The global vehicle-to-grid technology market size reached USD 5.54 billion in 2024 and is expected to attain around USD 49.75 billion by 2034 with a CAGR of 28.13%.
What is Vehicle-to-Grid (V2G) Technology?
Vehicle-to-Grid (V2G) technology allows electric vehicles (EVs) to not only draw power from the electrical grid but also return excess energy back to it. This bi-directional energy flow helps stabilize the grid, optimize energy distribution, and maximize the use of renewable energy sources.
How V2G Works
- Charging – EVs draw electricity from the grid during low-demand periods or when renewable energy generation is high.
- Discharging – When the grid experiences high demand or shortages, EVs can supply stored energy back to the grid.
- Smart Grid Integration – V2G technology is managed by smart grid systems that control the flow of electricity based on demand, pricing, and availability.
Key Benefits of V2G Technology
- Grid Stability – EVs act as distributed energy storage units, helping balance energy supply and demand, especially during peak hours.
- Cost Savings for EV Owners – Vehicle owners can sell excess energy back to the grid, reducing electricity costs.
- Renewable Energy Optimization – Excess power from solar and wind energy can be stored in EV batteries and used later, improving efficiency.
- Emergency Power Supply – In case of power outages, V2G-enabled EVs can provide backup power to homes and buildings.
Challenges of V2G Implementation
- Battery Degradation – Frequent charging and discharging may reduce the lifespan of EV batteries.
- Infrastructure Requirements – Smart chargers, grid upgrades, and regulatory frameworks are needed for large-scale adoption.
- Standardization and Compatibility – Different EV models and charging networks need to support V2G protocols for seamless integration.
Role of AI in the Vehicle-to-Grid (V2G) Technology Market
Artificial Intelligence (AI) plays a crucial role in optimizing Vehicle-to-Grid (V2G) technology by enhancing energy management, improving grid stability, and maximizing economic benefits. It enables smart decision-making by analysing real-time data and automating energy transactions.
AI-driven energy management systems optimize charging and discharging schedules based on electricity demand, grid conditions, and energy prices. By predicting peak demand periods, AI ensures efficient use of EV batteries while maintaining grid stability.
Predictive analytics powered by AI help forecast energy consumption patterns, weather conditions, and renewable energy availability. This assists grid operators in making informed decisions about when to store or release power from EVs.
Real-time demand response is another critical application of AI in V2G. AI-enabled systems can instantly respond to grid fluctuations by automatically directing EVs to supply power when needed or charge when demand is low.
Regional Outlook
Europe
Europe has emerged as a leading region in the V2G technology market, accounting for approximately 35.8% of the global market share in 2024. The region’s strong emphasis on reducing carbon emissions and promoting sustainable energy solutions has led to substantial investments in V2G infrastructure. Countries like the United Kingdom, Denmark, and the Netherlands are at the forefront, implementing pilot projects and establishing supportive regulatory frameworks to facilitate V2G adoption.
North America
North America, particularly the United States, is witnessing significant advancements in V2G technology. The region’s focus on renewable energy integration and grid stability has led to increased investments in V2G infrastructure. Government initiatives promoting the use of battery-powered vehicles to control carbon emission rates are major factors propelling market growth.
Asia Pacific
The Asia Pacific region is rapidly emerging as a significant player in the V2G market. Companies in countries like Japan and China are actively developing V2G charging networks alongside existing charging infrastructure. For instance, in September 2020, Nuvve Corporation announced its involvement in a Japan-based V2G project aimed at commercializing electricity supply-demand management by 2021. Additionally, China has initiated upgrades to its charging infrastructure to facilitate a smoother transition to electric vehicles.
Vehicle-to-Grid Technology Market Companies
- Nissan Motor Corporation
- Mitsubishi Motors Corporation
- NUVVE Corporation
- ENGIE Group
- OVO Energy Ltd
- Groupe Renault
- Honda Motor Co., Ltd.
Segments Covered
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
- U.S.
- Canada
- Europe
- U.K.
- Germany
- France
- Asia Pacific
- China
- India
- Japan
- South Korea
- Latin America
- MEA
- Rest of the World
Source: https://www.precedenceresearch.com/vehicle-to-grid-technology-market
