Vehicle-To-Grid (V2G) Market Size, Share, Opportunities, And Trends By Battery Type (Lithium-Ion, Lead Acid, Nickel Metal Hydride Battery, Others), By E-Vehicle (Battery Electric Vehicle (BEV), Plug-in Hybrid Electric Vehicle (PHEV), Hybrid Electric Vehicle (HEV)), By End-User (Residential, Commercial), And By Geography - Forecasts From 2023 To 2028

The vehicle-to-grid market is estimated to grow at a CAGR of 41.37% during the forecast period.

Vehicle-to-grid (V2G) is an innovative technology that enables electric vehicles (EVs) to establish a two-way communication channel with the public power grid. This allows EVs not only to draw electricity from the grid for their own charging needs but also to contribute surplus energy back to the grid when required, effectively supporting and balancing the energy demand of the grid. The vehicle-to-grid (V2G) market growth is being propelled by surging electricity demand, the growing adoption of electric vehicles (EVs), and the expansion of grid infrastructure.

Increasing electricity demand drives the vehicle-to-grid market.

The surging demand for electricity acts as a significant catalyst for the growth of the vehicle-to-grid (V2G) market. Due to the continuous rise in population, urbanization, and industrial activities, there is a consistent increase in the global need for energy, thereby stressing the existing power grids. In this context, V2G technology emerges as a viable solution by turning electric vehicles (EVs) into active participants in the energy market. V2G enables EVs to feed excess energy stored in their batteries back into the grid during periods of high demand, effectively turning them into mobile power storage units. According to the Central Electricity Authority, in the 2022 period, power consumption experienced a substantial increase of 9.5%, reaching 1,503.65 billion units compared to the previous year.

Increasing adoption of EVs boosts vehicle-to-grid market growth.

Vehicle-to-grid (V2G) technology is utilized to establish a bidirectional energy transfer between electric vehicles (EVs) and the power grid, enabling not only the charging of EVs but also the ability for these vehicles to feed energy back into the grid during periods of high demand. There has been a surge in demand for electric vehicles, largely driven by their potential to reduce carbon emissions. This increased adoption of EVs, in turn, bolsters vehicle-to-grid industry growth. According to the International Energy Agency, in the first quarter of 2023, electric car sales saw a remarkable increase, with over 2.3 million units sold, reflecting a year-over-year growth of approximately 25% compared to the same time frame in the previous year.

Favorable investments in V2G infrastructure drive the vehicle-to-grid market.

Vehicle-to-grid (V2G) systems are employed in grid infrastructure due to their unique capability to facilitate two-way energy exchange between electric vehicles (EVs) and the power grid. This enhances grid stability and efficiency, and in instances of power outages, can also contribute to energy resilience. The growth of grid infrastructure is accelerating, largely spurred by a global push towards renewable energy sources and a more resilient energy system. This drive is manifesting in the form of governmental initiatives and significant investments directed toward the modernization and fortification of the grid infrastructure. For instance, in July 2023, EV.energy, raised $33M in Series B funding which it will use to facilitate the connection of millions of vehicles, chargers, and drivers to their Virtual Power Plant (VPP), empowering advanced Vehicle-to-Grid (V2G) services and further advancing sustainable energy management.

North America is expected to dominate the vehicle-to-grid market.

North America will hold a substantial amount of the market, due to proactive governmental initiatives and substantial investments in V2G technologies in the region's leading economies, particularly the United States and Canada. For instance, in July 2021, The Minister of Natural Resources of Canada allocated $635,000 to Blackstone Energy Services Inc. for the piloting of an economical vehicle-to-grid (V2G) system. Furthermore, the ongoing collaborations between tech industry giants are driving momentum and accelerating the expansion of the vehicle-to-grid market. Such as, in December 2022, Toyota Motor North America (Toyota) and Oncor Electric Delivery (Oncor) announced a partnership to undertake a pilot project focusing on vehicle-to-grid (V2G) technology.

Battery lifespan concerns may restrain the vehicle-to-grid market growth.

In vehicle-to-grid (V2G) systems, electric vehicle (EV) batteries play a pivotal role as they facilitate crucial two-way energy transfer. However, this process involves frequent charging and discharging of the EV batteries, which can potentially impact their overall lifespan. The V2G operation typically necessitates the batteries to be charged during off-peak hours and to supply their stored energy back to the grid during peak demand periods. This repeated cycle of charging and discharging may accelerate battery wear and tear, consequently leading to a reduction in battery life. This concern around battery longevity becomes a significant consideration for potential V2G participants, consequently restraining the market growth of the vehicle-to-grid industry

Key Developments

• May 2023: BSES Rajdhani and Sheru partnered to pioneer India's first vehicle-to-grid (V2G) station. This collaboration had a dual objective of bolstering decarbonization initiatives and facilitating the transition towards green mobility and energy sectors in the country. This groundbreaking venture is indicative of India's commitment to embracing sustainable energy solutions and promoting the efficient use of renewable resources to meet its growing energy demand.
• February 2023: Enphase successfully unveiled its innovative vehicle-to-grid (V2G) system, marking a significant milestone in its offering. The company successfully demonstrated its bidirectional electric vehicle (EV) charger, a critical component that facilitates both vehicle-to-home (V2H) and vehicle-to-grid (V2G) operations. The V2H feature allows the EV's stored energy to be used for home power needs, while the V2G functionality enables the energy to be supplied back to the grid, creating a seamless energy exchange system. This launch showcases Enphase's commitment to the development and proliferation of advanced V2G technologies.
• November 2020: Nuvve Corporation and Lion Electric announced a strategic partnership aimed at integrating vehicle-to-grid (V2G) technology into their zero-emission school buses as a standard offering. This innovative collaboration brings together Nuvve's expertise in V2G technology and Lion Electric's leadership in electric school bus manufacturing. The goal is to empower these school buses not only to serve as environmentally-friendly transportation but also as mobile power units capable of feeding electricity back into the grid.

Company Products

V2G Solution: Virta Global is offering a vehicle-to-grid (V2G) solution that extends beyond the capabilities of traditional smart charging systems. While smart charging allows for grid balancing only until the electric vehicle's (EV's) battery is fully charged, the V2G technology offered by Virta Global enables continual grid balancing for as long as the EV remains plugged in. This means that excess energy can be fed back into the grid from the EV's battery, even after it has been fully charged, effectively turning the vehicle into a mobile energy storage unit.

Segmentation

• By Battery Type
  • Lithium-Ion
  • Lead Acid
  • Nickel Metal Hydride Battery
  • Others
• By E-Vehicle
  • Battery Electric Vehicle (BEV)
  • Plug-in Hybrid Electric Vehicle (PHEV)
  • Hybrid Electric Vehicle (HEV)
• By End-User
  • Residential
  • Commercial
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • UK
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Australia
    • Others