Blockchain

BLOCKCHAIN
Adoption in Automotive Industry
August 28, 2019

BLOCKCHAIN: Adoption in Automotive Industry
Executive Summary 4
Industry Overview 6
Global Automotive Industry 7
Key Trends that are Shaping the
Global Automotive Sector 8
Key Value Chain Stakeholders &

Participant 11
Raw Material Suppliers 12
Component Suppliers 13
Car Manufacturers/OEMs 14
Utility Providers/Energy Companies 14
Service Centers and Chains 15
Dealers and Distributors 16
Blockchain Technology Solutions 17

Mobility Services 18
Supply Chain Services 23
Electric Vehicle Charging 28
Vehicle Autonomy 34
Data Monetization and History Data 36
Insurance 43
Marketplace 49
Loyalty 53
Other Solutions 55
Blockchain Setup 58
Consortium-linked Approach 59
Startups 61
Automotive Companies 62
Others: Technology Player: IBM 64
State of Blockchain Adoption in the

Automotive Industry 66
Immediate Opportunities 67
Long Term Opportunities 72
Financial Backing 75
Conclusion 77
References 78
With USD 3 trillion in revenues and a 15 million

strong workforce, the global auto industry is a critical
component of socio-economic development. The
Executive
industry is in the midst of a digital transformation for
effectively addressing growing regulatory norms and
safety standards. Further, auto companies must
adopt to a set of disruptive trends including the rise
Summary
of connected vehicles, introduction of autonomous
driving technologies, growth of mobility as a service,
and the spread of electric vehicles.
The industry is set for a marked technological

transformation and is witnessing a significant
increase in the adoption of innovative technologies
such as IoT (Internet of Things), AI (Artificial
Intelligence), ML (Machine Learning), and blockchain
(BC).
Blockchain Adoption in the Automotive Sector
Globally, automobile manufacturers are looking to leverage blockchain as one of the key
enablers for the realization of the potential of autonomous vehicles. Legacy auto majors
have started shifting their focus towards adopting this emerging technology to remain
competitive in their markets. The adoption of blockchain technology is further gaining in
momentum as an innovative solution for other industry stakeholders including dealers and
distributors, parts manufacturers, and car owners.
A majority of blockchain-enabled automotive industry pilot projects target untapped

markets and focus on stakeholder value mapping and value creation. In the near future,
the industry will witness a significant increase in blockchain-based innovative service
offerings including mobility services, and vehicular data and history monetization as the
majority of blockchain services providers have already commercialized these services.
Going forward, global startups have either already entered or plan to enter the
blockchain-enabled automotive industry through pilot projects to offer disruptive
solutions for all stakeholders, while also building a strong ecosystem simultaneously. For
instance, blockchain-based innovative services including insurance, marketplace, vehicle
autonomy, which are complex and require more advanced infrastructure, constitute the
long-term focus of several blockchain service providers.
4
Key Stakeholders in the Automotive Blockchain Ecosystem
The entry of high-tech innovators into the automotive space has disrupted the industry’s
traditional business models, resulting in a shift of focus towards an increased adoption of
emerging technologies. With awareness about blockchain growing rapidly, we can expect
its accelerated adoption in the value chain, with a positive impact for all stakeholders,
including:
Raw Material Suppliers: access critical performance data

Sustainability, social and environmental (identified and recorded regularly on a
responsibility, ethical sourcing, distributed ledger) by obtaining
transparency, and security are some of instantaneous approval from the vehicle
the key objectives that have helped owners. They can leverage the acquired
accelerate the adoption of blockchain data for optimal upkeep of electrical and
solutions among the raw material autonomous vehicles, projected as the
suppliers. mainstay of the future.
Component Suppliers: Dealers and Distributors:

With blockchain solutions in place, Blockchain solutions can also help
issuing a recall notification for a dealers improve their customer relations
replacement becomes extremely and service management by providing
efficient, irrespective of the scale of access to a plethora of vehicle data linked
recall. Additionally, by enhancing to VIN, service history, GPS and driving
component traceability, blockchain history, and warranty tracking– all in real
solutions can help eradicate sale of fake time.
products.
Focus areas in Blockchain Adoption:
Car Manufacturers and OEMs: The most prominent focus areas include
With smart manufacturing as the new mobility services, establishment and
norm, the ability to control inbound plant operation of marketplaces, and vehicular
logistics by leveraging blockchain helps data and history monetization.
increase efficiency and ensure Decentralized applications (dApps), that
transparency in automobile offer ease of access, universal identities
manufacturing operations. for producers, and increase participation
Utility and Energy Companies: of consumers and each and every entity
With the rise of electric vehicles (EVs), in between, are expected to be at the
automotive companies and utility centre of this development.
providers have been working in close
collaboration for leveraging blockchain It is predicted that USA, Italy, and
platforms. Germany, home to the major
downstream players with the potential to
Service Centers and Chains: affect the blockchain landscape, lead the
By leveraging blockchain-based solutions way with use cases permeating across
and platforms, service centers can now the industry.
5
Global Automotive Industry
With over USD 3 trillion in annual revenue, the automotive industry is one of the largest
industries globally Second only to the energy and utility industries, the automotive
industry includes a wide range of stakeholders – from design, to development and
manufacturing, to the marketing and sales of these vehicles.
Currently, the automotive industry accounts for around 100 million cars (annually), vans,
buses, and trucks, and employs over 15 million people globally. Europe, Japan, South
Korea, and the US have emerged as the key manufacturing hubs for this highly
competitive industry (Figure 1).
Top Exporter of Automotive Products

(World - USD 1.53 Tn)
Figure 1: Top Exporter of Automotive Products
7
Key Trends - Shaping the Global Automotive Sector
Traditionally, the automotive industry is considered as being stable. It is characterized by

high costs of investment, labour intensive processes, and an overall low ROI. However,
over the last couple of years, the industry has been increasingly facing disruptive threats
including the rise of connected vehicles, introduction of autonomous driving technology,
the concept of mobility as a service, and the spread of electric vehicles. These threats
have been increasing additional margin pressure on legacy vehicle manufacturers.
Additionally, the industry is witnessing an inflow of new entrants with the adoption of
new age technologies, which have started becoming an integral part of the automotive
value chain by assimilating auxiliary industries.
Recently, the automotive industry has been driven towards innovation with respect to
addressing issues ranging from margin pressures to even evolving safety and emission
norms. The industry has been witnessing huge investment inflow in R&D to support the
cost reduction measures of auto OEM’s. While there has been a considerable increase in
the number of industry stakeholders focusing on this rising demand for innovative
solutions. In summary, the industry as a whole is heading towards technological
transformation and as a result had been witnessing a significant increase in adoption of
innovative technologies such as IoT, AI, ML, and blockchain to remain more competitive.
Regulatory Pressures Driving Focus on Alternative

Technologies
Over the past couple of years, the automotive industry has been facing increased
pressure of regulatory norms and safety standards, which is expected to increase cost
and complexities for the companies in the sector. Globally, the CO2 emission norms look
likely to tighten. Most markets such as Europe and the USA have already redefined their
CO2 emissions norms and other major automobile markets are expected to follow suit.
Regional regulatory bodies have also started to increase safety norms. These
developments are shifting the auto OEM’s focus towards developing alternative
technologies for lower-emission vehicles. The growing number of new entrants has also
resulted in a serious threat for legacy auto manufacturers. These pressures are expected
to push OEMs to invest more in alternative technologies to meet future emissions targets
in the backdrop of more recent scandals and creating space for blockchain and related
platforms or solutions.
8
As accountability and regulatory scrutiny increases, the impact that blockchain solutions
can make to fostering trust and also unifying stakeholders seems to be the natural
answer. The industry will also witness growing strategic alliances between legacy
manufacturers with other OEMs and preferred suppliers enhancing the supply chain and
robustness of logistical capabilities would be critical to meet regulatory norms seamlessly.
Rising Digital Demand
The current transformation of the automotive industry is highly influenced by OEMs and
suppliers’ business model that is driven by the younger, techno-savvy generation of now.
The growing adoption of digital in the automotive industry has increased the pressure on
legacy auto manufacturers with increased demand for delivering customer experience and
combining mobility with communication. New entrants have already started offering
innovative solutions through disruptive technologies to cater to the rising demand for
digitization in the industry ranging from new telematics platforms, revamped driver assist
functions to completely autonomous drive modes.
According to a McKinsey report, the number of connected cars hitting the roads is likely to
reach 28% of the total per year by 2020 (Figure 2). The increased digital adoption has
unlocked the gates for large, cash-rich, influential technology-focused firms such as
Google and Apple, and large electronics manufacturers such as Samsung who already
understand the new age consumers demands optimally, alongside auto-industry
disruptors such as Tesla. These developments are coercing companies to alter their
business models and shift their strategies to monetize new business areas. As an
immediate effect, the industry has started seeing major collaborations between the
legacy auto manufacturers and affiliated firms that build ingenious apps tailored to cars.
However, from the point of view of adoption this segment is still in the early stages and
offers equal opportunities for all industry and auxiliary stakeholders.
CAGR of 28.28%
Figure 2: Number of cars with Network Solutions
9
Changing Role of the Legacy Industry Stakeholders

The entry of innovative and high-tech companies into the automotive space has changed
the business dynamics for the legacy auto manufacturers and suppliers. Despite spending
millions in R&D investments (Figure 3), the primary industry stakeholders are yet to
feature among the 10 most innovative enterprises, however, new entrants like Tesla
Motors have de-facto featured in the top 10 innovative companies in the world at present.
The transition ushered in through the dramatic shift in the digital space has shaken the
elementary structure and the attitudes of the primary stakeholders shifting their focus to
offer customer-oriented innovations and treading away from a purely optimized
assembly-line outlook. The R&D investments of the primary stakeholders are now
concentrated on electric vehicles that is the future turf where they expect to face-off
against competition. Additionally, this transformation has also drastically changed the role
of primary industry stakeholders, for instance, legacy auto manufacturers have started
focusing on flexible production models, end-user driven innovations, unprecedented
collaborations with technology companies, overhaul of the drive system, etc.
R&D Expenses of Top Automotive Industry Players

(USD Bn)
14.0 13.9
13.9
12.9
12.1
10.0
9.4 9.3
8.8 9.3 8.7
8.4
7.8 8.0 8.2
7.4 7.3 7.3
6.7 6.7 6.9
6.6
6.0
5.5
5.1
Volkswagen AG Toyota General Motors Ford Motor Daimler AG

2014 2,015 2016 2017 2,018
Figure 3: R&D Expenses of Top Automotive Industry Players
10
Stakeholders & Participants

Raw Material Suppliers
From the depths of the mines to the blazing hearths of the foundries, automotive
suppliers have started leveraging blockchain to increase transparency in raw material
sourcing. In fact, solutions adopted by procurement teams rely on digital certificates to
trace raw materials to the point of origin, which could either be a mine or a recycling
source for most minerals or raw materials.
Volkswagen has already implemented a pilot project in collaboration with Minespider to

trace lead from the point of origin to the factory throughout its journey, including the
foundries, sub-suppliers, transportation providers, and suppliers. In this case, over two-
thirds of Volkswagen’s sub-supplier and supplier base participated in an essential cross-
border supply chain.
Companies like Mercedes-Benz have teamed up with Icertis for a DLT-based supply chain
management program. This intended blockchain protocol aims to achieve sustainability,
address the ecological impacts of large-scale car manufacturing, and ensure ethical
sourcing of raw materials by efficiently managing the local work force and environment.
Sustainability, social and environmental responsibility, ethical sourcing, transparency, and
security are some of the key objectives that have helped accelerate the adoption of
blockchain solutions among the stakeholders, especially among those at the raw material
supply end of the value chain.
12
Multilayer architecture-based blockchain solutions (such as the one developed by

Minespider) that include generally accessible information in one protocol layer, a second
protocol layer containing private data blocks, and a third protocol layer providing
encryption, have come to the fore in addressing the industry’s demands. Ability to operate
a blockchain solution that offers a single system for all sub-suppliers or suppliers handling
the mined or recycled raw materials has helped trigger the adoption of these solutions,
adding to the progress made in the digitization front in the automotive industry.
Sustainability initiatives among car manufacturers are growing due to the scaling up of
electric vehicle production and the increased demand for batteries that utilize lithium,
cobalt, and lead, among other materials. These impacts are discernible in water-intensive
lithium mining operations that have now shifted their focus on sustainability and to the
support of local communities and resources. Mercedes-Benz’s DLT-based solution
supports decentralized governance through smart contract clauses to ensure supplier
compliance and introduces immutability, ensuring visible sustainability reporting for all
parties while respecting data confidentiality.1
Component Suppliers
As blockchain credentials offer a secure solution for record-keeping between several

parties, they are ideal for facilitating transactions between automotive suppliers and
OEMs. In the case of automotive components, provenance and production history of
components can be tracked by just a barcode or RFID, through a unique ID assigned to
each part. Given this ability of blockchain solutions, the sales of fake components or
products can be eradicated, in turn preventing potential revenue and profit losses.
When automotive OEMs identify manufactured parts that may endanger the safety of the
driver and passengers, they initiate extensive recall programs. With blockchains solutions
in place, issuing a recall notification for a replacement becomes extremely efficient,
irrespective of the scale of recall. This capability also has huge potential in related
industries such as aerospace, or even in the case of 3D-printed parts or components that
are finding increasing adoption in automotive or aerospace applications.
13
Car Manufacturers/OEMs
At automotive plants, automated production audits that help reduce overhead costs and
leverage smart contract features of blockchain solutions are gaining popularity. This is
evident from the collaborative efforts undertaken by Daimler, in partnership with XAIN,
for the development of a supply chain blockchain solution that sits on top of the existing
database management systems in Mercedes-Benz’s Berlin factory.
With smart manufacturing being the new norm, the ability to control inbound plant
logistics increases efficiency and transparency in automobile manufacturing operations.
The combination of permissioned blockchain solutions that provide access to IoT sensor
data, along with product quantity, status, and other information, helps ensure enhanced
coordination with participants of the inbound chain and ensure timely delivery of parts.
Such blockchain solutions also enable OEMs to schedule production and achieve a
streamlined flow of goods. At the part or component suppliers’ end, the introduction of
BC-backed solutions leads to improved inventory optimization, accurate order mapping
and matching, and optimal warehousing outcomes.2
Utility Providers/Energy Companies
With the rise of electric vehicles (EV), automotive companies and utility providers have
been working more closely than ever before. The search for cleaner sources of fuel that
could be traced to originate from green sources of hydroelectric, wind or solar instead of
coal or fossil fuels is another reason behind this emerging trend.
A subsidiary of the German energy company RWE, Innogy SE, through its e-mobility
startup venture Share&Charge, has launched a chain of blockchain-powered EV charging
stations in Germany. Their app is a marquee e-mobility community platform that lets
users access charging stations set up by the company as well as existing charging points
by making digital payments in Euros.
We can expect the emergence of battery charging (or recharging) and the need for smart
grid and smart city infrastructure to enhance the opportunities for digital economies. The
emergence of these economies would further increase the penetration of technologies
such as blockchain on the back of explosive growth in the spaces of identity creation,
digital payments and the IoT ecosystem.
The utility providers facilitating charging of EVs will also leverage apps and smart
blockchain contracts extensively, besides enabling data platforms for valid peer-to-peer
energy transactions, and unifying payment solutions and blockchain transactions for
helping tackle the challenges of energy metering and billing.
14
Service Centers and Chains
Service centers and chains that deal with car maintenance and upkeep are able to address
issues with vehicles that are either owner-reported or are indicated by the sensors or
other monitoring devices installed by the automotive OEMs. However, this scenario is
expected to change dramatically with the introduction of blockchain technologies for
automotive performance and vehicle history detail tracking. By leveraging blockchain
based solutions and platforms service centers can now access critical performance data
(identified and recorded regularly on a distributed ledger) by obtaining approval from the
vehicle owners instantaneously and also leverage the acquired data for optimal upkeep of
electrical and autonomous vehicles that are expected to be the mainstay of the future.
Service history and records of vehicles is another important dataset for a number of
stakeholders including insurance providers, resellers, claim validators, auto
financiers/lessors, secondary buyers, and vehicle manufacturers who work in close
collaboration with service centers and chains.
Parts authentication and warranty handling constitutes an indispensable revenue stream

