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Vehicle to Grid (V2G) Market - Forecast(2023 - 2028)
Vehicle to Grid (V2G) Market Overview
The global Vehicle to Grid (V2G) market size
is forecast to reach $28.12 billion by 2026, growing at CAGR 4.28% from 2021 to
2026. Vehicle to grid (V2G) is a system, which helps the various types of EVs
such as battery electric vehicles (BEVs), plug-in hybrid electric vehicles
(PHEVs), fuel cell vehicles (FCVs) and others, to communicate with the power
grid to sell the demand response services by offering to way exchange of
electricity. The increasing adoption of electric vehicles across the world is
affecting the demand for EV charging infrastructures including unidirectional
power flow and bidirectional power flow charging; which is one of the major factors
driving the growth of vehicle to grid (V2G) market. Furthermore, the increasing
initiatives taken by the Government to promote the usage of environment
friendly electric vehicles and growing awareness among the people regarding the
environmental issues accelerates the growth of the vehicle to grid (V2G)
industry during the forecast period 2021-2026.
Report Coverage
The report: “Vehicle to Grid (V2G) Market– Forecast (2021-2026)”, by
IndustryARC covers an in-depth analysis of the following segments of the Vehicle
to Grid (V2G) Market.
By
Technology: Power management, Software
By
Components: Electric Vehicle Supply Equipment (EVSE), Smart Meters, Home
Energy Management (HEM) and others.
By Charging
Type: Unidirectional
Charging and Bidirectional Charging.
By
Application: Peak Power Sales, Spinning Reserves, Base
Load Power and Others.
By End-User: Battery
Electric Vehicles (BEVs), Plug-In Hybrid Electric Vehicles (PHEVs), Fuel Cell
Vehicles (FCVs) and others.
By Geography: North
America (U.S, Canada, Mexico), South America (Brazil, Argentina and others),
Europe (Germany, UK, France, Italy, Spain, Russia and Others), APAC (China,
Japan India, SK, Aus and Others), and RoW (Middle east and Africa).
Key Takeaways
- Bidirectional charging is anticipated to witness the fastest market growth during the forecast period, due to its various advantages over the unidirectional charging.
- Europe held the major market share in 2020, owning to the growing demand for electric vehicles and increasing governments initiatives for the promotion of EVs.
- The market of Vehicle to Grid (V2G) is estimated to witness a significant upsurge during the forecast period, owing to the growing demand for EVs and its supporting infrastructure.
- This industry is consolidated with top market players including AC Propulsion, Inc., Edison International., DENSO Co., Boulder Electric Vehicle, Nissan Motor Corporation among others.
Vehicle to Grid (V2G) Market Value Share, by Geography, 2020 (%)
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Vehicle to Grid (V2G) Market Segment Analysis - By Charging Type
By charging type, the vehicle to grid (V2G) market
is segmented into Unidirectional Charging and Bidirectional Charging. Bidirectional Charging is analysed to grow at a fastest CAGR
of 5.12% among the entire segment of charging type during the forecast period
2021-2026. Unlike Unidirectional charging of EVs, with Bidirectional charging
of EVs, the electricity can flow both the ways, i.e., from vehicle to grid and
grid to vehicle. This helps during the peak period of demand of electricity.
Such advantage of bidirectional charging over unidirectional charging is the
main driving factor contributing towards the growth of this market. In April 2021, Volkswagen announced
about its plan to enable bidirectional charging on all the EVs from Volkswagen
on its MEB platform from 2022. Hence, the above-mentioned factors are set to boost the
market growth for Vehicle to Grid (V2G) market by driving the growth rate of
bidirectional charging during the forecast period 2021-2026.
Vehicle to Grid (V2G) Market Segment Analysis - By End User
Based on end user, Vehicle to Grid
(V2G) market is segmented into Battery Electric Vehicles (BEVs), Plug-In Hybrid
Electric Vehicles (PHEVs), Fuel Cell Vehicles (FCVs) and others. According to Vehicle
to Grid (V2G) market report of IndustryARC, Plug-In Hybrid Electric Vehicles
(PHEVs) segment is anticipated to witness significant amount of growth with a
CAGR of 5.26% in the forecast period 2021-2026. Plug-In Hybrid Electric
Vehicles (PHEVs) offers many benefits over the other segments such as better
driving range, less petroleum consumption, lesser greenhouse gas emissions and
others. PHEVs can operate easily on electricity or gasoline alone as well as on
the mixture of both, which makes it more suitable for longer drives.
Furthermore, it has a larger battery size with higher energy storage capacity
and can return much more amount of energy to back to the grid, which affects
the growth of this market significantly. In July 2021, Mitsubishi Motors
announced its plan of launching a plug-in hybrid (PHEV) model of the
all-new Outlander1, a crossover SUV, fully evolved with a new-generation PHEV
system. In June 2020, Toyota introduced new model RAV4 plug-in hybrid
electric vehicle (PHEV) through dealerships in Japan, to boost the fun-to-drive
appeal of RAV4 by adopting the newly developed Toyota Hybrid System (THS II).
Similarly, in November 2020, Korean car manufacturer, Hyundai announced the
plan of launching 10 new hybrid, PHEV and electric vehicles, including 7 SUVs
by the end of 2022. Hence, the rising popularity of PHEVs for being more user-friendly
along with its benefits over the BEVs, new product launches along with the
increasing investments for the growth PHEVs market by the top players have
significant potential to drive the market in the forecast period 2021-2026.
