Ottawa, April 02, 2024 (GLOBE NEWSWIRE) -- The global vehicle-to-grid technology market is set to enjoy a valuation of USD 3.78 billion in 2023 and is predicted to hit around USD 40.43 billion by 2032, According to Precedence Research.
The vehicle-to-grid technology market is driven by growing urbanization, increasing innovation in end-use industries, and rising technological advancements.
The U.S. vehicle-to-grid technology market size was valued at USD 960 million in 2023 and is estimated to be worth around USD 46,210 million by 2033, growing at a CAGR of 47.42% from 2024 to 2033.
Electric grids are the systems that store energy and are responsible for providing energy to the customers from the source of its generation. These electric grids consist of power stations, electrical substations, electric power transmission, and electric power distribution. The use of electric vehicles (EVs) is increasing, and the demand for new technologies that will improve the efficiency of EVs is also increasing. One of the key demands in the EV market is installing charging stations to reduce range anxiety among people. The vehicle-to-grid technology market offers a set of technologies that enable the pushback of energy from the batteries of the EVs to the power grid.
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This technology not only acts as a power source for the EVs but also acts as a backup storage for the electrical grid. To enable this technology, bidirectional charging stations are used for pushing and pulling energy based on the electricity demand. It requires a lot of complex suites of smart technologies, software, and communication channels to operate the vehicle-to-grid technology properly.
Key Insights
- Europe led the market with the largest market share of 35.80% in 2023.
- By Component Type, the electric vehicle supply equipment segment has held the major market share of 83.13% in 2023.
- By Application, the battery electric vehicles (BEVs) segment has contributed the biggest market share of 63.89% in 2023.
- By Application, the plug-in hybrid electric vehicles (PHEVs) segment is anticipated to grow at a remarkable CAGR of 28.59%.
Regional Stance
Europe region dominated the market in 2023. The Europe vehicle-to-grid technology market size was USD 1.35 billion in 2023, calculated at USD 1.98 billion in 2024 and is anticipated to reach around USD 16.01 billion by 2033, growing at a CAGR of 28.05% from 2024 to 2033.
European nations have made significant investments in electric vehicle charging infrastructure and charging networks, creating an environment conducive to the widespread adoption of EVs. As EV ownership increases across the continent, the potential for V2G technology to leverage the batteries of these vehicles for grid services becomes more significant. European governments have been proactive in incentivizing the deployment of V2G infrastructure through various policy measures such as subsidies, tax incentives, and regulatory frameworks. These incentives encourage both consumers and businesses to participate in V2G programs, driving market growth.
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North America is observed to witness a significant rate of expansion in the vehicle-to-grid technology market. It is expected that the market will grow exponentially in the North American region during the forecast period of 2024-2033. One of the biggest reasons for this growth is the use of electric vehicles in the region. Companies like Tesla, Volkswagen, Nissan, NIO, Rivian, and so on are the companies that produce EVs, and they all belong to North America. The U.S. holds the second-largest market for electric vehicles.
•In 2022, 2,442,300 electric vehicles were registered in the U.S. out of all commercially and privately owned automobiles. Around 1.1 million new electric vehicles were sold in 2023 in the U.S.
On the other hand, Asia-Pacific is expected to be the fastest-growing region in the forecast period, with China being the country with the greatest number of electric vehicles. In 2022, 4.4 million new electric vehicles were sold in China. There are around 20 million EVs on the road in China as of January 2024. Another reason for the growth of the vehicle-to-grid technology market in the Asia-Pacific region is an increase in the number of plug-in hybrid vehicles. The leading countries with the largest number of plug-in hybrid vehicles are China, Japan, South Korea, Australia, and India, which belong to Asia-Pacific.
Scope of Vehicle-to-Grid Technology Market
| Report Coverage | Details |
| CAGR | 28.13% 2024 to 2033 |
| Market Size in 2023 | USD 3.78 Billion |
| Market Size in 2024 | USD 5.54 Billion |
| Market Size by 2033 | USD 45.09 Billion |
| Largest Market Share in 2023 | Europe |
| Base Year | 2023 |
| Forecast Year | 2024 to 2033 |
| Historical Year | 2021 and 2022 |
| Segments Covered | By Component, By Application and Regions |
| Regions Covered | North America, Europe, Asia Pacific, Latin America and MEA |
Report Highlights
Component Insight
The electric vehicle supply equipment (EVSE) segment dominated the vehicle-to-grid technology market in 2023 and will grow exponentially in the forecast period. EVSEs are commonly called charging stations and provide electricity to EVs. Without EVSE, it will not be possible to connect the vehicles to the electric grid, and hence, it holds significant importance in the vehicle-to-grid technology market. There is continuous development in the EVSE segment to improve its efficiency, which will increase the growth of the segment in the future.
- For instance, in January 2024, China Automotive Certification Center Co. Ltd. Announced the certification of EVSE. There are many components and aspects of E-mobility that require proper regulation, monitoring, and certification; hence, this decision was made.
Application Insight
The Battery Electric Vehicles (BEVs) segment dominated the vehicle-to-grid technology market in 2023 and will grow exponentially in the forecast period. BEVs have storage systems that are 100% powered by energy, which increases the chances of returning the power back to the electric grid with more efficiency because these vehicles solely run on electric energy and do not depend on other sources and hence require more energy, The more energy increase the chances of sending back more energy to the electric grid.
