Vehicle-to-Grid (V2G) Technology Market Size

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.

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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.