Electric Vehicles Is Fastest Growing Segment Fueling The Growth Of Vehicle To Grid Technology Market
The global Vehicle To Grid Technology Market is estimated to be valued at US$ 171.38 Mn in 2023 and is expected to exhibit a CAGR of 43.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Vehicle to grid (V2G) technology facilitates bidirectional electricity transfer between plug-in electric vehicles (EVs) and the power grid. This technology allows electricity stored in EV batteries to support the grid during peak periods and provides vehicle owners revenue from selling stored energy back to the grid. With increasing adoption of electric vehicles globally, V2G technology provides an economically viable solution to balance renewable energy penetration along with enhancing grid reliability and resilience.
Market key trends:
One of the key trends fueling the growth of V2G technology market is increasing focus toward stabilizing grid and renewable energy integration. As renewable energy sources like solar and wind power are intermittent in nature, they pose challenges in stable grid operation and power management. Vehicle to grid technology synergizes electric vehicle fleets to store excess renewable energy during high production periods and supply power back to the grid during peak demand or low renewable energy production times, thereby helping stabilize the grid. This ability of V2G networks to support clean energy adoption by offsetting intermittencies is promoting its large-scale implementation globally.
Segment Analysis
The vehicle to grid technology market is segmented by technology, application and region. Based on technology, the market is segmented into bidirectional charging, vehicle to grid power transfer, and aggregated ancillary services. The bidirectional charging segment is expected to dominate the market during the forecast period as it enables electric vehicles to charge from the power grid when electricity rates are low and feed power back into the grid during periods of high power demand. This helps in reducing the burden on the grid while also enabling the electric vehicles to discharge stored energy back into the grid for revenue generation.
Key Takeaways
The Global Vehicle To Grid Technology Market Size is expected to witness high growth, exhibiting a CAGR of 43.9% over the forecast period, due to increasing concerns over the environment and reducing carbon footprint. The global vehicle to grid technology market size is expected to reach US$ 171.38 Mn in 2023.
Regional analysis indicates that Asia Pacific is expected to witness the fastest growth in the vehicle to grid technology market during the forecast period. This is attributed to the presence of major automotive companies and governments promoting electric vehicles in countries such as China and Japan. North America is expected to dominate the market over the forecast period owing to large presence of key players such as Nissan Motor Corporation, General Motors Company, and Tesla, Inc. in the region.
Key players operating in the vehicle to grid technology market include Nissan Motor Corporation, Mitsubishi Motors Corporation, Honda Motor Co., Ltd., BMW Group, Tesla, Inc., General Motors Company, Ford Motor Company, Toyota Motor Corporation, Daimler AG, and Volvo Group. Nissan Motor Corporation offers its Leaf vehicle model integrated with vehicle to grid technology which enables two-way power flow between electric vehicles and power grids. Tesla, Inc. offers its Powerwall product which enables customers to store energy from rooftop solar panels and also discharge power back to the grid during peak hours.
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