Maruti Suzuki, an Indian automotive company, will launch its first BEV by the end of 2024. The BEV will be exported to Europe and Japan. The company is also planning to develop a new production line in which Rs 3,200 crore will be invested. The new line will be capable of producing 2.5 lakh vehicles annually.
Plug-in hybrid vehicles are trending due to their hybrid nature of using different sources for running the vehicle. It is the fastest-growing segment and will grow at a faster rate in the forecast period. People are adopting PHEVs as they reduce range anxiety and allow people to travel long distances and go to less developed areas without worrying about battery discharging. These vehicles have larger batteries, which are capable of pushing more energy to the electric grid.
All-new crown sports type PHEV was launched by Toyota in December 2023. The PHEV is designed to enhance the fun of driving while providing sporty driving experience.
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Market Dynamics
Driver: Depletion of energy resources
The fossil fuel is depleting, and the demand is increasing on a daily basis. The energy demand is fulfilled by generating energy via renewable resources. Renewable energy-generating resources are able to generate very little energy when compared to non-renewable resources. Saving energy is one of the biggest needs for sustainability, and hence, the need for vehicle-to-grid technology is increasing. Not only does the technology help in saving energy, but it is bidirectional. The bidirectional nature provides energy to the EVs, but it is also able to take back energy from EVs and use it in other places.
Restraint: Range Anxiety
Range anxiety occurs in customers who use or want to buy EVs. Many people avoid buying EVs because they worry about battery discharge while traveling, especially while traveling for long distances. The anxiety increases when they travel to places where there are no or very few charging stations. This is the reason why people avoid buying EVs, which negatively impacts the vehicle-to-grid technology market.
Opportunities: Urbanization and industrialization
Urbanization and industrialization are improving the development of infrastructure suitable for EVs. More charging stations are installed within short distances, which reduces range anxiety among people. It is also leading to increased technological advancements. Technological advancements are improving the efficiency of the EVs and vehicle-to-grid technology.
For instance, Concept Reply, a company that specializes in IoT innovation, expanded its test automation framework capabilities. It is done to include the validation of electric vehicle charging systems. The company integrated digital twins into the framework, which is used in measuring the efficiency, reliability, and safety levels of charging stations.
Rising requirements of sustainability
Non-renewable resources are depleting, and people are focusing on sustainability. People are becoming more conscious about utilizing energy. EVs are becoming more popular because of this, which is ultimately increasing the demand for vehicle-to-grid technology.
Browse More Insights:
- Automotive V2X Market: The global automotive V2X market size was reached at US$ 2.4 billion in 2022 and it is expected to hit USD 66.26 Billion by 2032, growing at a CAGR of 39.4% during the forecast period from 2023 to 2032.
- All-Wheel Drive Market: The global all-wheel drive market size accounted for USD 36 billion in 2022 and it is expected to reach around USD 60.05 billion by 2032 and is poised to grow at a CAGR of 5.3% from 2023 to 2032.
- Electric Vehicle (EV) Test Equipment Market: The global electric vehicle (ev) test equipment market size was valued at USD 60 million in 2022 and is expected to reach around USD 462.18million by 2032 and is poised to grow at a CAGR of 22.7% from 2023 to 2032.
- Electric Vehicle Polymers Market: The global electric vehicle polymers market size was valued at USD 7 billion in 2022 and is expected to hit around USD 693.86 billion by 2032 and is poised to grow at a CAGR of 58.4% from 2023 to 2032.
- Alternative Fuel and Hybrid Vehicle Market: The global alternative fuel and hybrid vehicle market size was estimated at USD 353 billion in 2022 and it is expected to hit around USD 9,402.09 billion by 2032, poised to grow at a CAGR of 38.9% from 2023 to 2032.
- Electric Car Market: The global electric car market size was exhibited at USD 120 billion in 2022 and is projected to hit around USD 431.38 billion by 2032 with a registered CAGR of 13.7% from 2023 to 2032.
- Automotive Disruption Radar Market: The global automotive disruption radar market is expected to expand at the fastest CAGR of during the forecast period from 2023 to 2032.
Recent Developments
- In February 2024, Octopus Energy, a UK-based company, launched its first vehicle-to-grid tariffs for EVs. The tariff will save around 850 British pounds (US$ 1,067) for EV owners who drive their vehicles for 10,000 miles in a year. It is the country’s first vehicle-to-grid system.
- In November 2023, San Diego Gas & Electric Company and Toyota Motor North America collaborated to conduct research on vehicle-to-grid technology. The companies will research the bidirectional flow of the technology.
Market Key Players
- Mitsubishi Motors Corporation
- Nissan Motor Corporation
- ENGIE Group
- Groupe Renault
- OVO Energy Ltd
- NUVVE Corporation
- Honda Motor Co., Ltd.
Market Segmentation
By Component Type
- Smart Meters
- Electric Vehicle Supply Equipment (EVSE)
- Software
- Home Energy Management (HEM)
By Application Type
- Battery Electric Vehicles (BEVs)
- Fuel Cell Vehicles (FCVs)
- Plug-in Hybrid Electric Vehicles (PHEVs)
By Regional Type
- North America
- Europe
- Asia Pacific
- Latin America
- MEA
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