Vehicle-to-Grid (V2G) Technology Market Size - By Vehicle, By Charging, By Component, By Application, Growth Forecast, 2025 – 2034

Vehicle-to-Grid (V2G) Technology Market Size

The vehicle-to-grid technology market size was valued at USD 3.2 billion in 2024 and is projected to grow at a CAGR of 38% between 2025 and 2034. The rapid adoption of electric vehicles, integration of smart grids, and efforts towards global decarbonization are propelling the market.
 

Countries across the globe are setting new decade-long transport zero-emission milestones which encourage further development of bi-directional charging systems and V2G-enabled electric vehicles (EV). These policies complement international climate obligations like the Paris Agreement and now V2G technologies will have more prominence in sustainable energy systems. The increasing demand for utilities to manage intermittent renewable resources has led to increased EV investment flexibility, or adoption of vehicles as active components of the electricity grid.
 

V2G enabled fleets are deployed in metropolitan and industry centers to manage peak consumption periods as a substitute for fossil fuel power generating plants. Industry leaders like Nuvve, Fermata Energy, and NextEra Energy are developing V2G platforms with real-time load optimization, predictive analytics, and monetization of energy arbitrage in the form of renewable energy trading.
 

Alongside, local authorities and energy agencies in Europe, America, and Asia are funding and providing grants to promote the modification of available EV infrastructure to V2G. With the transformation of public-private coalitions and utilities in joint partnerships with EVs, it’s observed that V2G is turning out to be pivotal in efficient smart transformation, digitalized attempts to integrate diverse, controllable energy resources and autonomous technology for managing future intelligent, cleaner, and resilient grid systems.
 

Vehicle-to-Grid Technology Market Trends

• Nuvve Corporation and Fermata Energy are at the forefront of Electric Vehicle (EV) Vehicle to Grid (V2G) deployments throughout North America using school and municipal bus fleets. These systems take advantage of instantaneous grid communication, allowing for power withdrawal from EVs during peak periods to relieve regional energy demand stress.
   
• The EU Horizon 2020 program has supported several V2G demonstration projects like the VIGIL and EV-elocity pilots that seek to consolidate the public and commercial infrastructure bidirectional charging business case in the UK, France, and the Netherlands.
   
• Japan’s METI works and collaborates with various electric utilities and automakers like Nissan to incorporate V2G into residential systems and disaster resilience systems that allow EVs to function as emergency power supplies during grid failures and emergencies.
   
• In South Korea, Jeju Island is a V2G testbed where KEPCO and Hyundai are testing bi-directional charging stations linked to the smart grid of the island. The aim of the project is to reduce energy waste and improve the storage of energy generated from wind and solar power.
   
• California’s Public Utilities Commission (CPUC) rolled out its Vehicle Grid Integration (VGI) roadmap in 2024 providing additional funding for fleet operators, employers, and multifamily residential units to equip V2G chargers aligned with the broader decarbonization agenda of the state.
   
• BMW and Volkswagen, for instance, have already started the development of EV models compatible with V2G systems. They are partnering with charging network companies to ensure compatibility with the Europe-wide grid standards ISO 15118 protocol.
   
• Niti Aayog and the Ministry of Power are collaborating on V2G implementations for electric buses in Delhi and Bangalore, where energy extraction during peak hours assists in revitalizing older urban energy networks while lowering utility costs for transit agencies.
   
• In China, especially with companies such as BAIC and State Grid experimenting with battery swap fleets, some companies are starting to integrate V2G with battery-as-a-service models, providing these fleets the ability to rapidly connect to V2G systems without extended charging interruptions, thereby maintaining energy flow to the grid.
   

Trump Administration Tariff

• The tariffs imposed on imported electronics, components, and battery technologies (of EVs) brought bi-directional chargers and smart grid communication modules from Europe and Asia into the V2G infrastructure’s cost structure complexity framework.
   
• Also, the duties levied on the lithium-ion battery cells, inverters, and power control systems further increased the capital expenditure towards these projects. This was most pronounced in the V2G deployment projects which relied on international supply chains, particularly for utilities and fleet operators. 
   
• Trade retaliatory actions by various partners around the world caused diverse shifts in export control regions and critical supplier control relationships, impacting the pilot V2G projects and infrastructure planning metrics in the long term.
   
• Increasing procurement, logistics, and compliance costs became strained with small and mid-tier technology providers alongside triaged V2G planning projects which led to the deceleration of planning and innovation cycles in the American marker. Mid-tier class providers became strained with V2G focused pilot projects and led to a crawl instead of a sprint for American markets.
   
