tracking of parts and materials, reducing delays and minimizing errors. It enhances trust among stakeholders by providing tamper-proof records and verifying the authenticity of components. Additionally, blockchain streamlines processes including supplier payments, regulatory compliance, and inventory management, reducing operational costs. The rising complexity of global supply chains and the demand for sustainable practices further drive blockchain adoption in this segment, solidifying its position as the most significant application in the automotive industry.

Analysis by End User:

• OEMs
• Vehicle Owners
• Mobility as a Service Provider
• Others

Original Equipment Manufacturers (OEMs) use blockchain to streamline supply chain management, enhance parts traceability, and ensure compliance. It reduces operational inefficiencies, supports smart contracts, and improves trust across manufacturing processes. Additionally, blockchain enables predictive analytics by integrating data from multiple sources, enhancing decision-making. OEMs also leverage blockchain to improve recall management, ensuring swift and accurate action when addressing defective parts or products.

Vehicle owners benefit from blockchain through secure ownership records, transparent maintenance histories, and simplified insurance claims. It enhances user confidence by ensuring tamper-proof data management and seamless interactions with service providers. Blockchain also facilitates peer-to-peer vehicle rentals or sales, eliminating intermediaries and ensuring secure transactions. Moreover, it can integrate with digital wallets, enabling easier access to related services like toll payments and charging station usage.

Mobility as a Service (MaaS) providers leverage blockchain for efficient ride-sharing operations, secure payment systems, and user authentication. It ensures transparency, reduces fraud, and enhances service delivery for shared and subscription-based transportation models. Blockchain also supports decentralized identity management, enabling users to securely share their credentials across multiple platforms. Additionally, MaaS providers can utilize blockchain for predictive maintenance of their fleets, minimizing downtime and improving operational efficiency.

Regional Analysis:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa

In 2024, North America accounted for the largest market share of over 34.8% due to its advanced automotive sector and strong technological infrastructure. The region's focus on innovation drives the adoption of blockchain for applications such as supply chain management, vehicle financing, and data security. High investment in electric and autonomous vehicles further improves blockchain integration to manage complex data systems. Additionally, supportive regulatory frameworks and the presence of key market players foster growth. The increasing demand for transparency, efficiency, and fraud prevention in automotive operations makes blockchain solutions highly sought after, solidifying North America’s position as the largest regional segment in the global automotive blockchain market. Furthermore, the escalating demand for enhanced automotive software is also acting as another significant growth-inducing factor. According to the IMARC, the United States automotive software market size reached nearly about USD 4.24 Billion in 2023. Looking forward, IMARC Group expects the market to reach approximately USD 6.75 Billion by 2032, thereby exhibiting a growth rate (CAGR) of 5.30% during ​2024-2032​.

Key Regional Takeaways:
 

United States Automotive Blockchain Market Analysis

In 2024, the United States accounts for 82.80% of the North America automotive blockchain market. The expansion of the automotive blockchain market in the United States is being driven by the growing sales of electric vehicles. According to an industrial report, new light-duty chargeable electric vehicle sales reached 608,000 in 2021, a strong rise from 308,000 recorded in 2020. The battery electric vehicles took over 73% of all chargeable electric vehicles sold in the country, pointing out the growth in the adoption of electric mobility. While sales have basically levelled off against those for 2020, long-term growth for BEVs has been remarkable since 2013 and still expanding year on year over the next few years.

This increased demand for electric vehicles opens new avenues for the automotive blockchain market as blockchain technology would be of extreme importance for enhancing supply chain transparency and improving the efficiency of processes in EV manufacturing, in addition to data security relating to ownership and transactions of vehicles. Moreover, it would allow for optimal management of energy, enable communication between a vehicle and a grid, and ensure safe over-the-air updates for electric vehicles; hence, this is a critical technology as the automotive industry transitions toward electrification.

Europe Automotive Blockchain Market Analysis

The rapid growth in electric vehicle adoptions in Europe is a significant growth driver for the automotive blockchain market. According to International Energy Agency, new registrations of electric cars in Europe exceeded nearly 3.2 Million for 2023, showing an approximate 20% increase as compared with 2022. Now, battery electric vehicles make up 70% of the electric car stock in the region, signaling a change towards electrification.

Government initiatives are also fueling this growth, as many countries have announced targets to eliminate petrol and diesel vehicles by 2040, such as China, India, France, and the United Kingdom. The European Union has also granted a 10-year exemption for BEVs and FCEVs registered before December 31, 2025, up to 2030.

With increasing adoption of EVs, the demand for blockchain solutions in the automotive sector is increasing. Blockchain can enhance the transparency, security, and efficiency of EV supply chains, facilitate secure data management for vehicle ownership, and support sustainable energy management in the growing EV ecosystem.

