Vehicle To Grid Technology V2g Market

According to Stratistics MRC, the Global Vehicle-to-Grid technology (V2G) Market is accounted for $2.12 billion in 2022 and is expected to reach $7.45 billion by 2028 growing at a CAGR of 23.3% during the forecast period. Vehicle-to-grid is a system that allows various types of electric automobiles, such as battery electric vehicles, fuel cell vehicles, plug-in hybrid electric vehicles, and others to interface with the power grid in order to provide demand response services by delivering two-way electricity exchange. V2G technology can be utilized as an alternative energy source for domestic use, where an electric vehicle owner can supply power to his home, which is drawn by a V2G battery.



Market Dynamics:

Driver:

Increased demand for natural resources to power electric vehicles

A vehicle-to-grid technology battery is considered a bi-directional charging battery that can provide power to the vehicle's electric grid and also charge the vehicle battery. Such V2G technology is gaining traction among manufacturers of electric vehicles due to its advantages in bi-directional charging. A shortage of renewable energy sources for power generation and a scarcity of power for electric vehicles further make the network unstable and propel the demand for more energy storage in vehicles. However, increased power storage capacity is made available using V2G technology, which can absorb unused energy and prevent it from being wasted.

Restraint:

High initial cost

The high initial cost of the technology over a specific period of time hampers market growth. Repairing companies, automobile owners, and the oil industry show resistance to the high cost of existing technology. Further, lack of infrastructure and lack of knowledge about the technology, driver’s anxiety about vehicle range, and data security are some of the issues that will curb the growth of the market. A bidirectional charger or electric vehicle supply equipment is essential to charge an electric vehicle battery and supply electricity back to the grid. Developments in the batteries of electric vehicles have been very slow compared to other technologies. Nonetheless, the augmented battery life and change of preference in the customer’s choice are anticipated to accelerate the market over the forecast period.

Opportunity:

Growing government initiatives

Governments play a crucial role in shaping the regulatory environment and providing policy support for the adoption of V2G technology. They often introduce incentives such as financial incentives, tax breaks, and grants to encourage the deployment of V2G infrastructure and the integration of EVs with the grid. These policies create a favorable market environment and incentivize both consumers and businesses to participate in V2G programs. Furthermore, Governments allocate funds and invest in V2G technology research, development, and infrastructure deployment. This financial support can drive innovation, accelerate the commercialization of V2G solutions, and lower the barriers to entry for market players.

Threat:

Lack of standardization of electric vehicle (EV) charging

Lack of adherence within EV chargers hampers their demand among end customers. Consumers are often skeptical about whether such EV chargers are suited for their vehicles or not. Moreover, the vehicles need flexible charging methods so they can take advantage of the charging and discharging rates when they are available. The lack of standardized plugs complicates charging further. Although Tesla, an American electric vehicle and sustainable energy business located in Palo Alto, California, is growing its network of chargers, it is designed particularly for Tesla automobiles.

Covid-19 Impact:

The COVID-19 pandemic has significantly disrupted global economic activity, including the automotive market and the electric vehicle industry. The pandemic led to a considerable drop in automotive sales, an insufficiency of raw materials, and others. Pandemic-related issues are aggravating port congestion, intermittent closures, and supplier delays. The COVID-19 outbreak has resulted in disruptions for the automotive industry in terms of manufacturing. The majority of OEMs have shut down their production and other essential operations during the pandemic. Moreover, some countries, such as Canada, Japan and others witnessed a drop in the figures as both the demand for new vehicles and their production were severely impacted. This impacted the revenue streams allocated towards R&D and the adoption of new technologies like vehicle-to-grid (V2G).

The Battery electric vehicles (BEVs) segment is expected to be the largest during the forecast period

The battery electric vehicles (BEVs) segment is anticipated to have a bigger revenue share over the forecast period. The prime factor behind the significant growth of the segment is that it is 100% powered by the energy storage system in the vehicle. This helps the vehicle return maximum power to the grid. BEVs have large-capacity batteries that can store a significant amount of energy. This energy storage capacity allows BEVs to provide surplus electricity to the grid during peak demand periods or when the grid requires additional support. By utilizing the stored energy in BEV batteries, V2G systems help balance the grid, enhance grid stability, and optimize energy management, which is expected to propel this segment's revenue growth.

The Electric vehicle supply equipment (EVSE) segment is expected to have the highest CAGR during the forecast period

The electric vehicle supply equipment (EVSE) segment is anticipated to experience consistent revenue growth over the course of the projection period. V2G-enabled EVSE allows for bidirectional charging, enabling the flow of electricity in both directions between the EV battery and the grid. This bidirectional capability is essential for V2G systems as it allows EVs to not only consume energy from the grid but also provide surplus energy back to the grid when needed. EVSE with bidirectional charging functionality facilitates the implementation and operation of V2G technology.

