What Has Driven the Growth of the Vehicle-to-Grid Technology Market in Recent Years?
The vehicle-to-grid technology market has seen considerable growth due to a variety of factors.
• The market size for vehicle-to-grid technology has seen a significant upsurge in the past few years. Market growth is expected to rise from $4.15 billion in 2024 to $5.14 billion in 2025, translating to a compound annual growth rate (CAGR) of 23.9%.
The prior growth has been largely driven by factors such as the proliferation of electric vehicles, grid stability and management, the integration of renewable energy, energy resilience, emergency power provision, as well as government policies and support.
What Is The Forecast For The Vehicle-to-Grid Technology Market By 2029?
The vehicle-to-grid technology market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for vehicle-to-grid technology is set to experience a significant upsurge in the coming years. The market is projected to reach $11.86 billion by 2029, growing at a compound annual growth rate (CAGR) of 23.2%.
This growth during the forecast period is likely to be due to the proliferation of electric vehicle fleets, the decentralization of the grid, and the deployment of distributed energy resources, integration with intelligent networks, demand response initiatives, and goals pertaining to environmental sustainability. Key market trends during this forecast period are expected to include partnerships between automobile manufacturers and utility companies, the advent of V2G-capable charging stations, the further development of V2G pilot projects and demonstrations, integration with renewable energy sources, initiatives for regulatory support, and standardization.
What Are The Leading Drivers Of Growth In The Vehicle-to-Grid Technology Market?
The surge in usage of electric vehicles is anticipated to accelerate the expansion of the vehicle-to-grid technology market. An electric vehicle, powered by an electric motor that draws its energy from a battery which can be charged externally, utilizes vehicle-to-grid technology for intelligent charging. This technology enables vehicle batteries to restore power back to the grid and uses IT to regulate energy consumption while in transit. For example, the Department of Infrastructure, Transport, Regional Development, Communications and the Arts, an Australian government department responsible for implementing government policy and initiatives, reported that as of January 31, 2022, there were 20.7 million registered motor vehicles, a 2% jump from January 2021. Battery electric vehicles (BEVs) accounted for approximately 40,000, a 100% leap from 2021, with 34,200 of them being passenger cars in 2022, a rise of 118% from 2021. The count of Hybrid-electric vehicles (HEVs) reached around 277,000 in 2022, a 35% increment from 2021. Hence, the growing acceptance of electric vehicles is facilitating the growth of the vehicle-to-grid technology market.
How Is The Globa Vehicle-to-Grid Technology Market Divided Into Key Segments?
The vehicle-to-grid technology market covered in this report is segmented –
1) By Component: Electric Vehicle Supply Equipment (EVSE), Home Energy Management (HEM) System, Smart Meters, Software Solutions
2) By Charging Type: Unidirectional Charging, Bidirectional Charging
3) By Vehicle Type: Battery Electric Vehicle (BEV), Plug-In Hybrid Electric Vehicle (PHEV), Fuel Cell Electric Vehicle (FCEV)
4) By Application: Reactive Power, Baseload Power, Spinning Reserves, Peak Power Sales, Other Applications
Subsegments:
1) By Electric Vehicle Supply Equipment (EVSE): Level 1 Chargers, Level 2 Chargers, DC Fast Chargers
2) By Home Energy Management (HEM) System: Energy Monitoring Systems, Demand Response Systems, Battery Storage Integration
3) By Smart Meters: Advanced Metering Infrastructure (AMI) Meters, Bidirectional Smart Meters
4) By Software Solutions: V2G Management Platforms, Data Analytics Software, Integration And Communication Software
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What Trends Are Reshaping The Vehicle-to-Grid Technology Market?
Significant companies active in the realm of vehicle-to-grid technology are further evolving their products, for instance, the level 2 EV charger, in order to stand out competitively in the market. These level 2 EV chargers function as charging stations supplying electric vehicles with alternating current (AC) power. To illustrate, EvoCharge Inc., a U.S.-based firm known for delivering electric vehicle (EV) charging solutions, unveiled its EvoCharge max EV charging station in April 2023. This new charger, suitable for boat rentals, domestic, and other commercial applications, is designed to cater for a fast charge at a higher amperage. With a capacity to provide up to 19.2 kW of power (80 amps on a 240V circuit), the level 2 EvoCharge max EV charging station is open, scalable, and modular, aiming to hasten system development and time to market. EvoCharge is steadfast in offering secure, reliable, and cost-effective electric car charging solutions.
Who Are the Key Players in the Vehicle-to-Grid Technology Market?
Major companies operating in the vehicle-to-grid technology market include:
• Volkswagen AG
• Toyota Corporation
• Ford Motor Company
• MercGroup AG
• General Motors Company
• Bayerische Motoren Werke AG
• Hyundai Motor Co Ltd.
• Robert Bosch GmbH
• Nissan Motor Co Ltd.
• Kiaon
• BYD Company Limited
• Audi AG
• Volvo Group AB
• Mitsubishi Electric Corporation
• Jaguar Land Rover Automotive plc
• NIO Inc.
• Li Auto Inc.
• XPeng Inc.
• Rivian Automotive Inc.
• Polestar AB
• Lucid Motors Inc.
• Fisker Inc.
• Lordstown Motors Corp
• Canoo Inc.
• Arrival Ltd.
• Proterra Inc.
• Faraday Future Inc.
What are the Regional Insights into the Vehicle-to-Grid Technology Market?
North America was the largest region in the vehicle-to-grid technology market in 2024. The regions covered in the vehicle-to-grid technology market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
