The global EV Platform market size was estimated at USD 11.83 billion in 2022 and it is expected to hit around USD 152.61 billion by 2032, growing at a CAGR of 29.14% during the forecast period from 2023 to 2032.
Access our Premium Real Time Data Intelligence Tool, Visit: Precedence Statistics
The electric vehicle landscape rapidly varies as technology and interest evolve; the forthcoming years will have many more electric vehicles that will take to the roads. When the design is finalized, the production process moves to manufacture the individual components. These components may include the battery pack, electric motor, power electronics, charging system, and other parts that play a key part in the operation of EVs. Being one of the most integral and crucial parts of the electric vehicle, the EV platform acts as a base layer for the electric vehicle.
The global EV platform revolves around the production and distribution of the structure of electric vehicles. The structural part of the electric vehicle which is known as the EV platform is later fitted with a drive unit, suspension, and body.
The demand for EVs has grown significantly because of environmental concerns, the availability of models, increased cost competitiveness with conventional gas vehicles, and improved vehicle ranges. Rising fuel prices, alongside deteriorating air quality index in important cities globally, has significantly driven demand in the market. EVs are becoming increasingly cost-competitive with traditional gas-powered vehicles, particularly when it comes to the total cost of ownership over the vehicle's lifetime. This is making EV platforms more attractive to both consumers and fleet operators.
Moreover, multiple manufacturers are focused on the production of EV platforms to offer additional features that are observed to offer smooth and better driving experiences. For instance, The CMF-EV platform, the newest electric vehicle architecture from Nissan, offers designers several creative chances to completely reimagine the driver and passenger experiences.
Report Scope of the EV Platform Market:
|Market Size in 2023||USD 15.28 Billion|
|Market Size by 2032||USD 152.61 Billion|
|Growth Rate from 2023 to 2032||CAGR of 29.14%|
|Largest Market||Asia Pacific|
|Forecast Period||2023 to 2032|
|Segments Covered||By Component, By Electric Vehicle Type, By Vehicle Type, By Sale Channel, and By Application|
|Regions Covered||Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa|
Rising consumer demand for electric vehicles
Significant advancements in electric vehicle technology have occurred in recent years, including battery capacity, charging infrastructure, and vehicle performance. These advancements have addressed consumers' key concerns, such as long charging times and limited driving range, making EVs more appealing to a broader audience. The cost of lithium-ion batteries, the primary energy storage devices in electric vehicles, has been declining in recent years, making electric vehicles more affordable and competitive with traditional gasoline-powered cars. As battery costs continue to decline, the demand for electric vehicles will boost. This element highlights the growth of the market.
Fluctuation in component prices
Raw materials and components are part of complete vehicles in a vehicle assembly plant. The fluctuating prices of components used for the production of EV platform act as a restraint for the market. It accounts for all the incoming materials, parts, supplies, workforce, and utilities and compares them against the vehicles. The battery pack is the essential component of an electric vehicle platform, and lithium is mainly used as a raw material. As the lithium supply is limited, the overall price of EV platform becomes expensive. The shortage of such raw materials causes fluctuation in the prices which may hamper the growth of the market by limiting manufacturers.
Rising utilization of electric vehicles in commercial applications
Some companies involved in last-mile delivery, such as online food delivery companies, e-commerce platforms, and courier services, are incorporating electric vehicles into their fleets. EVs are well-suited for urban delivery due to zero emissions. They help reduce pollution, such as air and noise while providing savings on fuel and maintenance. For instance, in India, companies like Ola and Uber are encouraging their drivers to switch into electric vehicles. Electric vehicles are well-suited for short-distance urban trips, and their lower operating costs can increase the drivers' earnings. Few cities offer incentives, such as access to reducing licensing fees and charging infrastructure to promote the use of EVs in the industry.
Companies are transitioning their internal fleets to electric vehicles, including companies with delivery services and field service operations. Electric vehicles in corporate fleets help reduce pollution from carbon footprints, maintenance costs, and lower fuel and align with sustainability goals. This element is expected to open lucrative opportunities for the EV platform market by increasing the pace of electric vehicle production.
The steering system segment is expected to increase rapidly during the forecast period. Electric steering systems are efficient since they do not need a pump to develop hydraulic pressure, which can help extend an EV's range. The need for EV platforms and increased safety regulations by creating precise and responsive steering systems, reducing the risk of accidents, and enhancing the safety of EVs will increase the demand for steering systems during the upcoming period.
Electric Vehicle Type Insights:
The battery electric vehicle segment is expected to lead the market with the highest revenue during the forecast period. The evolution of lithium-ion technology has raised the requirement for the growth of batteries, which has been a prominent solution for automobile developers that can give power to electric vehicle batteries. The main factors driving the market's growth are increased technological advancement, zero-emission assets, and the ability to not emit toxic gases.
For instance, In June 2022, General Motors announced that it was partnering with Honda to develop and produce Ultium batteries for both companies' electric vehicles.
Vehicle Type Insights:
The utility vehicle is the maximum contributor towards the EV platform market.
With the rising demand for electric vehicles to carry heavy loads, the significance of utility vehicles will continue to grow. Utility vehicles require fast charging; the EV platform provides a well-established, compatible charging network. Several automotive manufacturers are focused on customizing EV platforms according to durability and reliability requirements, especially for utility vehicles. This element highlights the segment's growth for the upcoming years. Companies extensively adopt this due to greater public demand and sales. For instance, in 2022, India's Mahindra and Mahindra showcased its forthcoming electric SUV - XUV-300 - re-badged as XUV-400.
The hatchback segment shows attractive growth during the forecast period.
Hatchback vehicles are often small with compact designs; EV platforms offer efficient use of space and proper weight distribution. Hatchback vehicles require an EV platform to maintain the battery capacity. The rising demand for personal vehicles as a transportation mode and the emphasis on the development of electric cars will boost the segment's growth.
Sale Channel Insights
OEM captured the largest market share during the forecast period.
The vehicle returns to its original state since they make OEM parts easier to install with less room for error. If the car is in its original condition, it fits with the vehicle. The quality and safety of the product is maintained.
Aftermarket is anticipated to register the highest CAGR during the projected period.
The rising demand for vehicle conversion and customization will fuel the segment’s growth. The automotive market is experiencing a massive demand for do-it-yourself automotive parts; the aftermarket sales channel offers an opportunity for consumers to choose their platforms. Cheaper and affordable as compared to OEM. Rising retrofitting activities will grow the segment.
The passenger vehicles segment holds a significant position in the EV platform market. The enormous demand for personal vehicles and changing consumer preference towards electric vehicles promote the growth of the segment. The rise in middle-income population, especially in multiple developing countries highlights the demand for electric vehicles, which subsequently promotes the production of EV platforms.
The commercial vehicles segment plays a significant role in the EV platform market. Electric commercial vehicles produce zero emissions, reducing air pollution and greenhouse gas emissions compared to gasoline or diesel-powered vehicles, which makes them more environmentally friendly and helps in combating climate change.
The segment is expected to grow primarily owing to the increasing demand for minibusses and vans. The substantial demand for commercial vehicles from companies and industries will also promote the growth of the segment in the upcoming years. Light commercial vehicles are expected to witness an enormous demand in the future.
Electric commercial vehicles are highly efficient in converting energy into motion. They have higher energy efficiency than internal combustion engine vehicles, which results in better mileage per unit of energy consumed.
Asia Pacific dominates the global EV platform market; the region is expected to sustain its position in the market throughout the predicted timeframe. Several governments of the Asian countries including Japan, China and India have assisted the proliferation of EV demand through subsidies and favorable policies for EVs by distressing the use of gasoline-diesel vehicles. China dominates the global electric vehicle market, the rising production and advancements of electric vehicles in the country highlight the growth of the EV platform market for upcoming years.
Europe is the fastest-growing region in the EV platform market. The electric vehicle market in Europe is witnessing significant growth. Nordics and and Netherlands continue to lead the way. The United Kingdom reported triple-digit increases for the year. Changing consumer preferences, concerns about climate change, substantial focus on choosing sustainable transportation modes along with favorable government policies were the primary factors that are propelling the growth of the market in Europe. The presence of major manufacturers including Tesla, Renault, BMW and Audi in the region contributes to the growth of the market.
For instance, In June 2023, as automakers fight with Tesla to lower the price of electric vehicles, Volvo Cars introduced its EX30 fully electric compact SUV with two battery alternatives and an initial cost of about 36,000 Euros. The Swedish manufacturer's smallest SUV, the EX30, was unveiled after the larger electrified EX90.
Key Market Players:
Segment Covered in the Report:
By Electric Vehicle Type
By Vehicle Type
By Sale Channel
PROCEED TO BUY :
ASK FOR SAMPLE
No cookie-cutter, only authentic analysis – take the 1st step to become a Precedence Research client