Vehicle to grid (V2G) technology facilitates two-way power flow between electric vehicles and the power grid. Electric vehicles equipped with bi-directional charging equipment can transfer power back to the grid or off-grid locations. This helps in ramping up renewable energy resources and reducing greenhouse gas emissions from the transportation sector. V2G technology provides several benefits such as improving grid stabilization, generating additional revenue for electric vehicle owners, and reducing infrastructure costs for power companies.
The global Vehicle To Grid Technology Market is estimated to be valued at US$ 119.1 Mn in 2023 and is expected to exhibit a CAGR of 43% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The increased adoption of electric vehicles across the globe is a major factor responsible for the accelerated growth of the V2G technology market. Various companies are focusing on deploying V2G commercial projects to harness the full potential of vehicle batteries as a distributed energy resource. For instance, Nissan and ENGIE EPS have partnered to launch second-life applications for electric vehicle batteries through V2G technology. Growing investments by both private and public entities in smart grid infrastructure development are expected to boost the demand for vehicle to grid technology over the forecast period.
The global vehicle to grid technology market is dominated by the electric vehicles sub segment. This is because vehicle to grid technology is primarily applicable to electric vehicles which can feed electricity back to the grid from their batteries as well as draw power from the grid for recharging. Electric vehicles batteries act as distributed energy storage systems which help in stabilizing the overall power supply and demand dynamics of the electric grid.
Key players operating in the vehicle to grid technology market are Nissan Motor Corporation, Mitsubishi Motors Corporation, Honda Motor Co., Ltd., BMW Group, Tesla, Inc., General Motors Company, Ford Motor Company, Toyota Motor Corporation, Daimler AG, Volvo Group. Vehicle manufacturers are partnering with utilities and technology companies to integrate vehicle to grid capability within electric vehicles.
The Asia Pacific region is expected to be the fastest growing as well as the dominating regional market for vehicle to grid technology. Countries like China and Japan have huge market for electric vehicles due to supportive government policies and regulations. Growing electric mobility in countries like India is also driving the vehicle to grid technology market in the region.
The global Vehicle To Grid Technology Market is expected to witness high growth over the forecast period of 2023 to 2030. Rapid adoption of electric vehicles worldwide and increasing share of renewable energy in the power generation mix is boosting the development of vehicle to grid technologies. Vehicle to grid technology enables two-way power flow and provides valuable services to vehicle owners, electric utilities and all energy market participants. The global Vehicle To Grid Technology Market is estimated to be valued at US$ 119.1 Mn in 2023 and is expected to exhibit a CAGR of 43% over the forecast period 2023 to 2030.
- Source: Coherent Market Insights, Public sources, Desk research
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