Asia Pacific Automotive Blockchain Market Analysis

One of the key growth drivers in the automotive blockchain market is the fast uptake of electric vehicles (EVs) in the Asia Pacific region. The region is on the front lines of EV production and consumption, and countries including China, Japan, and South Korea are experiencing a drastic increase in EV sales. In fact, China alone leads the charge, accounting for more than half of all global EV sales. This shift towards electrification is changing the face of the automotive industry, and there is a need for efficient, secure, and transparent solutions.

Government initiatives are also playing a significant role, with countries such as China and India setting ambitious targets for EV adoption, aiming to phase out petrol and diesel vehicles by 2035 and 2030, respectively. With increasing pressure on clean energy solutions and the growing infrastructure for EVs, the climate is becoming more conducive to blockchain technology. Blockchain will be beneficial in areas including secure vehicle data management, smart contracts, and enhancing supply chain transparency, all of which are critical for the emerging ecosystem of EVs in Asia Pacific.

Latin America Automotive Blockchain Market Analysis

Latin America is experiencing a high rate of adoption of electric vehicles, which is fuelling the growth of the automotive blockchain market. The Brazilian government reduced the tax on electric vehicles from 30% to 15% in January 2024, which has enhanced the sales of EVs and attracted global automotive manufacturers. Companies such as General Motors and Volkswagen have invested heavily in Brazil, with GM opening a new production line in São Paulo in March 2023, which indicates a strong market.

The Argentine government also launched a new incentive program for electric vehicle production in April 2024 in order to attract global producers. Toyota and Ford announced plans to enhance their footprint in Argentina recently, which will, in turn further increase EV demand in that region. As the number of sales of electric vehicles increases with time, there is now a greater demand for blockchains that enable secure data management, both transparently and efficiently in the EV supply chain. Blockchain technology can be used to streamline vehicle tracking, secure ownership records, and enhance supply chain transparency, making it a necessary tool for the increasing EV ecosystem in Latin America.

Middle East and Africa Automotive Blockchain Market Analysis

Rising government efforts to construct electric vehicle (EV) charging infrastructure in the Middle East and Africa (MEA) will significantly increase the automotive blockchain market. For instance, as of August 2022, Saudi Arabia's Ministry of Industry and Mineral Resources announced an investment of over USD 6 Billion to enhance battery mineral mining and support the EV supply chain. This initiative promotes the expansion of the EV ecosystem, requiring the need for blockchain solutions for more transparency, security, and efficiency in tracking EV parts and transactions.

Abu Dhabi also introduced a policy of regulatory framework for electric vehicle charging infrastructure in May 2022, relating to ownership, installation, and management of electric vehicle charging equipment. This also involves policy on power supply to charging stations and pricing to the consumers. This will frame secure and efficient transactions. In this ever-changing landscape, blockchain technology can play a vital role in enabling the safe management of data, increasing the transparency of supply chains, and ensuring integrity within transactions in the rapidly expanding EV market in the region.

Competitive Landscape:

The leading companies integrate artificial intelligence (AI) and connected devices with automotive blockchain to collect real-time data from vehicles. These advancements in vehicles transmit data related to performance, maintenance needs, and even driver behavior, thereby propelling the automotive blockchain market statistics. These advanced technologies enable predictive maintenance and can anticipate maintenance needs, reducing downtime, and improving vehicle reliability by analyzing historical data recorded on the blockchain. Moreover, key players are adopting the use of blockchain-based decentralized identity solutions to enable secure and private verification of driver and vehicle identities.

The report provides a comprehensive analysis of the competitive landscape in the automotive blockchain market with detailed profiles of all major companies, including:

• Accenture plc
• BigchainDB GmbH
• carVertical
• ConsenSys
• GemOS
• HCL Technologies Limited (HCL Enterprise)
• International Business Machines Corporation
• Microsoft Corporation
• NXM Labs Inc.
• ShiftMobility Inc.
• Tech Mahindra Limited

Latest News and Developments:

• May 2024: DeLorean collaborated with Otherlife to create a marketplace that allows automakers to sell, buy, and trade vehicle reservation build slots by leveraging automotive blockchain technology.
• May 2024: Wave, a digital asset-focused investment adviser regulated by the SEC, introduced a polygon network-focused yield vehicle with an initial USD30 Million.
• January 2024: Tuhu Car launched a new auto parts traceability function based on Huawei Cloud’s blockchain technology.

Automotive Blockchain Market Report Scope:

Key Benefits for Stakeholders:

• IMARC's industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the automotive blockchain market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global automotive blockchain market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the automotive blockchain industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.