February 25, 2024
Vehicle To Grid Technology Market

Growing Investment In Renewable Energy Sector To Boost 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 enables two-way transmission of electricity between plug-in electric vehicles and the power grid. With V2G technology, electric vehicles can store energy from the grid and return it back to the grid when required. This helps in balancing demand supply fluctuations and utilizes excess renewable energy that may otherwise go to waste. It is gaining popularity as it creates value for utilities, EV owners, automakers and support the growth of renewable energy sources like solar and wind.

Market key trends:

Growing investment in renewable energy sector has boosted the adoption of V2G technology. Renewable energy sources like solar and wind are intermittent in nature. V2G helps to store excess renewable energy in EV batteries which can be discharged back to the grid during peak demand hours or when renewable energy production is low. This helps in better management of renewable capacity and cost savings for utilities. Rising demand for EVs globally is also propelling the need for V2G technology as it creates additional value for EV owners by allowing them to earn from feeding electricity back to the grid. Automakers are also developing partnerships and launching pilots programs to advance V2G technology.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in vehicle to grid technology market is moderate as it requires high initial investment for R&D and infrastructure development. However, the opportunities in the market are attracting new players.

Bargaining power of buyers: The bargaining power of buyers is moderate as there are availability of various vehicle to grid technology providers. Buyers can negotiate on pricing and features.

Bargaining power of suppliers: The bargaining power of suppliers is low due to availability of various component suppliers. Suppliers do not have control over pricing.

Threat of new substitutes: There is low threat from substitutes as vehicle to grid technology facilitates reverse power flow and provides superior benefits over other energy storage technologies.

Competitive rivalry: The competitive rivalry is high among existing players to gain higher market share with focus on product innovation, branding and partnerships.

Key Takeaways

The Global Vehicle To Grid Technology Market Size is expected to witness high growth, exhibiting CAGR of 43.9% over the forecast period, due to increasing demand for renewable energy storage and integration of electric vehicles.

Regionally, North America dominates the global vehicle to grid technology market and is expected to continue its dominance during the forecast period. This is attributed to supportive government policies and high investments in V2G projects in the US and Canada. Growing concerns regarding carbon emissions are also propelling the adoption of V2G technologies in the region.

Key players operating in the vehicle to grid technology market are 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, Volvo Group. The major players are focusing on partnerships, collaborations and new product launches to gain competitive advantage in the market. For instance, in 2022, Nissan partnered with ENGIE to promote vehicle-to-grid integration in Europe.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it