Blockchain And IoT In Automobile After-Sales Market

How IoT & Blockchain Impact Automobile The After-Sales Industry

Cars of 21st century represent not only a mode of transportation, but they also present innovations and technology on wheels.

We are living in an era of technology and solutions all around us. V12data reports that the global automotive aftermarket industry is expected to reach $722.8 billion by 2020.

We, therefore, have to look upon two of the most popular technologies- IoT & Blockchain.

 

Leveraging IoT and Blockchain

Let us have a look at the diverse solutions and applications for automobile after-sales market. These technologies enhance operations, better quality of service (QoS) while decreasing the overall costs.

 

Need for Robust Solutions for Automobile Industry

The automobile industry is enormous with multiple segments ranging from manufacturers, dealers, service centers, auto finance companies, OEMs and retailers of auto parts and so on.

The grueling thing is that these segments have poor integration due to a lack of ecosystem. This resulted in operational inefficiencies from shop to the top.

The car owners bear the costs incurred along with ride-sharing users as a whole. This created a lack of trust and transparency in the used car market.

Also, the grey market in automobile after-sales segment selling fake products is huge and car owners are bearing this pain.

The automotive industry is one of the world’s most technologically advanced. And its associated markets are incredibly broad. Ranging from vehicle sales to auto insurance to car repairs, the list goes on and on.

However, these markets still have high segregation rate, leaving the participants to deal with extreme inefficiencies that lead to excess operating costs and inflated prices.

 

IoT Solutions For Automobile After-Sales Market

The emergence of the IoT technology brought us to a stage where seamless solutions are built around multiple industries.

Automobile after-sales is no isolation in this regards too. IoT based solutions have transformed cars to Smart Cars, They have also resulted in an ultimate shift in transforming garages to ‘Smart’.

Hence, let us have a look on how IoT has impacted after-sales market with Smart automotive solutions.

 

IoT Based Remote Diagnostic Solutions

A garage or service center is at the core of the automobile after-sales market. The problems of the conventional garages are to wait for the customers, lack of visibility, identification of the problem before finding the solutions resulting in decreased efficiency.

Leveraging IoT app development, garage owners can have their records for their registered customers and track the device if the customer agrees to share some personal bit of information about the cars.

By building custom garage apps, the service stations can digitally record vehicle maintenance data for future reference. This saves a lot of time while diagnosing the vehicle in the future.

Also, with IoT based remote diagnostic solution (explained in our blog), garage owners can know what the exact problem is and can solve the issue or repairs in lesser time.

This results in serving more customers with great efficiency and it also saves waiting time for the customers.

 

IoT Solutions for Insurance Companies

When a user installs a tracking device into OBD ports of their cars, it sends data. What data, you may ask? Well, whatever information your insurance company deems relevant to determining whether or not you’re a good driver. This data is sent back to your insurance provider.

Based on the improved driving behavior and data carried out from the predictive analysis on preventive maintenance, insurance companies can attract their customers with some improved plans or reward points to make them loyal to an auto insurance policy.

 

Blockchain Technology For Automobile after-Sales Market

Blockchain has been prolific due to its following benefits:

  • Unparalleled Security.
  • Execution speed.
  • Transparency.
  • Cost reduction.
  • Ability to audit records.
  • Versatility.

 

Automated Digital Vehicle Maintenance Book

In 2017, Renault announced the first prototype of vehicle maintenance book. It is being developed, in conjunction with Microsoft and consulting company called VISEO.

For second hand cars market, it will cater automated automobile transactions with complete transparency and security as owners and dealers share vehicle history with the potential buyers.

This system can also be used by the insurance companies to set rates accordingly. It also offers a monitored auto insurance policy to their own customers.

 

Blockchain facilitates Autonomous Ride Sharing

On-demand taxi booking and ride-sharing applications like Uber and Lyft bring more innovations to change the way we use vehicles. Leveraging Blockchain development, this can turn to reality.

Tesseract is the Blockchain System launched by Ernst & Young in 2017. This facilitates autonomous sharing of not only the rides but also vehicle ownership.

It can be a perfect solution for the fleet management companies to manage the entire autonomous fleet of vehicles. The payments will automatically settle by the system with utmost transparency.

 

Blockchain Automates Controlled Interactions

Imagine a car could advise the drivers about the need for a repair. Sounds like IoT, right? Yes, it does.

However, by the implementation of blockchain ecosystem, this platform will move to the next level. Leveraging blockchain technology, drivers can contact remote users of the blockchain ecosystem for updates, nearby suppliers for remote part availability, negotiations in pricing.

It lets car owners contact garage owners and service centers to fix appointments for service repairs.

There are millions of devices in the automotive industry that communicate with each other. Hence, a shared database platform is a requirement.

All this information can be stored in the most secured manner with control over the accessibility.

 

Blockchain As An Add-On To Vehicle Infotainment Systems

From the car owners point of view, innovations attract owners as these technologies pitch in to enhance the driving experience.

Today, vehicle infotainment systems are on the same level as the home entertainment systems. Even technology applications like Apple’s CarPlay can do everything that an iPhone does.

Blockchain can be an amazing add-on to infotainment segment in this scenario. Leveraging Blockchain, due to its reliability and transparency in transactions, users can make secured in-car payments instantly for the media content and other services they wish to have.

 

What the Future Holds with such Technologies?

IoT and Blockchain solutions can stage endless possibilities ranging from a safer and eco-friendly driving behavior, enhanced and favorable auto insurance policies, remote locking and unlocking of the vehicles and more.

We are sure the limit is not up to what we have discussed through this article.

 

Pentoz For IoT And Blockchain Applications

Pentoz is a leading mobile app development company renowned for the IoT based smart solutions for the automobile industry. We also specialize in automobile after-sales market-related technology services.

Hire our in-house blockchain developers who provide solutions for Blockchain Services, Application Development, Mobile Wallets. We help you enhance your businesses by blending the best available technology.

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