Global Vehicle-To-Grid (V2G) Market To Attain Valuation Of USD 3,621.4 Million By 2032 | Astute Analytica

New Delhi, Sept. 09, 2024 (GLOBE NEWSWIRE) -- The global Vehicle-to-Grid (V2G) market is projected to hit the market valuation of US$ 3,621.4 million by 2032 from US$ 308.0 million in 2023 at a CAGR of 31.5% during the forecast period 2024–2032.

The Vehicle-to-Grid (V2G) market is rapidly evolving, driven by the increasing adoption of electric vehicles (EVs) and the urgent need for sustainable energy solutions. The global electric vehicle fleet has surpassed 10 million units, creating a significant opportunity for integrating these vehicles into the energy grid. V2G technology enables electric vehicles to return electricity to the grid, enhancing grid stability and reducing reliance on fossil fuels. With over 500 V2G pilot projects launched worldwide, the market is set for substantial growth. Experts predict that by 2030, the market will be valued at $3.8 billion, with over 50 million EVs capable of participating in V2G services. The infrastructure is also expanding rapidly, with an estimated 10,000 bi-directional chargers installed globally, supporting the integration of vehicle energy back into the grid.

Request Sample Report:

For market players and investors, the Vehicle-to-Grid (V2G) market offers promising opportunities. Energy companies can leverage V2G technology to provide ancillary services, such as frequency regulation and peak load management, generating additional revenue streams. Automotive manufacturers are increasingly focusing on V2G-compatible vehicles, with over 20 automakers investing in V2G research and development. Startups are also entering the market, with more than 100 companies dedicated to developing V2G software and hardware solutions. Investors find the market attractive due to its potential for high returns and alignment with global sustainability goals. As of 2023, venture capital funding in V2G startups has exceeded $1 billion, indicating strong investor confidence in the market. The growing interest is further fueled by the projected deployment of 500,000 V2G-compatible chargers by 2025.

Governments play a crucial role in the Vehicle-to-Grid (V2G) market's growth momentum. Through supportive policies and incentives, they are creating a conducive environment for V2G adoption. Over 30 countries have implemented policies encouraging V2G integration, while public funding for V2G research and infrastructure has reached $2 billion globally. National targets, such as the European Union's goal of 30 million zero-emission vehicles by 2030, drive V2G technology development. Additionally, governments are investing in smart grid infrastructure, with $10 billion allocated for smart grid projects in the U.S. alone. Experts believe that continued government support will be instrumental in overcoming challenges and unlocking the full potential of the Vehicle-to-Grid (V2G), ultimately contributing to a sustainable and resilient energy future.

Key Findings in Vehicle-to-Grid (V2G) Market

Bi-Directional Charging Types is Having Stronghold on Vehicle to Grid Market, But Not Without Challenges

In the bidirectional charging type of the Vehicle-to-Grid (V2G) market, several technologies are emerging as challengers to the established standards like CHAdeMO. One of the most notable is the Combined Charging System (CCS), which is gaining traction due to its versatility and widespread adoption in Europe and North America. As of 2023, there are over 40,000 CCS charging stations worldwide, with significant growth in recent years. CCS supports both AC and DC charging, making it a flexible option for various charging scenarios. While traditionally used for unidirectional charging, advancements are being made to incorporate bidirectional capabilities, particularly with vehicle-to-home (V2H) and vehicle-to-grid (V2G) functionalities. This adaptability is appealing to automakers and consumers alike, as it allows for integration with existing infrastructure and offers potential cost savings by using the vehicle as a power source during peak electricity rates. Notably, more than 30 automakers have adopted CCS, further solidifying its position in the market.

Another contender in the Vehicle-to-Grid (V2G) market is the vehicle-to-load (V2L) technology, which, while not strictly bidirectional in the traditional sense, allows EVs to power external devices and appliances. This capability is becoming increasingly common, with over 50 EV models featuring V2L technology as of 2023. Many new EV models feature built-in converters and 120-volt plugs for such purposes. V2L is particularly attractive for its simplicity and ease of use, as it does not require a dedicated bidirectional charger. This makes it a practical choice for consumers looking to utilize their EVs as portable power sources without the need for complex installations. Additionally, the concept of vehicle-to-everything (V2X) is being explored, which aims to integrate all forms of bidirectional charging, offering a comprehensive solution that could potentially challenge existing standards by providing a more holistic approach to energy management. As of 2023, there are over 25 pilot projects worldwide exploring V2X applications, indicating a growing interest and investment in this technology. The market for bidirectional chargers has seen the production of over 100,000 units annually, indicating a strong demand for these innovative solutions.