• From the perspective of a provider, unstable tariffs have been shown to create clear investment directional uncertainty with increased risks for the global market which in result led to an overall slowdown in the commercialization of V2G dependent systems and inter systems.
   

Vehicle-to-Grid Technology Market Analysis

Based on vehicle, the Vehicle-to-Grid technology market is divided into BEVs, PHEVs, and FCVs. In 2024, the BEVs segment dominated the market accounting for around 71% share and is expected to grow at a CAGR of over 38.3% during the forecast period.
 

• Battery Electric Vehicles (BEVs) are expected to remain the leading contributor to V2G market revenue due to their full compatibility with bi-directional charging systems, zero tailpipe emissions, and expanding presence in both private and commercial vehicle segments. Their ability to discharge stored energy back into the grid aligns perfectly with smart grid integration goals.
   
• In advanced energy markets, other BEV supporting policies alongside their frameworks are rapidly scaling BEVs in middle and downtown areas. Along with growing charging infrastructure and adoption through fleet delivery vans, school buses, and ride hailing services, BEVs are ideal V2G application candidates.
   
• Tesla, BYD, and Hyundai have all introduced V2G compatible, range extended BEVs. With advanced intelligent energy management systems, these vehicles can provide more value as distributed energy assets in grid services and energy trading.
   
• Due to BEV’s high battery capacity, government and utility programs are focusing on BEV fleets for their V2G pilot programs. For these demand response systems, the BEV’s faster integration capabilities are helpful. These vehicles help mitigate the variability of renewable energy sources, whilst providing backup electricity for homes and facilities.
   
• In comparison to hybrids or plug-in hybrids, there is a surge of interest in BEV-centric V2G models due to their cleaner operation and lesser modifications needed for full V2G functionality. This trend corresponds with the increased efforts towards full electrification of mobility and energy domains under carbon neutrality targets.
   

Based on charging, the Vehicle-to-Grid technology market is segmented into unidirectional charging, and bidirectional charging. In 2024, the bidirectional charging segment dominates the market with 65% of market share and the segment is expected to grow at a CAGR of over 37.7% from 2025 to 2034.
 

• The bidirectional charging systems which dominate the V2G market enable both the charging and discharging of EV batteries, allowing active participation in grid stabilization, load balancing, and energy cost minimization.
   
• Fleet operators and utilities are adopting bidirectional chargers with off-peak supplementary reserve renewable energy capture and on-peak stored energy return-for-grid backbone augmentation capabilities to enhance energy resilience and the overall efficiency at the grid level.
   
• As an example, Fermata Energy and Nuvve, along with Nissan and a number of U.S. school districts, implemented bidirectional V2G initiatives that permit electric school buses to discharge energy back into the grid during downtime, thus maximizing economic returns while bolstering the local power infrastructure.
   
• The adoption of mid voltage to high voltage class bidirectional DC chargers with dynamic response capabilities underpinned with sophisticated energy management systems is shifting the adoption trajectory in smart cities, logistics centers, and microgrid-enabled facilities in Europe and Asia-Pacific.
   
• Next generation decarbonized energy system initiatives and sustainable energy transition infrastructure projects leverage bidirectional charging systems due to reduced dependency on fossil fuel-powered peaker power plants for managing demand-side load.
   

Based on component, the Vehicle-to-Grid technology market is segmented into smart meters, Electric Vehicle Supply Equipment (EVSE), home energy management, and software solutions. Electric Vehicle Supply Equipment (EVSE) is expected to dominate as it is essential for enabling energy flow between electric vehicles and the power grid, making it the backbone of V2G operations.
 

• The Electric Vehicle Supply Equipment (EVSE) sector dominates the V2G market as it enables bidirectional energy transfer between the electric vehicle and the grid, therefore commanding the charging and discharging functionalities needed for V2G activities.
   
• Utilities, fleet managers, and commercial microgrid managers are seeking V2G-compatible EVSE systems to facilitate the integration of EVs into smart grids for effective energy management and to capitalize on the vehicle’s idle storage energy during non-operating hours.
   
• Large-scale implementations in government and corporate/ commercial fleet sectors are fueling the need for advanced communication charging capability meter systems (commonly called EVSE) that are robust against various harsh environmental conditions, where proprietary communication standards (like ISO 15118) enable autonomy in power grid interfacing.
   