for service centers and chains. These could be further enhanced with added security,
historic tracking, lower cost of delivery and shorter lead times, besides being streamlined
for supporting accurate, speedy and effective decision-making. One of the earliest
blockchain pilot projects that has emerged in the secondhand car and vehicle
maintenance space is the one launched in collaboration by Renault, Microsoft and VISEO.
Shift Mobility also offers a blockchain platform that integrates manufacturers, distributors,
and repair centers. It aims to support the shift in the automotive industry towards
adopting blockchain. Service centers can utilize this platform to access data, effectively
service vehicles, order parts, and even remotely diagnose vehicle issues.
15
Dealers and Distributors
An effective blockchain platform would help automotive dealers and distributors address
one of the biggest challenges – responding in real-time to demand signals and part
requirements. Blockchain digitization of aftermarket parts would also make it easier for
distributors to avoid counterfeit spares, manage inventory and monitor up stream
transactions to parts manufacturers as demonstrated by Shift Mobility’s Poly-DLT
distributed ledger platform, that claims to have over 20 million parts added to it.
Blockchain solutions can also help dealers improve their customer relations and service
management by providing access to a plethora of vehicle data linked to VIN, service
history, GPS and driving history, and warranty tracking, in real time. Timely payments that
help mitigate the risk of financial fraud is another target area for automotive blockchain
solutions and can eliminate existing payment-related delays and risks faced by dealers,
distributors, and OEMs. Broad-based blockchain solutions that bring together banks, trade
associations, IT vendors, regulators, and financial firms have been in the works from auto
majors such as Toyota.
Vehicle registration and title transfer is another area that can be positively impacted by
blockchain-based solutions. Dealers can leverage these solutions for speeding up,
streamlining, and optimizing the process as well as costs by bringing together seller, buyer,
insurance agencies, and government bodies on a unified platform.
16
Solutions
Solutions
Mobility Services
Mobility services are expected to grow rapidly in the coming years, driven by rising
urbanization, slowing car ownership rate among millennials, and advancements in
connected and electric vehicles due to tightening of CO2 emission norms. With consumers
shifting towards ride hailing, car rentals, and ride sharing services, it has become even
more necessary to reduce costs paid by consumers added due to third party organizations
such as Uber and Lyft. These firms have profited from such service models, wherein their
centralized application connects riders to drivers. A considerate amount of value paid by
the riders goes to the app provider (~25%). Blockchain provides a distributed ledger
containing immutable data associated with the car, driver or the rider. This source of data
can be leveraged to provide mobility service solutions such as creating a decentralized
system wherein the riders are connected to the drivers directly without the need for a
central party. In ride hailing or ride-sharing services, this allows the drivers to get a higher
value for their services, while the riders benefit from decreased costs.
Blockchain further leverages other similar scenarios, including car rentals and parking spot
rental services. In ride sharing services, Blockchain connects car owners with riders who
share the same route towards their destination and may further add payment structures
to these solutions. LaZooz3 is already offering such a service.
Soon, car rental facilities could be offered directly by the vehicle owners, who may let
riders use their automobiles while adhering to applicable government rules and traffic
regulations. Such business challenges can be tackled by leveraging blockchain enabled
smart contracts, allowing owners to decide the time and location endpoints in which a
user can travel, besides facilitating payments using tokens. Helbiz4 which operates its own
fleet of cars, and Oaken Innovations are already offering blockchain leveraged car rental
services. GetMyCar5, a partner of ParkinGo, offers a peer-to-peer network between car
owners and riders, takes care of insurance with the help of a blockchain-backed solution
and offers the ‘GOT’ token pegged at USD 0.64 USD currently.
Cars are parked 95% of the time" quoted Donald Shoup, Distinguished Research Professor
in the Department of Urban Planning at UCLA, way back in 20136. Now in 2019,
Blockchain-backed solutions have enabled users to lend their own spaces for parking at a
small fee. Such solutions not only solve the issue of parking along the roads, but also
monetize the otherwise empty spaces. In a more recent development, the company
Parkgene7, which provides blockchain-backed solutions, has allowed users to book their
spot in advance. The company addressed the problem using smart contracts that
automatically pay out after the parking terms are over. While ParkinGo8, the peer-to-peer
innovator, mainly offers parking spots near airports and other transit ports, it would not
be long before such solutions find more widespread adoption after initial success of
ventures that establish commercial viability.
The success of major mobility service providers like Uber, Lyft, and DiDi, whose valuation
has surpassed those of well-established legacy auto manufacturers, is expected to
18
Solutions
encourage entry of other technology and auxiliary players and boost the opportunity the
adoption of all disruptive technologies including AI, ML and Blockchain among others.
Furthermore, the industry is expected to witness inflow of new journey planning apps for
B2B and travelers.
Startup Ecosystem
This section of the report summarizes the startup ecosystem as well the top industry
players currently leveraging BC solutions in Table 1.
No. of Funding Range Notable Traction Events -

Stakeholders
Startups (Million USD) Industry Leaders
>10 0.01 - 78.59 10 Toyota Research Institute Car Manufacturers with

has collaborated with Inventory
Oaken Innovations and a
number of other BC and Ride-sharing & Ride-Hailing
distributed technology Companies
startups to produce an
Automotive Parking, EV
Open Mobility initiative
Charging, Lease & Rental
while strengthening their
Companies
own car leasing and sharing
platform. Insurance Companies
Startups due to high driver

commissions at present
Drivers and Passengers

affected by service
commissions
Table 1: Startup Ecosystem
19
Solutions
Notable Startups Profiling

A brief profiling of the most prominent startups, their product and service offerings,
business and revenue models with a stakeholder overview is provided in Table 2.
Stakeholders - Overview
Startups Comments – Case Studies
& Segmentation
LaZooz* All firms provide dApps based Consumers

SaaS and some also provide native
Helbiz* cryptocurrencies for possible ▪ Drivers
transactions within and transfer of
GetMyCar & ParkinGo ▪ Riders
value into or out of the platform.
Parkgene ▪ Renters
All of these companies are also
OakenInnovations independent service providers ▪ Car Owners or
that provide services directly to Parking spot owners
Tribal Rides* users.
Service Providers
Drife Technologies All of these startups are focused
on a B2C business model to ▪ Payment Platforms
R I D E Caribbean generate revenue.
▪ Insurance Providers
Redcab Lot of these startups have
restricted operations to certain ▪ Data Sharing,
Rev* cities only and also have targeted Management or
niche locations including public buying/trading
Dacsee
infrastructure and transport, Providers
Car2go & Share Now airports, etc.
▪ Identity
(BMW & Daimler)
Management
Trp.Io* Providers
Wego Europe* Infrastructure Providers
▪ Automobile
Manufacturers
Table 2: Most Prominent Startups
* Companies that are in the process of securing investments either through ICOs/STOs or
other means or at present participating in competitions or a part of startup incubators or
others, however, they may not yet be active currently.
20
Solutions
Case Study: Helbiz mobility system11

The Helbiz car sharing platform connects owners, renters and service providers. This
platform based on Ethereum blockchain uses HelbizCoin (HBZ) as a token of transaction.
The system further includes an exchange wallet to convert and transact Ethereum tokens
to HBZ coins, besides allowing users to monetize their data by sharing trip/car information
with service providers. Provided in Figure 4 is an overview of the Helbiz Mobility System
and a step-wise highlight of the business and the revenue model.
Browse
Search nearby Vehicles
Verify Key Participants:

Both car-owner's and renter's
digital identity will be verified S Car owners, renters and
service providers
O (insurance)
The Solution:
L The BC-enabled solution
T&C A smart contract Terms include: provides a way to connect
will be dispatched
with terms which
Duration and fare
of the rental,
U car owners, renters and
service providers directly,
are to be accepted insurance policy
T without the need for a
centralized trust party
I Benefits:
Ride
The driver gets a remote key
access through the app
O Reduction in transaction
and trust costs
N Shared ownership of
vehicles
Payments
The payment transactions occurs
automatically, once the trip ends
Figure 4: The Helbiz Mobility System
In the case of parking spot rentals, also provided by Helbiz, an approach similar to the car
sharing platform is followed by them for monetization. The renter browses the platform
to identify a spot and books it in advance, a smart contract payment transaction is
executed for the parking spot and the service deployed. At the parking location the driver
may access a QR code on the spot via the Parkgene App to unlock the garage doors.
Parkgene claims to have more than 67,000 unique users, using the PARKGENE P2P Parking
service and/or the GENE wallet.
21
Solutions
Business or Revenue Model

While the overall structure for ride hailing, ride sharing or car rental services across Apps
is identical, the revenue generation models are different. For example, Helbiz plans to
generate revenue from the commission on the amount the renter pays the car owner. The
company pays users for the data from digital locks and charges internal exchange fees.
The users of the parking spots listed on the App still save costs due to reductions in
transaction and trust costs and the providers of parking spots make money from earnings
provided by service providers if they choose to share their data. Parkgene plans to charge
a 10-20% commission for parking spots12, while maintaining that P2P parking will drive
the actual parking costs down as compared to professional parking garages. It is
interesting to note that, RedCab, a blockchain-based ride hailing service, which claims to
reduce fare commissions down to 0%, generates revenue from geo-ads dispatched on
their app during the rides.13
Provided in Figure 5 is the business model most widely being adopted while integrating or
introducing Blockchain for the ride-haling and ride-sharing applications segment of the
automotive industry.
Mobility Services
Use Cases
▪ Hire or rent cars or rides
BC Fabric providers ▪ Lease parking spaces
(BC-FP) - Ethereum ▪ Stores, secures and
SaaS
+ transfers data related to Key Takeaways
rental availability
LaZooz, Helbiz, GetMycar, ▪ Ethereum is the most
▪ Offers digital identity popular BC fabric for this
ParkingGo, Parkgene, Oaken verification and creates
Innovations, Tribal Rides, service as they are
transparency predominantly open source
Drife Technologies, RIDE
▪ Allows personalization and ▪ The segment is majorly
Caribbean, Redcab, Rev,
safety by allowing choice dominated by startups,
Dacsee, Easycar Club,
Car2go, Trp.Io, … ▪ Options for monetization by that focus on reducing costs
data sharing
+
Stakeholders (FBS)
for consumers
▪ Most popular adopted
Consumers: Drivers, Riders, business model:
Renters, Car Owners or SaaS
Parking spot owners Service
Providers: Insurance
Providers, Data Buyers
How is BC being Accepted in the industry

Figure 5: Blockchain adoption in Mobility Services
22
Solutions
Supply Chain Services
The authenticity of the product is a major concern for consumers and supply chain
participants alike. Consumers want to know how their product was handled throughout
its lifecycle, and brands want to prove the authenticity of their data. With blockchain,
which provides a distributed ledger that adds information based on a majority consensus
mechanism, the authenticity of the data is assured. As the data is immutable and time
stamped, it provides an added layer of security. Hence, solutions leveraging blockchain
technology find wide application in supply chain services across industries.
In the automotive industry, this includes track and trace to locate the source of each part
of a car. This tackles supply chain visibility, addresses counterfeit parts and product recalls
(vehicle or parts). Sofocle is leveraging Blockchain for track and trace solutions.14
The larger picture is USD 2.5 billion and USD 200 million is lost by the legitimate
automotive parts industry to counterfeit tyre sales and battery sales respectively, i.e.,
7.5% and 1.8% of the corresponding sales of these sectors.15 Figure 6 highlights the most
commonly counterfeited automotive spare parts.16
Cables Airbags
Tail Lights Filters
Alloy Rims Radiators
Master Cylinders Break Pads

Common Counterfeit Spare Parts
Figure 6: Common Counterfeit Spare Parts
23
Solutions
BMW has partnered with blockchain provider Circulor, which provides data regarding the
source of cobalt, a raw material used in its batteries17. Cobalt mining has always been
associated with child labor18, with rising battery requirements (for mobile phones and
electric vehicles), the need for providing sourcing data regarding ethical mining of cobalt
has become paramount.
Blockchain therefore helps unleash the potential of technology in automotive supply

chains, generating efficiencies, creating new business models, and building trust
ecosystems.19
Startup Ecosystem
players currently leveraging BC solutions is provided in Table 3.
No. of Funding Range Notable traction Events -

Stakeholders
<5 0.27-0.5520 21 Toyota is involved in the R3 Part manufacturer losing

consortium as well has etched revenue and reputation
partnerships across its partners
to influence the entire Logistics/transporter
automotive supply chain facing fraud, theft or even
including advertising and media geographic or logistical
spends to even financial challenges
transactions.22 23 24
Car manufacturer
Koopman partnering with IBM suffering fraud and safety
as a part of digitalizing the issues due to
automotive supply chain and counterfeiting
connecting materials to build
Suppliers losing out
vehicles efficiently and quickly.
business to counterfeiters
Mercedes-Benz has developed and unauthorized agents
its own in-house blockchain
based solution to introduce
transparency in their
manufacturing as well as their
supply chain.25
24
Solutions