Strategic Insights on the Future of V2G in Peak Power Sales's Dominance with Revenue Share of Over 59.3%

As the vehicle-to-grid (V2G) market continues to mature, its application in peak power sales is poised for significant expansion. By 2024, projections indicate that the global EV fleet will encompass over 57 million vehicles, providing essential energy storage to offset peak demand times. This vast fleet could contribute an estimated 1,500 GWh of energy capacity, offering critical support to grid operators during high-demand periods. The rise of smart cities, anticipated to exceed 600 by 2030, will incorporate V2G systems into their energy frameworks, enhancing the management of peak power loads and promoting sustainability.

For players in the Vehicle-to-Grid (V2G) market focusing on peak power sales, several strategic considerations come into play. Technological advancements in battery efficiency have extended the average EV battery life expectancy to 15 years, enhancing their viability in energy redistribution. Developing regulatory frameworks are key, with over 30 countries currently working to standardize V2G operations, ensuring consistent and reliable peak power sales. Interoperability remains a focus, as the number of EV models with V2G capabilities is expected to exceed 200 by 2026, providing greater flexibility for energy transactions. The importance of cybersecurity is underscored by the 1.3 billion cyber threats targeting energy systems in the past year, necessitating robust protective measures.

Furthermore, artificial intelligence is becoming integral in managing energy flows in the Vehicle-to-Grid (V2G) market, with AI systems anticipated to handle over 500 TWh of energy transactions annually by 2035. The surge in renewable energy, highlighted by global solar power capacity reaching 1,200 GW, further emphasizes the role of V2G in peak power sales, balancing the grid during fluctuations. Collaborative efforts among automotive manufacturers, energy providers, and tech companies are vital, with over 150 strategic alliances formed in the last three years to innovate and streamline V2G for peak power applications. Astute Analytica foresees these developments driving the future of peak power sales, ensuring enhanced grid stability and contributing to a sustainable energy landscape.

Request Free Customization of this report:

Europe's Strategic Edge: Leading the Global Vehicle-to-Grid Revolution with Market Share 35.7%

Europe's dominance in the Vehicle-to-Grid (V2G) market, despite Asia Pacific's stronghold in electric vehicle (EV) production, can be attributed to several strategic and infrastructural advantages. Firstly, Europe has established a robust regulatory framework that encourages V2G integration, with countries like the UK spearheading initiatives such as the "Go Ultra Low" campaign, which has facilitated the installation of over 20,000 V2G-compatible chargers. France has launched extensive pilot programs, including the deployment of 1,500 V2G-enabled EVs across its public transportation networks. Moreover, Germany has invested heavily in research and development, dedicating $1 billion towards projects aimed at enhancing grid flexibility through V2G technology. This is complemented by the European Union's Horizon 2020 program, which allocated $80 million specifically for V2G research, underscoring the region's commitment to advancing this technology.

In contrast, Asia Pacific's Vehicle-to-Grid (V2G) market focus has been primarily on scaling EV production and deployment, with China manufacturing over 6 million EVs annually as of 2023. However, the region's V2G development is at a nascent stage, hampered by infrastructure challenges and varying regulatory standards across countries. Japan, despite being a pioneer in V2G technology, has only recently begun ramping up its efforts with projects like the "JUMPSmartMaui," incorporating 300 V2G-enabled vehicles. Furthermore, the collaboration between European automakers and energy companies has been instrumental in pushing V2G advancements. For instance, the partnership between Renault and EDF in France has resulted in the successful integration of V2G technology in 500 electric fleet vehicles. Meanwhile, Europe's emphasis on renewable energy integration, with countries like Denmark generating over 40 TWh from wind energy, complements V2G systems by enhancing grid stability and efficiency. This comprehensive approach to policy, technology, and energy management positions Europe as the leader in the global Vehicle-to-Grid (V2G) market.

