Blockchain technology will have a big impact on the commercial vehicle industry, according to a study by business consulting firm Frost & Sullivan.
A recent study conducted by Frost & Sullivan indicates that an increased use of blockchain technology will grow alongside commercial vehicle automation and digitization.
Specifically, the study relates that blockchain technology is expected to have a gradual increase on the commercial vehicle (CV) industry, more so in the years following 2020. It cites key advantages that blockchain systems can deliver including “added transparency on ownership, price, and processes. It would also accelerate payment, enhance security, and eliminate fraud along with eliminating middlemen, reducing paperwork, and streamlining the supply chain.”
According to the study, “By 2025, 10–15% of the entire CV industry transactions are expected to be on blockchain; which will push OEMs and suppliers to invest actively in the blockchain infrastructure in partnership with tech consortiums, financial institutions, and regulatory establishments.”
Heavy, medium, and light duty trucks were the target of the study, fleets of which can be expected to enjoy the benefits of the innovation. It is proposed that fleet operations can be made to run smoother as a result of blockchain-based investment by managing entities. Blockchain pilots for vehicle tracking, electric vehicle recharging, and toll automated collection are being piloted.
In addition to these benefits, blockchain technology can also provide expedited time frames for warranty issues and hastened recalls, which the study says is beneficial to both suppliers and consumers.
By bringing together all the participants into a single platform, the shift in technology provides a framework for the CV industry to pare down inefficient operational layers, thanks to the more robust infrastructure that blockchain systems can deliver.
Jeremy Nation is a writer living in Los Angeles with interests in technology, human rights, and cuisine. He is a full time staff writer for ETHNews and holds value in Ether.