The global electric-vehicle market is entering a transformational phase, according to a new study, as automakers work to increase efficiency and lower costs.

The Frost & Sullivan analysis says automakers are accelerating their “investment in modular vehicle architectures, advanced battery technologies, and vertically integrated supply chains to deliver affordable, scalable electric mobility.”

It forecast an increase in global EV sales from 17.8 million units in 2024 to 32.6 million units by 2031.

“Those that successfully balance innovation with cost optimization will lead the next wave of EV growth," said Frost & Sullivan Mobility Growth Expert Srinag Rajendra Kumar.

According to the study, three “strategic imperatives” are impacting the global EV market:

1. Chinese EVs flooding it and new EV companies competing with original equipment manufacturers
2. Consumer demand for faster charging
3. Battery chemistry and size driving up cost

But OEMs are making investments to counter the challenges through modular platforms, transitioning from a 400-volt architecture to an 800-volt architecture to support faster charging, and advancements in lithium-ion, sodium-ion and solid-state batteries to push down battery costs.