• For example, in 2023, leading EV hubs like California,Tokyo, and Oslo began EVSE deployment with remote diagnostic and predictive load management capabilities to enable V2G for public and fleet use marking positions of primary electronics and EVSE as the centerpieces of responsive transport infrastructure.
   

In 2024, Germany in Europe dominated the Vehicle-to-Grid (V2G) technology market with around 39% market share and generated around USD 364.5 million revenue.
 

• Germany’s established automotive expertise, advanced grid infrastructure, and strong EV ecosystem have positioned it as a leader in the European V2G market. German OEMs and energy firms are actively developing and deploying V2G-enabled vehicles and bi-directional charging systems across cities and industrial zones.
   
• Initiatives such as the “National Platform for Electromobility” and Germany’s vow towards the EU Green Deal are supporting the integration of renewables with electric mobility through grid-interactive charging systems in V2G pilot projects. 
   
• Germany showcases the V2G innovation testbed with automotive industry leaders such as Volkswagen and BMW working alongside E.ON and EnBW to create proprietary advanced energy control systems tailored for residential and fleet-based V2G applications. 
   
• As SINTEG (Smart Energy Showcases) and the Digital Grid Infrastructure initiative commence, Hamburg and Munich are amongst the first cities in Germany trying to integrate EV fleets for grid balancing, load shedding, and virtual power plant functions—further demonstrating Germany’s leadership position in developing smart charging infrastructure.
   

The V2G technology market in China is expected to experience significant and promising growth from 2025 to 2034.
 

• China dominates the Asia-Pacific V2G technology market with its accelerating fleet of electric vehicles (EVs), strong domestic manufacturing, and government policy on smart energy system transitions. Key market participants such as BYD, NIO, and State Grid Corporation are actively pursuing the V2G integration within the national energy and transport system. 
   
• “Made in China 2025” initiative alongside the Dual Carbon Goals (carbon peak by 2030, and neutrality by 2060) set forth a national policy to systematically develop green mobility and energy optimization systems for V2G infrastructure on the mainland. 
   
• In 2023, China has enhanced funding for the pilot V2G zones in major metropolitan areas like Shenzhen, Shanghai, and Tianjin, allowing for the grid-controlled charging of public transport, logistics, and private EV fleets to enable load shifting and renewable energy acquisition. 
   
• The Chinese V2G ecosystem is supported by its leadership in EVSE and battery manufacturing. Companies like CATL are working on bidirectional battery systems, while Chinese Southern Power Grid is deploying V2G charging stations with smart grid functionality.
   
• Remarkably, NIO tested V2G-ready battery swap stations, while BYD, in collaboration with regional grid supervisors, rolled out commercially V2G-enabled vehicles. This dual development places China simultaneously at the forefront of V2G manufacturing and operational activity.
   

The Vehicle-to-Grid technology market in the UAE is expected to experience significant and promising growth from 2025 to 2034.
 

• The UAE is becoming one of the foremost V2G technology markets in the Middle East owing to its developed energy infrastructure, aspirational clean energy targets, and its integration of EV strategies. Grid-aligned mobile solutions masquerading as Abu and Dubai’s EV primary integrations in sync with the national vision such as UAE’s Net Zero 2050 roadmap are also underway. 
   
• The country’s emphasis on the convergence of smart cities, electric mobility, and V2G technologies has promoted the deployment of V2G compatible EVSE across government fleet operations, business district hubs, and residential smart grid areas.
   
• In 2023, DEWA collaborated with local utility stakeholders and international electric vehicle manufacturers to pilot V2G functional smart infrastructure in major districts, coupling solar powered intelligent grids with bidirectional flow energy systems as part of the Dubai Clean Energy Strategy 2050. 
   
• The UAE’s innovation technology hub status is showcased in the deployment of AI-poweered V2G fleet management systems along with digital twin monitoring simulations of energy exchange EV-grid interfaces in pilots at SEWA and Masdar City.
•  
• The UAE is using a combination of luxury, innovation, and sustainable planning in order to set itself as a regional forerunner and testhub for advanced V2G technologies, integrating them into its smart city infrastructure and urban mobility system.
   

The V2G technology market in U.S. is expected to experience significant and promising growth from 2025 to 2034.

• The United States is on top of the V2G technology market in North America, because of its well-developed EV infrastructure and aggressive decarbonization targets as well as federal support for grid modernization. California, New York, and Texas are among the leading states for the adoption of V2G pilot projects incorporating renewables and EV fleets. 
   
