Vehicle To Grid Market Size 2024-2028 

The vehicle to grid market size is projected to increase by USD 68.66 billion at a CAGR of 43.94% between 2023 and 2028. The Global Vehicle-to-Grid (V2G) Market experiences growth driven by critical advancements in electric vehicle (EV) technology. With improvements in EV battery technology, there's a heightened capability to leverage vehicle batteries to meet peak electricity demands. Additionally, changes in grid structure enabling decentralized power generation facilitate the integration of V2G systems, enhancing grid stability and efficiency. This dynamic market landscape underscores the significant potential of V2G technology in transforming the transportation and energy sectors, offering solutions for sustainable power management and grid resilience globally. This market research and growth report report also includes an in-depth analysis of drivers, trends, and challenges.

The market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about 10 market companies, including ABB Ltd., AC Propulsion Inc., ChargePoint Holdings Inc., Continental AG, Coritech Services, Edison International, Fermata LLC, Ford Motor Co., Hitachi Ltd., Honda Motor Co. Ltd., Liikennevirta Oy Ltd., Mercedes Benz Group AG, Mitsubishi Motors Corp., Nuvve Holding Corp., OVO Energy Ltd, Qualcomm Inc., Renault SAS, Tesla Inc., TransnetBW GmbH, and Wallbox N.V.

What will be the Size of the Market During the Forecast Period?

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Market Dynamics 

The market represents a significant technological transformation in the electric vehicle (EV) industry. This market enables electric vehicles, such as electric cars, plug-in electric vehicles (PHEV), and plug-in hybrids (PHEV), to interact with the electricity grid. V2G technology allows electric vehicles to function as mobile energy storage units, feeding excess electricity back into the grid during peak hours. This market holds immense potential for both residential and commercial applications. Electric vehicles can charge from houses and commercial buildings during off-peak hours, reducing the strain on the central power grid. Conversely, during peak hours, electric vehicles can discharge electricity back into the grid, helping to stabilize the power system and reduce the demand for electricity from natural resources. The V2G market is gaining traction in emerging EV markets due to stringent emission regulations and the push for zero emission technology. Car batteries can serve as an essential energy source, contributing to energy production and consumption in the electric power system. The V2G market also offers opportunities for charging station manufacturers to expand their business models and provide additional value to their customers.

Key Market Driver

The global surge in the number of electric vehicles (EVs) is fueled by the need for energy independence and government support. Electric vehicles (EVs) are gaining significant traction worldwide due to the imperative for energy independence and governmental support. As the adoption of EVs escalates, existing technologies are being stretched to their limits, necessitating the creation of novel technologies. The escalating investments in research and development (R&D) are driven by the need to surmount the constraints of current technologies. Over the years, advancements in EV technology have led to a decrease in battery costs and an enhancement of energy densities. This progression in energy density has facilitated the production of higher-capacity batteries. Concurrently, the proliferation of EVs has engendered an extensive network of battery charging infrastructure, ensuring its accessibility and convenience. The integration of electric vehicles into the power grid through vehicle-to-grid (V2G) technology is a burgeoning trend. This technology enables electric vehicles to function as power storage units, feeding electricity back into the grid during periods of excess capacity. This bidirectional charging capability is particularly advantageous during travel restrictions and renewable energy integration.

Charging station manufacturers are at the forefront of this technological transformation, developing smart grid technology to optimize the interaction between EVs and the central power grid. The V2G market is poised for growth as automakers embrace zero emission technology and emission regulations become increasingly stringent. The integration of V2G technology in houses and commercial buildings can contribute to renewable energy storage and electricity network capacity expansion. This two-way energy flow not only supports energy independence but also mitigates vehicle pollution and contributes to climate change mitigation efforts. Lithium-ion batteries, the primary power source for EVs, are subject to degradation mechanisms such as Lithium plating, Calendar Ageing, and Cycle Ageing. The development of advanced battery technologies and the optimization of battery lifespan are crucial to the commercial viability of V2G systems. The arbitrage potential of V2G systems, where individuals and commercial entities can sell excess energy back to the grid, offers significant financial incentives. The emergence of V2G technology in various EV markets signifies a technological revolution in the mobility sector. The integration of natural resources, electric vehicles, and smart grid technology is paving the way for a sustainable and interconnected energy ecosystem. On average, vehicles remain idle or parked 95% of the time, presenting an opportunity to leverage EVs as an energy storage system to supply power back to the grid during peak loads.

Significant Market Trends

The rise in the number of EV charging stations is the key trend in the vehicle-to-grid technology market. The main energy source for electric cars is batteries, which are mainly charged from an external energy source. As EVs have a shorter driving range compared to hybrid and ICE vehicles, they require more on-road and off-road charging facilities to improve their utilization rate. Some government organizations are focusing on increasing the number of charging stations for electric vehicles.

