Blockchain’s Fate in the Doldrums as EV Market Faces Slow Growth

The blockchain industry has a lot of room to grow in the foreseeable future. By the end of 2027, the industry, which is predicted to bring in over $94.0 billion in revenue, will have served a variety of clients and industries. Nonetheless, the drawback for one of the market’s largest prospective clients can maintain pressure on the growth opportunity. The performance of blockchain could be jeopardized by a possible standstill in EV markets.

EV Markets Face Slow Growth

In an interview with Yahoo Finance, Tom Narayan, lead equities analyst at RBC Capital Markets, explains that EV markets are currently facing slow growth. Though the markets aren’t seeing a slump in demand, it is the pace at which they are ascending that could be a cause of worry.

EV’s struggling situation can be analyzed by sector giants releasing disappointing results. Tesla reported fourth-quarter earnings that were a little less than analysts had anticipated. The company reported adjusted earnings per share of 71 cents. The company was projected to produce an EPS of 74 cents, on average, by analysts.

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EV To Become One of Blockchain’s Biggest Customers

Blockchain is being used by the electric vehicle (EV) sector in several ways. According to Forbes, most cars in the future will inevitably be electric. Blockchain-based technology integration in the EV industry is probably going to improve consumer convenience and ease of use. Owning an EV can be difficult for two main reasons. First the vehicles’ high initial cost and second the absence of charging stations. Blockchain technology offers a solution to these issues with the functioning of electric vehicles. Additionally, EV customers may find, locate, and use charging stations with the use of blockchain-based apps, websites, and notification systems. As EV firms deal with worldwide production, they can also be utilized to monitor the materials they import.

Blockchain technology can provide the framework for sophisticated networks that manage payments, trade, distribution, and sales, according to McKinsey research. The implementation of smart contracts and blockchain technology has the potential to expedite and lower transaction costs, hence mitigating friction and pain points throughout the whole power value chain.

Blockchain Market Outlook: What to Expect?

The market for blockchain technology is predicted to develop at a compound annual growth rate (CAGR) of 87.7% from 2023 to 2030. In 2023, the market was estimated to be worth $17.46 billion. The market is expanding as a result of the growing need for safe and transparent transactions in numerous industries.

With significantly higher expected growth, a slump in EV markets can potentially result in a huge segment of revenue and a customer base declining for blockchain. However, the volatility in one segment can be capped by blockchain’s growth in several other customer segments like financial institutions, oil and gas, global trade, etc.