Affordable EV architectures, advanced battery technologies, and vertically integrated supply chains will reshape global competition through 2031
LONDON, UK – 8 July 2026 – Frost & Sullivan’s latest analysis, OEM Strategies on Next Generation Electric Vehicles, Global, 2025–2031, reveals that the global electric vehicle (EV) industry is entering a new phase of transformation as automotive manufacturers accelerate investment in modular vehicle architectures, advanced battery technologies, and vertically integrated supply chains to deliver affordable, scalable electric mobility.
The study forecasts global battery electric vehicle (BEV) sales will increase from 17.8 million units in 2024 to approximately 32.6 million units by 2031, with growth accelerating beyond 2027 as OEMs introduce lower-cost EVs and governments tighten emissions regulations.
“The global EV market is entering a pivotal phase where affordability, manufacturing efficiency, and technological differentiation will determine long-term competitive success,” said 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,” he added.
According to the analysis, intensifying competition from Chinese EV manufacturers, rising pressure to reduce battery costs, and changing consumer expectations are prompting established automotive OEMs to rethink their electrification strategies. Manufacturers are investing in universal and modular platforms that support multiple vehicle segments and battery chemistries, reducing development costs while enabling affordable EV production at scale.
The research identifies several trends shaping the next generation of electric mobility. OEMs are optimising global production while strengthening supply chains through greater vertical integration and localised manufacturing.
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.
The analysis also examines the electrification strategies of leading OEMs – including BMW, BYD, Ford, General Motors, Hyundai, Mercedes-Benz, Nio, Stellantis, Tesla, Toyota, VinFast, and Volkswagen – covering their powertrain strategies, manufacturing footprints, battery roadmaps, sustainability initiatives, and technology investments.
Frost & Sullivan concludes that the greatest growth opportunities will come from continued investment in advanced battery technologies, resilient supply chains, next-generation charging infrastructure, and manufacturing transformation.
Companies that successfully combine platform standardisation with software-defined vehicle capabilities and strategic ecosystem partnerships will be best positioned to lead the next era of electric mobility.
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