Vehicle-to-Grid (V2G) Technology Market Size, Share, Growth, Forecast and Outlook (2024-2031)

Global Vehicle-to-Grid (V2G) Technology Market is segmented By Component (Smart Meters, Electric Vehicle Supply Equipment (EVSE), Software Solutions, Home Energy Management (HEM)) By Charging (Unidirectional Charging, Bidirectional Charging), By Vehicle (Battery Electric Vehicles (BEVs), Fuel Cell Vehicles (FCVs), Plug-in Hybrid Electric Vehicles (PHEVs)), By Battery (Lithium-ion, Nickel-Metal Hydride, Lead-acid, Ultra-capacitors) By Application (Domestic, Commercial) and By Region (North America, Europe, South America, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Vehicle-to-Grid (V2G) Technology Market Overview

Global Vehicle-to-Grid (V2G) Technology Market reached US$ 2.9 billion in 2023 and is expected to reach US$ 70.9 billion by 2031, growing with a CAGR of 49.4% during the forecast period 2024-2031.

The integration of V2G technology with renewable energy sources acts as a key trend for Global vehicle-to-grid (V2G) technology market growth. V2G technology allows the powerful integration of renewable energy sources consisting of solar and wind power into the grid. By utilizing EV batteries for storage, V2G structures assist mitigate the intermittent nature of renewables. This permits smoother grid operation by storing extra power during peak production periods and liberating it during excessive demand periods. Hence, V2G contributes to grid stabilization and complements the overall reliability of renewable energy integration.

In February 2024, Octopus Energy, an energy technology business, introduced the "Octopus Power Pack," the first vehicle-to-grid (V2G) tariff for the mass market in the UK. It helps the nation's transformation to a green transport ecosystem by providing free charging for EV vehicles. The tariff balances charging and discharging when it's optimal for the grid by utilizing V2G technology and Octopus Energy's "Kraken" software platform.

Battery Electric Vehicles (BEVs) have the highest share in the V2G technology market due to their direct reliance on battery storage, facilitating seamless integration into V2G systems. Similarly, Europe dominates the vehicle-to-grid (V2G) technology market, capturing the largest market share due to its strong regulatory support, extensive EV infrastructure, and commitment to renewable energy integration.

Vehicle-to-Grid (V2G) Technology Market Scope

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Vehicle-to-Grid (V2G) Technology Market Dynamics

Increased adoption of electric vehicles (EVs)

As more consumers and businesses transition closer to electric mobility to lessen emissions and dependence on fossil fuels, the EV marketplace is experiencing rapid enlargement. Volumes sales database data shows that international sales of electrical vehicles (EVs) rose by 55% in 2022 compared to the previous year. This surge in EV adoption is growing an enormous fleet of automobiles with battery storage ability that may be harnessed for grid services.

V2G generation leverages the bi-directional charging functionality of EV batteries, enabling them to now not only draw energy from the grid but also feed extra energy back into it. This bidirectional drift of power allows EVs to function as disbursed energy sources, providing valuable flexibility to the grid operators. Moreover, V2G technology offers opportunities for demand response and peak load control, permitting grid operators to optimize power utilization and reduce strain on the grid infrastructure.

Government Support and Regulations

Government support and legislation are two major reasons propelling the fast growing worldwide vehicle-to-grid (V2G) technology sector. First, governments encourage people and organisations to adopt V2G technology by providing tax discounts, grants, or refunds for purchasing V2G-capable cars or installing the required infrastructure. Second, manufacturers are being compelled by regulatory obligations to offer more electric motors (EVs) or plug-in hybrid autos (PHEVs) in order to increase the number of vehicles eligible to participate in V2G programs.

Flinders University in South Australia introduced a new vehicle-to-grid (V2G) charging station in August 2023 with support from the state government and a collaboration with the French electrical provider Engie. This generation allows electric-powered vehicles for used as backup batteries for the grid or to be recharged. According to Flinders University, all of its energy is produced domestically, with 20% coming from solar arrays.

Battery Degradation Concerns

A primary disincentive for owners of electric vehicles (EVs) and fleet operators is the fear of rapid battery degradation brought on by the repeated cycles of charging and discharging that are inherent in V2G systems. This issue arises because lithium-ion batteries, which are frequently found in electric vehicles, deteriorate with each cycle over time, affecting their capacity and average lifespan. Secondly, the uncertainty surrounding battery warranties and the capacity voiding of warranties because of participation in V2G programs provides another layer of apprehension for EV owners.

Research, including studies from Aston University School of Engineering, identifies lithium plating, solid electrolyte interphase (SEI) growth, and chemical decomposition as key factors contributing to lithium-ion battery degradation. Among these, SEI formation is widely acknowledged as the primary process leading to battery degradation. Electric vehicle manufacturers, leveraging lithium-ion batteries for their high energy density, are concerned about the potential impact of V2G services on battery lifespan.

Vehicle-to-Grid (V2G) Technology Market Segment Analysis

The global vehicle-to-grid (V2G) technology market is segmented based on component, charging, vehicle, battery, application and region.

Battery Electric Vehicles (BEVs) Compatibility and Larger Battery Capacities

Because of its innate compatibility with vehicle-to-grid (V2G) infrastructure, battery electric vehicles (BEVs) hold a substantial market share in the global V2G generation industry. BEVs are totally battery-powered, which makes them perfect for bidirectional energy transfer in V2G applications. This stands in contrast to other electric vehicle types, like fuel cell electric vehicles (FCEVs) and plug-in hybrid electric cars (PHEVs). BEVs can offer greater flexibility for grid services like load balancing, peak shaving, and grid stabilisation because they frequently have large battery capacities.