The number of EV charging stations is expected to grow significantly during the forecast period. Government incentives and subsidies on EV charging stations should improve transportation electrification. Increasing sales of EVs contribute to the growing number of charging stations worldwide. The number of charging stations in Asia and Europe will grow at a rapid rate during the forecast period owing to cost reductions and entrepreneurial development in these regions.

Major Market Challenge

The growth of the market is facing a major challenge due to interoperability issues. Efficient integration of electric vehicles into the grid is essential to regulate voltage fluctuations, meet peak demand, and balance renewable power generation. Successful integration requires various factors such as reference architecture, code and standards, management, active network management, advanced measurement infrastructure, and security systems to enable seamless communication between electric cars, charging stations, and communication and control systems.

However, the existing standards, architecture, and components are designed independently by different organizations, causing a lack of uniformity. This necessitates compliance with different standards, which may not be fully compatible with other technologies, resulting in interoperability issues. Although several private and public charging stations have been installed to meet the increasing demand for EVs, their communication and control capabilities are limited due to a lack of unified standards, hindering their integration with the grid.

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Market Segmentation 

The vehicle-to-grid technology market share growth of the power electronics segment will be significant during the forecast period. The segment includes drive systems, control units, bi-directional chargers, networking devices, and communication equipment, which are responsible for communication between vehicle-to-grid enabling technologies. Drive systems which are the critical components for integration, need to be reliable to ensure the safe operation of the entire process of converting and reversing the flow of power without having an impact on other systems of the vehicle. The sales of drive systems will increase exponentially enabling the demand for the market during the forecast period. 

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In 2018, the power electronics segment was valued at USD 3.29 billion, and it continues to grow exponentially during the forecast period. The power electronics segment has a component which is known as bi-directional chargers that allow the flow of power from the grid and supply the power when required. It has meters that show complete charge details and the ancillary services provided by the vehicle to the grid. An EV supply equipment, which can be present at the residence, workplace, or public station, acts as a device that allows a vehicle to charge or discharge power to the grid. The networking equipment, computers, wires and cables, processors, and circuits integrate or connect with the rest of the technologies, such as the drive systems, and enable vehicle grid integration (VGI).

Regional Overview

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North America is estimated to contribute 33% to the growth of the global market during the forecast period. Technavio's analysts have provided an extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period.
The US is the leading market for vehicle-to-grid in North America. This growth is attributed to rapid investments in the development and deployment of vehicle-to-grid infrastructure. This was coupled with aggressive government strategies and targets to stimulate sales of BEVs and PHEVs in the region. Integrating EVs into the grid can save costs for utilities as well as help offset the overall ownership cost for EV owners. Utilities can benefit by avoiding the use of their less efficient or reserve plants to meet the peak demand. Some organizations in the region are focusing on launching new projects that increase the demand for V2G technology. Such large EV projects in the region can accelerate the growth of the market during the forecast period.

Exculsive Customer Landscape

The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market  growth and trends strategies.

Global Market Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

ABB  - The company offers vehicle-to-grid solutions, which can be used to temporarily supply homes (V2H) and buildings (V2B) backup power during power outages. The company offers electrification and building management solutions, products, and services for utilities, industry, transport, and infrastructure.

Market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

• Product Outlook 
  • Power Electronics
  • Software
• Vehicle Type Outlook 
  • BEV
  • PHEV
  • FCEV
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Brazil
    • Argentina
    • Chile

Market Analyst Overview

The market refers to the two-way transfer of electrical energy between the electrical grid and plug-in electric vehicles (PEVs) or hybrid electric vehicles (HEVs). This technology enables electric vehicles to act as energy storage and supply systems, contributing to the power grid stability and efficiency. The integration of V2G technology can lead to significant benefits for both the grid and the vehicle owners. PEV and HEV owners can sell excess energy stored in their batteries back to the grid during peak demand periods. In return, they can receive compensation, reducing their overall electricity costs. On the other hand, the grid can use V2G technology to balance the electricity supply and demand, prevent blackouts, and reduce the need for expensive peak power plants. The V2G market is expected to grow significantly due to the increasing adoption of electric vehicles and the need for grid modernization. The market is driven by factors such as government incentives, technological advancements, and the growing awareness of renewable energy sources. The integration of V2G technology can lead to a more sustainable and efficient energy system, benefiting both the grid and the consumers.

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What are the Key Data Covered in this Vehicle To Grid Market Research Report?

• CAGR of the market report forecast during the forecast period
• Detailed information on factors that will drive the growth of the market  between 2024 and 2028
• Precise estimation of the size of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across North America, Europe, APAC, Middle East and Africa, and South America
• Thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of Industry companies

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