Region with largest share:

In the global market over the forecast period, Europe is anticipated to have the greatest revenue share. The vehicle-to-grid technology in the U.K. has witnessed investment by several manufacturers in the design and development of certain technologies in electric mobility and the smart energy management segment, which have led to the development of reversible charging solutions. Moreover, Groupe Renault has deployed bi-directional chargers, Renault Z.E. Smart Charge, across Europe, which offers sensible and smart energy consumption. Europe has a higher number of on-road electric vehicles and electric vehicle manufacturers, which also boosts the vehicle-to-grid technology market. Furthermore, stringent vehicle emission norms and tax benefits and incentives provided by governments across Europe for the adoption of electric vehicles have augmented the vehicle-to-grid market size of the region.

Region with highest CAGR:

The market in Asia Pacific is anticipated to rise steadily over the course of the forecast period. Governments across the Asia-Pacific region are actively promoting EV adoption and supporting V2G technology through various initiatives and policies. Countries such as China, Japan, South Korea, and Australia have set ambitious targets for EV penetration and are investing in V2G infrastructure development. These efforts are aimed at reducing greenhouse gas emissions, improving air quality, and enhancing energy security. Furthermore, the region is witnessing a significant increase in the adoption of EVs. The rising EV population provides a strong foundation for the expansion of the V2G market as more EVs become available for grid integration, which propels market growth in the region over the forecast period.



Key players in the market

Some of the key players in Vehicle-to-Grid technology (V2G) market include AC Propulsion Inc., Coritech Services Inc., Daimler AG, Denso Corporation, Endesa SA, EnerDel Inc., Energie Baden Wuerttemberg AG (EnBW), ENGIE Group, EV Grid, Fuergy, Green Energy Wallet, Groupe Renault, Hitachi Ltd., Honda Motor Co. Ltd., IoTecha, Jedlix, Liikennevirta Oy Ltd., Mitsubishi Motors Corporation, NextEra Energy, Inc. (NEE), Nissan Motor Company Ltd., NRG Energy Inc., NUVVE Corporation, OVO Energy Ltd., PG&E Corporation, Qualcomm Inc., Tesla Inc. and V2G EVSE.

Key Developments:

In April 2022, Porsche AG collaborated with TransnetBW, a key transmission grid operator in Germany, and consulting firm Intelligent Energy System Services (IE2S), to demonstrate an intelligent swarm of electric cars and how vehicle to grid technology acts as a mobile power-storage unit and enables electric vehicles to feed and draw electricity to and from the grid at times of high demand

In November 2021, Nuvve Holding Corp., a global cleantech company that uses its intelligent energy platform to electrify the planet, announced that it will install and commission up to 200 Nuvve V2G DC 125 kW fast charging stations with dual dispensers at Blue Bird Corporation. This would result in the creation of a first-of-its-kind V2G hub that will help maximise the usage of electric buses by allowing them to serve as energy storage assets.

In October 2021, Nuvve Holding Corp. and Wallbox Chargers announced a collaborative partnership to design and develop vehicle to grid (V2G) technology in Iberia. The partnership has designed a two-way charger that offers the extra flexibility to retailer power and also discharges additional power from the electric vehicle’s battery again to the grid

In September 2020, ABB's bi-directional charging technology is being used in a Vehicle-to-Grid (V2G) collaboration project. ABB will offer its brand-new 11 kW bi-directional charging technology, specifically designed for V2G, as part of a deal with Dreev, a joint venture between Électricité de France (EDF) and Nuvve that specialises in intelligent charging for EVs

Vehicle Types Covered:
• Battery Electric Vehicle (BEV)
• Plug-In Hybrid Electric Vehicle (PHEV)
• Fuel Cell Electric Vehicle (FCEV)

Battery Types Covered:
• Lithium-ion
• Nickel-Metal Hydride
• Lead-acid
• Ultra-capacitors

Charging Types Covered:
• Unidirectional Charging
• Bidirectional Charging

Capacities Covered:
• 20-40kWh
• 41-70kWh
• 71-100kWh
• Above 100kWh

Technologies Covered:
• Electric Vehicle Supply Equipment (EVSE)
• Home Energy Management (HEM) Systems
• Smart Meters
• Power management
• Software Solutions

Applications Covered:
• Domestic
• Commercial
• Peak Power Sales
• Spinning Reserves
• Base Load Power
• Other Applications

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

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