Moreover, BEVs are more prevalent in the market, with several major automakers investing heavily in the development and manufacturing of BEVs to meet the growing call for sustainable transportation solutions. According to The International Energy Agency, in 2022, sales of BEVs in Europe increased with the aid of 30% over 2021 (as opposed to 65% growth in 2021 over 2020), whilst sales of PHEVs decreased with the aid of approximately 3%. As a result, the widespread adoption of BEVs, coupled with their suitability for V2G integration, positions them as the leading automobile type driving the enlargement of the worldwide V2G technology market.

Vehicle-to-Grid (V2G) Technology Market Geographical Penetration

Robust EV Infrastructure in Europe

Europe's dominance within the international V2G technology market can be attributed to a strong EV industry and home to major producers heavily investing in electric-powered vehicles. This industry presence drives innovation and investment in V2G technology, similarly solidifying Europe's position as a leader within the field. Additionally, the region's research institutions and companies actively engage in developing V2G technology, with collaborations between academia, enterprise, and government establishments fostering innovation and advancement.

Beginning with the sale of the Renault 5 EV in France and Germany in 2024 and the United Kingdom in 2025, Mobilise, a brand of the Renault Group, and The Mobility House announced in June 2023 the launch of Europe's Vehicle-To-Grid (V2G) service for private consumers. Customers who choose to enable bidirectional charging can pay the energy system for access to the battery of their electric vehicle. Because they can charge and discharge in both directions, consumers who no longer drive their electric vehicles can utilize them to make money and contribute to the energy shift.

COVID-19 Impact Analysis On Vehicle-to-Grid (V2G) Technology Market

The vehicle-to-grid (V2G) technology sector was impacted by the COVID-19 epidemic in a number of different ways. The first viral spread disrupted industrial processes, supply chains, and logistics, which delayed the creation and implementation of V2G infrastructure. Lockdowns and other measures taken to stop the virus's spread caused difficulties for the companies developing and using V2G technology, making it difficult for them to continue operating.

Moreover, the financial drawdown prompted by the pandemic brought decreased customer spending and funding in new technologies, such as V2G structures, as groups and people focused on managing immediate financial challenges. However, the pandemic underscored the want for resilient and flexible power systems, further emphasizing the value of V2G technology in improving grid stability and reliability through vehicle-to-grid integration.

Russia-Ukraine War Impact Analysis

The Russia-Ukraine war had significant implications for the vehicle-to-grid (V2G) technology market, mainly due to its consequences on global energy markets and geopolitical dynamics. First of all, the war has raised concerns about energy protection, especially in Europe, in which numerous international locations closely depend on Russian natural gas supplies. As part of diversification efforts to reduce reliance on Russian energy imports, policymakers and industry players are investigating alternate energy resources and technology, including V2G. This is due to the increased attention being paid to energy vulnerabilities.

Second, decentralized and resilient electricity systems are essential, as highlighted by the geopolitical conflicts. By integrating electric vehicles (EVs) into the system, V2G technology increases grid dependability and flexibility. As nations search for methods to fortify their power infrastructure against capacity interruptions, there is a great deal of interest in V2G as a means of improving grid resilience and reducing the consequences of geopolitical instability on energy supplies.

Key Developments

• In November 2023, to study and develop bidirectional technology for grid balancing, Toyota Motor North America and San Diego Gas & Electric Company (SDG&E) partnered on vehicle-to-grid (V2G) research for battery electric vehicles (BEVs). Bidirectional power flow technology, which allows BEV owners to charge their vehicle's batteries from the grid and discharge electricity back into the grid, would be investigated under the V2G research project.
• In July 2021, SP Group (SP) declared the commencement of its vehicle-to-grid1 (V2G) technology trial. To meet the demand on the power grid to sustain more than 600,0002 vehicles when Singapore phases out internal combustion engine vehicles by 2040, SP will test and validate the capability of tapping energy stored in electric vehicles (EVs), a first for Southeast Asia.
• In December 2022, Toyota Motor North America and Oncor Electric Delivery, a Texas-based electric transmission and distribution company, collaborated to work together on a pilot project centered around vehicle-to-grid (V2G), a technology that allows vehicles to flow energy from their battery back onto the electric grid. The project will be spearheaded by Toyota's Electric Vehicle Charging Solutions (EVCS) team, and it represents a significant first for Toyota to work with a public utility on Battery Electric Vehicles (BEVs) in the United States.

Vehicle-to-Grid (V2G) Technology Market Competitive Landscape

The major global players in the market include Nissan Motor Co., Ltd, NUVVE HOLDING CORP., Honda Motor Co., Ltd., ABB, DENSO CORPORATION, Hitachi Energy Ltd., E.ON UK plc., Wallbox Chargers, S.L., Fermata Energy, Evenergi Pty Ltd

Why Purchase the Report?

• To visualize the global vehicle-to-grid (V2G) technology market segmentation based on component, charging, vehicle, battery, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of vehicle-to-grid (V2G) technology market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global vehicle-to-grid (V2G) technology market report would provide approximately 78 tables, 72 figures and 190 Pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies