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.

The vehicle to grid technology global industry size accounted for USD 1.77 billion in 2021, and it is projected to reach around USD 17.43  billion by 2027, registering growth 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 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.

What is Vehicle to Grid?

Vehicle-to-grid technology involves drawing unused power from the car into the smart grid. V2G, which is also known as vehicle-grid integration (VGI), can help the energy grid supply electricity during peak hours. It can also create an extra power source when weather-dependent renewable energy sources are not available. For example, a home that uses solar power cannot generate electricity at night, but an electric vehicle could provide a secondary source of power if needed.

This type of technology can help meet clean energy goals such as targeting zero-carbon emissions by 2045. It can also provide an added benefit to consumers by potentially lowering the cost of electric vehicle ownership. An owner can sell back surplus power from their vehicle in order to offset other costs.

Growth Factors Of Vehicle to Grid Technology 

The vehicle to grid market perceives substantial growth due to the 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, on account of ongoing COVID-19 outbreak, the global automobile sector is facing a slowdown due to the lockdown in numerous countries that has constrained the production of electric vehicles. 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.

Future of Vehicle to Grid Technology Market

Revenue opportunities in the vehicle-to-grid technology market are driving BEV and PHEV manufacturers to give consumers with fresh services linked to their vehicles. Since software is an important element of V2G technology, vehicle possessors can earn fresh profit from companies who wish to buy pivotal data generated from the intelligent and connected communication technology. This pivotal data will aid auto technology providers and manufacturers offer better services to its consumers. In addition, this connected network aids players in the market towards gaining essential perceptivity regarding consumers and other stakeholders in the value chain.

Regional Stance Of 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.

Major Companies Mentioned

➢ Nissan Motor Corporation
➢ Mitsubishi Motors Corporation
➢ NUVVE Corporation
➢ ENGIE Group
➢ OVO Energy Ltd
➢ Groupe Renault
➢ Honda Motor Co., Ltd.

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