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The V2L inverters market size is forecast to increase by USD 2.98 billion at a CAGR of 19% between 2023 and 2028. The market is experiencing significant growth due to the increasing demand for reliable and sustainable power solutions. One of the key components driving this market is the shift from traditional diesel and petrol generators towards renewable energy sources. V2L inverters, which enable bi-directional power flow between the grid and off-grid systems, are a crucial part of this transition. These inverters allow for the integration of solar panels and household appliances, providing a more efficient and cost-effective power solution. However, the high development and manufacturing costs associated with V2L inverters remain a challenge for market growth. As the sales of electric vehicles continue to rise, the need for advanced charging infrastructure, including V2L inverters, is also increasing. To remain competitive, manufacturers must focus on reducing costs while maintaining high power ratings and ensuring compatibility with various AC voltages.
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The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The battery electric vehicles segment is estimated to witness significant growth during the forecast period. The market is experiencing growth due to the integration of this technology in battery electric vehicles (BEVs). This trend is driven by the rising adoption of sustainable transportation solutions and advancements in BEV technology. V2L-enabled BEVs serve not only as a means of transportation but also as a mobile energy storage solution.
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The battery electric vehicles segment was the largest segment and was valued at USD 869 million in 2018. A notable advancement in this field is BMW Group's next-generation Neue Klasse electric vehicles, set to be produced from 2025. These vehicles will have the capability to store electricity and feed it back into the grid or power homes, making them versatile mobile power sources. In the market, kilowatts (kW) and amps (A) are crucial specifications for continuous rating and peak rating. Load run-time and load rating are also essential factors to consider when evaluating the performance of these inverters. Common appliances that can be powered using V2L inverters include refrigerators, air conditioners, and televisions. Energy consumption is a significant concern, and the market for V2L inverters is expected to grow as energy efficiency becomes increasingly important. The market is driven by the increasing adoption of sustainable transportation and the need for energy efficiency. Key specifications for V2L inverters include continuous rating, peak rating, load run-time, and load rating. Common appliances that can be powered using V2L inverters include refrigerators, air conditioners, and televisions.
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North America is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The North American market holds considerable importance in the global market, fueled by the United States' leading efforts in advancing grid-forming inverter technology for renewable energy integration. The U.S. Department of Energy (DOE) is spearheading this transition, investing in initiatives to improve grid stability and efficiency. V2L inverters are essential for enabling bidirectional energy flow between electric vehicles (EVs) and the grid, using smart meters and CHAdeMO plugs. As the U.S. focuses on renewable energy adoption and EV infrastructure growth, the market is poised for significant expansion.
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.
AG Electrical Technology Co. Ltd. - The company offers V2L inverters that enable electric vehicles to function as mobile power sources, useful for charging devices.
Technavio provides the ranking index for the top 20 companies along with insights on the market positioning of:
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Market structure |
Fragmented |
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YoY growth 2023-2024 |
18.3 |
The market encompasses a wide range of applications, from powering household appliances to supporting electric vehicles (EVs) and off-grid systems. This market is driven by the increasing demand for reliable and efficient power solutions for various loads, including lights, laptops, TVs, refrigerators, and AC outlets. Integrated inverters play a crucial role in the AC power market. These inverters convert DC power from renewable energy sources or battery storage into AC power suitable for appliances and EVs. With the integration of a bidirectional EV charger and smart meter, households can efficiently manage their energy use, utilizing AC inverter to power fridges and freezers while contributing to a virtual power plant (VPP) through V2H (vehicle-to-home) and V2G (vehicle-to-grid) systems for critical appliances. The market caters to various sectors, such as residential, commercial, industrial, and transportation. In the residential sector, AC power is essential for powering household appliances, providing emergency backup power, and supporting EV charging. In the commercial and industrial sectors, AC power is required for powering various loads, including HVAC systems, lighting, and machinery. In the transportation sector, AC power is essential for powering EVs and supporting V2G applications.
However, these traditional power sources face increasing competition from renewable energy-based solutions, such as solar and wind power systems, due to their environmental benefits and cost-effectiveness. In the context of EVs, the AC power market offers bidirectional chargers, which enable V2G applications. These chargers allow EVs to sell excess energy back to the grid during peak demand periods, providing an additional revenue stream for EV owners and contributing to grid stability. An off-grid solar system equipped with an integrated inverter and a bidirectional charger can efficiently power a refrigerator and an EV (Electric Vehicle), while a backup generator or diesel generator can provide additional support during periods of low sunlight. The increasing adoption of renewable energy sources, such as solar and wind power, is driving the demand for AC power solutions that can effectively manage the intermittent nature of these energy sources. The market is influenced by several factors, including power rating, AC voltage, and the increasing adoption of renewable energy sources. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Growing sales of electric vehicles is notably driving market growth. The market in the United States is experiencing substantial growth due to the escalating sales of electric vehicles (EVs). By the year 2024, it is estimated that the revenue generated from the EV sector in the US will reach approximately USD235.6 billion. This expansion is primarily fueled by the increasing demand for both battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs).
