Many technologies are part of a global invention. For example, the latest metaverse transforms the way internet users socialize, learn and do business. Also, artificial intelligence makes many industries powerful. One such notable technology is blockchain. A blockchain development company can make the best use of this revolutionizing technology.
Blockchain is one of the prominent cutting-edge technologies. Its best-in-class features have the potential to shape various industries. For example, the finance industry makes use of security and decentralized nature. Moreover, the manufacturing sector can benefit from robust blockchain-based supply chains. In addition, blockchain-based NFTs can authenticate many products and avoid duplicity by offering digital NFTs of the original products.
Like many other industries, even the automotive sector has the advantage of cutting-edge technologies. Moreover, blockchain has significant benefits in the automotive field. Furthermore, automotive NFTs are adored by many key players in the industries.
In this post, you will read about the role of blockchain and NFTs in the automotive field. Moreover, you will know about the transformations these two technologies bring to the automotive sector.
First, let us know about the contribution of technological advancements in this field.
Technologies disrupting the automotive sector
Automotive is one of the largest sectors in the world. It consists of various sub-areas to design, develop, manufacture and sell motor vehicles. Moreover, this sector embraces many technologies. For example, artificial intelligence, connectivity, big data analysis, and human-machine interfaces are some technologies that play a key role in advancing the automotive sector.
- Allied Market Research says that the worldwide AI automotive market in 2017 was USD 445.8 million. By 2025, it is said to have a value of USD8,887.6 million.
- According to Globe news wire, in 2021, the global automotive big data market was USD 4216.8 million. By 2027, it is said to have a hike and reach USD 9920.1 million.
- According to Fortune Business Insights, the worldwide HMI automotive sector is said to hike from USD10.71 billion to USD 18.64 billion. Moreover, this hike will happen between 2021 to 2028.
Furthermore, blockchain technology has a significant impact on the automotive sector. Let us understand how blockchain and NFT impact the automotive domain.
Blockchain in the automotive sector
- According to Markets and Markets, in 2020, the worldwide automotive blockchain market was USD 0.35 billion. By 2030, it is expected to reach USD 5.29 billion.
Blockchain is a decentralized technology. It removes intermediate nodes from the system and makes the system transparent. Moreover, the system using blockchain technology is supposed to have robust security.
As the automotive field embraces new technologies, blockchain can benefit the domain too! Blockchain can work on various levels of the field. From manufacturing to an efficient supply chain, blockchain can help. Moreover, it brings more security and a decentralized model to automotive firms.
Let us know about some benefits of blockchain to the automotive field.
Blockchain was made popular after a boom of bitcoin or crypto. Though it has much more potential than bitcoins, it has significant benefits in managing finances. Even in the automotive field, blockchain brings transactional benefits. For example, smart contracts can be very effective in the automotive field. Furthermore, in the future, it can enable the payment of gas or electricity via a blockchain system.
Vehicle sharing will be easy.
Companies such as Uber allow ride-sharing for customers. A blockchain system can remove intermediate points in such ide-sharing. For example, drivers will get the payment for the ride completed via the blockchain model. Moreover, if the rider cancels the ride, the driver will get a partial fee for the canceled ride.
Location and tracking will be effortless.
The blockchain system can make use of RFID. For example, when RFID holds the location of cars, a company can track the location of employees in it. In addition, in manufacturing, blockchain can help in tracking the location of raw materials.
Autonomous vehicles will get an edge.
Autonomous vehicles are the future of automotive. However, a self-driving vehicle requires a lot of data processing. The blockchain tracks and stores this data. It also makes sure that a vehicle is safe.
It can benefit shared ownership as well.
Shared ownership seems to take a leap in the automotive industry. For example, it is possible that car ownership is distributed among a few people, and they can access it via an app. In such a case, blockchain can make this sharing secure and will make it more trustworthy.
Now let us find out the significance of NFTs in the automotive industry.
NFT in the automotive sector
NFTs are non-fungible tokens. It is a byproduct of blockchain. Primarily, NFTs maintain the authenticity of the product or asset. NFT as a digital token is getting popular in almost every field, you name. Even many automakers use NFTs. Moreover, many big names such as Hyundai, Mahindra, and Mahindra, Bentley, Lamborghini, etc., take part in NFT automotive initiative.
In addition, metaverse has highlighted the use of NFTs. Also, many car makers believe that NFTs and metaverse can have a huge contribution in engaging customers with branding. For example, Mahindra launched NFT. The company is soon to avail many features for online customers via digital marketing.
Furthermore, there are many innovative ideas for automotive NFTs used by various companies such as Rolls Royce, Porsche, Ferrari, etc.
The automotive sector has seen vast development since its birth in 1860. Every change and growth in technology has made this sector more robust. Technologies such as artificial intelligence, blockchain, and NFT give this sector a cutting-edge.
- According to Statista, in 2018, the worldwide blockchain technology market was USD 1.57 billion. Moreover, by 2027, it is said to have a value of USD 163 billion.
- According to Globe News Wire, by 2028, the worldwide NFT market is said to have a value of USD 97.6 billion.
Blockchain and NFT are both potent business solutions. They have the ability to bring significant changes in the traditional systems making the companies and sectors more powerful. A blockchain and NFT development company contributes to nurturing these technologies.