& Segmentation
SyncFab All the firms are focused on providing Miners, Mineral sourcing
traceability solutions for the automotive suppliers
Circulor value chain. Syncfab provides a marketplace
with transparent order tracking based on Processors
Finboot the Ethereum Blockchain.
Suppliers
Icertis Circulor’s solution, used by BMW, involves
provenance tracking of cobalt sourcing. Compliance Monitoring
Minespider Minespider has also developed a blockchain Agencies
protocol for mineral sourcing. It has
partnered with Volkswagen to track their OEMs
lead supply chain.
Automobile
Finboot’s product, MARCO, is a SaaS that is Manufacturers
blockchain agnostic to combine business
workflow and blockchain core functions. It is
compatible with Ethereum, Hyperledgerm
Quorom and Corda.
Icertis has provided a blockchain based

solution for Mercedes-Benz, that allow
them to ensure global sourcing and
contracting practices.
Table 4: Industry Stakeholder Overview
Case Study: Circulor26
Circulor provides a private and permissioned platform to trace provenance of raw

materials used in the downstream industries. The solution uses Hyperledger Fabric since
it is an enterprise grade software. Circulor has developed an application that can be used
across mobiles and desktops – the mobile app is for scanning and downloading
documents, while the desktop version provides supply chain visibility.
25
Solutions
Provided in Figure 7 is an overview of the Circulor and a step-wise highlight of the

business and the revenue model.
ID Check
A facial recognition system
called URU checks Miner ID
Key Participants:
Car Manufacturers, Supply
Circulor chain participants such as
metal processors,
Protocol GPS, QR/NFC tags check origin and S component
refining standards manufacturers, miners
O The Solution:
L The BC-enabled solution
provides a way to identify
the location, time,
Certification U duration and operating
Shipping, Logistics conditions of a metal
GPS and RFID
Manufacturing T processing.
I Benefits:
Product
O Record Provenance
Ethical and Sustainable
ID Final Assembly, Certifying Ethical N Sourcing
Sourcing
Real-time view of supply
chain
Build Trust
Track
Scan and Track components
facilitated by smart contracts
Figure 7: The Circulor System
The solutions are provided by startups in this application are in a service (SaaS) based
format, wherein a steady transaction charge for each blockchain transaction generates
revenues for these startups. However, the stand-alone and enterprise specific
requirements in the sourcing or supply chain applications in the automotive domain have
led to business model such as that of Sofocle’s that provide design and deployment
services.
26
Solutions
Provided in Figure 8 is the business model most widely being adopted while integrating or
introducing Blockchain for the supply chain services segment of the automotive industry.
Use Cases
▪ Track origin of raw Material
BC Fabric providers ▪ Trace material across its
lifecycle
(BC-FP) – Ethereum,
▪ Ethical Sourcing
HyperLedger Fabric, Key Takeaways
Quorum, Cardano ▪ Digital identity verification
▪ Hyperledger is the most
▪ Create transparent and
SaaS
+ build trust
popular BC fabric for this
Service as it is Enterprise
Ecom, Syncfab, Circulor, Grade
Finboot, Digital Twin Labs ▪ The segment is equally
+ dominated by startups and
enterprise solutions
Stakeholders (FBS)
▪ Most adopted business
Car manufacturers, 3PL,
model:
Shipping, Miners, raw SaaS
Material Processors

Figure 8: Blockchain adoption in Supply Chain Services
27
Solutions
Electric Vehicle Charging
Road transport accounts for 16 % of all man-made CO2 emissions. A breakthrough

solution for this has been the introduction of electric vehicles (EVs). While an EV still relies
indirectly on the electricity produced from carbon emitting plants, it accounts for just
about ~75% of CO2 of a typical medium-sized family car for similar levels of use.
The move towards renewable energy is expected to strengthen the shift in favor of EVs,
supported further by the growing regulations on carbon footprints, reduction in battery
prices, and the increasing availability of the necessary supporting infrastructure.
The International Energy Agency (IEA) reports that 2017 saw a 50% (Figure 9) rise in EV
sales across the world from the previous year and predicted that these sales would rise
from 3 million in 2017 to 125-220 million in 2030. JP Morgan estimates that, by 2025, 30%
of all vehicle sales will be accounted for by EVs and hybrid electric vehicles (HEVs). While
plug in EVs accounted for 1% of the sales in 2016, this is expected to grow to 7.7% by
2025.
However, the use of EVs comes with its own set of problems. Currently, the battery
charging infrastructure usage is not standardized or easily available (Figure 10, 11). EV
owners need to maintain different accounts to use services provided by charging
operators. The time required for a full charge may very well range in hours and with many
people charging at the same time, grid overload is definitely expected.
With blockchain however, the EV owners can distribute their time of charging. In fact,
charging stall locations could be located via network, and car owners belonging to the
network may use all available facilities without the need for holding several accounts
facilitated by the blockchain-based solutions. Such solutions may also include a payment
model for these charging stations using smart contracts that will be initiated on the
booths. The smart contracts will start the charging using a secure transaction directly from
the car to the energy supplier. Such blockchain solutions were first claimed to be
developed by Blockchainfirst, which issued payments using crypto currencies through an
App or a standard RFID card. The company provides IoT enabled personal charging points.
In another example, Innogy’s e-mobility startup venture, Share & Charge provides
blockchain-powered charging stations. These charging stations form a blockchain network
based on Ethereum to allow transactions in Euro-backed tokens through the DApp. The
network connects EV drivers to charging station owners (which may be private) and allow
them to leverage a small fee for providing their private station.
28
Solutions
Electric car stock 2 million
32
28
7 7 6
3.25 3.25 3.25 3.25 3.25
China Japan United States United Kingdom

Germany France Norway Netherlands
Canada Others
Figure 9: Electric Car Stock
Publicly available slow chargers 212,000 outlets

25
17
12
8 7 8
5
3.25 2 2

Canada Others
Figure 10: Availability Slow Chargers in Public Place
Publicly available fast chargers 110,000 outlets

81
5 5 3 3.25 3.25 3 3 2 4.5

Canada Others
Figure 11: Availability Fast Chargers in Public Place
29
Solutions
Furthermore, these blockchain solutions also allow renewable energy suppliers to

leverage blockchain models. Blockchain allows monetization of renewable energy that
can be used to charge EVs and in one such industry solution, Power Ledger, based out of
Australia, has developed a blockchain network that monitors the solar electricity
transferred to an EV from its blockchain-powered, solar-enabled charging stations. Power
Ledger also then monetizes this energy by selling it to firms which require carbon
emission off-setting.27 In one specific example of note, Brooklyn Microgrid allows
“prosumers” (distributed energy source holders), to monetize the excess power they own
to be sold to a consumer.28 An EV in this scenario, may act as a prosumer, selling its
energy stored in the battery in times of outages in grids caused due to renewable
intermittency with the reliance on Blockchain in this use case principally due to the
security feature of BC.
Startup Ecosystem
players currently leveraging BC solutions (Table 5).
Funding
No. of Range Notable Traction Events
Stakeholders
Startups (Million - Industry Leaders
USD)
>10 0.1-0.25 Volkswagen Financial Car owners who have home charging
29 30
Services has tied up infrastructure and also own Evs
with the Share&Charge
Foundation for an UK Utility providers that are interested in
pilot.31 monetizing the opportunity afforded by
spurt in EV numbers globally
Wipro has joined the
Blockchain in Transport Charging Point Operators that not only
Alliance (BiTA) a provide equipment but also are responsible
technology-based for installation of charging stations and
industry consortium of linking it to the grid. These operators could
which companies also define the charging technology that will
focused on platforms, dominate the future from among the
deriving standards, and various slow, fast or other charging
advancing the technologies. Some participants include
technology to handle those from the Telecom Base Station or
common pain points other infrastructure providers who could
(i.e. interoperability, key easily aid in the development of such
management, and infrastructure over the traditional oil and
transaction volume) are gas pump operators due to possible fire
a part of. 32 33 hazards of co-locating these technologies.
Table 5: Top Players Leveraging BC Solutions

30
Solutions

Stakeholders - Overview &

Segmentation
Blok-Z EV charging and P2P energy Consumers:
trading infrastructure solutions
ChargingLedger on the Blockchain utilize ▪ Vehicles
Ethereum, Hyperledger or any ▪ Grid Energy Providers
Oxygen Initiative, other platform without any ▪ Car-owners
MotionWerk specific preference. ▪ Renters
(Share&Charge)
Consensys is active in this space Energy Suppliers
Blockchainfirst34 and has worked with a number
Charging Equipment Operators
of providers including Blok-Z and
Brooklyn Microgrid ChargingLedger. Energy Infrastructure Providers
Global initiatives such as the one Automobile Manufacturers
by Share&Charge have the
potential to grow rapidly in the
near-term.
Also, participation of public

utility providers and other public
enterprises expected to
accelerate this adoption of BC in
this space.
Case Study: Share&Charge35
Share&Charge is a decentralized protocol for EV charging developed by MotionWerk

GmbH. The platform, based on Ethereum blockchain, uses the proof of authority
consensus mechanism. The system also allows data sharing and transactions on the
network. The open-source protocol can be used to develop solutions and API on top of it.
The Share&Charge platform service is privatized and connects to the EnergyWebChain for
its payment settlement module. In some other prominent use cases related to the use of
BC in EV charging applications, the Oslo2Rome proof of concept initiative which tested a
cross-border charging network based on blockchain was conducted in November 2017.
Similarly, the Open UK charging pilot that more recently had a two-week runtime as of
June 2019.
31
Solutions
Provided in Figure 12 is an overview of the Share&Charge and a step-wise highlight of the

business and the revenue model.
Browse
Search through the map to find
information, location of a Share&Charge
compatible charging station
Start The app sends a start command to the

Blockchain network, when the user arrives
S Key Participants:
at the charging station Charge Point Operators,
O Grid Operators, Mobility
Service Providers
L The Solution: The
U Blockchain protocol
provides EV charging
Initialize
The start command block is validated T transactions.
and added Benefits:
I Single account for
accessing EV charging
O infrastructure
Ease of payments by a
Approval N stable coin, without
Final Assembly, The station starts volatility
Certifying Ethical charging
Sourcing
Payments
The payment transactions can be done
through Blockchain wallets using stable
coins
Figure 12: The Share&Charge Framework
32
Solutions

Provided in Figure 13 is the business model most widely being adopted while integrating
or introducing Blockchain for the EV charging services segment of the automotive
industry.
EV Charging
BC Fabric providers Use Cases

(BC-FP) – Ethereum, ▪ Locate and Access Charging
EnergyWebChain Points
▪ Enable payment Key Takeaways
+ transactions ▪ Ethereum is the most
SaaS popular BC for this service
blok-Z, ChargingLedger, ▪ Distribute Grid Load
▪ Maintain single EV charging ▪ The segment is dominated
Oxygen Initiative,
account by startups
MotionWerk
(Share&Charge), ▪ Most adopted business
Blockchainfirst, Brooklyn model:
Microgrid SaaS + Protocol
+ SaaS + Hardware
Stakeholders (FBS) (Charging Point Equipment such as
Consumers – Vehicles, meters and IoT devices)
Energy Providers, MSP,
Energy Suppliers, Charging
Point Operators

Figure 13: Blockchain in the Share&Charge Ecosystem
33
Solutions
Vehicle Autonomy
The advent of autonomous vehicles and the growing software dependency of cars give
rise to their own set of challenges. In fact, along with software solutions comes security
problems, data management, and liability issues. As Blockchain is a decentralized system
with a distributed consensus mechanism that stores immutable data, car companies
guarantee that car data cannot be hacked or changed. Furthermore, blockchain can be
leveraged for direct vehicle-to-vehicle communications and vehicle-to-machine
communications, due to its decentralized characteristic.
Blockchain allows direct transaction of data across vehicles without the need for a
centralized monitoring party, ensuring for faster data transmissions. This feature of
Blockchain can be used to establish or read traffic scenarios or weather patterns, and is
particularly useful for autonomous vehicles, allowing for an additional layer of safety,
wherein the car is aware of its surroundings. Blockchain can also provide a way for
transacting coins to monetize over priority lanes – something that is already being
undertaken by Chorus Mobility.36
Startup Ecosystem
players currently leveraging BC solutions (Table 7).
No. of Funding Range Notable Traction Events -

Stakeholders
>5 0.1-24.5 37 38 Porsche, Toyota, (BMW Consumers,

backed competition was government authorities,
won by Chorus Mobility) vehicle manufacturers
34
Solutions

& Segmentation
Chorus Mobility All these startups are focused on Vehicle Consumers: Vehicles
Autonomy solutions that leverage BC.
Oaken Innovations Infrastructure Machines
There are several payment applications (such as toll booths and
Hannah Systems focused BC solutions essential for solving battery recharging
the issues that would most impact the booths)
NXM Labs autonomy of the vehicles of the future.
Automobile
FOAM The most significant themes that a lot of Manufacturers
these BC solutions target is Vehicle to
DAV Vehicle Interaction and Vehicle to
Machine Interaction that is expected to
Xain
be the mainstay of the futuristic
driverless and autonomous vehicle
space.
Xain focuses on an access control HMI

that would be an important aspect
impacting the adoption of BC solutions in
vehicle autonomy use cases.
Case Study & Business or Revenue Model
This section of the report covers multiple startups including Chorus Mobility, Noblis,
Oaken Innovations, DAV, Hannah Systems and Xain while exploring their business and
revenue model in further detail.
Chorus Mobility won the MOBI Grand Challenge Phase-I for “Decentralized Road Space
Negotiation and Payments for Routes and Rights of Way by Autonomous Vehicles” that
concluded in January 2019. The project plans to realize a blockchain-based system that
will allow vehicles to transact amongst themselves for the right of way. The solution
addresses traffic congestion challenges and has been initiated in autonomous vehicles. A
smart contract forms its core and is responsible for negotiation for road space between
vehicles. The vehicles negotiate via an auction (Vickrey Auction)39, which may or may not
cause a change of position. A similar concept is under development by Noblis.40
35
Solutions
Further, a combination of IoT and blockchain can allow for streamlined vehicle-to-machine
(such as tollbooths) transactions. Oaken Innovations offers a solution that lets a car driver
initiate a payment to a toll booth using an RFID card and a blockchain-based smart
contract.41 With the advancement of technology, faster and superior ways of vehicle-to-
machine transactions, without the need of cards, can be implemented. Such transactions
when based on a token economy, would transfer the costs mapped directly to each
vehicle to the relevant participants such as tollbooth operators.
DAV, another startup active in this space also manages autonomous vehicles using DLT to
provide delivery services. In this solution, autonomous vehicles can discover other
vehicles or clients on the system to provide services using drones, shipping vehicles, ride
hailing and such similar services using the DAV protocol.
Hannah Systems is developing an AI and blockchain solution that develops digital twins for
smart city functions. This allows autonomous vehicles to share data amongst themselves
using a peer-to-peer channel leveraging blockchain, to map out vehicle positions. This
solution also drives the change to create a more pedestrian and infrastructure aware
vehicle autonomy that can be used to reduce travel time and mileage for delivery
vehicles.42
Another startup Xain is providing a universal access blockchain-based protocol HMI for
Porsche.43 The app developed by the company allows car lock/unlock feature (also
accessible remotely) and trunk access with real-time notifications. While centralized apps
with the same features are already available, the solution claims that using blockchain
offline provides speed and security. This partnership also benefits Porsche as it aids in
obtaining data access that helps facilitate better security and can be used for updating car
software.
Data Monetization and History Data
Data Monetization
An automobile generates a diverse set of data throughout its journey—beginning at the

manufacturer and ending at the scrapping facility. The data reflects the lifecycle of the
vehicle and can be used to improve the state of car manufacturing, rental services, sharing
facilities, insurance, and vacation industries. Data monetization strategies leverage this
data by providing efficient data collecting method for V2X data, in-car data, and user data.
The data collected through and from vehicle operation is incomplete without a proper
securing mechanism that provides ample data security. This is where, as expected,
Blockchain comes to the rescue, ensuring that car data (including personal information) is
collected and stored in a manner that provides adequate privacy protection in accordance
36
Solutions
with the rights of the data subjects. Due to the current lack of rules and security
guidelines surrounding car data, the sharing and use of car data is perceived as a risk,
rather than an opportunity for creating value and therefore Blockchain with its
immutability provides a secure technological solution to this existing problem.
Startup Ecosystem
players currently leveraging BC solutions (Table 9) for vehicle data monetization
applications.
Notable Traction
No. of Funding Range
Events - Industry Stakeholders
Startups (Million USD)
Leaders
>5 - Ford, BMW, GM, Audi,