Furthermore, Chinese automakers, despite facing import duties and declining global demand, have continued to expand their sales in the US market. EVs have become a popular choice for consumers due to their environmental benefits and cost savings. Appliances, loads such as lights, laptops, TVs, and even refrigerators can be powered using V2L inverters, making EVs a versatile alternative to traditional fuel-powered vehicles. With the increasing adoption of EVs and the growing demand for V2L inverters, the market is expected to continue its upward trend in the coming years.
Product launches is the key trend in the market. The market is witnessing significant advancements, with companies introducing innovative solutions to boost efficiency and sustainability in off-grid power systems. For instance, in May 2024, ABB unveiled an advanced propulsion package for electric buses, integrating the AMXE250 motor and HES580 inverter. This groundbreaking development sets a new standard for electric bus propulsion, delivering enhanced reliability, efficiency, and sustainability. The HES580 inverter, a 3-level inverter, is a game-changer in the market. Compared to traditional 2-level inverters, it offers substantial improvements in energy efficiency and power output.
Furthermore, this innovation is crucial for powering household appliances and ensuring a stable power supply in off-grid systems, where diesel and petrol generators were previously the primary power sources. Bi-directional power flow enabled by V2L inverters facilitates seamless integration of renewable energy sources, further enhancing the overall system's sustainability. In summary, the market is witnessing a wave of innovation, driven by the launch of advanced products that offer superior energy efficiency, power output, and reliability. The integration of these solutions in off-grid power systems, such as electric buses, can lead to significant reductions in greenhouse gas emissions and contribute to a more sustainable energy future. Thus, such trends will shape the growth of the market during the forecast period.
High development and manufacturing costs is the major challenge that affects the growth of the market. The global market which enable Electric Vehicles (EVs) to provide power back to the grid through Vehicle-to-Grid (V2G) technology, is experiencing growth driven by the integration of advanced inverters in EVs. These inverters convert DC battery voltage to AC waveforms for powering AC outlets, backup generators, and extension power leads. SiC and GaN semiconductors are essential components of these inverters, with SiC's ability to handle higher power making it suitable for more powerful EVs, and GaN's faster switching capabilities enhancing overall efficiency.
However, the high cost of SiC devices poses a significant challenge to market expansion. The adoption of SiC technology by Tesla for its Model 3 drive train inverter in March 2023 signifies a substantial expansion of the SiC industry, with potential implications beyond the transportation sector. As a professional assistant, I will maintain a formal tone and ensure all responses are grammatically correct. Hence, the above factors will impede the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, 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 analysis strategies.
Customer Landscape
The market for appliances is witnessing significant growth due to the increasing demand for efficient power solutions for various loads such as lights, laptops, TVs, refrigerators, and EVs. AC inverters play a crucial role in converting DC power from renewable energy sources into AC power suitable for these appliances. Integrated inverters are gaining popularity due to their ability to provide AC power through AC outlets, bidirectional chargers, and vehicle-to-grid (V2G) systems. V2G technology enables EVs to supply excess energy back to the grid during peak hours, making it a promising solution for energy management. AC voltage and power rating are essential factors when selecting an inverter for household appliances. The power rating is measured in kilowatts (kW) and amps (a), while the continuous and peak rating determine the inverter's ability to handle constant loads. Emergency backup power is another application for AC inverters, ensuring uninterrupted power supply during blackouts.
Furthermore, off-grid solar systems, including solar energy storage and changeover switches, are increasingly being adopted for remote locations. Diesel and petrol generators are also used as backup power sources, but they are less efficient and more expensive than renewable energy solutions. Lithium-ion batteries are commonly used for energy storage in off-grid solar systems and EVs. Two-way charging, also known as bidirectional charging, allows EVs to charge from the grid and supply excess energy back to it, making them a vital component of the smart grid. The use of smart meters and bidirectional EV chargers facilitates bi-directional power flow, optimizing energy consumption and reducing the overall carbon footprint.
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Market Scope |
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Report Coverage |
Details |
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Page number |
210 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 19% |
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Market growth 2024-2028 |
USD 2.98 billion |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 34% |
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Key countries |
US, China, Germany, UK, France, Japan, Canada, South Korea, Norway, and The Netherlands |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
AG Electrical Technology Co. Ltd., Amphenol Corp., BorgWarner Inc., BYD Company Ltd, Delta Electronics Inc., DENSO Corp., Eaton Corp plc, Hitachi Astemo Ltd., Honda Motor Co. Ltd., KIA CORP., LTEC Corporation, Marelli Holdings Co. Ltd., Shindengen Electric Manufacturing Co. Ltd., Toyota Industries Corp., and Valeo SA |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, fast-growing and slow-growing segment analysis, AI impact on market trends, COVID -19 impact and recovery analysis and future consumer dynamics, market condition analysis for the market forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Technavio Analysis
3 Market Landscape
4 Market Sizing
5 Historic Market Size
6 Qualitative Analysis
7 Five Forces Analysis
8 Market Segmentation by Vehicle Type
9 Market Segmentation by Application
10 Customer Landscape
11 Geographic Landscape
12 Drivers, Challenges, and Opportunity/Restraints
13 Competitive Landscape
14 Competitive Analysis
15 Appendix
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