According to the latest report from Frost & Sullivan, "Next-Generation Electric Vehicles Under OEM Strategies, Global, 2025-2031," the global electric vehicle market is "entering a new phase," characterized by increased investment in modular vehicle platforms, battery technology, and supply chain integration.
The report indicates that by 2031, global sales of battery electric vehicles (BEVs) will increase from 17.8 million units in 2025 to approximately 32.6 million units. Growth is expected to accelerate after 2027 as OEMs launch low-cost electric vehicles and governments tighten emission regulations.
Srinag Rajendra Kumar, Frost & Sullivan's mobility growth expert, commented: "The global electric vehicle market is entering a critical phase where affordability, manufacturing efficiency, and technological differentiation will determine long-term competitive advantage. OEMs are moving beyond standalone electrification strategies toward integrated ecosystems based on modular platforms, advanced battery technologies, and strategic charging partnerships. Those that successfully balance innovation with cost optimization will lead the next wave of EV growth."
The report notes that increased competition from Chinese manufacturers and pressure to reduce battery costs are prompting OEMs to rethink their electrification strategies. Many automotive companies are investing in common and modular vehicle architectures that support multiple models and battery chemistries, while reducing development costs and enabling affordable EV production at scale.
The report states: "OEMs are optimizing global production while strengthening supply chains through higher levels of vertical integration and localized manufacturing. At the same time, they are expanding investments 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, shorten charging times, and accelerate mainstream EV adoption."
Frost & Sullivan's research analyzed the electrification strategies of numerous manufacturers, including BMW, BYD, Ford, General Motors, Hyundai, Mercedes-Benz, NIO, Stellantis, Tesla, Toyota, VinFast, and Volkswagen, and determined that the "greatest growth opportunities" in the coming years will come from investments in battery technology, charging infrastructure, resilient supply chains, and manufacturing transformation.