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Although the use of blockchain is still in its infancy in the automotive industry, a handful of companies are experimenting with its adoption, believing that technology will radically transform the industry.
According to a new study by IBM, 62% of executives in the automotive sector are convinced that the blockchain will be a disruptive force in the automotive sector by 2021 and 54% of the so-called Auto Pioneers plans to implement the first commercial blockchain network on an upcoming scale three years.
As the car pioneers are taking the blockchain step, IBM Institute for Business Value
The IBM Institute for Business Value, in collaboration with Oxford Economics, interviewed 1,314 automotive executives, including original equipment manufacturers (OEMs) and suppliers, in 10 functional areas and 10 countries including China, Germany, India and the United States United and found that the pioneers of the automotive industry, which accounted for 15% of all automotive organizations surveyed, explored the opportunities for blockchain ahead of competitors, with 56% of them claiming to be ready for the blockchain and 95% which plans to invest moderately or significantly in blockchain solutions over the next three years.
Organizations such as the Mobility Open Blockchain Initiative (MOBI) are exploring the use of blockchain to help make mobility safer, more accessible and more widely accepted. The consortium was launched in May 2018 by leading car manufacturers including Renault, Ford, GM and BMW, and represents more than 80% of global automotive production in terms of volume. Some of the initial MOBI projects focus on the secure trade of mobility, pricing and mobility payments based on use and on identity, history and use of vehicles.
In 2016, Indian multinational auto maker Mahindra Group began working with IBM to create a cloud-based blockchain-based common platform for Mahindra Finance producer and supplier transactions, allowing all parties to view transactions in real time, generating trust and transparency through supply chain.
The Dutch provider of haulage transport and logistics services Koopman Logistics Group has tested a blockchain platform at the beginning of this year that monitored real-time shipments of finished vehicles and automated administrative transactions.
German automotive multinational Daimler launched its own digital currency based on the blockchain called MobiCoin in March 2018, an initiative which is part of the company's initiative to reward drivers for environmentally-conscious driving habits.
"We are at the very early stages of the blockchain in the car, but there is enormous potential," said Ben Stanley, Automotive Research for the Institute of Business Value at IBM. "In 2019 we expect to see the blockchain really start to take off, especially with secure data sharing, car and pedestrian transactions and vehicle markets."
The report highlights how blockchain can introduce operational efficiencies, improve information transparency and enable transaction traceability. In particular, the report identifies finance, supply chain and mobility services as the areas that would benefit most from the blockchain.
55% of OEMs and 47% of suppliers interviewed by IBM believe that blockchain implementation will improve imperfect information in their corporate networks, while 52% of OEMs and 40% of suppliers have stated that the risks of information can be improved. Finally, 43% of OEMs and 29% of suppliers said that blockchain will improve the ability to access the information needed for a particular transaction.
