New research says that blockchains have begun to capture a bigger share of IT budgets.

By 2025, the total automotive industry's spend on technology is expected to be on the order of $168.80 billion, with around a 0.6% investment on blockchain technology due to its value in smart manufacturing, supply chain logistics, retailing and leasing, connected living and Internet of Things, and mobility services.

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Automotive original equipment manufacturers largely use blockchain technology in financial applications, but in the long term may likely extend their use to functional areas such as smart manufacturing and connected cars.

The analysis comes from a Frost & Sullivan report Blockchain Technology Revolutionizing Automotive Industry.

"OEMs are only gradually waking up to blockchain technology's benefits of real-time monitoring, auditability, and scalability in an era of connected living," said Frost & Sullivan Mobility Research Analyst Meena Subramanian in a statement. Stakeholders appear eager to use this technology to achieve decentralization, transparency, and security.

The consultancy says that financial divisions in the automotive industry are forming consortiums to frame policies that will help them comply with regulations on a global level. For instance, in 2017 Bosch, Cisco and other start-ups, formed a consortium to build IoT applications based on blockchain technology.

"By 2025, the penetration rate of blockchain technology in functional areas such as retailing & leasing, supply chain logistics, mobility solutions, smart manufacturing, connected living &IoT is expected to be at 37.2%, says Subramanian.