Honda, Hyundai
Case Study
In fact, as per Elie Elbaz, Digital & Connected Vehicles Director for Group Renault, “This
digital car maintenance book will enable us to provide our customers with new services in
an ecosystem alongside insurers and dealers. Blockchain technology is able to create a
reliable trust protocol. Beyond this project, this technology will be a major step forward
for connected vehicles and the micro-transactions and security requirements associated
with them.” 44
Data monetization can only be accomplished when a system has been put in place to
gather, organize, store, and monetize data. The key stakeholders involved in the case of
monetizing vehicle data include users, car manufacturers, IoT devices providers,
Infrastructure providers, Blockchain platform providers and service providers. In fact, most
sections of these stakeholders, with the combined might of data monetizing companies,
are building a blockchain-based car data market, facilitating exchange between data
producers and consumers. In this market, the blockchain companies are responsible for
providing the environment for trade, and do not assume data ownership rights. Car data
has become a commodity, and data producers and consumers may contribute to
determining the value of this data. Any market-based value transaction involving provision
of car data will be rightfully compensated, in most case with the companies own crypto
currency as demonstrated in the AMO blockchain infrastructure provider for the exchange
and sharing of car data. 45 46
37
Solutions
In a more evolved ecosystems, using crypto currencies, car users can purchase various
products and services offered by the manufacturers and service providers participating in
the market. Also, car users, automobile manufacturers, and related service providers
would emerge as the suppliers and consumers in this market. Through such a structure of
providing and receiving data and compensation, a cycle is expected to be created in which
car data is enriched and the market is activated. The ongoing cycle in turn would
contribute to the growth of the overall market. However, such intricate inter-linking of
market forces and actors would not be possible without the use of Blockchain solutions at
scale.
Such a blockchain-backed solutions market is expected to provide several lifecycle

management services, including
▪ Predict: Part exchange, Faults, Safety improvements

▪ Prevent: Counterfeiting or theft of cars and parts
▪ Analyze: Accidents
▪ Customize: Insurance plans
▪ Sell: P2P sale of used cars and electricity for charging
▪ Provide: Information for charging & parking lots, mapping services, music and video
streaming & billing, simultaneous content streaming and in-car or connected car
commerce/payments
▪ Acquire: Bounty-driven user data
▪ Secure: Car-related personal information
However, as such technology platforms are still at the amateur stage, startups promoting
them are faced with some challenges including the choice of opting for an ICO and the
intended utilization of funding and investments, lack of common data standards and
collection procedures due to unavailability of infrastructure and in turn inefficiency
related to data monetization.47
38
Solutions
History Data
The history of a car is extremely critical when selling the car, or for its maintenance.
History data helps to decide the right price for the car and helps enumerate if the car is in
a stable condition. However, due to a lack of transparency and trust in the system, there
are certain challenges, including:
▪ A significant number of cars with modified odometer readings.

▪ Information about defects being carefully hidden.
▪ Fake documents about maintenance.
▪ Information falsified professionally and at a high level
As a solution to the problems listed here, platforms leverage blockchain as it allows the
placement of key information about the vehicle in the Credits blockchain. For example, if
you record data on the mileage of a car for a certain date, it cannot be changed in the
future. The future buyer will be certain that this data was not placed there directly before
the sale. It is impossible to change this information. Critical information regarding service
history, mileage, and age therefore becomes immutable, and cannot be falsified. 48
Moreover, preventing falsification of documents is not the only application of blockchain,

each vehicle has a unique fingerprint to prove its provenance and that of its components
when they wear out and fail. The unique identifiers track the source from where the
vehicle originates from or was built and ensures that information including year-make-
model, trouble codes, maintenance requirements, and service history is instantly
available to dealers and service centers.
39
Solutions
Availability of such information allows service centers to have the right products available
when vehicles arrive at their nearest location for an oil change, repair, and maintenance
work. 49
Some of the other benefits that Blockchain solutions bring about with regards to the
vehicle history segment include the elimination of central administrator or a manager
with the right to change information, simple access to information via the web interface
or API and offers unique competitive advantage to manufacturers and other market
participants who chose to contribute data to the blockchain.
In light of blockchain solutions targeted at the vehicle history segment, three primary
stakeholders involved in the transactions are vehicle owners, blockchain service providers
and end customers and business enterprises.
The generic outline of the B2C and B2B business models of companies building on this
blockchain concept and solution includes the maintenance or recording of the history of
vehicles immutably and providing the data to any end customer or to business enterprises
for a fee. In these business models, the vehicle owner is generally paid for the data with
crypto tokens of the blockchain solution-provider company that are redeemable at fuel
stations or for availing other services.
Startup Ecosystem
players currently leveraging BC solutions (Table 10) for vehicle history data management.
Funding Range Notable Traction Events

No. of Startups Stakeholders
(Million USD) - Industry Leaders
>5 - Renault, VW, BMW

According to multiple industry sources, the car generated data market is expected to
hover in the range of USD 450-740 billion by 2030.
40
Solutions

A brief profiling of the most prominent startups active in the developing blockchain-based
solutions for data monetization and vehicle history data management, their product and
service offerings, business and revenue models with a stakeholder overview is provided in
Table 11.

Segmentation
VinChain50 The companies listed provide their Car Sellers who are selling
services through various types of offerings their used cars,
CarBlock51 like they may be a complete SaaS provider
or may be a Protocol provider or will be Buyers who are buying
DOVU52 secondhand cars,
offering their services being a BaaS based
AMO53 company.
Insurance Providers who
VeChain54 Though being startups the companies are providing insurance on

have been successful in craving a niche for new cars as well as used
Car Vertical55 themselves by acquiring big players in the cars,
automotive as clients like GM, Ford, BMW.
Repair shops: To better
The focus area for these startups is into understand the condition
developing effective B2C business model of the vehicle and provide
to develop a legitimized way to collect service accordingly.
data from users and then to sell that data
Manufacturers: To keep
to most promising buyers.
gathering data on how
Most of the startups are confined to the users use their car to
geographies of the developed world like provide a better driving
US, UK, Europe where automotive industry experience
is more organized and computer literacy
rate is quite high compared to other parts
of the world.
41
Solutions
Case Study
Due to the similarity in the impact of various blockchain projects/solutions on this

segment, a summary of the key aspects pertinent to the implementation in various
relevant cases is provided:
▪ The primary stakeholders involved are data sellers, data providers, data buyers, and
OEM manufacturers.
▪ Data gathered is sold to various service providers, who in return provide services to
users and facilitating a better user experience and at better or competitive prices.
For example,
1. If a car succumbs to damages, then through contextual marketing the user is

connected to the dealer service center.
2. An appointment is created through the app and the problem description, along with
diagnostic data and photos, are sent to the service center.
3. Automatic appointment reminders are set, and when the car arrives at service
center it is met with prefilled forms, helping deliver higher customer satisfaction.
The revenue and business models of various startups acting in this segment has been
summarized in this section along with an overview of the implementation specifics, use
case, key takeaways in light of the products and services offered by these state-ups (Figure
14)
▪ The data which is shared by an individual in exchange for crypto tokens is sold to
insurance companies, dealerships, manufacturers, governmental institutions,
drivers, data aggregators, and service providers.
▪ The tokens are transferred to users for their data and these can be spent in OEM’s
ecosystem and also helps in driving loyalty.
▪ Businesses and manufacturers get insightful data, while conforming to stringent

data privacy regulations as the data exchange is voluntary.
42
Solutions
Use Cases
▪ Stores, secures, transfers
data
▪ Allows data sharing among
BC Fabric providers Key Takeaways
all stakeholders
(BC-FP) - Ethereum, ▪ Ethereum is the most
▪ Provides detailed
+ information and prevents popular BC fabrics
PP+BaaS - fraud of data ▪ The startups working in
VinChain, CarBlock, VeChain ▪ Allows integration of other these in this segment
primary focus is to create
SaaS -
+ emerging technologies such
as, IoT, AI, ML, etc. their own protocol and
infrastructure
DOV, AMO coin ▪ Increases user loyalty to
+ different service providers
model for Data
Automotive stakeholders - Monetization are as
Data Sellers, Data providers, highlighted below:
Data Buyers OLM BC-FP + PP + BaaS + AS
Manufacturers
BC-FP + SaaS + AS

Figure 14: Blockchain in the Car History Data
Insurance
Automotive insurance can further be divided into two broad categories, namely, vehicle
insurance and driver medical insurance and blockchain has potential to disrupt the
automotive insurance industry. In fact, both the vehicle and driver medical insurance
space is undergoing a radical redefinition aided by blockchain technology that is taking the
industry from a general pricing model to a more personalized pricing framework.
In summary, the broad benefits of blockchain for automotive insurance providers are:
▪ Fraud detection and risk prevention: By moving insurance claims onto an
immutable ledger, the technology can help eliminate common sources of fraud in
the automotive insurance industry.
▪ Vehicle insurance: Using a shared ledger and insurance policies executed through
smart contracts can help enhance efficiency in providing vehicle insurance.
43
Solutions
▪ Health insurance: With blockchain technology, medical records can be

cryptographically secured and shared between health providers and in turn
increasing interoperability in the health insurance ecosystem.
▪ Reinsurance: By securing reinsurance contracts on the blockchain through smart

contracts, the technology can simplify the flow of information and payments
between insurers and reinsurers.56
As technological advancements are empowering customers with real-time dynamic

pricing at their fingertips in this sector, policies can be tailored to their individual needs
and usage behavior. In this regard, emerging solutions like blockchain, IOT, and AI are not
only helping accelerate a deeper understanding of consumer behavior, but are also
enabling companies to create a truly personalized experience, where customers are
engaged based not only on distance but on driving behavior, time of day, geo-location,
and a host of additional data points. These developments help increase customer loyalty,
retention, and overall satisfaction, while blockchain could better enable these key
developments.
As the insurance industry and the ecosystem is considerably mature, a holistic usage-
based insurance model would be built on the notion of connected identities across a
spectrum of entities/stakeholders, including global registries of vehicles, policy holders,
payment providers, hospitals, banks, mobile devices, repair facilities and insurance
providers.
In the global context, the associations between different stakeholders and links between
IDs allow for the vehicle to act as the lynchpin to associate a wealth of data into the
insurance model. This is become even more evident with the growth of numerous
consortia targeting the leveraging of blockchain in insurance-related applications and it
would not be long before they focus on the automotive insurance sector.57
It is also predicted that the problem which blockchain in automotive insurance will
ultimately help solve is the incidence of high costs for claims reconciliation. It is well
known that claims reconciliation is a huge cost to the medical industry, for example up to
300 people can touch a medical claim, which is a huge driver of cost. In this example, a
large driver of the cost is that there are individual versions of each medical claim,
requiring efforts to reconcile what the true facts are for the claim. The automotive
insurance industry too suffers from the same issues, it is therefore evident that many of
those costs can be reduced if each record had the same information across the spectrum
of interactions during the claim process, which is something that blockchain integration
can easily bring about.58
The second solution, which blockchain and the combined might of emerging technology
could offer to solve is in the for-collision insurance space. The new insurance processing
that uses real-time analytics, including telematics, navigation, and big data is being
promoted by startups that are trying to redefine the way traditional vehicle insurance
works. In the new process,
44
Solutions
1. After the accident, photos of the car would be uploaded via a mobile app and
turned into a 3D-model.
2. Then, the car ID (already available to the mobile app) would be hashed, and inserted
into the blockchain, after which a repair price would be calculated automatically.
3. After the transaction is completed post repairs, money would be unlocked

automatically, and can be used to pay for the repairs.
As far as startups active in this space are concerned, they also actively involved in
combining various high-end AI technologies, advanced telematics, link analysis, open-
source intelligence, visual intelligence, signal and image processing, photogrammetry, and
text analytics to develop powerful and efficient tools for providing low cost usage-based
insurance.
Startup Ecosystem
players currently leveraging BC solutions (Table 12) for automotive insurance applications.
Notable Traction
Funding Range
No. of Startups Events - Industry Stakeholders
(Million USD)
Leaders
<5 - Toyota
45
Solutions

solutions for automotive insurance applications, their product and service offerings,
& Segmentation
VLB (Vehicle The companies are providing insurance to Car Sellers, Car Buyers,
Lifecycle users at a more personalized price rather Token Holders, Data
Blockchain) than a generalized price Sellers, Data buyers
ahhto Inc The startups working in this area tend to

choose Ethereum as their preferred fabric
MaxGapPlus for blockchain.
Choosing Ethereum also gives startups

freedom to use tokens effectively to their
use and hence align their token economics
effectively.
Case Study: MaxGapPlus
In the case of MaxGapPlus that is active in the blockchain-enabled automotive insurance

services space, a MaxGapPlus policy is sold to a consumer through innovative direct to
consumer marketing or by a vetted and approved agent, broker, or dealership. These
policies can only be purchased with MAX tokens (platform specific token), in fact a
consumer can use a traditional form of payment, however, behind the scenes their
payment is seamlessly converted to MAX tokens.
Provided here is an elaborate example of how the MaxGapPlus system operates wherein
the following users feature: Bob: A customer; Alice: A dealership representative at
AutoCity; David: A Token holder who recently bought 100 MAX tokens from his favorite
crypto exchange and the MAX Foundation: Legal entity for the MaxGapPlus system.
Provided here in this section is a step-wise account of MaxGapPlus system operation

(Figure 15 highlights and provides an overview of this):
1. Bob purchases a MaxGapPlus smart gap policy for USD 600 during his purchase of
a lease from Alice at the AutoCity dealership.
46
Solutions
2. Bob receives his MaxGapPlus smart gap policy.
3. Alice receives the difference between the sale price of the policy and the factored
cost of the policy which is anywhere from USD 150.00 to USD 300. In this example
Alice’s cost is USD 200 and therefore her profit is USD 400, i.e., USD 600 – USD 200
4. David (the original token holder) receives 20% of the policy’s wholesale price or USD
40, i.e., USD 200 * 20%
5. MAX Foundation receives USD 160 (i.e., USD 200.00 - (USD 200 * 20%))
A user purchases smart gap policy

from a qualifying broker or
dealership or via direct sales
Step 1 channel
3 steps of Max Max tokens are chosen at random

to be used in the issuance of the
Gap Smart policy which pays 20% commission
Policy Step 2 to owner of the tokens
The broker, dealership receives the

difference between the sale price
and forecasted price. The policy is
Step 3 then issued to the customer
3 steps of Max Gap Smart Policy

