How IOTA empowers the next automotive industrial revolution
The full article was originally published by Jamie Martojo on Linkedin. Read the full article here.
The automotive industry is facing monumental challenges in the coming years, and IOTA is busy solving some of these problems by becoming the bridge between blockchain technology and the automotive industry.
The automotive sector has had decades of good years behind them where it seemed that all brands were able to grow their revenue with double digits with every passing year. It didn’t seem to matter if the vehicles were produced in Asia, Europe or the US, there was a customer for every type of car. But in the last couple of years a shift has occurred. Vehicle manufacturers have been busier trying to stay out of the news than concentrating on development, due to most newsworthy items containing information they’d rather not have in the open. Whether it was a decline in profitability, people being laid off, OEM’s moving their factories abroad into other countries providing cheap labor, or the much-dreaded diesel emission scandals in Europe. It hasn’t been easy.
Besides PR difficulties, we see that their often younger customers don’t see owning a car as a necessity any longer. More and more people are looking into different forms of mobility to move them around their cities, and to commute from their homes to work. Furthermore, The need for other cleaner and electric fuel types, and for new features such as automated driving, is forcing vehicle manufacturers to divert an ever-growing part of their budget into the research and development department.
At the same time new competitors such as Tesla, but also companies like Google and Apple are taking an increasingly bigger part of the market share.
All these challenges are diluting the manufacturers’ profitability and causing them to join forces into shared development, or merge into bigger entities through acquisitions and partnerships. And while it’s impossible for a single solution to tackle all of these issues at once, blockchain technology is convincing visionary people that it can at least solve some of their current and future problems.