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The vehicle to grid chargers market size is forecast to increase by USD 5.41 billion at a CAGR of 24.07% between 2023 and 2028. In the US market, the driver, trends, and challenges of the Vehicle-to-Grid (V2G) Chargers are shaped by several macroeconomic factors. The increasing adoption of electric vehicles (EVs) in society, driven by environmental concerns and government incentives, is a significant growth factor. The ability of V2G chargers to meet the growing demand for electricity by feeding excess power back into the grid is a key trend. However, the high infrastructure cost is a major challenge. Employment rates in the US are expected to increase due to the growing demand for skilled labor in the installation and maintenance of V2G charging infrastructure. Smart cities, which prioritize energy efficiency and sustainability, are also expected to drive the market growth. Overall, the V2G chargers market in the US is poised for significant growth, driven by these trends and challenges.
The vehicle to grid (V2G) chargers market is experiencing significant growth, driven by the increasing adoption of electric vehicles (EVs), including electric cars, plug-in electric vehicles (PHEVs), and plug-in hybrids (PHEVs). These chargers enable EVs to not only consume energy from the power grid but also supply surplus energy back to the grid. V2G chargers use advanced components such as bi-directional power converters, communication systems, and battery management systems. The technology allows electric automobiles to act as active participants in the electric power system, contributing to grid stability and energy balance.
Further, charging types include on-the-go and depot charging. On-the-go charging enables vehicles to sell energy back to the grid while they are being charged at public charging stations. Depot charging occurs at charging stations or garages, where EVs can store excess energy in their batteries and sell it back to the grid when needed. Urbanization and industrialization are key factors driving the growth of the V2G chargers market. Infrastructure development and standardization are crucial to ensuring the seamless integration of V2G technology into the power grid. As the EV market continues to expand, V2G chargers will play a vital role in optimizing energy usage and enhancing grid resilience.
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 residential chargers segment is estimated to witness significant growth during the forecast period. Vehicle-to-Grid (V2G) chargers, also known as bi-directional home charging stations, enable Electric Vehicles (EVs) to transfer energy from their batteries to both homes and the power grid. Nissan, in collaboration with Eaton, introduced the xStorage bi-directional charging unit, which can power homes or be sent back to the grid. This innovative product achieved sales of over 1000 units within three months of its launch, underscoring its strong market acceptance. Nissan aims to sell more than 100,000 units in Europe. The proliferation of V2G chargers is contingent on various factors, including the expansion of commercial V2G infrastructure and the development of wireless charging technology for EVs.
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The residential chargers segment accounted for USD 1.58 billion in 2018 and showed a gradual increase during the forecast period.
Europe is estimated to contribute 35% 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.
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The United States is currently leading the global market for vehicle to grid (V2G) chargers due to the wave in electric vehicle (EV) sales and the expansion of charging infrastructure. In Mexico, the Federal Electricity Commission (CRE) has recently introduced new regulations, enabling individuals to sell excess electricity generated by solar panels or other renewable sources back to the power grid. This net metering policy is a significant step towards developing a more powerful distributed generation infrastructure. The growing popularity of EVs and the expanding charging infrastructure in the US, along with Mexico's net metering regulations, are major factors fueling the growth of the V2G chargers market.
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.
The ability to meet growing demand for electricity is the key driver of the market. Electric Vehicles (EVs) are gaining popularity due to their eco-friendly nature and the reduction of reliance on fossil fuels. Governments worldwide are encouraging their adoption through incentives and infrastructure development. Consequently, the number of EVs on the road is rising, leading to a ripple in demand for charging stations. Charging costs for EVs vary depending on the electricity demand. Different electric rate plans, such as flat-rate, tiered flat-rate, and critical peak pricing, determine the cost of charging based on the time of day. During peak hours, the cost is higher, while it is lower during off-peaks. The market for Vehicle to Grid (V2G) chargers is expected to grow significantly due to the increasing number of EVs and the need for efficient energy management.
