Study in the Automotive Industry Shows Web3, Blockchain and Metaverse are Gaining Traction
Web3 and blockchain offer numerous use cases in the automotive industry and raise an increasing interest even though clear gaps between generations remain.
Boston, July 12, 2022 – Web3 is broadly considered as the next generation of internet, using decentralized applications running on technologies such as the blockchain. The latest study* by global strategy and marketing consultancy Simon-Kucher & Partners, conducted among consumers in Germany and the US, reveals that Web3 may soon play a significant role in the industry. Forty percent of respondents have already heard of Web3 and associate it with terms such as virtual worlds (i.e., “metaverse”), financial technology, trust, digital ownership, and decentralized community.
Generation Z is highly interested in virtual reality applications
Survey results indicate a clear generational gap. Consumers over the age of 50 show a lower interest than average and tend to link Web3 with an improvement of the existing digital landscape, while younger consumers, 18 to 34 years old, report higher interest and value applications in new or not yet existing virtual worlds. “The younger generation understands how a complex virtual world will look, which rules can apply and how they can take advantage from this new realm,” says Antoine Weill, Partner and automotive expert at Simon-Kucher & Partners. “For car manufacturers and retailers alike, this trend underlines how different customer interactions and user experience will be in the future.”
According to the study, consumers over the age of 50 are particularly interested in the following applications: (1) the vehicle being equipped with a tamper-proof digital record of ownership, mileage, and service history on the blockchain, (2) the ability to charge an electric vehicle anywhere by using a universal charging and payment system with a blockchain-based module in the vehicle, (3) an overview of CO2 emissions using blockchain records, (4) the tracking of vehicle parts, and (5) a module that automatically makes small payments, such as paying parking or toll fees or buying gas, when needed.
In turn, consumer ages 18 to 34 are particularly interested in (1) the tracking of vehicle parts, (2) the ability for passengers to connect the vehicle to a virtual world and play games with virtual reality headsets that incorporate the vehicle’s movements, (3) the ability to explore, virtually configure, and test new cars in a digital environment, such as virtual reality, (4) digital identity (e.g., driver’s license), and (5) the ability to earn digital tokens issued by the automaker to encourage loyalty. These tokens can be redeemed for a variety of perks and traded on exchange platforms.
“We see clear monetization potential, but market dynamics will be fundamentally different,” says Patrick Valentin, Senior Director, automotive and Web3 expert at Simon-Kucher & Partners. “Organizations that want to achieve success with Web3 need to adapt their go-to-market strategies and address blockchain-specific topics, such as the design of tokenomics and the interplay with existing monetization approaches. This requires new ways of thinking, as well as radically new competencies.”
For more information, please contact:
Name: Niki Irby
Email: niki.irby@simon-kucher.com
www.simon-kucher.com
Simon-Kucher & Partners, Strategy & Marketing Consultants:
Simon-Kucher & Partners is a global consulting firm specializing in TopLine Power®. We help our clients achieve growth and profit targets by applying practical, evidence-based strategies. Simon-Kucher & Partners is regarded as the world’s leading pricing advisor and thought leader. The consultancy has more than 1,700 employees in 42 offices worldwide.