Vehicle to Grid
(V2G) Market Segment
Analysis - By Geography
Europe dominated the vehicle to grid
market in 2020 with the highest vehicle to grid (V2G) market share close to 33%
followed by North America and this region is estimated to witness a significant
amount of growth during the forecast period 2021-2026, due to high investment
in electric vehicle production and increasing government initiatives for the
adoption of eco-friendly EVs and its supporting infrastructures. In February
2021, Ford invested $1 billion to transform its Cologne, German based factory
into an EV production factory. Similarly, in November 2020, German based
Company, Tier had raised a fund worth $250 million led by SoftBank. In April
2021, European e-scooter and micro-mobility Start-up Company, Dott got $85
million funding and is planning to launch e-bikes throughout London in the next
summers. Such investments create a huge amount of requirements for EV charging
stations in this region, which in turn drives the growth of Vehicle-to-Grid
(V2G) market and to meet such growing requirement major players of this region are
taking strategic steps, which is fuelling the growth of this market. In May
2021, Nuvve teamed up with the Danish charging solution provider Spirii, to
integrate the platforms of these two companies in order to provide
unidirectional grid services and bidirectional customer offers for electric
vehicle (EV) fleets in Denmark, the Nordics and northern Europe. Hence, the above-mentioned
factors will drive the growth of this market during 2021-2026.
Vehicle to Grid (V2G) Market Drivers
Growing Investment and Demand for Electric Vehicles and its supporting infrastructure is driving the growth of this market
With time the investment and the demand for electric vehicles (EVs) is
rising due to its eco-friendly benefits, as it reduces the pollution level
tremendously, thereby having its own health benefits; it’s far safer than other
vehicles and saves invaluable resources as well. These are a few of the major
factors causing the increasing investment and demand for Electric vehicles, which
is positively affecting the demand of the EV supporting infrastructure
including charging centres. This in turn drives the growth of vehicle-to-grid
market. In June 2020, the UK government announced about their investment of
$91.3M to automotive industry to develop cutting edge EV technology. In October
2019, TechPro announced about their $10M investment in India for the R&D of
electric vehicles and supporting infrastructure. Such investments are creating
higher demand of vehicle-to-grid services. In August 2021, French Utility
company, EDF announced about its partnership with Japanese automakers, Nissan,
for the launch of a new commercial vehicle-to-grid (V2G) charging services for
electric vehicle (EV) fleet operators across UK. Such strategic steps taken by
the organizations of this industry are set to boost the growth of
vehicle-to-grid (V2G) market during the forecast period.
Governments’ Initiatives to promote the adoption of EVs and for the EV charging stations will boost the growth
Governments’ initiatives for the
adoption of EVs and emission regulatory acts regarding environmental issues
coupled with growing environmental awareness in public, play a key role in the
growth of this market. In August 2020, the UK government awarded approximately $1.7
million to two electric vehicle (EV) charging projects, in order to help them
in utilising the electricity, when it’s at its cheapest and help balance the
grid. In September 2019, the Dutch government announced about their planning
related to the investment of $6 million in a scheme to install vehicle-to-grid-
(V2G) charging points across the country. Apart from this, the Ministry of
Infrastructure and Water Management announced that the government intends to
support companies looking to install V2G chargers, to lessen the strain on the national
grid of the country. Such initiatives will accelerate the growth of this market
during 2021-2026.
Vehicle to Grid (V2G) Market Challenges
Lack in Investment and High Initial Cost harming the growth of Vehicle to Grid (V2G) industry:
Even though the vehicle
to grid (V2G) market is growing rapidly, but the high initial cost and lack of
investment are a few of the major issues faced by this market. V2G is not a cheap
source when compared to large power plant power generation and requires huge
investments which is a major concern for the growth of this market. Furthermore,
the initial cost of setting up a new EV changing station is very high which
also harms the growth of this market. Hence, these challenges are poised to
impede the growth of Vehicle to Grid (V2G) market during the forecast period
2021-2026.
Vehicle to Grid (V2G) Market Landscape
Partnerships and
acquisitions along with product launches are the key strategies adopted by the
players in the Vehicle to Grid (V2G) Market. As of 2020, the market for Vehicle
to Grid (V2G) industry outlook is consolidated with the top market players. Vehicle
to Grid (V2G) top 10 companies include:
- AC Propulsion, Inc.
- Edison International.
- DENSO Co.
- Boulder Electric Vehicle
- Nissan Motor Corporation
- EnerDel, Inc.
- EV Grid, Inc.
- Hitachi, Ltd
- NRG Energy, Inc.
- OVO Energy Ltd.
Acquisitions/Technology Launches/Partnerships
- In March 2021, Marubeni Corporation announced the launch of a proof of concept (PoC) for vehicle-to-grid (V2G) and vehicle-to-building (V2B), alongside Origami Energy, Grid Edge, Smartest Energy and Virta.
- In June 2020, Western Power Distribution (WPD) teamed up with Crowdcharge and jointly launched the next phase of electric nation with a new vehicle-to-grid (V2G) trial across the Midlands, South West and South Wales.
Relevant Report Titles:
Automotive Battery Market – Forecast (2021 -
2026)
Report Code: ESR 0086
Smart Grid Market – Forecast (2021 - 2026)
Report Code: ITR 11758
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