Vehicle-to-Grid (V2G) Technology Market Size - By Vehicle Type (Smart Meters, Electric Vehicle Supply Equipment, Home Energy Management, Software Solutions), Vehicle Type (BEVs, PHEVs, FCVs), Charging Type, Application & Forecast, 2024 - 2032

Vehicle-to-Grid Technology Market Size

Vehicle-to-Grid Technology Market size was valued at USD 3.1 billion in 2023 and is estimated to register a CAGR of over 50% between 2024 and 2032, owing to the increasing renewable energy integration. V2G technology allows electric vehicles (EVs) to consume energy while feeding excess energy back into the grid when parked. This capability facilitates the integration of renewable energy sources like solar and wind into the power grid. EVs equipped with V2G technology can act as distributed energy resources, helping to balance the intermittent nature of renewable energy generation.
 

To that end, government agencies, as well as private players, are taking initiatives to accelerate the integration of renewable energy in the grid infrastructure, thus favoring the vehicle-to-grid technology market growth. Quoting an instance, In October 2023, the Digital Energy Solutions division of the Power Transmission & Distribution business of L&T Construction formalized a Memorandum of Understanding with IIT Indore. This agreement aims to foster collaboration across diverse avenues of engagement, facilitating joint efforts in R&D within the realms of renewable energy integration and control technologies.
 

As part of this collaboration, L&T's Smart Grid Solution Centre of Excellence is set to be established. This center will serve as a platform for collaborative initiatives with students participating in the Learning & Experience Program at IIT Indore, thereby enhancing industry-academia cooperation in advancing knowledge and expertise in the specified domains.
 

Increased awareness and education about V2G technology will be a significant factor that will shape the vehicle-to-grid technology market outlook through 2032. As awareness of V2G technology increases among consumers, businesses, and policymakers, there is a growing interest in its potential benefits. Education and outreach efforts contribute to the broader adoption of V2G solutions.
 

Against this backdrop, in a groundbreaking move, BC Hydro unveiled Canada's inaugural Vehicle-to-Grid (V2G) pilot initiative for medium and heavy-duty electric vehicles (EVs) in December 2023. The bidirectional charging trial encompasses buses and transport trucks, representing a pioneering effort in British Columbia and the nation at large. BC Hydro highlights the superior speed and environmental advantages of mobilizing these medium-sized vehicles for backup power, surpassing traditional sources like diesel generators. This innovative project underscores the company's commitment to cleaner and more agile energy solutions.
 

However, the deployment of V2G technology requires a robust and widespread charging infrastructure, including bidirectional charging stations. The current lack of standardized infrastructure and limited availability of bidirectional chargers can hinder the seamless integration of V2G systems. The high cost and complexities associated with upgrading existing charging infrastructure to support bidirectional capabilities present a significant barrier.
 

Vehicle-to-Grid Technology Market Trends

One upcoming trend in the vehicle-to-grid technology industry is the exploration of applications beyond traditional electric vehicles. V2G systems may be integrated with other forms of energy storage and generation, such as stationary batteries and renewable energy sources. This expansion broadens the scope of V2G technology, creating more versatile and integrated solutions for grid management and support.
 

Quoting an instance, in November 2023, Polestar announced embarking on a significant vehicle-to-grid (V2G) initiative in Gothenburg, Sweden, supported by funding from Vinnova, the Swedish Innovation Agency. The project involves a substantial fleet of Polestar 3 cars and collaborative efforts with key stakeholders in the electricity grid sector. Partnering with entities such as Svenska kraftnät, the Swedish National Grid authority, local grid owner Göteborg Energi Nät, Vattenfall Eldistribution, Easee (a home charging provider), and research partner Chalmers University of Technology, Polestar aims to explore viable V2G business models and implement scalable use cases with broader regional applications.
 

Vehicle-to-Grid Technology Market Analysis

Based on charging type, the unidirectional charging segment held over 65% of the market share in 2023. The adoption of Vehicle-to-Grid (V2G) technology for unidirectional charging is propelled by its potential to enhance grid stability and accommodate renewable energy integration. Unidirectional charging allows electric vehicles to draw power from the grid during off-peak hours, optimizing cost and grid efficiency. This promotes load balancing and supports the integration of intermittent renewable energy sources.
 

Additionally, it provides utilities with a valuable tool for managing demand, reducing peak loads, and contributing to a more sustainable and resilient energy ecosystem, driving the widespread acceptance of V2G technology.
 

Based on vehicle type, the BEVs segment registered around 55% of the vehicle-to-grid technology market share in 2023. Vehicle-to-grid (V2G) technology is gaining prominence in Battery Electric Vehicles (BEVs) due to its dual role in optimizing energy usage. BEVs equipped with V2G capabilities can not only draw power for charging but also supply excess energy back to the grid during periods of high demand. This bidirectional flow enhances the vehicle's versatility, turning it into a mobile energy resource.
 

As global efforts to reduce carbon emissions intensify, V2G-equipped BEVs contribute to grid stability, support renewable energy integration, and align with sustainable energy practices, making them increasingly attractive in the evolving landscape of electric mobility.
 

Europe vehicle-to-grid technology market accounted for 40% of the revenue share in 2023. The region's strong commitment to sustainable energy practices, coupled with supportive government policies and incentives, has propelled the adoption of electric vehicles and the integration of V2G systems. Increasing investments in smart grid infrastructure, coupled with a growing awareness of grid stability benefits and environmental considerations, have further accelerated the uptake of V2G technology. Collaborative initiatives between automakers, energy utilities, and regulatory bodies contribute to a flourishing V2G ecosystem, fostering healthy industry growth in Europe.
 

Vehicle-to-Grid Technology Market Share

Nissan Motor Corporation and Mitsubishi Motors Corporation hold a significant revenue share in the vehicle-to-grid (V2G) technology industry.  Nissan Motor Corporation focuses on Collaboration with utilities, energy companies, and technology providers to establish partnerships for the development and deployment of V2G infrastructure and services.
 

Mitsubishi Motors Corporation is focused on expanding the availability of electric vehicles with V2G capabilities in key international markets where there is growing interest and support for sustainable mobility and smart grid solutions. Also, the company is supporting the development of charging infrastructure, including bidirectional charging stations, to enhance the practicality and accessibility of V2G services for Mitsubishi electric vehicle owners.
 

Vehicle-to-Grid Technology Market Companies

Major companies operating in the vehicle-to-grid (V2G) technology industry are:

• ABB Ltd.
• AC Propulsion, Inc.
• Denso Corporation
• Edison International
• Engie Group
• Groupe Renault
• Hitachi Ltd.
• Honda Motor Co.,Ltd.
• Mitsubishi Motors Corporation
• Nissan Motor Corporation
• NRG Energy Inc.
• Nuvve Corporation
• OVO Energy Ltd.
• Toyota Shokki
   

Vehicle-to-Grid Technology Industry News

• In November 2023, Toyota Motor North America (Toyota) and San Diego Gas & Electric Company (SDG&E) revealed a joint effort to investigate vehicle-to-grid (V2G) capabilities utilizing the Toyota bZ4X battery electric vehicle (BEV). The research into V2G seeks to delve into bidirectional power flow technology, allowing BEV owners to both charge their vehicles from the grid and discharge excess electricity back to it. The collaboration is directed at enhancing energy reliability, and resilience, integrating renewable sources, and potentially lowering electricity expenses.
   

The vehicle-to-grid technology market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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Market, By Component

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

Market, By Charging Type

• Unidirectional Charging
• Bidirectional Charging

Market, By Vehicle Type

• BEVs
• PHEVs
• FCVs

Market, By Application

• Domestic
• Commercial

The above information has been provided for the following regions and countries:

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