Figure 15: 3 Steps of MaxGap Smart Policy
47
Provided in Figure 16 is a step-wise overview of the business and revenue model of
blockchain-centric automotive insurance providers.
Use Cases
▪ Claims Management
Efficiently
▪ Personalized Pricing from
generalized pricing Key Takeaways
BC Fabric providers ▪ Improved oversight by
▪ Ethereum is the most
(BC-FP) - Ethereum, quality
popular BC fabrics
+ ▪ Cost Reduction for vehicle
maintenance and repair
▪ The startups working in
SaaS - these in this segment
Ahhto, VLB, MaxGap Plus ▪ Transparency in monitoring primary focus is to offer
+ and honoring claims blockchain as SaaS
Automotive stakeholders -
Data Sellers, Data providers, model for Automotive
Data Buyers, OEM industry insurance are as
Manufacturers highlighted below:
BC-FP + SaaS + AS

Figure 16: Blockchain in the Automotive Insurance
48
Solutions
Marketplace
Blockchain enabled marketplaces in automotive will allow companies

to offer a range of services directly to the consumer, from repairs to all
kinds of customized services. The subsequent segment explores some
of the key innovations, disruptions or changes blockchain-enabled
vehicle marketplaces could bring about:
Vehicle Passports: Complete vehicle histories will exist on the

blockchain, data including title transfers, vehicle tracking, retailing and
leasing and insurance. The history inherently creates a digital identity
that can be used to acquire products, avail services or even buy and
sell secondhand cars in the marketplaces initially before being usable
in mainstream transactions when interlinked blockchains become
ubiquitous.
Personalization: Companies will be able to provide a level of

personalized services to vehicle owners that wouldn’t have been
possible before while keep costs and prices reasonable.
Repair and Maintenance Services: Blockchain will shift some

customization power and choices related to repair and maintenance of
vehicle back to owners from service or repair centers. Vehicle owners
with access to insights about past replacements and vehicle usage can
make consumable replacement decisions. Reviews and feedbacks
along with identification of authorized and reliable service stations
among other actions will shift to blockchain-enabled marketplace
services.
Part or Component Fraud: Authentication of spare parts or vehicle

components using the reliable blockchain-backed solutions can be
done by vehicle owners themselves. However, companies could also
promote on location 3D printed parts through technical readouts
made available through blockchain-supporting marketplaces.59
Vehicle Data: Trust between parties in the ecosystem is multi-fold

compared to traditional marketplaces due to the permeance and
accessibility of the vehicle information in these blockchain-backed
marketplaces.59
49
Solutions
Moreover, a blockchain-based marketplace for automotive

applications acts as an exchange and marketplace that not only
provides a detailed history of cars but also data on trading and
insurance risks associated with certain countries and cities.
Based on these applications, startups are coming up with varied

business models including one where car dealers can access the global
cryptocurrency market with minimal effort and cost through a
decentralized marketplace — with free listings, free advertising and
low transaction costs.
Startups are also producing marketplace algorithms, which are using

blockchain to assign attributes to secondhand vehicles and create a
large database of vehicle specifications, such as the age of the car,
mileage, major repairs, and past insurance claims. Such startup
developed platforms also provides metrics on the most profitable or
high-risk locations for buying and selling, insurance claims and so on.60
A digital marketplace therefore combines an ecosystem of players to

share data, insights, apps, and services to exchange value-added
services. These marketplaces can deliver information ownership and
protection and ensure revenue disbursement and a dynamic
management of contracts and alliances, without any intermediary
intervention.
50
Solutions
A brief profiling of the most prominent startups active in the developing blockchain based
solutions for automotive marketplace applications, products and service offerings,

Segmentation
▪ BitCar The marketplace for blockchain Data Sellers, Data providers,

▪ Autobay enabled companies in automotive Data Buyers, OEM
▪ Shift Mobility range from providing marketplace for Manufacturers
▪ VinChain OEM manufacturers, distributors and
end consumer
Case Study
This case study covers the Spark application that

is one of the most popular blockchain-supported
marketplace applications currently. Accordingly, a
customer’s association with the application
begins when the customer downloads the Spark Decentralized
application, wirelessly connects it to their vehicle, Automotive Marketplace
and lets the app guide them regarding specific
services. Through Spark, the car owners
automatically and instantly enter and become a Artificial Learning @
participant of the marketplace. Vehicle owners Advanced Analytics
then can access everything from service
appointments and repair estimates, to insurance
and DMV paperwork, emergency roadside
assistance, a detailed list of all the work Real Time Diagnostics
previously performed, and the history of the parts
specific to their vehicle.
Furthermore, when a vehicle service is
undertaken, the records are made instantly Location Based Services
available within Glovebox, a component of the
Spark app. In fact, Spark even covers a
marketplace for parts and services, previously
Connected Vehicles
deferred so that customers could arrange for their
Offline and Online Modes
completion during a service visit in the future. The
inclusion of detailed service history also aids in
more accurately determining vehicle resale and
fair market value. A brief overview of the features Figure 17: Spark App
of the Spark app has been provided in Figure 17.
51
Solutions

At this point in time, startups are providing blockchain platforms for the creation of fully
automated systems and applications that leverage DLT and smart P2P networks.
With the creation of a Decentralized Automotive Marketplace or DAM-based parts
marketplace, vehicle demand is made transparent to the automotive network comprised
of manufacturers, distributors, and repair centers enabling each to achieve tremendous
efficiencies and cost savings in the automotive supply chain. These savings can then be
passed on to the consumer, resulting in lower cost of vehicle services and repairs.
Manufacturers gain insight into fast-moving parts and can plan production schedules
appropriately. Should there be any premature failure, the products can be instantly
recalled – minimizing potential warranty claims. Consumers also gain greater transparency
and choices for OEM and aftermarket parts.
Provided in Figure 18 is a step-wise overview of the business and revenue model of
blockchain-based distributed automotive marketplaces.
Use Cases
▪ Stores, secures and
transfers data
▪ Provides users with variety Key Takeaways
BC Fabric providers of options which are safer in
▪ Ethereum is the most
(BC-FP) - Ethereum, equivalent way
popular BC fabrics for
+ ▪ Creates product information
to consumers
marketplace
PP + BaaS - ▪ The segment is majority
▪ Allows integration of other dominated by startups, that
VinChain emerging technologies such focus on organizing and
+ as IoT, AI, ML, etc. developing a common
SaaS - ▪ Allows a common marketplace for vehicle life
BitCar, Autobay , marketplace for complete Cycle
Shift Mobility vehicle lifecycle ▪ Most adopted business
+ models for Automotive
industry Marketplace are as
Automotive Stakeholders -
Data Buyers, OEM highlighted below:
Manufacturers BC-FP + PP + BaaS + AFS
BC-FP + SaaS + AFS

Figure 18: Blockchain for the Automotive Marketplace
52
Solutions
Loyalty
Rewards programs are a widely used tool for driving customer

retention, long-term engagement, and additional revenues across
sectors and the automotive segment is no exception. However, the
limited efficiency of current loyalty programs often results in reward
points staying unused.
In another striking revelation, a recent study by Accenture showed that

77% of respondents participated in at least one loyalty program, and
over USD 300 billion was distributed in reward points every year.
Despite this, not only do businesses see these points go unused, they
often find that these programs do not actually drive loyalty. Often, a
lot of this has got to do with how complicated, complex, and
cumbersome these programs are.
The advent of DLT is set to turn reward programs inside out and make
vast and far-reaching changes to the loyalty programs. Currently,
loyalty programs are not integrated, and are unable to accrue value.
Therefore, there is a need for implementing shared databases for
managing a high volume of transactions and implement controlled
access and execution. This in turn would ensure that loyalty
engagements serve both consumers and the organizations with which
they interact.
On a blockchain-based loyalty program, a loyalty transaction such as

issue, redemption, or exchange of a reward, should indicate the
system to create a computer-generated loyalty token, the basis for all
types of rewards, including points. The loyalty token’s unique
identiﬁers can be updated on each participant’s ledger and made
available across the network.61
Also, loyalty programs in the automotive space could be made to

reward good driver behaviour. Redeemable reward programs could
include sticking to decent driving speeds, keeping the vehicle in good
shape, or switching to ECO mode.62
All these could cumulatively be to onboard loyal customers who are

the primary drivers for any business enterprise. Loyalty rewards and
programs can therefore help companies aiming to transform or
overhaul their customer experience delivery mechanism. However, in
most instances, the reverse is often true. The subsequent segment of
the reports takes a comprehensive look at how the adoption of
blockchain by automotive majors can help redefine customer
experiences for a variety of factors:
53
Solutions
Cost optimization:
While blockchain involves upfront expenses, the ultimate cost savings
are significant, and can be classified into–transactional, system
management, and customer acquisition. Blockchain-based loyalty
rewards program leverage smart contracts to reduce system
management costs while reporting secure, tracked, and transparent
transactions to legacy systems, eliminating costs of frauds and errors.
Enabling a frictionless system:

An automobile manufacturer credits a customer’s rewards in the same
digital wallet from which he/she redeems them for the fuel station.
Loyalty programs and their creators dictate how and with whom
customers uses rewards, however, from the customers perspective,
his/her ability to access and manage them is practically frictionless.
Ensuring near real time visibility:

Blockchain can enable a transaction to be recorded and accessed by
multiple involved parties in near real time, enhancing the probability
that a loyalty rewards program provider can cut through coordination
inefficiencies to credit points faster.
Providing a secure environment:

By creating an immutable and time-stamped distributed database
entry of every single transaction ever made, blockchain helps make
each transaction and its record traceable and irreversible. It also helps
prevent double spending, potential fraud and abuse, and any other
type of manipulation of the transactions.
Creating unique business opportunities:

For building an interlinked loyalty network, large loyalty rewards
program providers with well-developed programs have unique
opportunities to offer value-added services to other businesses.63
In conclusion, it can be added that for consumers juggling with an

array of loyalty programs, blockchain could provide instant
redemption and exchange for multiple loyalty point currencies on a
single platform. With only one ‘wallet’ for points, consumers would
not have to hunt for each program’s options, limitations, and
redemption rules.
54
Solutions

solutions for automotive applications related loyalty and rewards programs, products and
service offerings, business and revenue models with a stakeholder overview is provided in
Table 15.

Segmentation
Loyyal As of now the adoption of The technology is still at a stage

technology is at a nascent of unraveling itself within the
Appsolutely stage in this space. But going present ecosystem. Hence, the
forward these few are the stakeholders at this particular
KeyoCoin
companies which will have a stage cannot be asserted with
Lolli fist mover advantage in loyalty surety.
rewards space 64
Qiibee
Trippki
Other Solutions
Identity Fraud
Identity Fraud is a growing concern for the automotive industry65. Synthetic identity fraud
(SIF), wherein a new identity based on real data is created, is a problem not specifically
directed at the automotive industry. However, the increase in automotive-sector specific
losses due to SIF has grown by five times between 2011 to 2018.66
Blockchain has already presented a multitude of use cases to provide for databases that
are immutable and authentic. The blockchain-based solutions further allow participants
to share data without sharing personally identifiable information (PII). A car dealer for
example can compare such data on a blockchain network to confirm the identity of a
loaner. This is what SpringLabs, a firm backed by GM in a USD 23 million series A Funding,
is building on67. SpringLabs is building the Spring protocol which uses an attestation-based
approach based on advanced cryptography and BC. The protocol allows financial
institutions to share customer data to identify fraud information without revealing PII.
55
Solutions
These institutions are further incentivized for sharing data, while they are further enabled
to build a better picture of their customers (Table 16).68
Notable Traction
No. of Funding Range
Events - Industry Stakeholders
Startups (Million USD)
Leaders
<5 23 General Motors Consumer - Car owner
Financial Institutions
Dealer
Vehicle Inspection
One of the startups identified and active in the blockchain-enriched vehicle inspection
space is ProovStation. The startup has developed a portal for automatic detection of
damage in a vehicle, integrating AI and 3D technologies for automatically scanning
vehicles. The portal also allows users to locate damages in less than three seconds.
In addition, ProovStation automatically generates a time-stamped, geo-located and

secure report (blockchain-based) that includes conservative HD photos of the vehicle's
condition, damage report down to the scale of millimeters. Valuation of these localized
and quantified damages is done, and the gantry reduces the expenses of reinstatement by
attributing the damage to the person in charge and as a result re-billing is claimed to be
fair and without conflicts.
Manufacturing
It is interesting to note that blockchain is allowing manufacturers to securely produce 3D

printed parts of a vehicle like the suspension uprights and brake calipers. Here, blockchain
solutions address the security issues of immense importance related to IP and
copyright/trademark protection which are key issues. This is because, theoretically
anyone can get hold of STL files and print them. That’s where the 3D printing market
currently is right now. Blockchain adds that additional level of security.
For example, manufacturers can take an (Standard Tessellation Language) STL file and
distribute it to trusted partners across the world. As these partners have a 16-digit key
which lets only them to access the file eliminating the chances of anyone else
downloading or even accessing the file as this would be prevented by the blockchain-
backbone that would go into such business communications or exchanges.69
56
Solutions
Another application of blockchain in the manufacturing space is management that is

widely applicable across the supply chain. The startup Syncfab70 deals with local
manufacturers that provide parts to leading automotive players, creating a manufacturing
blockchain based marketplace. SyncFab DApp provides data pertaining to manufacturers
on the blockchain network and allows dealers to contact them over the blockchain, to
obtain a quotation for their required capacity and instantly pay for them. This DApp also
provides auxiliary services such as shipping.
Advertisements
RedCab earlier featured in this report that provides ride hailing services based on
blockchain claiming fare commission reduction down to 0% also plans to dispatch geo-ads
during the rides on the app71. As geo-ads are location-based advertisements that reflect
based on the rider’s location parameters and its frequency, these geo-ads would be used
by RedCab to generate revenues by implementing a decentralized marketing and
advertising initiative.
Digital License
The startup, ShoCard, a digital identity verification system, has described a use case for
digital licenses. The proposed mobile driver’s licenses (mDL) and digital identity (dID) is
claimed to be leverageable over a blockchain-based system to display selected
information over an app. It is disclosed that the digital identity can be matched to the
identity on the blockchain using a QR code as well on the app.72
57
The automotive industry has woken up to challenges like stricter CO2 emission and safety
norms, dwindling margins, and stiffer competition from technologies companies such as
Google, Intel, Apple, Amazon very late. But now these concerns are forcing the legacy
auto manufacturers to look beyond traditional issues and to focus on adoption of
emerging technologies such as AI, IoT, big data, and blockchain for finding new revenue
models ever more rapidly.
The high-point in the adoption of digital transformation in the automotive industry is yet
to be achieved and remains as another challenge for these legacy units as they have
limited experience in adopting emerging technologies. Effects of such threat can be
gauged by the emergence and success story of Tesla Motors, which is competing with the
legacy units which have more than 100 years of experience in auto manufacturing and
have invested billions in R&D. Additionally, the growing demand for connected vehicles,
electric cars, and the rising adoption of digitization have started denting the revenues and
traditional business models of the industry players. These developments have created a
need for the adoption of emerging technologies into the business model. However, these
challenges have been exacerbated due to the limited experience of the legacy auto
manufacturers in integrating emerging technologies and therefore making them rely on
the experience of technology companies/startups and driving them to forge partnerships,
make acquisitions or join consortiums in order to leverage blockchain-enabled
innovations.
Consortium-linked Approach
Joining or linking with Consortia ranks as one of the most popular elementary routes
taken by traditional industry participants to enter the blockchain space. Over 40
blockchain consortia exist globally as on date, and the importance of these groupings can
be gauged from the fact that they have already attracted significant investments across
the globe.
Despite the increased interest in blockchain technology, the automotive industry

stakeholders are yet to fully leverage the technology. With the spread of blockchain-based
applications still at a nascent stage, many industry stakeholders have chosen to play safe
by waiting out for the solutions to mature into something useful.
However, at present, a few stakeholders have already stood out as front runners by joining
as key promoters of several automotive blockchain consortia. Autonomous machine
payments, congestion fees, car and ride sharing, usage-based insurance, and supply chain
management are the key focus areas of the current automotive Blockchain consortia.
In line with the current digitization trends, data has emerged as the focus area for
majority of stakeholders from the automotive blockchain consortia. Realizing the high
potential of automotive data, these stakeholders have started coming together to explore
59
the power of Blockchain technology for industry data management, which has emerged as
the ‘next big thing’ in the automotive industry and is likely to open doors to new revenue
segments for the industry stakeholders.73
Blockchain in Transport Alliance (BiTA)
BiTA, headquartered in Chattanooga, TN, USA, has around 500 members from global
logistics landscapes including freight, transportation, logistics, and affiliated industries in
over 25 countries. The consortium engages in helping, educating, and developing
blockchain standards for the transportation industry. Currently, the consortium has
developed two blockchain standards including BITAS Tracking Data Framework Profile and
BITAS STD 120-2019: Location Component.
RiskStream (RiskBlock)
The consortium is majorly focused to offer streamline operations of risk management and
insurance industries. With an interoperable blockchain system, Canopy, RiskStream
develops a blockchain solution to allow third parties to build their application. The
consortium has more than 50 members from risk management and insurance companies
(also auto insurance) and has an operation in the USA, Canada, UK, and the Asia Pacific.
R3 Corda
R3 is a blockchain consortium with more than 300 members from different industries.
Last year, 26 French companies and five banks completed blockchain-based a Know Your
Customer (KYC) test with R3. R3’s Corda KYC solution test includes different industry
segments such as automotive finance, insurance, consulting, etc.
Mobility Open Blockchain Initiative (MOBI)
Four of the world’s largest car producers including BMW, Ford, General Motors and
Renault along with suppliers, startups, NGOs, and government agencies have come
together to form the largest automotive consortium in the world dedicated to developing
blockchain initiatives and their promotion. MOBI aims to build interoperability standards
and a platform to enable global payment and data sharing ecosystem for industry
stakeholders. Currently, MOBI has members that account for 70% of global car
production, along with 30 other partners. Provided in Figure 19 is a brief snapshot of
MOBI’s promoters and its mandate of activities.
60
Vehicle identity
Supply chain tracking, transparency, and

efficiency
Autonomous machine and

NGOs vehicle payments
Other
Secure mobile commerce
Automobile Auxiliary
Players Players
Data markets for autonomous

Startups and human driving
& IT Players
Car sharing and ride hailing
Usage-based mobility pricing, and payment

for different industry stakeholders
Figure 19: The MOBI Initiative
Startups
As the automotive industry braces for falling revenues correlated to the dip in sales due to
slowing car ownership rate among millennials and the growing importance of the ride
sharing market, blockchain is poised to bolster automotive transformation. As a result, the
adoption of blockchain technology in the automotive industry is gaining momentum and
seeing a healthy growth in investments in the startup space.
In the blockchain-enabled automotive space, it is startups that are driving this highly
sought-after transformation by offering innovative services to customers that have
opened up new revenue streams. Each of these startups offer a wide variety of specific
blockchain-enabled services such as car data, insurance, electric vehicle charging and
payments, ride hailing services, other token sharing services, etc. Most startups are
focusing on car data management at some level as it offers the most promising future
opportunities with potential as it would integrate a number of cutting-edge technologies
such as AI, Big Data along with Blockchain among other disruptive technologies.
According to a McKinsey report, the market for car-generated data is estimated to reach
USD 450 - 750 billion by 2030. At present, to position themselves as ready to monetize
61
these early opportunities, startups have started building the required capabilities and
partnerships.
Going forward, startups are expected to play a vital role in helping the struggling
automotive industry and become an integral part of future automotive value chain and
therefore are critical cogs of the automotive industry value chain at this point.
Additionally, startup’s innovative services are likely to interconnect different industry
stakeholders to provide seamless customer services and future-proof stakeholders
businesses and revenues.
Automotive Companies
Over the years, numerous legacy auto manufacturers have been actively taking steps
towards implementing Connected, Autonomous, Shared, Electric (CASE) strategy by
focusing on using blockchain technology for offering seamless experiences to their
customers. Additionally, the legacy auto manufacturers have not shied away from
investing billions in the expansion of their electric feet through an interconnected network
of battery producers, auto suppliers, and customers. Furthermore, a few manufacturers
are focusing on supply chain management to improve transparency and sustainability into
their value chain.
62
For automotive companies, another application area for blockchain solutions is in the
auto finance, track and traceability, and history data management. Furthermore, as a part
of their CASE strategy, most automotive players are choosing startups over big IT players
to implement blockchain technologies which helps them to be nimble, bring about speedy
execution and enter the market rapidly and pip competition. Also, in the long run, the
legacy auto manufacturers are expected to heavily monetize opportunities created by
interconnecting vehicles.
Provided in Table 17 are the focus areas, services offered and execution strategy or case
example of the legacy auto currently focusing on blockchain technologies:
Automobile
Focus Area Blockchain-enabled Service
Manufacturer
Streamline charging process for drivers to
Bosch find a station, reserve their spot, and pay
without hassle
Ford Motor
Ensure ethical sourcing of cobalt
Company Electric Vehicle and
Honda and General Charging Data retrieval methods between electric
Motors (GM) vehicles and smart grids
Hyundai Smartphone-electric vehicle pairing
Enable homes, businesses and electrified
Toyota
vehicles connected to the electricity grid
Ensure more transparency and security in
Volkswagen the supply chain through
Supply Chain cryptocurrencies
Management Increase transparency and sustainability
Mercedes-Benz
in complex supply chains
Hyundai Tracking information related to used cars
General Motors – Improve data management to address
Auto Finance
Financial Arm automobile financial issues
Jaguar Land Rover Data Management Sharing car data in exchange with tokens
Table 17: OEMs Focusing on Blockchain Technologies
63
Others: Technology Player: IBM
In spite of all this traction created by automotive players, the blockchain behemoth of
today to contend with is clearly IBM, this industry-agnostic blockchain technology leader.
IBM has been at the core of and an integral technology provider for a number of
blockchain-solutions targeted at the automotive industry.
One of such stand out industry examples include that of Koopman (featured earlier in the
report), a logistics service provider of finished cars, using IBM blockchain technology to
develop a supply chain transparency solution. As elaborated earlier, this solution aims to
eliminate paperwork throughout the supply chain, such as bill of lading, and introduce
digital documentation for vehicle hand over using blockchain. Such solutions will
accelerate deliveries, reduce fraud and are thus expected to cut down supply chain
costs.74 Furthermore, a consortium of players in the Finished Vehicle logistics, including
Koopman, is expected to go live from September 2019.75 This consortium titled as
Vinturas, includes Axess Logistics, NVD, Koopman Logistics Group, and Autolink Group.
In another notable effort by IBM, the company is piloting a traceability solution that tracks
global mineral supply chains, the participants of this project include Volkswagen, Ford,
Huayou Cobalt, LG, and RCS. This pilot traces Cobalt from Huayou’s industrial mine site to
Ford’s plant in the USA is already underway and was expected to be completed by mid-
2019.76
64
In another significant case, ZF, a German car parts maker, plans to create a system that
enables automatic payments and ensures full vehicular autonomy. The solution, to be
powered by IBM’s blockchain technology, proposes to include a car eWallet that creates a
single token-based payment system.77 This system is expected to also automate and
combine all transactions including buying of fuel, renting of parking space, and paying of
tolls.
In the case of widely distributed and small energy sources such as electric vehicles there is
a critical need for quantification mechanisms that can be validated. Such a mechanism has
been achieved by TenneT, a transmission system operator based out of Netherlands, in
conjunction with IBM. While elaborating about this project, René Kerkmeester, Digital
Transformation Lead at TenneT explained, “We developed an initiative we refer to as
‘crowd balancing’. We needed a way to manage the electricity flow to and from these
small, individual electricity sources. Furthermore, we needed a solution to accurately
record and monitor those energy transactions to ensure they actually occur as reported,
and to use that information as a basis for payment.”78 This Hyperledger fabric based
blockchain solution implementation helps to manage electricity flow, verifies and
documents the transaction values of energy sources, integrated into the electricity grid.
In a novel initiative, Energy blockchain Labs, based out of China, helps big carbon emitters
to buy carbon credits from low emitter firms. This startup has created a blockchain based
carbon trading platform in partnership with IBM and the company also plans to develop
an EV green electricity trading system.79
65
in the Automotive Industry

Automotive industry is one of the early adopters of the blockchain technological

applications. With blockchain, the automotive industry has found use cases across the
industry’s supply chain, its financial segments such as insurance, in mobility services, and
predominantly in data analytics and monetization.
Immediate Opportunities
While most blockchain service providers dominate the supply chain cluster, the number of
startups leveraging blockchain in the supply chain segment of the automotive industry
continues to be lower than other industries and applications. Such a situation exists as the
blockchain-based supply chain track and trace services are provided by relatively large and
dominant service providers such as IBM or others that have already consolidated their
market positions and have formed or a part of big industry consortiums. Startups in this
domain predominantly provide SaaS-based blockchain solutions. The current state of
blockchain-based solution adoption is considerably higher with a significant number of
solutions having been already deployed. Accordingly, provided below in Figure 20 is a brief
overview of two startup service providers that have a promising future.
Circulor provides AI and blockchain Sofocle Technologies, accelerated by

leveraged SaaS to increase Bosch DNA, offers sofoChain - a track
transparency across supply chain and and trace solution for supply chain,
prove product provenance. using smart-contracts.
SaaS SaaS, BaaS

(Expertise in HyperLedger Fabric and
Sawtooth, Ethereum, Multichain)
Circulor provided a supply chain
solution for Power Resources Group in
Oct 2018 to trace the origin of its
Tantalum, sourced from Rwanda. It was Services: sofoCap, sofoPay, sofoChain,
developed to guarantee conflict-free Insurra, Certiza, Zeeve
source of materials.
Figure 20: Startups Providing Supply Chain Services
67
Mobility Services
Mobility services such as ride sharing, ride hailing, or car hailing are the most sought after
blockchain leveraged solution in the automotive industry at present. Most of these
startups and firms working in this space are developing solutions that generate revenue
from their B2C applications. As a focus-area, this segment offers a huge market
opportunity and firms active in this space, do not sell their products, platforms or services
to any of the rather large automotive firm and rather choose to provide dApps that are
used by their consumer directly.
It is interesting to note that these services, when leveraging blockchain are called the
‘Airbnb’s of the mobility industry’. This is because, they connect a consumer, in this case a
rider or a car hailer, to the provider who is the driver or the car owner. Although, services
such as Uber and Lyft do the same thing, the blockchain-based solution providers promise
cheaper fares to consumers and higher earnings for car owners and drivers, as compared
to those provided by the centralized service providers. Given the current market
trajectory, scope and penetration of these services a blockchain run down may be a huge
success and also catastrophic for the likes of Uber, Lyft, Didi and Ola among others across
the globe. In these cases, the reduction in costs in mainly attributed to the fact that using
blockchain removes transactions costs associated with card payments, and the lower
commission rates charged by the service providers. However, in such solutions, the role
and need of miner incentivization and loyalty programs among others need to be
addressed at the earliest.
Other similar solutions exist for the parking spot hailing segment as well in the mobility
industry. Figure 21 highlights and profiles some of the interesting blockchain startups in
this domain.
Helbiz is a transportation service provider,

with flagship HelbizGO electric scooters RedCab plans to build a transportation
that are rented using a mobile app that community for businesses and P2P
reduces carbon footprint. Other Services services.
include HelbizAir and Helbizcar.
dApp (HelbizCar) dApp (available)
Helbiz offers a peer-to-peer car connecting

solution that leverages blockchain-based The P2P transportation model plans to
smart contracts and crypto payments using generate revenue from geo ads, so that
Helbiz coin. It monetizes car time, which drivers make 100% of the fare.
would otherwise be spent in parking.
Helbiz collected ~39mn USD in ICO funds.