• With the Bipartisan Infrastructure Law and the Inflation Reduction Act, funding has reached billions of dollars to smart grids and two-way EV charging stations—enhancing the adoption of V2G in municipal, scholastic, and utility fleets. 
   
• Nuvve Corporation, Fermata Energy, and Rhombus Energy Solutions have developed new technologies including bidirectional grid-capable software, certified bi-directional inverters and scalable energy platforms for United States utilities and ISOs (independent system operators) that are heavily regulated. 
   
• In 2023, elementary schools and transit districts in California and New Jersey equipped themselves with V2G compatible electric buses and light-duty fleet vehicles that discharge electricity back to the power grid during peak hours, boosting local power grid reliability and reducing operational costs. 
   
• Commercial collaboration around V2G standards, grid cross-compatibility and real-time data processing is spearheaded by the US DOE (Department of Energy) and EPRI (Electric Power Research Institute) placing the US in the lead in commercial use of V2G technology.
   

Vehicle-to-Grid Technology Market Share

• The top 7 companies in the Vehicle-to-Grid (V2G) technology industry are Nissan Motor Corporation, OVO Energy, Mitsubishi Motors Corporation, ABB, NRG Energy, Hitachi, Nuvve Corporation who contribute around 31% of the market in 2024.
   
• The Nissan Motor Corporation is still leading the charge towards V2G integration with its global “Leaf-to-grid” initiatives. In 2024, it commenced comprehensive V2G pilot projects in Europe and Japan, allowing EV users to discharge stored energy back to the grid via bi-directional chargers. The company is also working with local governments on EV power storage systems to supplement its sustainability and disaster response strategies.
   
• OVO Energy, a well-known energy provider in the United Kingdom, enhanced the scope of its V2G residential trials in 2024 as part of its “Power Loop” project. Alongside the National Grid ESO and EV OEMs, the company installed home chargers that incentivized users to return stored energy to the grid during high-demand periods, contributing to increased grid flexibility in the UK. 
   
• Mitsubishi Motors Corporation has increased the deployment of its Outlander PHEV in V2G smart community developments in Southeast Asia. In 2024, the company partnered with some regional administrations and energy bodies to incorporate PHEVs into microgrid systems, aiding in the balance of the local energy supply and improving energy availability during outages or emergency situations.
   
• In the first quarter of 2024, ABB added bidirectional DC wallbox chargers for residential and commercial fleet based V2G systems to their product lines. These units include energy arbitrage blockchain transaction tracking, maintaining a ledger of blockchain transactions involving the transfers of energy. ABB is also developing utility charging hubs to help with load balancing on the smart grid infrastructure. 
   
• With the launch of its Energy Cloud platform, NRG Energy strengthened its position in V2G infrastructure by connecting commercial EV fleets to distributed energy resources (DER). The company worked with US school districts and logistics W V2G enabled EV buses and delivery vans for peak shaving and voltage regulation support. 
   
• Hitachi Energy released its “Grid-eMotion Connect” V2G suite targeting medium and heavy-duty EV fleet operators in 2024. The suite offers AI-influenced demand prediction and energy dispatch balancing algorithms for dynamic control of charging. In collaboration with Tokyo Electric Power, Hitachi deployed 1,000 V2G chargers across the Greater Tokyo Area which bolstered regional grid resilience.
   
• Starting 2024, Nuvve Corporation partnered with Exelon and several U.S. school districts to allow electric buses to serve as auxiliary battery backup systems. They activated their V2G AC powered platform on the GIVe Protocol SAE J3068/2. The company’s GIVe platform aggregates hundreds of EVs into a virtual power plant (VPP), providing ancillary services to the grid operator and maximizing ecosystem prof it for fleet owners.
   

Vehicle-to-Grid Technology Market Companies

Major players operating in the Vehicle-to-Grid (V2G) technology industry are:

• ABB
• AC Propulsion
• Denso
• Hitachi
• Honda Motor
• Mitsubishi Motors
• Nissan Motor
• NRG Energy
• Nuvve
• OVO Energy
   

As EV adoption accelerates, the focus in the V2G technology market is now on optimizing bidirectional charging systems, grid responsiveness, and sustainable energy integration. Developers of V2G platforms are actively working towards enhancing grid reliability through state-of-the-art vehicle energy return mechanisms, scalable charging hardware, and software-controlled load balancing systems, which are essential for the modern decentralized energy infrastructure of today.
 