Top 4 Players Control Over 54% Market Share

The Vehicle-to-Grid (V2G) market is an emerging sector that combines automotive technology and energy management systems to optimize electricity usage and distribution. Leading this innovative market are five key players: Nissan Motor Corporation, Mitsubishi Motors Corporation, Groupe Renault, ENGIE Group, and OVO Energy Ltd. Collectively, these companies account for over 54% of the market share, showcasing their pivotal role in shaping the future of V2G technology. Among them, Nissan Motor Corporation stands out as the dominant player, commanding a substantial 33.9% market share. This significant portion highlights Nissan's strategic edge in both automotive manufacturing and energy solutions, placing the company at the forefront of the V2G revolution.

Nissan's leadership in the Vehicle-to-Grid (V2G) market can be attributed to its pioneering efforts and substantial investments in electric vehicle (EV) technology. As one of the first automakers to introduce mass-market electric vehicles, notably the Nissan Leaf, the company has leveraged its early-mover advantage to drive V2G adoption. By integrating bi-directional charging capabilities into its EVs, Nissan allows vehicles to not only consume energy but also supply it back to the grid, thus providing a sustainable energy solution. This approach not only enhances grid stability but also offers economic benefits to consumers, reinforcing Nissan's position as a leader in green technology.

Moreover, Nissan's extensive network of partnerships and collaborations has further solidified its dominance in the V2G sector. By aligning with energy companies and technological innovators, Nissan has been able to expand its V2G infrastructure and introduce cutting-edge solutions that cater to diverse market needs. The company's commitment to sustainability and innovation is evident in its strategic initiatives, which aim to reduce carbon emissions and promote renewable energy usage. As the Vehicle-to-Grid (V2G) market continues to evolve, Nissan's forward-thinking approach and robust market presence are likely to sustain its leadership, driving continued growth and transformation in the industry.

Global Vehicle-to-Grid (V2G) Market Key Players

• Nissan Motor Corporation
• Mitsubishi Motors Corporation
• NUVVE Corporation
• ENGIE Group
• OVO Energy Ltd.
• Groupe Renault
• Honda Motor Co., Ltd.
• Hyundai Motor Company
• Edison International.
• DENSO Co.
• Boulder Electric Vehicle
• EV Grid
• Hitachi
• Next Energy
• NRG Energy
• OVO Energy Ltd.
• Other Prominent Players

Key Segmentation:

By Vehicle Type

• Battery Electric Vehicles (BEVs)
• Plug-In Hybrid Electric Vehicles (PHEVs)
• Fuel Cell Vehicles (FCVs)

By Solution Type

• Hardware
  • Electric Vehicle Supply
  • Equipment (EVSE)
  • Smart Meters
  • V2G chargers
• Software
  • V2G program administration
  • Dynamic load management system
• Services

By Charging Type

• Unidirectional
• Bidirectional

By Application

• Peak Power Sales
• Spinning Reserves
• Base Load Power
• Others

By Region

• North America
• Europe
• Asia Pacific
• Middle East & Africa (MEA)
• South America

Inquire Before Buying This Research Report:

About Astute Analytica

Astute Analytica is a global analytics and advisory company which has built a solid reputation in a short period, thanks to the tangible outcomes we have delivered to our clients. We pride ourselves in generating unparalleled, in depth and uncannily accurate estimates and projections for our very demanding clients spread across different verticals. We have a long list of satisfied and repeat clients from a wide spectrum including technology, healthcare, chemicals, semiconductors, FMCG, and many more. These happy customers come to us from all across the Globe. They are able to make well calibrated decisions and leverage highly lucrative opportunities while surmounting the fierce challenges all because we analyze for them the complex business environment, segment wise existing and emerging possibilities, technology formations, growth estimates, and even the strategic choices available. In short, a complete package. All this is possible because we have a highly qualified, competent, and experienced team of professionals comprising of business analysts, economists, consultants, and technology experts. In our list of priorities, you-our patron-come at the top. You can be sure of best cost-effective, value-added package from us, should you decide to engage with us.

Contact Us:
Astute Analytica
Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World)
For Sales Enquiries: ...
Website:
LinkedIn | Twitter | YouTube

MENAFN09092024004107003653ID1108652832