It launched an IPO Process to Dual List on RedCab collected ~3mn USD in ICO in 2018
NASDAQ and Borsa Italiana’s AIM Italia on
June 6th, 2019
Figure 21: Startups Providing Mobility Services
68
Vehicular Data and History Monetization

Armed with the fact that the modern vehicles generate 25 GB of data daily on an average,
a bunch of new age startups are monetizing V2X (Vehicle-to-Vehicle or Vehicle-to-
Machine) data, in-car data and user data. These startups monetize the data in two ways
generally, the first one of which is through a B2B model adopted by these startups
wherein data is monetized as a whole and sold to different buyers in the market, while the
second pathway relates to selling data which corresponds to only the history of the car or
through a B2C model adopted by startups. Typically these startups raise funding through
ICOs, then develop and launch at least a minimum viable product (MVP) while
simultaneously scouting for a partner for the hardware component, and forging
partnerships in the automotive vertical to better market the product once it is
commercialized. Most of the startups working in this space were incepted around the
years 2016-2017 while they went live with their products in and around Q4 of 2018. The
Figures 22A & 22B summarize some of the typical companies and their offerings in the
data monetization space. Interestingly, DOVU has been backed by the automotive major
Jaguar.
DOVU creates a new value exchange

between people and global mobility CarBlock is a developer of a blockchain-
providers. The platform allows users to based transportation solution built on data
earn DOV tokens for sharing and generated by smart devices
improving the way that they travel, allows
mobility companies to get closer to their
customers and helps cities get smarter. Protocol + SaaS
dApp (SaaS)
CarBlock is providing a protocol as well as a
Dovu has developed an app through which SaaS model for integration of blockchain in
DOV token makes it simple to capture and automotive verticals.
reward value. DOV is an ERC-20 token
where you earn and spend by sharing and
changing the way you travel. CarBlock raised ~$24 Mn, of which $1 Mn
from VC funding's (Consensus Lab as the
DOVU raised £ 350K from venture funds, lead investor) while, $23 Mn from ICO
and garnered $6M in ICO in 2017 in 2018
Figure 22A: Startups Providing Vehicular Data and History

Monetization Services
69
ShiftMobility has a high first mover advantage in automotive blockchain space . Its
blockchain platform is a hub for all information and transactions that touch a vehicle
dApp (SaaS)
Shift mobility has developed a blockchain platform which is based on Blockcurr and
Ethereum, and allows SHIFTMobility applications to capture data in real world
scenarios of vehicle transaction and service data, and deliver local demand insight
directly to their partners
ShiftMobility raised $2Million in 2015 from VC funding
Figure 22B: Startups Providing Vehicular Data and History Monetization Services
Marketplace
Blockchain marketplaces are some of the most immediate blockchain solutions that
would have practical use cases in the automotive applications. In fact, blockchain-driven
market solutions may provide a varied set of opportunities that can be categorically
segmented as those providing immediate opportunities and some opportunities that
would be fruitful in the long term. The immediate opportunity here (Figure 23) is for the
data on sale to various stakeholders in the vehicle life cycle, and the number of startups
operating in the space is massive due to the monetary opportunity it leverages by
applying blockchain.
LO3 Energy builds tools and develops MotionWerk GmbH develops blockchain-
projects to support and accelerate the based software solutions for the mobility
proliferation of the distributed energy, industry. The company became known for
utilities, and computation sharing its "Share&Charge" product, a peer2peer
economy of the future. charging network that was considered one
of the first live products using the public
Ethereum blockchain
dApp (SaaS)
SaaS
The solutions offered by LO3 Energy MotionWerk is developing a peer-to-peer
provides decentralized business models car Sharing Pilot with blockchain technology
and innovative technologies related to enabling the access to the car and the
energy, cleantech, and utility systems. payment and therewith supporting the
exciting idea of P2P car sharing.
LO3 Energy raised $5.8M from non-ICO
route with lead investors being Braemar Information related to investments not
Energy Ventures, Centrica and Siemens available
Figure 23: Startups Providing Marketplace Services

70
Electric Vehicles
The adoption of EV among buyers and manufacturers is clearly driven by the availability of
infrastructure. In most of the countries, the infrastructure is setup and owned by the
consumer itself and is generally a privately-owned charging booth in their garage.
However, when it comes to publicly accessible infrastructure, i.e., charging stations, the
accessibility is less and the cost for the service is volatile, depending on the charges and
availability of local energy. Also, currently EV owners must create user accounts at the
local EV charging station provider to even access charging booths. Also, most of the times,
the car charging mechanism is not compatible with the EV charging station even.
In light of these challenges, EV charging accessibility becomes easy with blockchain.

Blockchain solutions allow the consumer to create a single account to access multiple
charging stations that are associated with the network. Also, the network of participants
could include both private and public participants, thus giving consumers access to other
privately-owned charging booths. Also, payments in blockchain-powered solutions would
be based on smart contracts and as the value of tokens is small, counting tokens per kWh
is easier. A couple of startups working on these blockchain solutions that have an
immediate future in this application are profiled in Figure 24.
Parkgene is a subsidiary of the ParkGuru The firm was established in 1995, that
group, based out of Singapore. It focuses offered parking spots near airports. It also
on a decentralized p2p parking service for offers a range of other auxiliary services
driveways and home garages owned by that include car washing, battery
individuals. restoration and insurance
dApp (available) dApp (available)
It offers GENE Wallet, a multicurrency GetMyCar project also allows car rentals
wallet that holds GENE, Bitcoin, Ether and to and from airports. The firm is uses
other coins. Apart from conventional blockchain technology to maintain a
methods, the payments can also be loyalty-based program and unify payments
processed using the blockchain based
tokens.
ParkinGO token sale generated 21M USD.
Parkgene collected ~24M USD in ICO The use of tokens in its system began in
funds. Q3 2018.
Figure 24: Startups Providing Electric Vehicle Services
71
Long Term Opportunities
Marketplace
The evolution of the marketplace concept has been more rapid than ever in the last
decade or so. Therefore it is not surprising that blockchain-related marketplaces have also
become considerably popular in the automotive sector and promises to support a huge
variety of applications and offers significant opportunities in the long-term. The long-term
opportunities relate to sale of cars on a blockchain platforms. The business models
around car sales vary from selling secondhand cars to exotic ones. One of the prime
reasons for the integration of blockchain in this segment is the dominance of data in
deciding the true value of cars as well as the ease of providing all ancillary services due to
the availability and authenticity of that data. A few startups active in this area have been
profiled in Figure 25.
AutoBay is one of a type blockchain BitCar has developed a blockchain

platform which legalizes use to crypto platform to trade exotic cars with shared
currencies to buy cars, truck and ownership through its bit car tokens
motorcycles
dApp (SaaS) dApp (SaaS)
Autobay is currently is in its initial stages BitCar aims to launch in 2019 with its
of pilot and aims to launch commercially target to sell first exotic car in 2024
by end of 2019
Finance status not clear Bitcar raised $9,230,000 from ICO in 2018
Figure 25: Startups Providing Marketplace Services
72
Insurance
The insurance sector is linked very closely to the automotive segment and is as massive
industry. Further, because of the insurance sectors proximity to the most effective use-
cases for blockchain, the adoption of blockchain-enabled insurance solutions has
considerable opportunity. The primary reasons driving the adoption of blockchain in
automotive insurance are reduction in operating cost and reduction of insurance approval
time. Integration of blockchain in vehicular data records management helps insurance
providers verify the authenticity of data at various stages in the auto insurance life-cycle.
As one of the major success drivers of insurance company in the modern world is the
turnaround time or the time required to address claims after the insurance policyholder
files the claims. The introduction of blockchain helps fasten the claim addressal process
from days to mere seconds and provides an enriched customer experience. Some of the
interesting startups working in this segment have been profiled in Figure 26.
Ahhto Inc is developing a insurance model MaxGap Plus is a startup which develops
based on blockchain which will provide a and sells automotive insurance policies
holistic 360* view of all the parameters based on blockchain
related to vehicle as well as driver
SaaS
dApp (SaaS)
MaxGap Plus is making a insurance model
which will involve automotive dealerships,
Ahhto is building a ecosystem of apps token buyers as well the end customer
which will provide Personalized Insurance themselves.
Pricing, Collision Detection, Insurance
Coaching and Risk and Liability analysis
It has plans to raise the funds through ICO
in 2019 and then go on to develop the
No finance details available MVP
Figure 26: Startups Providing Insurance Services
Electric Vehicles
The amount of time required to charge an EV at present can range anywhere between 30
minutes to above 30 hours.80 During this time, other EVs can also add load to the grid
network causing outages. While grid time optimisation can reduce the load on the grid,
dynamic pricing is an effective way to maintain consumer behaviour. However, with the
73
introduction or integration of blockchain technology and solutions, consumers could be

incentivised to distribute such load. Similarly, consumers could also make money by
providing electricity back to the grid, using the energy stored in their EV batteries.
However, it is projected that such blockchain integrated robust systems would only
become necessary in the longer term, when there would be enough EVs on the road.
Vehicle Autonomy
With the very recent advent of autonomous vehicles there is a pitched buzz in the
automotive blockchain solutions market. As, autonomous vehicle requires higher level of
vehicle autonomy that is yet to be achieved and even further away from being scaled,
they present a long-term opportunity for the ancillary domains that would enable these.
The prominent opportunities for blockchain solutions in this space revolve around the
ability to blockchain to support transactions without the need of a centralised party. This
essential means that, AVs can transact directly with other vehicles or infrastructure, using
smart contracts effectively increasing autonomy. For example, a vehicle-to-machine
communication may involve an AV paying a toll machine directly when it passes under it.
As yet another example, a vehicle-to-vehicle based transaction could leverage blockchain
to obtain a better picture of the traffic (non-LiDAR based for example) or get the right-of-
way and improve traffic congestion. A few of the interesting startups working in this
sector are summarized based on their stand-out features in Figure 27.
DAV aims to provide a computer network Chorus Mobility is focused on the research
that will ultimately connect self-driving and development of blockchain-based
vehicles (such as cars, trucks, rovers, and peer-to-peer payment protocols and
drones) to everyone on that network, decentralized applications for driverless
enabling them to discover, communicate, vehicles of tomorrow
and transact
Protocol + SaaS Protocol + SaaS
Once developed, Chorus aims to focus its

DAV plans to develop a blockchain solutions majorly on payments using
ecosystem that can deliver daily utility blockchain as the leading tech
necessities at vehicular level
Chorus had a undisclosed corporate round
of funding as well as a major investment
Raised $ 24.5 Mn through ICO in June from Tezos. It is also funded by Tribe
2018 Accelerator
Figure 27: Startups Providing Vehicle Autonomy Services
74
Financial Backing
Initial Coin Offerings (ICO)
Until a couple of years ago, ICOs had gained significant momentum due to the increasing
popularity of cryptocurrency, ease of investment, less transaction cost, and less
marketing. But since then the hype about ICO funding has steadily started falling as most
regional regulatory bodies/agencies have started showing concern about its sustainability.
However, it has been observed that ICO funding is quite popular among startups that offer
blockchain-enabled automotive services. Additionally, most of the startups that offer
token-based services such as mobility services, electric vehicle charging, data
monetization, loyalty, etc. are heavily dependent on ICO funding that is tightly entwined
with token economies they wish to promote. Furthermore, there are some key success
stories related to startup fund raising through the ICO route of investment that the
automotive industry could look to study and emulate.
Success Stories:
Startups around the world have been
toying long with the idea of alternate
route to raise funds, and in ICO they
certainly got the solution. Startups
working across providing solutions in
automotive blockchain have too adopted
the same route to raise funds, among
them the startup which have rescript the
fund-raising activity is Helbiz, which
raised USD 39 Million in an ICO offering in
March 2018. The distribution of tokens is
planned strategically by startups, for
example in case of Helbiz 40% of tokens
are sold to general public, 25% are held in
reserve for future development, 10% are
given to advisors and early backers, 10%
for the team while 4% and 3% are
reserved for pre-sale and bounty program
respectively. The funds generated form
ICOs is again allocated in the startups
meticulously, as in case of Helbiz the fund
allocation is 40% to product development
team, 35% to business development team
while 20% and 5% to marketing and legal
teams respectively.
75
Non-ICOs
Over the last year or so, the ICO hype has slowed down dramatically, while equity funding
in blockchain companies has taken the front seat. Additionally, tangible components
including consulting, business guidelines, scalability, connection to the industry
influencers, proof of concept, etc. other than funding have become evidently more critical
to ensure the success of blockchain startups. Also, blockchain startups looking more
serious are looking for long term investment relationships that can be fulfilled effectively
only through equity funding.
Success Stories:
While some startups are vouching for ICOs, a considerable number of startups are still
finding it comfortable to harbour in the cocoon of angel investors. Such is the fund-raising
event raised by Spring Labs of USA which has raised USD 38.8 Million in total all through
venture capital funding. Spring Labs raised its initial seed round funding of USD 15.8 in
March 2018 from August Capital as lead investor, while it raised another USD 23 Million in
Series A funding in June 2019 from Great Point Ventures and General Motors. The startup
has revealed plans to use this money to improve its blockchain based protocol and for the
development of its new fraud detection products that are designed to combat fraud in
auto finance vertical.
Multimodal investment
Over the last couple of years, the world has witnessed a roller-coaster ride of an
unregulated means of crowdfunding through cryptocurrencies. However, it has helped the
blockchain technology to gain much-needed awareness. Over the last few years, eying the
huge potential of cryptocurrencies such as bitcoin, Ethereum, etc. many startups have
raised money through ICOs. In contrast though, there are also many startups in the
automotive industry that have followed a dual funding strategy and tried to attract
investment bypassing strict fund-raising norms. These maybe the startups to watch out for
that have shown the right intent and laid out plans on the use of funds collected from
investments through ICOs as well as the traditional sources,
Success Stories:
It is known by now in the blockchain world that the years 2016-2018 witnessed a huge
spurt in ICO led funding, but as market volatility and uncertainty of the value of
cryptocurrencies came into picture, startups started to realize the value of the deep
pockets of venture capitalists. This is the reason why many of the startups of late have
started adopting a multimodal approach to generate funds through a combination of an
ICO as well as venture capitalist funding. In one such prominent case, Drivezy which raised
USD 5 million in ICO funding by selling 3 million tokens and initially planned to exchange
these tokens for dollars through cryptocurrency exchanges in the US. But the fluctuating
nature of cryptocurrencies itself posed a grave threat to the ICO. In light of these
developments, now the company aims to launch an ICO with token value equal to fiat
currency of the US while simultaneously resorting to venture capital led funding.
76
onclusion
Adoption of blockchain technology in the global automotive industry is at a nascent stage,
and the feasibility of the ongoing use cases have garnered significant attention. The
technology is likely to offer multiple opportunities for the new generation of startups
operating in the domain. These startups, which have already attracted the attention of the
stakeholders and developers, appear set on mobilizing funds through a mix of ICO (Initial
Coin Offering) and private investment approaches to leverage blockchain technology in
the automotive industry.
Startups will play a critical role in shaping the future of the blockchain-enabled
automotive industry. The companies that have targeted areas such as mobility services,
and vehicular data and history monetization, will strike success earlier. On the other hand,
in the long run, the role of the consortia-based approach is expected to decide the
significance of the established technology majors. Legacy automobile manufacturers are
expected to partner with startups or become a part of consortiums to remain competitive
in the global market.
Monetization of car data will emerge as the key revenue model as most blockchain
enabled projects are being developed in this segment.
The end-user categories that will most likely adopt blockchain solutions in the automotive
industry are expected to be the legacy auto manufacturers for supply chain, history data,
and mobility services in light of sustainability preferences; tier I and tier II suppliers for
track and trace of counterfeit parts; and utility and energy companies for a peer-to-peer
energy ecosystem. Auto finance, insurance are some other segments that will see
continued interest, adoption, and new demand from the industry leaders of the segment.
Blockchain Technology Adoption in Automotive Industry
Supply Chain Services Marketplace
Mobility Services Insurance

Long-term
Immediate Vehicular Data & History (2025-30)
Opportunities Monetization
(2019-20) Vehicle Autonomy
Marketplace
Electronic Vehicle Charging

Electronic Vehicle
High Medium Low
Charging
Certainty of Adoption
77
APPENDIX
1 https://www.autocarpro.in/news-international/ 29 https://yourstory.com/2018/07/koinearth-aims-use-game-theory-
volkswagen-uses-blockchain-tech-to-trace-raw-material-back-to-point-of- blockchain-give-fillip-sharing-economy
origin-42862
30 https://www.crunchbase.com/organization/blok-z
2 https://www.sofocle.com/ 31 https://shareandcharge.com/vwfs-partnering/
securing-automotive-supply-chain-with-a-blockchain-based-solution/
32 https://economictimes.indiatimes.com/tech/software/wipro-joins-
3 http://lazooz.org/ bita-to-drive-blockchain-adoption/articleshow/65610719.cms?from=mdr
4 https://helbiz.com/HelbizCar
5 https://getmycar.com/en 33 https://www.wipro.com/en-IN/utilities/electric-vehicle-charging-and-
opportunities-for-utilities/
6 https://www.reinventingparking.org/2013/02/
cars-are-parked-95-of-time-lets-check.html 34 https://medium.com/@blockchainfirst/the-first-multipurpose-
blockchain-enabled-ev-charging-station-d8265c1bcb38
7 https://parkgene.io/for-private-spots/
35 https://shareandcharge.com/
8 https://www.parkingo.com/en/got-landing
36 https://www.chorus.mobi/
9 https://www.crunchbase.com/organization/tribal-rides
37 https://www.crunchbase.com/organization/hannah-systems
10 https://www.crunchbase.com/organization/car2go-2
38 https://www.crunchbase.com/organization/dav
11 https://icorating.com/upload/whitepaper/
4EEqpBjKS3FIp1wbCObetm2gX3XlYRZMyvZ583EF.pdf 39 https://uploads-
ssl.webflow.com/5a4ea18a81f55a00010bdf45/5cb036d2df90440652059
12 https://parkgene.io/wp- 9ea_20190331_v.1.3.0--fixed.pdf
content/uploads/2018/04/whitepaper_FINAL_V18.2.pdf
40 https://noblis.org/mobi-phase-one/
13 https://medium.com/redcab/how-does-the-revenue-model-of-
redcab-work-f0d59dde0f84 41 https://www.oakeninnovations.com/
14 https://www.sofocle.com/industry/blockchain-in-automotive/ 42 https://www.hannahsystems.com/#section-product-ecosystem
15 https://euipo.europa.eu/tunnel- 43 https://xain.io/
web/secure/webdav/guest/document_library/observatory/resources/re
search-and- 44 https://www.viseo.com/en/apac/groupe-renault-innovates-viseo-
studies/ip_infringement/study12/tyres_batteries_sector_sector_en.pdf and-microsoft-blockchain
16 https://illicittrade.com/infographics/common-counterfeit-spare-parts 45 https://www.amo.foundation/wp-content/uploads/2019/01/AMO-
OnePager-20190123-v4.0-EN-1.pdf
17 https://www.reuters.com/article/us-mining-bmw-blockchain/uk-firm-
pilots-using-blockchain-to-help-bmw-source-ethical-cobalt- 46 https://www.amo.foundation/wp-content/uploads/2019/01/AMO-
idUSKBN1GH2UP Whitepaper-v5.1-20190125-EN.pdf
18 https://www.washingtonpost.com/politics/2019/02/21/demand- 47 https://www.amo.foundation/wp-content/uploads/2019/01/AMO-
congos-cobalt-is-rise-so-is-scrutiny-mining- OnePager-20190123-v4.0-EN-1.pdf
practices/?noredirect=on&utm_term=.596d24787f29
48 https://credits.com/ar/Home/case/3
19 https://www.finboot.com/track-trace
49 https://medium.com/coinmonks/vehicle-passport-industrys-first-
20 https://www.crunchbase.com/organization/finboot blockchain-application-for-car-ownership-and-transfer-of-3c748dbf090a
21 https://www.crunchbase.com/organization/syncfab 50 https://vinchain.io/
22 https://www.coindesk.com/ha-moment-Toyota-talks-vision- 51 https://www.carblock.io/
blockchain-change-driving
52 https://dovu.io/
23 https://www.industyweek.com/supply-chain/Toyota-merck-join-
Ethereum-group-buid-blockchain-network 53 https://www.amo.foundation/
24 https://cointelegraph.com/news/Toyota-uses-blockchain-tec-to- 54 https://www.vechain.com/
reduce-fraud-in-digital-advertising-campaigns
55 https://www.carvertical.com/
25 https://openledger.info/insights/blockchain-use-cases-automotive-
industry/ 56 https://www.cbinsights.com/research/blockchain-insurance-
disruption/
26 https://www.hyperledger.org/resources/publications/tantalum-case-
study 57 https://enterprise.gem.co/
27 https://www.powerledger.io/article/power-ledger-and-silicon-valley- 58 https://business.nasdaq.com/marketinsite/2017/Blockchain-Reports-
power-trial-to-turn-electric-vehicles-into-mobile-atms/ Gem.html
28 https://www.brooklyn.energy/ 59 https://blog.advancedblockchain.com/blockchain-automotive-
marketplaces/
79
60 https://cointelegraph.com/news/car-retail-startup-to-launch-
blockchain-marketplace-with-live-vehicle-history-data
61 https://accubits.com/blockchain-for-automotive-industry/
62 https://medium.com/@poenitzsch/dlt-the-automotive-industry-
loyalty-reward-programs-a78063bc8dac
63 https://www2.deloitte.com/us/en/pages/financial-
services/articles/making-blockchain-real-customer-loyalty-rewards-
programs.html
64 https://www.cbinsights.com/research/loyalty-rewards-startups-
market-map-expert-intelligence/
65 https://www.cnbc.com/2018/06/07/scammers-create-a-new-form-
of-theft-synthetic-identity-fraud.html
66 https://www.forbes.com/sites/jimhenry/2018/09/28/identity-
thieves-probably-made-off-with-600-million-plus-in-cars-and-trucks-
transunion/#7c231dc645ad
67 https://www.forbes.com/sites/hanktucker/2019/06/12/gm-
financial-joins-23-million-series-a-investment-in-blockchain-startup-
spring-labs/#1af784f213fa
68 https://www.springlabs.com/
69 https://amfg.ai/2019/01/18/carbon-performance-revannth-
murugesan-expert-interview/
70 https://syncfab.com/automotive
71 https://medium.com/redcab/how-does-the-revenue-model-of-
redcab-work-f0d59dde0f84
72 https://shocard.com/identity-management-use-cases/
73 https://www.ibm.com/case-studies/koopman-blockchain-logistics
74 https://www.vinturas.com/news/vinturas-provides-automotive-
end-to-end-supply-chain-visibility
75 https://newsroom.ibm.com/2019-01-16-Ford-Motor-Company-
Huayou-Cobalt-IBM-LG-Chem-and-RCS-Global-Launch-Blockchain-Pilot-
to-Address-Concerns-in-Strategic-Mineral-Supply-Chains
76 https://newsroom.ibm.com/2019-01-16-Ford-Motor-Company-
Huayou-Cobalt-IBM-LG-Chem-and-RCS-Global-Launch-Block
chain-Pilot-to-Address-Concerns-in-Strategic-Mineral-Supply-Chains
77 https://www.ibm.com/case-studies/zf-friedrichshafen-ag
78 https://www.ibm.com/case-studies/tennet
79 https://www.ibm.com/case-studies/energy-blockchain-labs-inc
80 https://evcompare.io/market/
Proprietary and Confidential, Copyright © 2019, Netscribes, Inc. All Rights Reserved
The content of this document is confidential and meant for the review of the recipient.
Disclaimer: The names or logos of other companies and products mentioned herein are the trademarks of their
respective owners
80
Solutions
Research Methodology
Netscribes follows a structured project management approach to deliver deep-

dive research analysis. A comprehensive approach is administered to assess
innovative technologies and develop insights related to technology and
business.
▪ Market Research: The research is preliminary concentrated on
identifying key application areas/geographies, driving factors &
inhibitors, regulatory environment across key geographies, tests, trials &
demos, expert opinion/ interviews, and products assessments. The
research also includes products development analysis, market
positioning collaborations/partnerships, success stories solutions &
services, technology adoption, and customer segment-based trends.
▪ Technology Research: The research is focused on key technical trends,

solutions, and adoption of the subject technology across sectors.
Segregation of the technology focus areas and identification of emerging
technology trends and opportunities gives a detailed overview of the
technology. The analysis also includes technical approach taken by the
companies to overcome the limitations and assessment of the R&D
strategy and future.
▪ Patent Analysis: Patent study is conducted to provide an overall

landscape of the patenting activities in the subject technology. The key
trends in the patent filing are identified including assignees, technology
focus areas, geographical distribution, and emerging entities. Critical
insights related to the patent analysis are incorporated to highlight future
product development pointers.
▪ Report Format: Report is prepared at the end of the research and is

aligned as per expectations and quality check. An in-house editorial team
conducts the final level QC.
81
Solutions
About Netscribes
Netscribes is a global market intelligence and content services provider that

helps corporations achieve strategic objectives through a wide range of
offerings. Our solutions rely on a unique combination of qualitative and
quantitative primary research, secondary/desk research, social media analytics,
and IP research. For more than 15 years, we have helped our clients across a
range of industries, including technology, financial services, healthcare, retail,
and CPG. Fortune 500 companies, as well as small- to mid-size firms, have
benefited from our partnership with relevant market and competitive insights to
drive higher growth, faster customer acquisition, and a sustainable edge in their
business.
82
Solutions
Disclaimer
This report is prepared by Netscribes (India) Private Limited (“Netscribes”), a market

intelligence and content service provider
The content of this report is developed in accordance with Netscribes’s professional

standards. Accordingly, the information provided herein has been obtained from
sources which are reasonably believed to be reliable. All information provided in this
report is on an “as-is" and an "as-available” basis, and no representations are made
about the completeness, veracity, reliability, accuracy, or suitability of its content for
any purpose whatsoever. All statements of opinion and all projections, forecasts, or
statements relating to expectations regarding future events represent Netscribes’s own
assessment and interpretation of information available to it. All liabilities, however
arising, in each of the foregoing respects are expressly disclaimed.
This report is intended for general information purposes only. This report does not
constitute an offer to sell or issue securities, an invitation to purchase or subscribe for
securities, or a recommendation to purchase, hold, sell, or abstain from purchasing, any
securities. This report is not intended to be used as a basis for making an investment in
securities. This report does not form a fiduciary relationship or constitute investment
advice. Nothing in this report constitutes legal advice.
The information and opinions contained in this report are provided as of the date of the
report and are subject to change. Reports may or may not be revised in the future. Any
liability to revise any out-of-date report, or to inform recipients about an updated
version of such report, is expressly disclaimed
A bonafide recipient is hereby granted a worldwide, royalty-free, enterprise-wide

limited license to use the content of this report, subject to the condition that any
citation from this report is properly referenced and credited to Netscribes. Nothing
herein conveys to the recipients, by implication or by way of estoppel, any intellectual
property rights in the report (other than the foregoing limited license) or impairs
Netscribes’ intellectual property rights, including but not limited to any rights available
to Netscribes under any law or contract.
To the maximum extent permitted by law, all liability in respect of this report and any
related material is expressly disclaimed. Netscribes does not assume any liability or
duty of care for any consequences of any person acting, or refraining to act, by placing
reliance on the basis of information contained in this report.
All disputes and claims arising in relation to this report will be submitted to arbitration,
which shall be held in Mumbai, India under the Indian Arbitration and Conciliation Act.
The exclusive jurisdiction of the courts in Mumbai, India applies to all disputes
concerning this report and the interpretation of these terms, and the same shall be
governed by and construed in accordance with Indian law without reference to the
principles of conflict of laws.
83
Solutions
Office Locations
Gurgaon
New Kolkata
York Mumbai
Get in touch with us:

USA
41 East, 11th Street,
New York
NY10003, USA
Phone: +1-917-885-5983
Mumbai
Office No. 504, 5th Floor, Lodha
Supremus, Lower Parel,
Mumbai 400013,
Maharashtra, India
Phone: +91‐22‐4098-7600
Kolkata
3rd Floor, Saberwal House
55B Mirza Ghalib Street,
Kolkata - 700 016
West Bengal, India
Phone: +91-33-4027-6200
Gurgaon
Sector 44, Plot No 130,
2nd Floor
Gurgaon - 122 003
Haryana, India
Phone: +91-124-491-4800
Singapore
Netscribes Global PTE. Ltd.
10 Dover Rise, #20-11, Heritage
View, Singapore (138680)
84
For further assistance or to request customizations please contact:
US : 1 888 448 4309/ 1 877 777 6569
India: +91 22 4098 7600
subscriptions@netscribes.com
Proprietary and Confidential, Copyright © 2019, Netscribes, Inc. All Rights Reserved
The content of this document is confidential and meant for the review of the recipient.
Disclaimer: The names or logos of other companies and products mentioned herein are the trademarks of their respective
owners
www.netscribes.com

Blockchain - Adoption in Automotive Industry

Hochgeladen von

Dokumentinformationen

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

Blockchain - Adoption in Automotive Industry

Hochgeladen von

Copyright:

Verfügbare Formate

Adoption in Automotive Industry

August 28, 2019

Key Value Chain Stakeholders &

Blockchain Technology Solutions 17

State of Blockchain Adoption in the

With USD 3 trillion in revenues and a 15 million

The industry is set for a marked technological

Blockchain Adoption in the Automotive Sector

A majority of blockchain-enabled automotive industry pilot projects target untapped

Key Stakeholders in the Automotive Blockchain Ecosystem

Raw Material Suppliers: access critical performance data

Component Suppliers: Dealers and Distributors:

Global Automotive Industry

Top Exporter of Automotive Products

Figure 1: Top Exporter of Automotive Products

Key Trends - Shaping the Global Automotive Sector

Traditionally, the automotive industry is considered as being stable. It is characterized by

Regulatory Pressures Driving Focus on Alternative

Rising Digital Demand

Figure 2: Number of cars with Network Solutions

Changing Role of the Legacy Industry Stakeholders

R&D Expenses of Top Automotive Industry Players

Volkswagen AG Toyota General Motors Ford Motor Daimler AG

Figure 3: R&D Expenses of Top Automotive Industry Players

Stakeholders & Participants

Raw Material Suppliers

Volkswagen has already implemented a pilot project in collaboration with Minespider to

Multilayer architecture-based blockchain solutions (such as the one developed by

As blockchain credentials offer a secure solution for record-keeping between several

Utility Providers/Energy Companies

Service Centers and Chains

Parts authentication and warranty handling constitutes an indispensable revenue stream

Dealers and Distributors

No. of Funding Range Notable Traction Events -

>10 0.01 - 78.59 10 Toyota Research Institute Car Manufacturers with

Startups due to high driver

Drivers and Passengers

Notable Startups Profiling

LaZooz* All firms provide dApps based Consumers

Wego Europe* Infrastructure Providers

Case Study: Helbiz mobility system11

Verify Key Participants:

Figure 4: The Helbiz Mobility System

Business or Revenue Model

How is BC being Accepted in the industry

Supply Chain Services

Tail Lights Filters

Alloy Rims Radiators

Master Cylinders Break Pads

Blockchain therefore helps unleash the potential of technology in automotive supply

No. of Funding Range Notable traction Events -

<5 0.27-0.5520 21 Toyota is involved in the R3 Part manufacturer losing

Table 3: Startup Ecosystem

Notable Startups Profiling

Icertis has provided a blockchain based

Circulor provides a private and permissioned platform to trace provenance of raw

Provided in Figure 7 is an overview of the Circulor and a step-wise highlight of the

Figure 7: The Circulor System

Business or Revenue Model

Supply Chain Services

How is BC being Accepted in the industry

Electric Vehicle Charging

Road transport accounts for 16 % of all man-made CO2 emissions. A breakthrough