Blockchain is establishing its presence in the automotive sector; the technology shows revenue potential of $120 billion in 2030, according to a recent study by global strategy and marketing consultancy Simon-Kucher & Partners.
Car owners and other road users are already interested in the many ways in which this technology can be used. Survey participants were particularly interested in time-saving solutions, such as traffic congestion management (48%) and automated payments (54%).
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. Automakers need to be aware that they can generate significant profit from these applications.—Peter Harms, a partner in Simon-Kucher’s global automotive practice
The study also revealed how much drivers would be willing to pay each month for various blockchain solutions:
Traffic congestion management: 27% of survey participants would be willing to pay on average $11.00 per month for this solution
Protected data access: $11.00 (7%)
Remote control of vehicle (e.g. locking/unlocking): $8.00 (12%)
Automated payments (e.g. at parking or charging stations): $7.00 (17%)
Immutability of vehicle records (when buying a used car): $6.00 (7%)
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. 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.
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.—Peter Harms
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.
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 more than 1,200 employees in 38 offices worldwide.