by The global vehicle-to-grid technology market size is predicted to reach around US$ 17.43 billion by 2027, recording a CAGR of 48% over forecast period 2022 to 2027.
Vehicle electrification stands as one of the most significant advancements within the automotive industry. Heightened concerns about environmental preservation have spurred research that has greatly propelled the global adoption of electric mobility. Vehicle-to-grid (V2G) technology enables energy to flow back from an electric vehicle’s battery to the power grid. This system allows for controlled, bidirectional electrical energy exchange between vehicles and the electrical grid. The expansion of vehicle-to-grid technology is extending beyond vehicles themselves, reaching homes, schools, and fleets.
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Factors Driving Growth
The vehicle-to-grid market is experiencing substantial growth due to the exponential increase in electric vehicle charging stations worldwide. Electric vehicles typically have a more limited range compared to hybrid and internal combustion engine vehicles, necessitating a higher density of charging infrastructure both on and off the road. This proliferation of charging stations leads to more vehicles becoming integrated into the grid, consequently driving demand for vehicle-to-grid technologies.
However, the global automotive sector has faced a slowdown due to the ongoing COVID-19 pandemic, with lockdowns in numerous countries affecting the production of electric vehicles. Prominent players such as BMW AG, Nissan Motor Co., Kia Motors Corp., Tesla, Inc., and Daimler AG have been impacted by the pandemic. Nonetheless, future government incentive packages might assist the EV market in overcoming the economic challenges posed by COVID-19 by investing significantly in charging infrastructure. China, for instance, has plans to stimulate its automotive sector, with a focus on “new infrastructure” as part of its economic recovery strategy following the pandemic and trade tensions. Hence, governments in affected regions are turning to infrastructure investment as an economic revitalization approach.
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Report Highlights
- In 2019, Electric Vehicle Supply Equipment (EVSE) captured substantial revenue stake around 82% due to its growing application for connecting electric vehicles to the grid.
- The EVSE are the foremost component that joins electric vehicles to the electric grid and therefore escalating trend for smart energy and renewable generation will bolster the demand for EVSE components.
- In terms of revenue, Battery Electric Vehicles (BEVs) occupied noteworthy share of about 64% in the global vehicle-to-grid technology market in 2019. The primary influence behind this growth is the early employment of vehicle-to-grid technology in the vehicle.
- On the other hand, Plug-in Hybrid Electric Vehicles (PHEVs) is projected to display the fastest growth within the estimate period due to high-power return capacity and large battery size
Regional Overview
Globally, Europe currently leads the vehicle-to-grid market, commanding approximately 36% of the revenue share in 2019. The Asia Pacific region is anticipated to experience robust growth and is projected to reach a market value of around USD 5,521 million by 2027. The adoption rate of electric vehicles is on the rise, with various countries investing significantly in research and development. Countries like France, Canada, the Netherlands, and India have launched campaigns to encourage electric vehicle adoption. As per a survey, there are roughly 50 active V2G projects worldwide, with around 25 in Europe, 7 in the Asia-Pacific region, and 18 in North America. Northern European countries, particularly Denmark, the Netherlands, the UK, and Germany, are leading the market in Europe. In the U.S., activity is primarily concentrated in Hawaii, California, and Delaware. This project distribution highlights that Asia has played a more prominent role as a manufacturing partner than as a primary implementer, with notable exceptions.
In Denmark, Nuvve Corporation announced four consecutive years of successful vehicle-to-grid operations for electric vehicles in September 2020. The company has been providing frequency regulation services to Energinet, the Danish grid operator, for four consecutive years. The initial fleet of vehicles began service in September 2016 at a Danish municipal water and gas utility company named Frederiksberg Foraging.
Key Players and Strategies
Numerous participants in the vehicle-to-grid technology market are expanding their offerings to fleets, schools, and residences. The revenue potential in this market is leading battery electric vehicle and Plug-in Hybrid Electric Vehicle manufacturers to offer consumers additional services related to their vehicles. Given that software is a crucial component of V2G technology, vehicle owners can generate additional revenue by providing critical data generated through intelligent and interconnected communication technology to corporations. This valuable data can enable car manufacturers and technology providers to deliver enhanced services to consumers.
Some of the prominent players in the vehicle-to-grid technology market include:
- Nissan Motor Corporation
- Mitsubishi Motors Corporation
- NUVVE Corporation
- ENGIE Group
- OVO Energy Ltd
- Groupe Renault
- Honda Motor Co., Ltd.
Vehicle-to-Grid Technology Market Segments:
By Component Type
- Smart Meters
- Electric Vehicle Supply Equipment (EVSE)
- Software
- Home Energy Management (HEM)
By Application Type
- Battery Electric Vehicles (BEVs)
- Fuel Cell Vehicles (FCVs)
- Plug-in Hybrid Electric Vehicles (PHEVs)
By Regional Type
- North America
- U.S.
- Canada
- Europe
- U.K.
- Germany
- France
- Asia Pacific
- China
- India
- Japan
- South Korea
- Latin America
- MEA
- Rest of the World
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