The global EV platform market size is expected to reach US$ 97 billion by 2030 expanding at a CAGR of 3.4% from 2021 to 2030.

The global EV platform market size is expected to reach US$ 97 billion by 2030 expanding at a CAGR of 3.4% from 2021 to 2030. The market growth is primarily driven by growing demand for electric vehicles, increasing government support for electric vehicles, development of cutting-edge electric vehicle technology, and tightening environment protection laws and regulations. Market players should focus on launching innovative and cost-effective electric vehicle platforms to gain a competitive edge and establish a solid foothold in the market.

EVs offer significant advantages over conventional ICEs, and their penetration is significantly high in Europe. Countries, including China, Mexico, Brazil, and those in the EU are enacting more stringent CO2 emission targets, which is estimated to boost the sales of EVs and EV platform during the forecast period.

Regulatory norms by several organizing bodies on internal combustion engines (ICEs), along with technological enhancements in electric batteries and powertrains are driving the demand for electric vehicles (EVs) and EV platform. Most vehicle manufacturers are introducing new models in collaboration with new entrants in the vehicle industry for ICE as well as EVs to develop new EV design and EV platform. Global sales of battery EVs (excluding hybrids) have been increasing by ~40% since 2012. The increase in sales of EVs is boosting the market for EV platform, as the market for EV platform directly depends on the demand for electric vehicles.

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OEMs are trying to improve vehicle platform design by investing more in R&D by investing in native or purpose-built EV platforms, while other OEMs opt to produce EVs based on modified ICE-vehicle platforms. Customized EV platforms possess lower material cost, and they offer better performance for varied range, interior space, and acceleration. However, this customized platform comes at an additional cost leading to higher cost allocation, particularly for low volume vehicle production.

Overview

The global EV platform market is anticipated to expand at a CAGR of 3.4% during the forecast period. This is primarily due to increasingly stringent emission norms for automobiles coupled with the promotion of hybridization and electrification of vehicles in order to reduce the impact of harmful exhaust gases on the environment. Government regulations against diesel and gasoline vehicles is a major reason for the changing preference of customers toward electric vehicles and boost the demand for EV platform during the forecast period.

Market for EVs is expanding at a significant pace and investments at the early stage is significantly high for buses, as governments in most regions are investing considerably in major cities in order to address carbon emission likely to boost the market for EV platform. EV platform for electric buses witness high demand in most economies, as electrification of public platform is likely to impact more effectively in improving air quality.

Drivers of EV Platform Market

Previously, major brands preferred developing a single platform for four five models to restrict capital investment. However, more demand from car buyers for region specific features, styling, and performance, including element of uniqueness in car prompted OEMs to develop different platform for different models, which is likely to boost the market for EV platform during forecast period.
Fossil fuels are finite and soon, fossil fuel reserves are likely to be exhausted. According to the current rate of consumption, an estimated 46.7 years of fuel resources remain across the globe, and 49.6 years of natural gas resources remain worldwide. Alternatives to fossil fuels are available in the market, including electric vehicle, CNG, LPG, air powered vehicle, and LNG. However, electric vehicles are being increasingly adopted, which are regularly utilized for transportation in urban and metropolitan cities and towns. This, in turn, is likely to act as a solution for the finite availability of natural resources. This is estimated to boost the market for EV platform.

Several manufacturers, such as Tesla Inc. and Nissan, have introduced performance EVs that run on new EV platform that are quieter on the roads and provide smooth and hassle-free ride. Low maintenance cost of EVs, owing to new design in the EV platform has been an added advantage, which is likely to benefit consumers in the long-term. This, in turn, is likely to propel the EV platform market.

Challenges

Cost of electric vehicles as compared to that of conventional ICE (internal combustion engine) vehicles is significantly high and is considered as a primary restraining factor for the electric vehicle and EV platform market

Electric powered vehicles require charging stations, and a network of such stations located strategically is required for people to travel long distances. Moreover, recharging of batteries often takes about 1 hour, which nowhere matches efficiency of a gas refuel, which further restrains the EV platform market.

Market Players Focus on Bridging Cost Gap between ICE and Electric Engines

Although the demand for electric vehicles has witnessed consistent growth over the past few years, a handful of OEMs make substantial profit via sales of electric vehicles. The wide cost gap between electric engines and ICEs is a major factor expected to drive innovations and pave the way for cost-effective EV platform models in the near future. High cost of electric batteries is one of the key reasons why electric vehicles are priced higher than that of hybrid or vehicles that operate on ICE-vehicle architecture. As a result, several players operating in the EV platform market landscape are seeking new ways to compensate these costs by focusing on designing the EV on a scalable and a modular platform. While several OEMs are increasingly investing in the development of purpose-built EV platforms to manufacture electric vehicles, others are primarily relying on ICE-vehicle architecture for the production of electric vehicles. In their bid to make electric vehicles production profitable, market players are increasingly exploring different concepts, including simpler assembly lines.

Demand for EV Platforms Decline in 2020 amid COVID-19 Pandemic

The global automotive sector has experienced a major setback in 2020 due to the outbreak of the novel COVID-19 pandemic. The onset of the COVID-19 pandemic has moved the growth of the EV platform market into the slow lane in 2020, as the automotive sector in China was under lockdown especially in the first quarter of 2020. Due to this, the supply of raw materials and automotive components took a major hit worldwide. However, as China gradually opened up its industries, other major automotive hubs were restricting cross-border trade and transportation as a measure to curb the spread of the virus.

The EV platform market is expected to gradually gain momentum toward the last quarter of 2020, as the global demand for EVs witnesses a steady growth following the relaxation of lockdown restrictions and trade.

Market Segmentation

Based on component, the battery segment is projected to account for a major share of the EV platform market during the forecast period. OEMs focus on the production of advanced EV battery that are expected to have lower emission at relatively lower costs, which leads to more investment in R&D for the battery segment and ultimately for EV platform.

Based on electric vehicle type, battery electric vehicle segment is expanding at a rapid pace for the EV platform market. Most OEMs are focusing on the development of battery electric vehicles on newly developed EV platforms rather than hybrid electric vehicles, as the demand for BEVs is more than that of HEVs. Moreover, considerably high capital investment and expertise is required to develop HEV as compared to that of a BEV, as a BEV does not include an ICE on EV platform and hence, is simpler to build.

Based on vehicle type, the utility vehicles segment accounted for a significant share of the global EV platform market. Consumers in China favor compact sedans; however, the arrival of new and more appealing SUVs has shifted demand toward utility vehicles. There is a decline in sales of sedans. They are not as useful as hatchbacks or more spacious as SUVs and consumers in Asia and the U.S. prefer both spacious and useful vehicles. Reduction in demand for hatchbacks across Europe and Latin America is due to an increase in size of smaller vehicle. The larger the hatchback, the less functional and maneuverable they become.

Regional Analysis

Based on region, the global EV platform market has been segregated into North America, Europe, East Asia, South APAC, Latin America, and Middle East & Africa

Consistent rise in penetration of EVs at a significant pace across several countries in East Asia and Europe is a prominent factor driving the global EV platform market, as investment in R&D in these countries is increasing. Europe is witnessing a robust increase in penetration of EVs. Subsequently, the demand for EVs is expected to rise during the forecast period, which is likely to boost the market for EV platform.

The East Asia EV platform market is anticipated to expand significantly, followed by Europe and North America. The automotive industry in countries, including China, Japan, and South Korea is inclined toward technology, innovation, and development of advanced EVs. Development of more advanced and fast charging stations is projected to propel the EV and EV platform market. BYD, BAIC, Chery, and SAIC are key players operating in the East Asia EV market, accounts for the maximum share of the EV platform market.

EV Platform Market Players

Prominent players operating in the global EV platform market include Alcraft Motor Company, Baic Motor, BMW, BYD, Byton, Canoo, Chery, Daimler, Faraday Future, Fisker, Ford, Geely, General Motors, Honda, Hyundai, JAC, Kia Motors, Nissan Motor, Open Motors, REE Auto, Rivian, Saic Motor, Toyota, Volkswagen, Volvo, XAOS Motors, and Zotye.

Global EV Platform Market: Segmentation

EV Platform Market, by Component
Chassis
Battery
Suspension System
Steering System
Drivetrain
Vehicle Interior
Others

EV Platform Market, by Electric Vehicle Type
Battery Electric Vehicle
Hybrid Electric Vehicle

EV Platform Market, by Sales Channel
OEM
Aftermarket

EV Platform Market, by Vehicle Type
Hatchback
Sedan
Utility Vehicles
Others

EV Platform Market, by Platform
P0
P1
P2
P3
P4

EV Platform Market, by Region
North America
Latin America
Europe
East Asia
Middle East & Africa

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