The global market for electric vehicles is ‘entering a new phase of transformation’, with increased investment in modular vehicle platforms, battery technology and supply chain integration, according to new report from Frost & Sullivan.
According to the report, OEM Strategies on Next Generation Electric Vehicles, Global, 2025–2031, global sales of battery electric vehicles (BEVs) are set to increase from 17.8 million units to approximately 32.6 million units by 2031.
Beyond 2027, growth is expected to accelerate, it added, as OEMs introduce lower-cost EVs and governments tighten emissions regulations.
‘A pivotal phase’
“The global EV market is entering a pivotal phase where affordability, manufacturing efficiency, and technological differentiation will determine long-term competitive success,” commented Srinag Rajendra Kumar, mobility growth expert at Frost & Sullivan.
“OEMs are moving beyond standalone electrification strategies towards integrated ecosystems built on modular platforms, advanced battery technologies, and strategic charging partnerships. Those that successfully balance innovation with cost optimisation will lead the next wave of EV growth.”
Vehicle architectures
As Frost & Sullivan noted, growing competition from Chinese manufacturers, along with rising pressure to reduce battery costs, is prompting OEMs to ‘rethink’ their electrification strategies, with many automotive firms investing in universal and modular vehicle architectures. These can support multiple vehicle segments and battery chemistries while reducing development costs and enabling affordable EV production at scale.
‘OEMs are optimising global production while strengthening supply chains through greater vertical integration and localised manufacturing,’ it said.
‘At the same time, they are expanding investment in modular platforms, ultra-fast charging infrastructure, renewable energy, and next-generation battery technologies- including sodium-ion and solid-state batteries, as well as 800V electrical architectures -to improve performance, reduce charging times, and accelerate mainstream EV adoption.’
Frost & Sullivan’s analysis examined the electrification strategies of a myriad of manufacturers, including BMW, BYD, Ford, General Motors, Hyundai, Mercedes-Benz, Nio, Stellantis, Tesla, Toyota, VinFast and Volkswagen, and determined that the ‘greatest growth opportunities’ over the coming years will come from investment in battery technology, charging infrastructure, resilient supply chains and manufacturing transformation. Read more here.
