Impact of Blockchain on the Global Automotive Aftermarket, Forecast to 2025

Parts Authentication Through Digital Twining to Substantially Decrease Seepage of Counterfeit Products in the Supply Chain
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Published: 26 Feb 2019

The increasing use of blockchain technology will go hand-in-hand with growing advances in the automotive industry, especially through digitization and automation. Key trends such as parts authentication, asset tracking, modern logistics systems, and proliferation of financial technology (fintech) influencing the automotive industry are expected to drive the adoption of blockchain technology in the aftermarket industry. Some of the key advantages of using blockchain in the aftermarket are added transparency on ownership, price, and smart contracts. It is expected to accelerate payments through eWallets, enhance security through transparent blocks, and eliminate fraud along with eliminating middlemen, reducing paperwork, and streamlining the supply chain. Blockchain’s impact on the aftermarket is expected to gradually increase in the coming years, especially after 2020. It is, however, largely dependent on the level of automation and proliferation of technology in the industry mandating support for these advances. Blockchain will radically simplify and accelerate the business operations of all key stakeholders involved in the aftermarket – such as suppliers, distributors, buying groups, retailers, garages, and eventually consumers. Shared mobility and fleets are expected to benefit considerably through blockchain solutions that allow for efficiency, security, and time and cost reductions across various areas such as leasing, insurance, service and maintenance, refueling, parking, freight brokering, and cargo safety. The vehicle purchasing process for fleets using blockchain brings all the relevant stakeholders onto a common platform, enabling them to share and view information in real time. Investing in blockchain is expected to ease fleet operations by improving overall operational efficiency and reducing costs. Suppliers will benefit from being on the same blockchain platform as OEMs and end customers. This is expected to reduce the cost and time for spare parts and warranty issues as well as hasten recalls, all enabled through smart contracts.

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