Additionally, components of V2G chargers include bi-directional power converters, energy storage systems, and communication systems. Advanced Technology, such as smart grid and artificial intelligence, is being integrated into V2G chargers to optimize energy usage and grid stability. Charging types include opportunity charging and depot charging. Opportunity charging refers to charging at public charging stations, while depot charging occurs at charging stations located at garages or parking lots. The adoption of V2G chargers is expected to increase as governments and businesses seek to optimize energy usage and reduce carbon emissions.
Increasing adoption of EVs is the upcoming trend in the market. Electric Vehicles (EVs) emerged in the market in the 1990s but gained limited acceptance among consumers. However, with increased marketing efforts by manufacturers and growing awareness of environmental benefits, such as reduced air and noise pollution, the demand for EVs has significantly increased. Ford Motor Company provides comprehensive information on various EV types and related technologies on its website. Government incentives for both manufacturers and consumers have further boosted the market penetration of EVs.
Further, despite the initial higher total cost of ownership compared to conventional Internal Combustion Engine (ICE) vehicles, the long-term savings from lower fuel and maintenance costs make EVs an attractive option for environmentally-conscious consumers. The EV charging market comprises various components, including charging stations, charging cables, and charging connectors. Advanced charging technologies, such as Vehicle-to-Grid (V2G) and Fast Charging, are gaining popularity due to their ability to provide additional benefits to consumers and the grid.
High infrastructure cost is a key challenge affecting market growth. Vehicle to Grid (V2G) charging systems enable bi-directional energy flow between electric vehicles (EVs) and the power grid. These systems require intricate infrastructure, including charging and discharging points, smart parking spaces, billing meters, and communication systems. The scale of managing EVs for substantial V2G supply is substantial, necessitating the investment in infrastructure to support approximately 30,000 EVs, each delivering 6.6kW at 50% discharge, equivalent to a 100 MW peaking gas turbine unit.
Additionally, the complexity and cost of V2G infrastructure increase with remote charging and discharging capabilities, which demand additional metering and billing systems connected to a central monitoring and controlling system. V2G technology components include batteries, power electronics, and communication systems, which require advanced technology to facilitate efficient energy exchange between vehicles and the grid.
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
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.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
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.
The global vehicle-to-grid (V2G) chargers market is witnessing significant growth due to the increasing adoption of electric vehicles (EVs), including electric cars, plug-in electric vehicles (PHEVs), and plug-in hybrids (PHEVs). V2G technology enables these vehicles to supply excess energy stored in their batteries back to the power grid. Components: V2G chargers consist of bi-directional power converters, communication systems, and battery management systems. The technology is a crucial part of the electric power system, facilitating the integration of clean energy from electric automobiles into the power grid. Charging Type: V2G chargers support both charging and discharging, making them more versatile than traditional chargers. They can charge EVs when the grid has excess energy and discharge energy back to the grid when demand is high. Impact on Society and Economy: Urbanization and industrialization have led to increased energy demand and macroeconomic factors such as employment rates and clean energy initiatives.
Additionally, V2G technology offers a solution by providing a flexible and intelligent energy storage system, contributing to smart cities and smart infrastructures. Technology and Infrastructure: The V2G chargers market is driven by advancements in battery technology and the need for standardization in the electric automobile industry. This technology offers significant benefits, including grid stability, reduced energy costs, and improved energy efficiency. Estimations and Profit-Oriented Business Decisions: The V2G chargers market is expected to grow exponentially as more electric vehicles are adopted, and businesses recognize the potential for profit through energy trading and grid support services. This trend is set to continue as the world transitions towards a cleaner, more sustainable energy future.
Market Scope |
|
Report Coverage |
Details |
Page number |
146 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 24.07% |
Market Growth 2024-2028 |
USD 5.41 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
19.07 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 35% |
Key countries |
US, UK, China, Canada, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Cenex, Enel Spa, ENGIE SA, EVTEC AG, Honda Motor Co. Ltd., Hyundai Motor Co., Liikennevirta Oy Ltd., Magnum CAP, Mitsubishi Motors Corp., Moixa Energy Holdings Ltd., Nissan Motor Co. Ltd., Nuvve Holding Corp., OVO Group Ltd., Renault SAS, Shell plc, The Mobility House GmbH, Toyota Motor Corp., and UK Power Networks Operations Ltd. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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