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Renault Deploys Blockchain for Vehicle Compliance Certification from Design to Production

Groupe Renault, a leading French multinational automobile manufacturer, has established the XCEED (eXtended Compliance End-to-End Distributed) blockchain system to certify the compliance of all car parts from design to production.

Adhering to stringent regulations

The blockchain-based tool is expected to boost Renault’s efficiency and responsiveness in meeting regulatory stringency in the automotive industry.

For instance, new market surveillance requirements were enforced from September 1, necessitating more enhanced regulatory controls for cars already on the market. As a result, Renault sees blockchain as one of the best alternatives to adhere to these stipulations within shorter timeframes.

XCEED was launched in 2019 as a collaborative project between automotive industry players like Saint-Gobain, Plastic Omnium, Faurecia, and Continental. Recently, this blockchain tool was tested at Renault’s Douai plant, and it archived at least one million documents at a speed of 500 transactions per second.

As per the announcement:

“With XCEED, blockchain is used to create a trusted network for sharing compliance information between parts manufacturers and vehicle manufacturers. The decentralized nature of blockchain technology means each party maintains data control and confidentiality, without compromising its integrity, while simultaneously increasing security and confidentiality.”

Underpinning competitiveness

Renault views the blockchain system as a stepping stone to operational excellence and underpinning competitiveness in the automotive sector. This is because it enables the timely sharing and tracking of information by various players. As a result, data is availed in real-time, making efficiency inevitable.

Odile Panciatici, Groupe Renault’s blockchain vice president, noted:

“We are convinced that blockchain is a vector for transforming the automotive industry. Blockchain technology really comes into its own in a vast ecosystem involving a number of different companies, providing a link between the partners’ various processes, computer systems and databases.”

Automotive players leaning towards blockchain

In April, BMW Group combined blockchain and cloud technologies using Microsoft Azure and Amazon Web Services to enable the tracking down of vehicle components’ origin without permitting any manipulation. This project was expected to be instrumental in propelling the traceability and transparency of crucial raw materials and parts in its international supply chains muddled in complexity.

Later on, in July, Volvo Cars invested in Circulor, a London-based blockchain company majoring in industrial supply chains. The objective was to use Circulor’s blockchain technology to track and reduce carbon dioxide (CO2) footprints.

Volkswagen's Skoda DigiLab Collaborates with Microsoft for Blockchain-Based Business Solutions

Skoda DigiLab, an innovation hub under the Skoda Auto Volkswagen group, has partnered with Microsoft and Lumos Labs to create innovative blockchain-based business solutions.

Tackling business challenges with blockchain

Through the strategic partnership, Skoda Auto DigiLab India will be the first original equipment manufacturer (OEM) for the Microsoft Century Program, an enterprise blockchain startup platform to unearth, curate, and evangelize 100 best enterprise-ready blockchain solutions for industry-specific use cases.

As per the announcement:

“The program intends to identify and solve real-time business challenges and blockchain use cases faced across seven industry verticals – media and entertainment, oil and natural gas, trade finance, healthcare, public sector, discrete manufacturing, and telecom sector, using blockchain technologies.”

The DigiLab intends to utilize its development and digitization expertise to help startups develop blockchain-enabled solutions like tamper-proof storage.

Automotive industry’s appetite for blockchain

Pranav Kulkarni, CIO, Skoda Auto Volkswagen India, noted:

“As the automotive industry continues to evolve, the onset of blockchain technology will be a defining transformation in the development and manufacturing of the next generation of cars. Through the Century Program, the DigiLab will foster this ecosystem of innovation among startups and identify implementable solutions in the space of digital tools and mobility platforms.”

Different automotive players are continuously adopting blockchain-enabled solutions to streamline their activities. This cutting-edge technology is also viewed as a game-changer in the development of future cars. For instance, Groupe Renault, a leading French multinational automobile manufacturer, recently established the XCEED (eXtended Compliance End-to-End Distributed) blockchain system to certify the compliance of all car parts from design to production.

The blockchain-based tool was touted to boost Renault’s efficiency and responsiveness in meeting regulatory stringency in the automotive industry.

Moreover, in July, Volvo Cars invested in Circulor, a London-based blockchain company majoring in industrial supply chains. The objective was to use Circulor’s blockchain technology to track and reduce carbon dioxide (CO2) footprints.

Blockchain in Manufacturing Market Expected to Hit $17 Billion by 2027

The urge to streamline operations and track assets with unprecedented precision are some of the factors expected to make the blockchain in the global manufacturing market hit $17.047 billion by 2027, according to a report by Research and Markets.

This market was worth $717.6 million in 2021 and is anticipated to record a compound annual growth rate (CAGR) of 66.4% during the 2022 to 2027 forecast period. Some of the key market players in manufacturing have been deploying blockchain technology to generate smart home solutions like smart meters.

Therefore, the need to revamp manufacturing processes to lower production costs and lead time is expected to enhance the growth of this market. Blockchain is also being leveraged in manufacturing to offer significant visibility into the supply chain. Per the announcement:

“Suppliers are integrating internet of things (IoT) sensors with blockchain to create a tamper-proof record of shipping conditions on cargo containers. This, coupled with the increasing application of blockchain technology to store and analyze data of manufacturing equipment and products, is positively influencing the market.”

The use of smart contracts availed by blockchain technology is also helping trading partners in the manufacturing sector undertake transparent processes.

Per the report:

“The rising utilization of blockchain technology for payments and digital identities of individuals in the manufacturing sector is projected to strengthen the growth of the market in the coming years.”

Meanwhile, the deployment of blockchain technology in e-commerce websites has spurred growth in the blockchain in the supply chain market, according to Research Dive. Furthermore, blockchain is anticipated to revamp the supply chain market in the coming years by rendering product traceability, quality control, and transparency in manufacturing processes.

Blockchain in Manufacturing Market Speculated to Generate $766.2m in Revenue by 2030

The blockchain in the manufacturing market is expected to render revenue worth $766.2 million in 2030, according to Verified Market Research.

With a market value of $40 million set in 2021, this sector is anticipated to record a compound annual growth rate (CAGR) of 80% during the forecast period between 2022 and 2030.

Per the announcement:

“Increasing worldwide energy demand motivates energy and power firms to explore blockchain solutions that can help them improve productivity while reducing maintenance and downtime.”

Therefore, the energy, electricity, and industrial sectors are anticipated to spur demand in this industry. The report added:

“The global blockchain in manufacturing market is expected to increase due to the incorruptible nature of the blockchain, as well as the expanding number of applications that use it.”

The other significant drivers include the growing usage of blockchain technology in supply chain management and retail.

Some of the key developments in this market include using the IBM Blockchain Transparent Supply (BTS) platform to track the entire fabric manufacturing process in the textile industry.

By application, blockchain in the manufacturing market is categorized into different fields, such as counterfeit management, predictive maintenance, business process optimization, quality control and compliance, and asset tracking and management.

Meanwhile, a recent report by Research and Markets pointed out that the global blockchain distributed ledger market was expected to hit $20.6 billion by 2027, thanks to rapid digitization.

Since a blockchain distributed ledger entails a decentralized database, it stores transactions and resources through a peer-to-peer network. Furthermore, cryptography is used to protect data.