Vehicle-to-Grid Technology Market Size To Touch USD 17.43 Bn By 2027
Vehicle-to-Grid Technology Market (By Component: Smart Meters, Electric Vehicle Supply Equipment (EVSE), Software, and Home Energy Management (HEM); By Application: Battery Electric Vehicles (BEVs), Fuel Cell Vehicles (FCVs), and Plug-in Hybrid Electric Vehicles (PHEVs)) – Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2022 – 2027
The global vehicle-to-grid technology market size accounted for USD2.59 billion in 2022 and is predicted to reach around USD 17.43 billion by 2027, growing at a CAGR of 48%.
Vehicle electrification is one of the greatest developments in the automotive sector. Increasing apprehension about environmental fortification has prompted the research that greatly propelled the electric mobility around the globe. Vehicle-to-grid (V2G) is a technology that permits energy to be pushed back from the battery of an electric vehicle to the power grid. It is a system that has ability of bi-directional and controllable electrical energy flow among vehicle and electrical grid. The spread of the vehicle to grid technology market is now intensifying to homes, schools, and fleets.
Vehicle to grid market perceives substantial growth due to exponentially growing number of electric vehicle charging stations across the world. EVs have less range than hybrid and internal combustion engine (ICE) vehicles. As a result, several charging facilities are essential to be installed on the road and off the road to progress their adoption rate. The intensifying number of charging stations will result in additional vehicles being integrated into the grid which in turn bolsters the demand for the vehicle to grid technologies.
However COVID-19 impacted the global automobile market. The operations of certain vital players impacted by COVID-19 outbreak comprise BMW AG, Nissan Motor Co., Kia Motors Corp., Tesla, Inc and Daimler AG. Nonetheless, government incentive packages in the future might help the EV market get through an economic crisis carried by COVID-19 by investing profoundly in charging infrastructure. China is set to invest to encourage its automotive sector. The Chinese government has highlighted “new infrastructure” as part of a stimulus policy to lift its economy after the slowdown instigated by COVID-19 and trade tensions. Therefore, most governments from pretentious areas have resorted to infrastructure refurbishment as an economic impetus method.
Increased Demand for Natural Resources to Power Electric Vehicles Boosts Market
A vehicle-to-grid technology battery is considered as a bi-directional charging battery that can provide power to the vehicle’s electric grid and can also charge the vehicle battery. Such V2G technology is gaining traction among manufacturers of electric vehicles due to its advantages of bi-directional charging. Shortage of renewable energy sources for power generation and a scarcity of power for electric vehicles further makes the network unstable and propels the demand for more energy storage in a vehicle. However, increased power storage capacity is made available using V2G technology, which can absorb unused energy and prevent it from wastage.
Furthermore, it is also assumed that V2G technology can be utilized as an alternative energy source for domestic use, where an electric vehicle owner can supply power to his home, which is drawn by V2G battery. Such technology is still in the nascent phase, and it’s expected to create opportunities for the vehicle-to-grid technology market during the forecast period.
Government Regulations and Investments to Increase Adoption of Battery Electric and Hybrid Electric Vehicles Propel Market
Government schemes and benefits across the globe, which include Zero-Emission Vehicle Program of California, U.S., European Green Cars Initiative of European Union, and Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme of India, provide incentives and tax benefits to consumers and manufacturers and further boost the demand and adoption of electric vehicles.
According to the European Environment Agency report, 2018, the air quality across Europe deteriorated due to rising vehicle emissions, which further caused rise in healthcare cost to approximately US$ 80 Bn. However, such rise in healthcare cost due to vehicle pollution further leads to enactment of government norms in order to curb vehicle emissions. Thus, rising government regulations and investments is driving the vehicle-to-grid technology market.
Globally, Europe dominated the overall vehicle to grid market with around 36% market share in terms of revenue in 2019. Asia Pacific is projected to record robust growth and anticipated to reach market value around USD 5,521 million by 2027. The adoption rate of electric vehicles is growing, and numerous countries across the world are investing intensely in R&D. Nations like France, Canada, the Netherlands, and India have introduced numerous campaigns to boost the adoption of electric vehicles. As per one survey, there are around 50 V2G physical projects delivering clear use cases worldwide. Out of these 50 projects around 25 are in Europe, 7 in Asia-Pacific and 18 in North America. Northern European states lead with Denmark, Netherlands, UK and Germany the market leaders in the Europe. Activity in the U.S. is primarily in Hawaii, California, and Delaware. This project data depicts that Asian contribution has been more concentrated as a manufacturing partner than being a home for implementation, with some notable exceptions.
In Denmark, Nuvve Corporation declared 4 years of successive vehicle to grid operations of electric vehicles in September 2020. The company has been carrying out current frequency regulation service for Energinet, the Danish grid operator, for 4 successive years. The initial fleet of vehicles commenced service in September 2016 at a municipal water and gas Utility Corporation in Denmark named Frederiksberg Foraying.
Key Players & Strategies
Numerous participants in vehicle-to-grid technology market are growing offerings to fleets, schools, and houses. Revenue prospects in the vehicle-to-grid technology market are prompting battery electric vehicles and Plug-in Hybrid Electric Vehicle manufacturers to offer consumers with additional services associated to their vehicles. Since software is a significant component of V2G technology, vehicle owners can earn supplementary revenue from corporations who seek to purchase critical data generated from the intelligent and interconnected communication technology. This decisive data will benefit car manufacturers and technology providers bid improved services to consumer.
The coronavirus pandemic enforced layoffs and outlay cuts across the solar sector and hit global electric vehicle sales across the world. Yet, few start-ups catering the EV charging market have sustained pulling in new investments in spite of the ambiguity.
A Research Report by Precedence Research
Mr. Saurabh S
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