Vehicle To Grid Market size is set to grow by USD 68.66 billion from 2024-2028, Improvements in EV battery technology to boost the market growth, Technavio

NEW YORK, June 25, 2024 /PRNewswire/ -- The global vehicle to grid market  size is estimated to grow by USD 68.66 bilion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 43.94%  during the forecast period.  Improvements in EV battery technology is driving market growth, with a trend towards increase in number of EV charging stations. However, interoperability issues  poses a challenge.Key market players include ABB Ltd., AC Propulsion Inc., ChargePoint Holdings Inc., Continental AG, Coritech Services, Edison International, Fermata LLC, Ford Motor Co., Hitachi Ltd., Honda Motor Co. Ltd., Liikennevirta Oy Ltd., Mercedes Benz Group AG, Mitsubishi Motors Corp., Nuvve Holding Corp., OVO Energy Ltd, Qualcomm Inc., Renault SAS, Tesla Inc., TransnetBW GmbH, and Wallbox N.V..

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Key Market Trends Fueling Growth

The global vehicle to grid market is experiencing significant growth due to the increasing number of EV charging stations. This trend is driven by government initiatives to install more charging facilities, such as the additional 678 public EV charging stations in nine megacities between October 2021 and January 2022. Charging stations serve as crucial infrastructure for vehicle to grid technology and their numbers are anticipated to increase substantially during the forecast period. Government incentives and subsidies on EV charging stations are also boosting transportation electrification. The growth of EV sales is contributing to the expansion of charging stations worldwide. In particular, Asia and Europe are expected to see a rapid increase in the number of charging stations due to cost reductions and entrepreneurial development in these regions. 

The Vehicle-to-Grid (V2G) market is experiencing significant growth as the integration of renewable energy sources and electric vehicles (EVs) continues to gain momentum. Charging infrastructure is a crucial aspect of this market, with charing stations providing power to EVs and also supplying excess energy back to the grid. Vehicle batteries act as energy storage systems, allowing for bi-directional power flow. This trend is driven by the need for more sustainable energy solutions and the increasing adoption of EVs. Additionally, vehicle manufacturers and energy companies are investing in V2G technology to improve grid stability and reduce reliance on traditional power sources. The market for vehicle-sourced energy is expected to expand as more countries implement policies to support the transition to renewable energy. 

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Market Challenges

• The Vehicle to Grid (V2G) market integrates electric vehicles (EVs) into power grids, addressing peak hour demands and balancing intermittent renewable energy. Key factors for successful integration include a reference architecture, code and standards, control and active grid management, advanced metering infrastructure, and security systems. However, non-uniformity in standards causes interoperability issues. Existing standards, such as IEEE 1547, SAE J1772, and IEC 61850, facilitate physical and communication connectivity. Lack of standardization may limit investments and hinder market growth.
• The Vehicle-to-Grid (V2G) market is gaining significant attention due to the increasing adoption of electric vehicles (EVs) and the need for energy storage and management. However, there are several challenges that need to be addressed for the successful implementation of V2G technology. One of the main challenges is the integration of EVs into the power grid. This requires advanced charging infrastructure and bi-directional power flow capabilities. Another challenge is the variability of renewable energy sources and the need for energy storage solutions to ensure grid stability. Additionally, regulatory frameworks and standardization of communication protocols are essential for the widespread adoption of V2G technology. The market for V2G is expected to grow as these challenges are addressed and the benefits of this technology, such as grid reliability and reduced carbon emissions, become more apparent.

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Segment Overview 

This vehicle to grid market report extensively covers market segmentation by

1. Product 
• 1.1 Power electronics
• 1.2 Software
2. Vehicle Type
• 2.1 BEV
• 2.2 PHEV
• 2.3 FCEV
3. Geography 
• 3.1 North America
• 3.2 Europe
• 3.3 APAC
• 3.4 Middle East and Africa
• 3.5 South America

1.1 Power electronics-  The Power Electronics segment in the Vehicle to Grid (V2G) market comprises drive systems, control units, bi-directional chargers, networking devices, and communication equipment. These components facilitate bi-directional power flow and communication between vehicles and the grid. Drive systems convert DC to AC for power exchange, ensuring reliability. Control units coordinate with the grid power supply, preventing uncoordinated change and maintaining stability. Bi-directional chargers allow power flow from the grid and provide ancillary services. Networking equipment integrates technologies, enabling VGI. Market growth is driven by EV manufacturers planning V2G capabilities and vendors launching V2F charging packages.

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Research Analysis

The Vehicle-to-Grid (V2G) market represents a significant technological transformation in the electric vehicle (EV) industry. This market enables electric vehicles, such as electric automobiles, plug-in electric vehicles (PHEV), and plug-in hybrids, to act as energy storage and production units. By integrating bidirectional charging stations, EVs can feed excess electricity back into the electric power system, which can benefit houses, commercial buildings, and the central power grid. V2G technology is particularly relevant during travel restrictions and emission regulations, as it promotes the use of zero emission technology and natural resources for energy production and consumption. The emerging EV markets are expected to drive the growth of the V2G market, as more automakers invest in this technology to enhance the functionality of their EVs. The V2G market also offers opportunities for energy production and consumption optimization, making it an essential component of the electric power system.

Market Research Overview

The Vehicle-to-Grid (V2G) market refers to the two-way transfer of electrical energy between the electricity grid and plug-in electric vehicles (PEVs). This technology enables PEVs to act as both consumers and producers of electricity. V2G systems can provide various benefits, including grid support services, energy cost savings for vehicle owners, and increased grid reliability. The integration of renewable energy sources, such as solar and wind, into the power grid is a significant driver for the growth of the V2G market. The use of smart charging and vehicle-to-home (V2H) systems is also gaining popularity in the context of V2G. The future of the V2G market looks promising, with advancements in battery technology and the increasing adoption of electric vehicles.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Product
• Power Electronics
• Software
• Vehicle Type
• BEV
• PHEV
• FCEV
• Geography
• North America
• Europe
• APAC
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio