The blockchain market in the automotive and aerospace industry will reach over $20 billion by 2029. This is according to a recent report from market research project Report published on June 13th.
The analysis projects that blockchain applications in the automotive and aviation industries will grow at a compound annual growth rate of 60.35% between 2019 and 2029. The study sees blockchain features such as transparency, fast transaction settlements, and removal of risk of fraud as major growth drivers. The report reads:
“The finance, payments, and insurance services for automotive industry and manufacturing and supply chain for aerospace & aviation industry is dominating the blockchain in automotive and aerospace & aviation market and is anticipated to maintain its dominance throughout the forecast period. This is mainly due to a complexity in supply chain of the automotive industry, as automotive ecosystem is highly connected, and therefore the issues of cyber threat increases.”
The private blockchain segment which is currently dominating will purportedly maintain its position throughout the forecasted period primarily due to the advantages of private blockchains over public and hybrid blockchains such as highly secured, permissioned networks, and faster speeds.
In terms of regional adoption, North America is expected to lead the world in blockchain application in the automotive and aerospace market.
Issues that could stifle blockchain adoption in the industries according to the study includes lack of regulatory framework, standardization, and lack of technical expertise and awareness among the industry players.
The global blockchain spending will purportedly account for almost $2.9 billion in 2019. The United States federal government is expected to raise its blockchain spending to $123.5 million by 2022 and this is an over 1,000% increase as compared with the what was spent in 2017.