To enhance energy flexibility and minimize peak load stress on utility networks, manufacturers are employing fast-response inverters, modular V2G chargers, and solid-state relay systems as well as other measures that allow energy to flow from EVs back to the grid efficiently while ensuring battery longevity and system safety. Thermal management units as well as AI-powered energy controllers are increasingly standard in newly deployed V2G units, improving grid resilience and real-time load coordination under fluctuating conditions.
 

Alongside these enhancements, other intelligent features such as energy trading platforms, IoT-based grid communication, predictive charge/discharge scheduling, and cloud-based energy optimization algorithms are now integrated into V2G systems, allowing real time data analysis and dynamic grid interaction during critical demand periods. This marks the emergence of “energy-as-a-service” (EaaS) models whereby EVs are leased or integrated into fleet energy pools and paired with smart platforms to reduce operating costs while enhancing grid-side sustainability performance.
 

Additionally, the partnerships formed alongside OEMs, utilities, and energy aggregators with charging infrastructure companies are working towards an integrated clean energy ecosystem. Moreover, V2G-ready vehicles are being developed to operate within a broader renewable grid framework encompassing solar photovoltaic charging, battery storage systems, and smart city microgrids, advancing the system’s scope for resilient and circular power mobility.
 

Vehicle-to-Grid Technology Industry News

• Nissan Motor Corporation, in early 2024, expanded its V2G pilot program in Europe by deploying bidirectional charging units across fleet operations in the UK, Germany, and the Netherlands. Utilizing its LEAF EV platform, Nissan’s initiative supports energy feedback to the grid during peak hours, aligning with EU decarbonization targets and enhancing Nissan’s role as a pioneer in grid-interactive electric vehicles.
   
• In March 2024, OVO Energy partnered with Indra and Kaluza to roll out its next-gen V2G chargers under the "PowerLoop 2.0" project across select UK homes. The chargers allow residential EV owners to sell energy back to the grid during high-demand periods. Backed by the UK government’s Flexibility Innovation Programme, this move further reinforces OVO’s leadership in consumer-side grid flexibility.
   
• Mitsubishi Motors Corporation expanded its Dendo Drive House ecosystem into Southeast Asia in early 2024. The system integrates Mitsubishi's EVs, solar panels, and V2G bidirectional chargers into homes and small businesses. This strategic expansion boosts Mitsubishi’s influence in both sustainable mobility and regional distributed energy systems, particularly in markets like Thailand and Indonesia.
   
• In Q1 2024, ABB launched its new Terra V2G high-power bidirectional chargers in the North American market, targeting fleet operators and energy utilities. The new product line includes cloud-integrated load management and cybersecurity-compliant firmware, allowing large-scale deployment for municipal and commercial EV fleets. ABB's offering positions it at the forefront of industrial-grade V2G infrastructure development.
   
• NRG Energy Inc., in collaboration with California ISO and multiple EV fleet operators, initiated the "GridFlex Drive" project in 2024, integrating bidirectional charging from thousands of EVs to stabilize California’s volatile grid. This large-scale demonstration underlines NRG’s commitment to distributed energy services and supports California’s transition to 100% clean electricity.
   
• Hitachi Energy launched its grid-edge V2G software suite "GridSync" in February 2024, aimed at enabling dynamic control of EV fleets as virtual power plants (VPPs). Paired with Hitachi’s smart metering and load balancing systems, GridSync is being deployed with European utility partners for pilot testing in France, Spain, and the Nordics, placing Hitachi at the center of smart energy orchestration.
   
• Nuvve Corporation continued its global expansion in 2024 by deploying its GIVe™ platform across school bus fleets in the U.S. Midwest and Japan. The platform supports automated charge-discharge cycles, demand response aggregation, and remote fleet energy management. Through new government contracts and education sector collaborations, Nuvve is reinforcing its first-mover advantage in large-scale V2G deployment.
   

The Vehicle-to-Grid (V2G) technology market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) from 2021 to 2034, for the following segments:

Click here to Buy Section of this Report

Market, By Vehicle

• BEVs
• PHEVs
• FCVs

Market, By Charging

• Unidirectional Charging
• Bidirectional Charging

Market, By Component

• Smart Meters
• Electric Vehicle Supply Equipment (EVSE)
• Home Energy Management
• Software Solutions

Market, By Application

• Domestic
• Commercial

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa