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Vehicle to grid (V2G) technology enables bidirectional energy transfer between electric vehicles and the power grid. Electric vehicles equipped with V2G technology can feed stored energy from their batteries back to the grid during periods of high power demand. This helps stabilize the grid and supports integration of renewable energy sources like wind and solar. V2G uses electric vehicles as distributed energy-storage devices to store excess power from renewable sources and release it back to the grid during times of peak demand.
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.
Vehicle to grid technology facilitates optimal utilization of renewable energy generated which would otherwise go waste during periods of low demand. It maximizes the benefits of electric vehicles by allowing two-way energy transfer and utilizing EV batteries for grid balancing. V2G also provides revenue opportunities for EV owners by compensating them for feeding stored energy back to the grid.
Market Dynamics
Rising demand for renewable energy integration and development of smart grid infrastructure are fueling the vehicle to grid technology market growth. Renewable energy sources like solar and wind have variable and intermittent energy generation which challenges grid stability and necessitates large-scale energy storage solutions. Vehicle to grid technology leverages millions of plug-in electric vehicles as distributed energy storage units to store excess renewable power and supports large-scale adoption of clean energy sources. Government initiatives and investments to modernize aging electric grids are also contributing to smart grid deployment. V2G infrastructure can help address intermittency issues of renewables and support effective management of power demand and supply through two-way communication between electric vehicles and the grid. These factors are expected to drive significant growth of the vehicle to grid technology market over the forecast period.
Segment Analysis
The global vehicle to grid technology market is dominated by the electric vehicle segment which accounts for over 60% of the market share. With increasing concerns regarding emission of greenhouse gases and focus on development of sustainable transportation, electric vehicle sales have picked up pace globally in recent years. Countries like China, US, UK, Germany are leading the EV adoption. As the electric vehicle fleet continues to grow substantially, vehicle to grid technology can help power companies and consumers to better manage loads and stabilize the electricity grid by utilizing EV batteries as distributed energy storage.
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.Key players like Nissan, BMW, Toyota have ongoing vehicle to grid demonstration projects globally and are focusing on developing standardized vehicle-grid communication protocols and platforms
PEST Analysis
Political: Government policies promoting clean energy and emission reduction goals are driving investments in vehicle to grid infrastructure. Subsidies and tax incentives for EVs and smart charging stations encourage wider adoption.
Economic: Rising fossil fuel costs and potential to earn additional income by supplying stored energy to the grid makes vehicle to grid an attractive proposition for commercial fleets and taxpayers. Utilities can defer capacity upgrades using distributed storage from EV batteries.
Social: Growing environmental consciousness and awareness about climate change is positively impacting consumer preference for green transportation. Younger demographics are more receptive to emerging technologies like vehicle to grid.
Technological: Advancements in battery technologies, vehicle-grid communication standards and digital platforms enable seamless integration of electric vehicles with the power system. Two-way charging capabilities and smart charging solutions optimize charging costs and grid benefits.
Key Takeaways
The global Vehicle To Grid Technology Market is expected to witness high growth over the coming years supported by rapid uptake of electric vehicles globally. 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.
Regionally, Asia Pacific dominated the V2G market in 2021 led by China which accounted for over 40% of the regional market. China being the largest EV market globally is undertaking several pilot projects to test vehicle to grid applications across major cities.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
