The U.S. vehicle-to-grid technology market size was estimated at USD 0.96 billion in 2023 and is predicted to hit around USD 46.21 billion by 2033, growing at a CAGR of 47.42% from 2024 to 2033.
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Through the use of vehicle-to-grid technology, plug-in electric vehicles such as batteries, plug-in hybrid, or hydrogen cell, can now connect to the power grid and get a charge. It also makes it possible for electric cars to store and release electricity produced by renewable energy sources like wind and solar power. But this is still an emerging technology that hasn't seen widespread commercialization. Utilizing underutilized electricity from the automobile, vehicle-to-grid (V2G) technology, also known as vehicle-grid integration (VGI) technology, transfers it to the smart grid. According to estimates, the technology can assist in achieving sustainable energy targets in the near future, such as aiming for zero carbon emissions.
|Growth Rate from 2024 to 2033
|CAGR of 47.42%
|U.S. Market Size in 2023
|USD 0.96 Billion
|U.S. Market Size by 2033
|USD 46.21 Billion
|2024 to 2033
|By Component Type and By Application Type
Driver: Increasing sales of electric cars (EVs)
The U.S. vehicle-to-grid technology market is now seeing unprecedented growth due to the rise in EV purchases, which is also propelling the shift towards cleaner and more sustainable energy solutions. The idea of deploying electric vehicles (EVs) as mobile energy storage units is central to the V2G concept. These cars can be hooked up to the grid while not in use, which would enable the batteries to store extra energy produced by renewable sources.
The increasing acceptance and knowledge of EVs among consumers is driving a comparable trend for V2G systems. Additionally, as customers learn more about EVs and their advantages, the concept of V2G is gaining popularity. Car batteries are becoming more and more acceptable to owners as a means of storing and transferring energy in addition to being used for driving. The V2G market in the United States is growing as a result of this change in customer perception and behavior.
Restraint: Standardization and battery degradation concerns
One major obstacle could be the absence of established protocols and compatibility across various V2G systems. To ensure that V2G-enabled electric cars can interact with different grid management systems and charging infrastructure, standardization is essential. Furthermore, there are worries regarding rapid battery deterioration due to the bidirectional usage of electric car batteries for grid services.
The long-term condition and longevity of the vehicle's battery may be impacted by the frequent charge-discharge cycles connected to V2G activities. It is imperative to tackle these issues to guarantee the financial sustainability of V2G systems. Thus, the standardization and battery degradation concerns act as a major restraint for the U.S. Vehicle-to-Grid Technology Market over the projected period.
Opportunity: Rising acceptance of smart grids
The U.S. vehicle-to-grid technology market is undergoing a positive and revolutionary shift due to the growing popularity of smart grids. Smart grids' primary advantage is their capacity to intelligently balance energy supply and demand, improving the stability, dependability, and efficiency of the system. V2G networks contribute to this strength by serving as a versatile energy source. EVs that are linked to the smart grid can store excess energy during times of low demand and reintegrate it into the system during moments of peak demand.
This capacity to distribute electricity efficiently and avoid blackouts or problems with power quality is greatly aided by the ability to balance the load. Furthermore, the usage of renewable energy sources is encouraged by the spread of smart grids, which is essential for V2G technology. Solar and wind power integration is something that smart grids are made to better handle and accept. Therefore, the increasing acceptance of smart grids is expected to offer a lucrative opportunity for the U.S. vehicle-to-grid technology market over the projected period.
The electric vehicle supply equipment (EVSE) segment held the largest share of the market in 2023 owing to the rising EVSE infrastructure development.
A strong EVSE infrastructure is essential for the viability of V2G technology. It is important to provide bidirectional charging stations so that electric vehicles may return energy to the grid. It is essential to invest in the creation of bidirectional EVSE infrastructure to facilitate the expansion of V2G services. Installing intelligent charging stations with the ability to control bidirectional power flow is required for this.
Additionally, government incentives and regulations play a crucial role in promoting the integration of V2G technology and bidirectional charging. Financial incentives, tax credits, and supportive policies can encourage the deployment of EVSE infrastructure that supports V2G services. Thereby, driving the segment expansion in the U.S. vehicle-to-grid technology market.
The battery electric vehicles (BEVs) segment held the largest share of the market and expected to sustain the position throughout the forecast period. V2G technology is most effective when electric vehicles are equipped with bidirectional charging capabilities. V2G-enabled BEVs can participate in grid services, providing support during peak demand, helping with grid stabilization, and offering other ancillary services.
Moreover, V2G technology, when coupled with BEVs, can enhance the integration of renewable energy sources. This factor promotes the growth of the segment in the U.S. vehicle-to-grid technology market. Electric vehicles can store excess energy from renewables during periods of high production and release it when renewable generation is low, contributing to grid stability. Thereby driving the segment growth.
Segments Covered in the Report
By Component Type
By Application Type
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