According to a report from Research and Markets, the increasing use of blockchain technology will go hand in hand with growing advances in the commercial vehicle industry, especially through digitization and automation. Key trends such as digital transformation, rise in automation, modern logistics systems and proliferation of fintech influencing trucking are expected to drive the adoption of blockchain technology in the commercial vehicle (CV) industry.
Some of the key advantages of using blockchain in the commercial vehicle industry are 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.
Blockchain’s impact on the CV industry is expected to gradually increase in the coming years, especially after 2020. It is, however, largely dependent on the level of automation and proliferation of technology in the industry mandating support for these advances. Blockchain will radically simplify and accelerate the business operations of all key stakeholders involved in the trucking industry. It will also enable all key stakeholders involved across the logistics supply chain to interact on a common platform.
Blockchain has been implemented in certain pilot projects in the food supply chain industry and logistics industry led by Maersk and IBM on the Hyperledger platform, and for Toll Collection Systems (TCS) through a truck wallet system created by Blockchainfirst. Blockchain has the potential to completely transform fleet operations through efficient performance by offering sustainable benefits and added security. Truck fleets are expected to benefit considerably through blockchain solutions that allow for efficiency, security and time and cost reductions across various areas such as leasing, insurance, service and maintenance, refuelling, parking, freight brokering and cargo safety. The vehicle purchasing process for fleets using blockchain brings all the relevant stakeholders on a common platform, enabling them to share and view information in real time. Investing in blockchain is expected to smooth fleet operations by improving overall operational efficiency and reducing costs.
The penetration of blockchain platforms in the industry is currently limited only to selected solution providers such as Hyperledger, BigchainDB and Blockchainfirst, which are engaged in vehicle tracking, recharging and automated toll collection for trucks. By 2025, 10% to 15% of 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.
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